UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES
Investment Company Act file number 811-04149
_Franklin Tax-Free Trust
(Exact name of registrant as specified in charter)
_One Franklin Parkway, San Mateo, CA | 94403-1906 | |
(Address of principal executive offices) | (Zip code) | |
_Craig S. Tyle, One Franklin Parkway, San Mateo, CA | 94403-1906 | |
(Name and address of agent for service) |
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Registrant's telephone number, including area code: (650) 312-2000
Date of fiscal year end: _2/29
Date of reporting period: 2/29/20
Item 1. Reports to Stockholders.
Internet Delivery of Fund Reports Unless You Request Paper Copies: Effective January 1, 2021, as permitted by the SEC, paper copies of the Fund's shareholder reports will no longer be sent by mail, unless you specifically request them from the Fund or your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. If you have not signed up for electronic delivery, we would encourage you to join fellow shareholders who have. You may elect to receive shareholder reports and other communications electronically from the Fund by calling (800) 632-2301 or by contacting your financial intermediary.
You may elect to continue to receive paper copies of all your future shareholder reports free of charge by contacting your financial intermediary or, if you invest directly with a Fund, calling
(800)632-2301 to let the Fund know of your request. Your election to receive reports in paper will apply to all funds held in your account.
SHAREHOLDER LETTER
Dear Shareholder:
During the 12 months ended February 29, 2020, the U.S. economy continued to grow, but at a more moderate pace mainly due to concerns about trade. The U.S. Federal Reserve (Fed) lowered the federal funds rate by 0.25% at each of its July, September and October 2019 meetings, decreasing the rate from 2.50% to 1.75% by period-end, citing muted inflation pressures, some soft business indicators and the potential effects of global developments on the U.S. economy.
During the 12-month period, municipal bonds delivered positive total returns as investors were attracted to tax-free income in a declining interest-rate environment. Factors contributing to this positive investment environment for municipals included relatively low inflation, interest-rate declines, increased employment and the relative strength of the U.S. economy.
After the reporting period, the Fed, in efforts to maintain U.S. economic strength amid risks posed by the novel coronavirus (COVID-19) outbreak, lowered the federal funds rate by 0.50% on March 3 and further by 1.00% on March 15, decreasing the rate to 0.25%, while initiating quantitative easing. U.S. equity markets continued to sell off during the remainder of March, given the economic slowdown caused by COVID-19, and municipal bond valuations modestly declined overall.
Franklin Tax-Free Trust's annual report includes more detail about municipal bond market conditions and a discussion from the portfolio managers. In addition, on our website, franklintempleton.com, you can find updated commentary by our municipal bond experts. Municipal bonds provide tax-free income and diversification from equities. Despite periods of volatility, municipal bonds historically have had a solid long-term record of performance, driven mostly by their compounding tax-free income component. As you know, all securities markets fluctuate, as do mutual fund share prices.
As always, we recommend investors consult their financial advisors to help them make the best decisions for the long term. In a constantly changing market environment, we remain committed to our disciplined strategy as we manage the Funds, keeping in mind the trust you have placed in us.
We appreciate your confidence in us and encourage you to contact us or your financial advisor when you have questions about your Franklin tax-free investment.
Sincerely,
Rupert H. Johnson, Jr.
Chairman
Franklin Tax-Free Trust
Sheila Amoroso
Senior Vice President and Director
Franklin Municipal Bond Department
This letter reflects our analysis and opinions as of February 29, 2020, unless otherwise indicated. The information is not a complete analysis of every aspect of any market, state, industry, security or fund. Statements of fact are from sources considered reliable.
Not FDIC Insured | May Lose Value | No Bank Guarantee
franklintempleton.com | Not part of the annual report | 1 |
Contents |
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Annual Report |
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Municipal Bond Market Overview . . . . . . . . . . . . . . . . . . . . . . | 3 |
Investment Strategy and Manager's Discussion . . . . . . . . | 5 |
Franklin Arizona Tax-Free Income Fund . . . . . . . . . . . . . . . | 6 |
Franklin Colorado Tax-Free Income Fund . . . . . . . . . . . . . . | 12 |
Franklin Connecticut Tax-Free Income Fund . . . . . . . . . . . | 18 |
Franklin Michigan Tax-Free Income Fund . . . . . . . . . . . . . . | 24 |
Franklin Minnesota Tax-Free Income Fund. . . . . . . . . . . . . | 30 |
Franklin Ohio Tax-Free Income Fund . . . . . . . . . . . . . . . . . . | 36 |
Franklin Oregon Tax-Free Income Fund. . . . . . . . . . . . . . . . | 42 |
Franklin Pennsylvania Tax-Free Income Fund . . . . . . . . . . | 48 |
Financial Highlights and Statements of Investments. . . . | 54 |
Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 143 |
Notes to Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . | 153 |
Report of Independent Registered |
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Public Accounting Firm. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 170 |
Board Members and Officers . . . . . . . . . . . . . . . . . . . . . . . . . . | 172 |
Shareholder Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 177 |
Visit franklintempleton.com for fund updates, to access your account, or to find helpful financial planning tools.
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2 | Annual Report | franklintempleton.com |
ANNUAL REPORT
Municipal Bond Market Overview
The financial markets experienced volatility during the 12 months ended February 29, 2020. Trade disputes, uncertainties about the prospects for global economic growth and speculations on major central banks' future policy decisions weighed on financial markets throughout the period. U.S. equities experienced heightened volatility, most notably in the final two weeks of the period, as fears grew about a global outbreak of the novel coronavirus (COVID-19), which contributed to a flight to perceived quality that benefited high-quality fixed income assets such as municipal bonds and U.S. Treasuries. Municipal bonds posted positive returns in 11 of the 12 months under review. Overall, municipal bonds outperformed U.S. equities, but underperformed the U.S. Treasury and corporate bond markets.
Investment-grade municipal bonds, as measured by the Bloomberg Barclays Municipal Bond Index, posted a +9.46% total return for the 12-month period, while U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, posted a +12.15% total return, and investment-grade corporate bonds, as measured by the Bloomberg Barclays U.S. Corporate Bond Index, posted a +15.81% total return.1 All three of these fixed income sectors outperformed U.S. stocks, as measured by the Standard & Poor's® 500 Index, which posted a +8.19% total return for the period.1
Municipal bonds with long maturities generally outperformed municipal bonds with shorter maturities during the 12-month period. The best-performing maturity group in the Bloomberg Barclays Municipal Bond Index was the long (22+ years) bond group, which posted a +14.00% total return for the period.1 Within investment- grade municipal bonds, lower-quality bonds posted stronger returns than their higher-quality counterparts. High-yield municipal bonds generally outperformed investment-grade municipal bonds, with the Bloomberg Barclays High Yield Municipal Bond Index posting a +14.40% total return, compared with a +9.46% total return for the Bloomberg Barclays Municipal Bond Index.1
Municipal issuance during the reporting period totaled approximately $438 billion, a 25% increase from total issuance for the preceding 12-month period.2 New issuance totaled approximately $68 billion during the first
two months of calendar-year 2020, a 32% increase from the same period in 2019.2 Over the period, taxable municipal bond issuance increased as issuers took advantage of historically low interest rates to advance tax-exempt debt refundings. In calendar-year 2019, taxable issuance totaled approximately $70 billion, a 135% increase from 2018.2
The Investment Company Institute reported positive municipal bond mutual fund flows during each month over the 12-month period under review. During the period, total net inflows recorded a robust total of approximately
$97 billion.3 Calendar-year 2019 ended as one of the strongest years on record for positive net inflows into the municipal bond asset class as investor demand for tax-exempt income surged. Given the global economic uncertainty and municipal bonds' generally high credit quality and favorable tax treatment, we expect investor demand to remain healthy.
The U.S. Federal Reserve (Fed) lowered its target range for the federal funds rate by 0.25%, three times over the period, at the July, September and October 2019 meetings. The target range for the federal funds rate was 1.50–1.75% at period-end. In its press release following the October decision, the Fed cited muted inflation pressures and global growth concerns as the primary catalysts for the decision. The Fed noted, however, that the labor market remained strong and economic activity rose at a moderate pace. On February 28, 2020, Fed Chair Jerome Powell indicated the Fed was prepared to use its tools as appropriate to support the U.S. economy amid the economic risks posed by the COVID-19 outbreak, although economic fundamentals remained robust.
At period-end, we maintained our positive view of the municipal bond market. We believe municipal bonds continue to be an attractive asset class among fixed income securities, and we intend to follow our disciplined approach of investing to maximize income, while seeking value in the municipal bond market.
1.Source: Morningstar. Treasuries, if held to maturity, offer a fixed rate of return and a fixed principal value; their interest payments and principal are guaranteed.
2.Source: The Bond Buyer, Thomson Reuters.
3.Source: Investment Company Institute. See
www.franklintempletondatasources.com for additional data provider information.
franklintempleton.com | Annual Report | 3 |
FRANKL IN TAX-FREE TRUST
MUNICI PAL BOND MARK E T OVERVIEW
The foregoing information reflects our analysis, opinions and portfolio holdings as of February 29, 2020, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.
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4 | Annual Report | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
Investment Strategy and Manager's Discussion
Investment Strategy
We use a consistent, disciplined strategy with the objective of maximizing tax-free income and capital preservation by focusing on credit selection. We seek to maintain exposure to securities that produce high tax-free income, while balancing risk and return within each Fund's range of allowable investments. We do not purchase high-yield securities in our investment-grade funds, however if a security is downgraded we are not required to sell it. Our security selection process includes purchasing securities that we believe are undervalued in the market and which have met our credit selection criteria. We do not use leverage or derivatives, which could add volatility and contribute to underperformance in adverse markets.
The foregoing information reflects our analysis, opinions and portfolio holdings as of February 29, 2020, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.
Manager's Discussion
Due to the positive sloping municipal yield curve, we found value in higher quality securities in the 15–30 year maturity range, which allowed us to achieve our objective of maximizing income for our investors. Typically, when interest rates fall, our turnover declines as we maintain exposure to securities that are producing income that exceeds their replacement value in the market. This excess income supports higher distribution rates and reinvestment rates for those investors taking advantage of tax-free compounding. Our turnover increases when rates rise, as opportunities to purchase securities that have the potential to increase income in the portfolios become available. We believe our consistent, disciplined strategy can help our investors achieve high, tax-free income over the long term.
We invite you to read your Fund report for more detailed performance and portfolio information. Thank you for your participation in Franklin Tax-Free Trust. We look forward to serving your future investment needs.
franklintempleton.com | Annual Report | 5 |
Franklin Arizona Tax-Free Income Fund
This annual report for Franklin Arizona Tax-Free Income | Dividend Distributions* |
Fund covers the fiscal year ended February 29, 2020. | 3/1/19–2/29/20 |
| Dividend per Share (cents) |
Your Fund's Goal and Main Investments
| Class | Class |
| Advisor |
Month | A | A1 | Class C Class R6 | Class |
The Fund seeks to provide as high a level of income exempt from federal and Arizona personal income taxes as is
consistent with prudent investment management and
preservation of capital by investing at least 80% of its net assets in securities that pay interest free from such taxes.1
Credit Quality Composition* 2/29/20
| % of Total |
Ratings | Investments |
AAA | 5.39% |
| March | 2.6600 | 2.8000 | 2.3000 | 2.9000 | 2.8800 | |
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| April** | 3.5000 | 3.6400 | 3.1400 | 3.7400 | 3.7200 | |
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| May | 2.6885 | 2.8173 | 2.3537 | 2.9451 | 2.9179 | |
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| June | 2.3810 | 2.5012 | 2.0785 | 2.6163 | 2.5929 | |
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| July | 2.6322 | 2.7769 | 2.2776 | 2.9096 | 2.8829 | |
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| August | 2.4062 | 2.5372 | 2.0767 | 2.6607 | 2.6358 | |
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| September | 2.4754 | 2.6137 | 2.1398 | 2.7460 | 2.7143 |
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| October | 2.4383 | 2.5751 | 2.0960 | 2.7086 | 2.6771 |
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| November | 2.2751 | 2.4032 | 1.9596 | 2.5276 | 2.4983 |
AA | 57.17% | December | 2.5219 | 2.6606 | 2.1733 | 2.7955 | 2.7651 |
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A | 22.60% | January | 2.3954 | 2.5314 | 2.0544 | 2.6626 | 2.6329 |
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BBB | 8.08% | February | 2.1196 | 2.2433 | 1.8031 | 2.3514 | 2.3369 |
| Refunded | 5.27% | |
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| Not Rated | 1.49% |
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*Securities, except for those labeled Not Rated, are assigned ratings by one or more Nationally Recognized Statistical Credit Rating Organizations (NRSROs), such as Standard & Poor's, Moody's and Fitch, that can be considered by the investment manager as part of its independent securities analysis. When ratings from multiple agencies are available, the highest is used, consistent with the portfolio investment process. Ratings reflect an NRSRO's opinion of an issuer's creditworthiness and typically range from AAA (highest) to D (lowest). The Below Investment Grade category consists of bonds rated below BBB-. The Refunded category generally consists of refunded bonds secured by U.S. government or other high-quality securities and not rerated by an NRSRO. The Not Rated category consists of ratable securities that have not been rated by an NRSRO. Cash and equivalents are excluded from this composition.
Performance Overview
The Fund's Class A share price, as measured by net asset value, increased from $10.58 on February 28, 2019, to $11.24 on February 29, 2020. The Fund's Class A shares paid dividends totaling 30.4936 cents per share for the reporting period.2 The Performance Summary beginning on page 8 shows that at the end of this reporting period the Fund's Class A shares' distribution rate was 2.18% based on an annualization of February's 2.1196 cents per share dividend and the maximum offering price of $11.68 on
Total | 30.4936 32.0999 26.4527 | 33.5634 33.2541 |
*The distribution amount is the sum of all net investment income distributions for the period shown. Assumes shares were purchased and held for the entire accrual period. Since dividends accrue daily, your actual distributions will vary depending on the date you purchased your shares and any account activity. All Fund distributions will vary depending upon current market conditions, and past distributions are not indicative of future trends.
**Includes a 0.84 cent per share supplemental distribution.
February 29, 2020. An investor in the 2020 maximum combined effective federal and Arizona personal income tax bracket of 45.34% (including 3.80% Medicare tax) would need to earn a distribution rate of 3.99% from a taxable investment to match the Fund's Class A tax-free distribution rate. For other performance data, please see the Performance Summary. Dividend distributions were affected by low interest rates during the period. This and other factors resulted in reduced income for the portfolio and caused dividends to be lower at the end of the period.
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from
1.For state personal income taxes, the 80% minimum is measured by total Fund assets. For investors subject to alternative minimum tax, a small portion of Fund dividends may be taxable. Distributions of capital gains are generally taxable. To avoid imposition of 28% backup withholding on all Fund distributions and redemption proceeds, U.S. investors must be properly certified on Form W-9 and non-U.S. investors on Form W-8BEN.
2.The distribution amount is the sum of all estimated tax-basis net investment income distributions for the period shown. Assumes shares were purchased and held for the entire accrual period. Since dividends accrue daily, your actual distributions will vary depending on the date you purchased your shares and any account activity. All Fund distributions will vary depending upon current market conditions, and past distributions are not indicative of future trends.
The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund's Statement of Investments (SOI). The SOI begins on page 59.
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6 | Annual Report | franklintempleton.com |
F R A N K L IN ARIZON A TAX - FREE INCOME FUN D
figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
State Update
During the 12 months under review, Arizona's economy grew although, like most states, at a slower pace after the first quarter of 2019. Since the past recession, Arizona's economy has generated steady growth, and its liquidity has notably improved. The state's unemployment rate dropped from 4.9% in February 2019 to 4.5% at period-end, but remained above the nation's 3.5% average.3
Arizona ended its fiscal year (FY) 2019 on June 30, 2019, with a surplus. Reserves were driven by strong revenue growth. General fund revenues benefited in particular from record contributions from sales, individual income and insurance premium tax collections. The forecasted budget is structurally balanced, as ongoing revenues are projected to top ongoing spending for FY 2020. The state's net tax-supported debt was $559 per capita and 1.4% of personal income, below the $1,068 and 2.2% national medians, respectively.4
Arizona does not issue general obligation bonds but, rather, issues appropriation-backed lease debt and revenue bonds. On November 19, 2019, the independent credit rating agency Moody's Investor Service (Moody's) upgraded the state's issuer rating from Aa2 to Aa1 with a stable outlook.5 The Aa1 rating reflected Moody's view of the state's continued economic growth, rebuilding of reserves, debt reduction, below-average pension liabilities, and budget discipline, balanced by constitutional restrictions limiting financial flexibility.
Manager's Discussion
We used various investment strategies during the 12 months under review as we sought to maximize tax-free income for shareholders. Please read the Investment Strategy and Manager's Discussion on page 5 for more information.
Thank you for your continued participation in Franklin Arizona Tax-Free Income Fund. We believe our conservative, buy-and-hold investment strategy can help us achieve high, current, tax-free income for shareholders.
Portfolio Composition 2/29/20
| % of Total | |
| Investments* | |
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Utilities | 24.79% | |
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Higher Education | 15.70% | |
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Hospital & Health Care | 14.24% | |
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Refunded** | 9.71% | |
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Transportation | 9.34% | |
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Tax-Supported | 8.96% | |
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Housing | 5.23% | |
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Other Revenue | 4.80% | |
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General Obligation | 4.30% | |
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Subject to Government Appropriations | 2.93% |
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*Does not include cash and cash equivalents.
**Includes all refunded bonds; the percentage may differ from that in the Credit Quality Composition.
The foregoing information reflects our analysis, opinions and portfolio holdings as of February 29, 2020, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.
3.Source: Bureau of Labor Statistics.
4.Source: Moody's Investors Service, "State government – US: Medians – Flat debt total signals cautious borrowing, despite infrastructure needs," 6/3/19.
5.This does not indicate Moody's rating of the Fund.
franklintempleton.com | Annual Report | 7 |
F R A N K L IN ARIZON A TAX - FREE INCOME FUN D
Performance Summary as of February 29, 2020
The performance tables and graphs do not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares. Total return reflects reinvestment of the Fund's dividends and capital gain distributions, if any, and any unrealized gains or losses. Your dividend income will vary depending on dividends or interest paid by securities in the Fund's portfolio, adjusted for operating expenses of each class. Capital gain distributions are net profits realized from the sale of portfolio securities.
Performance as of 2/29/20
Cumulative total return excludes sales charges. Average annual total return includes maximum sales charges. Sales charges will vary depending on the size of the investment and the class of share purchased. The maximum is 3.75% and the minimum is 0%. Class A: 3.75% maximum initial sales charge; Advisor Class: no sales charges. For other share classes, visit franklintempleton.com.
| Cumulative | Average Annual | |
Share Class | Total Return1 | Total Return2 | |
A3,4 |
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1-Year | +9.24% | +5.15% |
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5-Year | +18.27% | +2.63% |
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10-Year | +51.39% | +3.84% |
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Advisor |
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1-Year | +9.50% | +9.50% |
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5-Year | +19.00% | +3.54% |
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10-Year | +53.06% | +4.35% |
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| Distribution | Taxable Equivalent |
| Taxable Equivalent | |
Share Class | Rate5 | Distribution Rate6 | 30-Day Standardized Yield7 | 30-Day Standardized Yield6 | |
A | 2.18% | 3.99% | 0.91% | 1.66% |
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Advisor | 2.49% | 4.56% | 1.19% | 2.18% |
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Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
See page 10 for Performance Summary footnotes.
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8 | Annual Report | franklintempleton.com |
FRANKL IN ARIZONA TAX-FREE INCOME FUN D
PERFORMANCE SUM M A RY
Total Return Index Comparison for a Hypothetical $10,000 Investment
Total return represents the change in value of an investment over the periods shown. It includes any applicable maximum sales charge, Fund expenses, account fees and reinvested distributions. The unmanaged indexes include reinvestment of any income or distributions. They differ from the Fund in composition and do not pay management fees or expenses. One cannot invest directly in an index.
Class A (3/1/10–2/29/20)
$16,000 |
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| $15,538 |
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$14,000 |
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| $14,571 |
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$12,000 |
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| $11,935 |
$10,000 |
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$8,000 |
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3/10 | 2/12 | 2/14 | 2/16 | 2/18 | 2/20 |
Franklin Arizona | Bloomberg Barclays | Consumer Price Index9 | |||
Tax-Free Income Fund | Municipal Bond Index8 |
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Advisor Class (3/1/10–2/29/20) |
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$16,000 |
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| $15,538 |
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| $15,306 |
$14,000 |
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$12,000 |
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| $11,935 |
$10,000 |
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$8,000 |
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3/10 | 2/12 | 2/14 | 2/16 | 2/18 | 2/20 |
Franklin Arizona | Bloomberg Barclays | Consumer Price Index9 | |||
Tax-Free Income Fund | Municipal Bond Index8 |
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See page 10 for Performance Summary footnotes.
franklintempleton.com | Annual Report | 9 |
FRANKL IN ARIZONA TAX-FREE INCOME FUND
PERFORMANCE SUM M A RY
Distributions (3/1/19–2/29/20) |
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| Net Investment |
Share Class | Income |
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A | $0.304936 |
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A1 | $0.320999 |
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C | $0.264527 |
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R6 | $0.335634 |
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Advisor | $0.332541 |
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Total Annual Operating Expenses10 | |
Share Class |
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A | 0.81% |
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Advisor | 0.56% |
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Each class of shares is available to certain eligible investors and has different annual fees and expenses, as described in the prospectus.
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 invests principally in a single state, it is subject to greater risk of adverse economic and regulatory changes in that state than a geographically 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. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund's prospectus also includes a description of the main investment risks.
1.Cumulative total return represents the change in value of an investment over the periods indicated.
2.Average annual total return represents the average annual change in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.
3.Effective 9/10/18, Class A shares closed to new investors, were renamed Class A1 shares, and a new Class A share with a different expense structure became available. Class A performance shown has been calculated as follows: (a) for periods prior to 9/10/18, a restated figure is used based on the Fund's Class A1 performance that includes any Rule 12b-1 rate differential that exists between Class A1 and Class A; and (b) for periods after 9/10/18, actual Class A performance is used, reflecting all charges and fees applicable to that class.
4.Prior to 3/1/19, these shares were offered at a higher initial sales charge of 4.25%, thus actual returns (with sales charges) would have differed. Average annual total returns (with sales charges) have been restated to reflect the current maximum initial sales charge of 3.75%.
5.Distribution rate is based on an annualization of the respective class's February dividend and the maximum offering price (NAV for Advisor class) per share on 2/29/20.
6.Taxable equivalent distribution rate and yield assume the published rates as of 12/19/19 for the maximum combined effective federal and Arizona personal income tax rate of 45.34%, based on the federal income tax rate of 37.00% plus 3.80% Medicare tax.
7.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.
8.Source: Morningstar. The Bloomberg Barclays Municipal Bond Index is a market value-weighted index engineered for the long-term tax-exempt bond market. To be included in the index, bonds must be fixed rate, have at least one year to final maturity and be rated investment grade (Baa3/BBB- or higher) by at least two of the following agencies: Moody's, S&P and Fitch.
9.Source: Bureau of Labor Statistics, bls.gov/cpi. The Consumer Price Index is a commonly used measure of the inflation rate.
10.Figures are as stated in the Fund's current prospectus and may differ from the expense ratios disclosed in the Your Fund's Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown. See www.franklintempletondatasources.com for additional data provider information.
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10 | Annual Report | franklintempleton.com |
FRANKLIN ARIZONA TAX-FREE INCOME FUND
Your Fund's Expenses
As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including sales charges (loads) on Fund purchases and redemptions; and (2) ongoing Fund costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other mutual funds. The table assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table below provides information about actual account values and actual expenses in the columns under the heading "Actual." In these columns the Fund's actual return, which includes the effect of Fund expenses, is used to calculate the "Ending Account Value" for each class of shares. You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row for your class of shares under the headings "Actual" and "Expenses Paid During Period" (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.
Hypothetical Example for Comparison with Other Funds
Under the heading "Hypothetical" in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading "Hypothetical" is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
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| Actual | Hypothetical |
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| (actual return after expenses) | (5% annual return before expenses) |
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| Expenses |
| Expenses |
| Net | |
| Beginning |
| Ending | Paid During | Ending | Paid During | Annualized | |||
Share | Account |
| Account | Period | Account | Period |
| Expense | ||
Class | Value 9/1/19 | Value 2/29/20 | 9/1/19–2/29/201, 2 | Value 2/29/20 | 9/1/19–2/29/201, 2 |
| Ratio2 | |||
A | $1,000 |
|
| $1,028.50 | $4.09 |
| $1,020.84 | $4.07 |
| 0.81% |
A1 | $1,000 |
| $1,029.30 | $3.33 |
| $1,021.58 | $3.32 | 0.66% | ||
C | $1,000 |
| $1,026.30 | $6.10 |
| $1,018.85 | $6.07 | 1.21% | ||
R6 | $1,000 |
| $1,030.90 | $2.68 |
| $1,022.23 | $2.66 | 0.53% | ||
Advisor | $1,000 |
| $1,029.80 | $2.83 |
| $1,022.08 | $2.82 | 0.56% |
1.Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 182/366 to reflect the one-half year period.
2.Reflects expenses after fee waivers and expense reimbursements, for Class R6.
franklintempleton.com | Annual Report | 11 |
Franklin Colorado Tax-Free Income Fund
This annual report for Franklin Colorado Tax-Free Income Fund covers the period ended February 29, 2020.
Your Fund's Goal and Main Investments
The Fund seeks to provide as high a level of income exempt from federal and Colorado personal income taxes as is consistent with prudent investment management and preservation of capital by investing at least 80% of its net assets in securities that pay interest free from such taxes.1
Credit Quality Composition* 2/29/20
| % of Total |
Ratings | Investments |
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AAA | 3.97% |
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AA | 57.47% |
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A | 20.91% |
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BBB | 7.45% |
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Refunded | 8.40% |
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Not Rated | 1.80% |
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*Securities, except for those labeled Not Rated, are assigned ratings by one or more Nationally Recognized Statistical Credit Rating Organizations (NRSROs), such as Standard & Poor's, Moody's and Fitch, that can be considered by the investment manager as part of its independent securities analysis. When ratings from multiple agencies are available, the highest is used, consistent with the portfolio investment process. Ratings reflect an NRSRO's opinion of an issuer's creditworthiness and typically range from AAA (highest) to D (lowest). The Below Investment Grade category consists of bonds rated below BBB-. The Refunded category generally consists of refunded bonds secured by U.S. government or other high-quality securities and not rerated by an NRSRO. The Not Rated category consists of ratable securities that have not been rated by an NRSRO. Cash and equivalents are excluded from this composition.
Performance Overview
The Fund's Class A share price, as measured by net asset value, increased from $11.32 on February 28, 2019, to $11.96 on February 29, 2020. The Fund's Class A shares paid dividends totaling 33.0569 cents per share for the reporting period.2 The Performance Summary beginning on page 14 shows that at the end of this reporting period the Fund's Class A shares' distribution rate was 2.08% based on an annualization of February's 2.1591 cents per share dividend and the maximum offering price of $12.43 on
Dividend Distributions* 3/1/19–2/29/20
|
| Dividend per Share (cents) |
| ||
| Class | Class |
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| Advisor |
Month | A | A1 | Class C | Class R6 | Class |
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March | 2.9300 | 3.0800 | 2.5500 | 3.2000 | 3.1700 |
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April** | 4.1800 | 4.3300 | 3.8000 | 4.4500 | 4.4200 |
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May | 2.8575 | 2.9883 | 2.4740 | 3.1244 | 3.0861 |
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June | 2.4435 | 2.5746 | 2.1097 | 2.6954 | 2.6638 |
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July | 2.9301 | 3.0831 | 2.5403 | 3.2249 | 3.1889 |
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August | 2.6372 | 2.7804 | 2.2787 | 2.9107 | 2.8769 |
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September | 2.6903 | 2.8409 | 2.3239 | 2.9736 | 2.9393 |
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October | 2.7139 | 2.8634 | 2.3432 | 2.9973 | 2.9634 |
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November | 2.4778 | 2.6173 | 2.1334 | 2.7418 | 2.7104 |
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December | 2.5869 | 2.7384 | 2.2057 | 2.8819 | 2.8403 |
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January | 2.4506 | 2.5984 | 2.0776 | 2.7386 | 2.6979 |
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February | 2.1591 | 2.2942 | 1.8144 | 2.4290 | 2.3863 |
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Total | 33.0569 | 34.7890 | 28.6509 | 36.3676 | 35.9433 |
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*The distribution amount is the sum of all net investment income distributions for the period shown. Assumes shares were purchased and held for the entire accrual period. Since dividends accrue daily, your actual distributions will vary depending on the date you purchased your shares and any account activity. All Fund distributions will vary depending upon current market conditions, and past distributions are not indicative of future trends.
**Includes a 1.25 cent per share supplemental distribution.
February 29, 2020. An investor in the 2020 maximum combined effective federal and Colorado personal income tax bracket of 45.43% (including 3.80% Medicare tax) would need to earn a distribution rate of 3.81% from a taxable investment to match the Fund's Class A tax-free distribution rate. For other performance data, please see the Performance Summary. Dividend distributions were affected by low interest rates during the period. This and other factors resulted in reduced income for the portfolio and caused dividends to be lower at the end of the period.
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from
1.For state personal income taxes, the 80% minimum is measured by total Fund assets. For investors subject to alternative minimum tax, a small portion of Fund dividends may be taxable. Distributions of capital gains are generally taxable. To avoid imposition of 28% backup withholding on all Fund distributions and redemption proceeds, U.S. investors must be properly certified on Form W-9 and non-U.S. investors on Form W-8BEN.
2.The distribution amount is the sum of all net investment income distributions for the period shown. Assumes shares were purchased and held for the entire accrual period. Since dividends accrue daily, your actual distributions will vary depending on the date you purchased your shares and any account activity. All Fund distributions will vary depending upon current market conditions, and past distributions are not indicative of future trends.
The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund's Statement of Investments (SOI). The SOI begins on page 70.
12 | Annual Report | franklintempleton.com |
FRANKLIN COLORADO TAX-FREE INCOME FUND
figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
State Update
During the 12 months under review, Colorado's economic growth rate outpaced the national average. The professional and business services and oil and gas extraction industries performed particularly well during the period. Housing prices rose as a result of the state's rapidly growing population. The state's unemployment rate dropped from 3.1% in February 2019 to 2.5% at period-end, below the nation's 3.5% average.3
The state's general fund revenue grew in fiscal year (FY) 2019, although the state forecasts the rate will slow in fiscal 2020. Under the governor's 2021 budget proposal, the general fund budget would rise modestly. The state's net tax-supported debt was $484 per capita and 0.9% of personal income, below the $1,068 and 2.2% national medians, respectively.4
Given that Colorado's constitution does not permit the state to issue long-term general obligation debt, the state has often issued appropriation-backed debt, as well as debt secured by specific revenues. The independent credit rating agency Moody's Investor Service (Moody's) affirmed Colorado's issuer credit rating of Aa1 with a stable outlook.5 The Aa1 rating reflected Moody's view of the state's strong economic performance, higher-than-average income and low debt compared to other states overall. Challenges include narrow but improved reserves, pension liabilities above the national average, and constitutional restrictions and voter initiatives that constrain budgeting flexibility.
Manager's Discussion
We used various investment strategies during the 12 months under review as we sought to maximize tax-free income for shareholders. Please read the Investment Strategy and Manager's Discussion on page 5 for more information.
Thank you for your continued participation in Franklin Colorado Tax-Free Income Fund. We believe our conservative, buy-and-hold investment strategy can help us achieve high, current, tax-free income for shareholders.
Portfolio Composition 2/29/20
| % of Total | |
| Investments* | |
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Utilities | 18.27% |
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Tax-Supported | 15.87% |
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Hospital & Health Care | 13.87% |
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General Obligation | 13.61% |
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Refunded** | 12.35% |
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Higher Education | 10.50% |
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Subject to Government Appropriations | 7.34% |
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Transportation | 5.38% |
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Other Revenue | 2.52% |
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Housing | 0.29% |
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*Does not include cash and cash equivalents.
**Includes all refunded bonds; the percentage may differ from that in the Credit Quality Composition.
The foregoing information reflects our analysis, opinions and portfolio holdings as of February 29, 2020, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.
3.Source: Bureau of Labor Statistics.
4.Source: Moody's Investors Service, "State government – US: Medians – Flat debt total signals cautious borrowing, despite infrastructure needs," 6/3/19.
5.This does not indicate Moody's rating of the Fund.
franklintempleton.com | Annual Report | 13 |
FRANKLIN COLORADO TAX-FREE INCOME FUND
Performance Summary as of February 29, 2020
The performance tables and graphs do not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares. Total return reflects reinvestment of the Fund's dividends and capital gain distributions, if any, and any unrealized gains or losses. Your dividend income will vary depending on dividends or interest paid by securities in the Fund's portfolio, adjusted for operating expenses of each class. Capital gain distributions are net profits realized from the sale of portfolio securities.
Performance as of 2/29/20
Cumulative total return excludes sales charges. Average annual total return includes maximum sales charges. Sales charges will vary depending on the size of the investment and the class of share purchased. The maximum is 3.75% and the minimum is 0%. Class A: 3.75% maximum initial sales charge; Advisor Class: no sales charges. For other share classes, visit franklintempleton.com.
| Cumulative | Average Annual | |
Share Class | Total Return1 | Total Return2 | |
A3,4 |
|
|
|
1-Year | +8.69% | +4.62% |
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5-Year | +16.73% | +2.36% |
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10-Year | +48.98% | +3.67% |
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Advisor |
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1-Year | +9.06% | +9.06% |
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5-Year | +17.59% | +3.29% |
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10-Year | +50.77% | +4.19% |
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| Distribution | Taxable Equivalent |
| Taxable Equivalent | |
Share Class | Rate5 | Distribution Rate6 | 30-Day Standardized Yield7 | 30-Day Standardized Yield6 | |
A | 2.08% | 3.81% | 0.91% | 1.67% |
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Advisor | 2.39% | 4.38% | 1.19% | 2.18% |
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Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
See page 16 for Performance Summary footnotes.
14 | Annual Report | franklintempleton.com |
FRANKLIN COLORADO TAX-FREE INCOME FUND
PERFORMANCE SUMMARY
Total Return Index Comparison for a Hypothetical $10,000 Investment
Total return represents the change in value of an investment over the periods shown. It includes any applicable maximum sales charge, Fund expenses, account fees and reinvested distributions. The unmanaged indexes include reinvestment of any income or distributions. They differ from the Fund in composition and do not pay management fees or expenses. One cannot invest directly in an index.
Class A (3/1/10–2/29/20)
$16,000
$15,538
$14,000 |
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| $14,340 |
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| |
$12,000 |
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| $11,935 |
$10,000 |
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$8,000 |
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3/10 | 2/12 | 2/14 | 2/16 | 2/18 | 2/20 |
Franklin Colorado Tax | Bloomberg Barclays | Consumer Price Index9 | |||
Free Income Fund | Municipal Bond Index8 |
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| ||
Advisor Class (3/1/10–2/29/20) |
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| |
$16,000 |
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| $15,538 |
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| $15,077 |
$14,000 |
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$12,000 |
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| $11,935 |
$10,000
$8,000
3/10 | 2/12 | 2/14 | 2/16 | 2/18 | 2/20 | |||
| Franklin Colorado Tax |
| Bloomberg Barclays |
| Consumer Price Index9 | |||
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| ||||||
| Free Income Fund |
| Municipal Bond Index8 |
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See page 16 for Performance Summary footnotes.
franklintempleton.com | Annual Report | 15 |
FRANKLIN COLORADO TAX-FREE INCOME FUND
PERFORMANCE SUMMARY
Distributions (3/1/19–2/29/20) |
|
| Net Investment |
Share Class | Income |
|
|
A | $0.330569 |
|
|
A1 | $0.347890 |
|
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C | $0.286509 |
|
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R6 | $0.363676 |
|
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Advisor | $0.359433 |
| |
Total Annual Operating Expenses10 | |
Share Class |
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|
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A | 0.84% |
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Advisor | 0.59% |
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Each class of shares is available to certain eligible investors and has different annual fees and expenses, as described in the prospectus.
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 invests principally in a single state, it is subject to greater risk of adverse economic and regulatory changes in that state than a geographically diversified fund. 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. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund's prospectus also includes a description of the main investment risks.
1.Cumulative total return represents the change in value of an investment over the periods indicated.
2.Average annual total return represents the average annual change in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.
3.Effective 9/10/18, Class A shares closed to new investors, were renamed Class A1 shares, and a new Class A share with a different expense structure became available. Class A performance shown has been calculated as follows: (a) for periods prior to 9/10/18, a restated figure is used based on the Fund's Class A1 performance that includes any Rule 12b-1 rate differential that exists between Class A1 and Class A; and (b) for periods after 9/10/18, actual Class A performance is used, reflecting all charges and fees applicable to that class.
4.Prior to 3/1/19, these shares were offered at a higher initial sales charge of 4.25%, thus actual returns (with sales charges) would have differed. Average annual total returns (with sales charges) have been restated to reflect the current maximum initial sales charge of 3.75%.
5.Distribution rate is based on an annualization of the respective class's February dividend and the maximum offering price (NAV for Advisor Class) per share on 2/29/20.
6.Taxable equivalent distribution rate and yield assume the published rates as of 12/19/19 for the maximum combined effective federal and Colorado personal income tax rate of 45.43%, based on the federal income tax rate of 37.00% plus 3.80% Medicare tax. This combined rate does not consider the impact of Colorado's surcharge on taxable income in excess of $1 million.
7.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.
8.Source: Morningstar. The Bloomberg Barclays Municipal Bond Index is a market value-weighted index engineered for the long-term tax-exempt bond market. To be included in the index, bonds must be fixed rate, have at least one year to final maturity and be rated investment grade (Baa3/BBB- or higher) by at least two of the following agencies: Moody's, S&P and Fitch.
9.Source: Bureau of Labor Statistics, bls.gov/cpi. The Consumer Price Index is a commonly used measure of the inflation rate.
10.Figures are as stated in the Fund's current prospectus and may differ from the expense ratios disclosed in the Your Fund's Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.
See www.franklintempletondatasources.com for additional data provider information.
16 | Annual Report | franklintempleton.com |
FRANKLIN COLORADO TAX-FREE INCOME FUND
Your Fund's Expenses
As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including sales charges (loads) on Fund purchases and redemptions; and (2) ongoing Fund costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other mutual funds. The table assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table below provides information about actual account values and actual expenses in the columns under the heading "Actual." In these columns the Fund's actual return, which includes the effect of Fund expenses, is used to calculate the "Ending Account Value" for each class of shares. You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row for your class of shares under the headings "Actual" and "Expenses Paid During Period" (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.
Hypothetical Example for Comparison with Other Funds
Under the heading "Hypothetical" in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading "Hypothetical" is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
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| Actual | Hypothetical |
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| (actual return after expenses) | (5% annual return before expenses) |
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| Expenses |
| Expenses |
| Net | |
| Beginning |
| Ending | Paid During | Ending | Paid During | Annualized | |||
Share | Account |
| Account | Period | Account | Period |
| Expense | ||
Class | Value 9/1/19 | Value 2/29/20 | 9/1/19–2/29/201, 2 | Value 2/29/20 | 9/1/19–2/29/201, 2 |
| Ratio2 | |||
A | $1,000 |
|
| $1,025.80 | $4.23 |
| $1,020.69 | $4.22 |
| 0.84% |
A1 | $1,000 |
| $1,027.40 | $3.48 |
| $1,021.43 | $3.47 | 0.69% | ||
C | $1,000 |
| $1,024.40 | $6.24 |
| $1,018.70 | $6.22 | 1.24% | ||
R6 | $1,000 |
| $1,028.10 | $2.77 |
| $1,022.13 | $2.77 | 0.55% | ||
Advisor | $1,000 |
| $1,027.90 | $2.97 |
| $1,021.93 | $2.97 | 0.59% |
1.Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 182/366 to reflect the one-half year period.
2.Reflects expenses after fee waivers and expense reimbursements, for Class R6.
franklintempleton.com | Annual Report | 17 |
Franklin Connecticut Tax-Free Income Fund
This annual report for Franklin Connecticut Tax-Free Income Fund covers the fiscal year ended February 29, 2020.
Your Fund's Goal and Main Investments
The Fund seeks to provide as high a level of income exempt from federal and Connecticut personal income taxes as is consistent with prudent investment management and preservation of capital by investing at least 80% of its net assets in securities that pay interest free from such taxes.1
Credit Quality Composition* 2/29/20
| % of Total |
Ratings | Investments |
|
|
AAA | 8.72% |
|
|
AA | 19.54% |
|
|
A | 46.31% |
|
|
BBB | 4.99% |
|
|
Refunded | 20.44% |
|
|
*Securities, except for those labeled Not Rated, are assigned ratings by one or more Nationally Recognized Statistical Credit Rating Organizations (NRSROs), such as Standard & Poor's, Moody's and Fitch, that can be considered by the investment manager as part of its independent securities analysis. When ratings from multiple agencies are available, the highest is used, consistent with the portfolio investment process. Ratings reflect an NRSRO's opinion of an issuer's creditworthiness and typically range from AAA (highest) to D (lowest). The Below Investment Grade category consists of bonds rated below BBB-. The Refunded category generally consists of refunded bonds secured by U.S. government or other high-quality securities and not rerated by an NRSRO. The Not Rated category consists of ratable securities that have not been rated by an NRSRO. Cash and equivalents are excluded from this composition.
Performance Overview
The Fund's Class A share price, as measured by net asset value, increased from $10.05 on February 28, 2019, to $10.39 on February 29, 2020. The Fund's Class A shares paid dividends totaling 30.7315 cents per share for the reporting period.2 The Performance Summary beginning on page 20 shows that at the end of this reporting period the Fund's Class A shares' distribution rate was 2.35% based on an annualization of February's 2.1122 cents per share dividend and the maximum offering price of $10.79 on February 29, 2020. An investor in the 2020 maximum
Dividend Distributions* 3/1/19–2/29/20
|
| Dividend per Share (cents) |
| ||
| Class | Class |
|
| Advisor |
Month | A | A1 | Class C | Class R6 | Class |
|
|
|
|
|
|
March | 2.5000 | 2.6300 | 2.1600 | 2.7400 | 2.7100 |
|
|
|
|
|
|
April** | 4.5300 | 4.6600 | 4.1900 | 4.7700 | 4.7400 |
|
|
|
|
|
|
May | 2.6088 | 2.7339 | 2.2815 | 2.8582 | 2.8185 |
|
|
|
|
|
|
June | 2.3160 | 2.4297 | 2.0138 | 2.5401 | 2.5066 |
|
|
|
|
|
|
July | 2.6811 | 2.8160 | 2.3300 | 2.9449 | 2.9065 |
|
|
|
|
|
|
August | 2.4166 | 2.5391 | 2.0946 | 2.6580 | 2.6226 |
|
|
|
|
|
|
September | 2.4045 | 2.5335 | 2.0737 | 2.6521 | 2.6174 |
|
|
|
|
|
|
October | 2.3719 | 2.5004 | 2.0385 | 2.6203 | 2.5861 |
|
|
|
|
|
|
November | 2.1123 | 2.2323 | 1.8015 | 2.3442 | 2.3121 |
|
|
|
|
|
|
December | 2.3193 | 2.4483 | 1.9759 | 2.5713 | 2.5375 |
|
|
|
|
|
|
January | 2.3588 | 2.4860 | 2.0261 | 2.6046 | 2.5712 |
|
|
|
|
|
|
February | 2.1122 | 2.2311 | 1.8123 | 2.3401 | 2.3081 |
|
|
|
|
|
|
Total | 30.7315 | 32.2403 | 26.7979 | 33.6438 | 33.2366 |
|
|
|
|
|
|
*The distribution amount is the sum of all net investment income distributions for the period shown. Assumes shares were purchased and held for the entire accrual period. Since dividends accrue daily, your actual distributions will vary depending on the date you purchased your shares and any account activity. All Fund distributions will vary depending upon current market conditions, and past distributions are not indicative of future trends.
**Includes a 2.03 cent per share supplemental distribution.
combined effective federal and Connecticut personal income tax bracket of 47.79% (including 3.80% Medicare tax) would need to earn a distribution rate of 4.50% from a taxable investment to match the Fund's Class A tax-free distribution rate. For other performance data, please see the Performance Summary. Dividend distributions were affected by low interest rates during the period. This and other factors resulted in reduced income for the portfolio and caused dividends to be lower at the end of the period.
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
1.For state personal income taxes, the 80% minimum is measured by total Fund assets. For investors subject to alternative minimum tax, a small portion of Fund dividends may be taxable. Distributions of capital gains are generally taxable. To avoid imposition of 28% backup withholding on all Fund distributions and redemption proceeds, U.S. investors must be properly certified on Form W-9 and non-U.S. investors on Form W-8BEN.
2.The distribution amount is the sum of all estimated tax-basis net investment income distributions for the period shown. Assumes shares were purchased and held for the entire accrual period. Since dividends accrue daily, your actual distributions will vary depending on the date you purchased your shares and any account activity. All Fund distributions will vary depending upon current market conditions, and past distributions are not indicative of future trends.
The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund's Statement of Investments (SOI). The SOI begins on page 80.
18 | Annual Report | franklintempleton.com |
FRANKLIN CONNECTICUT TAX-FREE INCOME FUND
State Update
During the 12 months under review, Connecticut's economy continued to grow. Connecticut ranks among the wealthiest states, and although its economy has tended to trail its peers on average, the state's growth rate in the third quarter of 2019 performed in line with the national average. The state's unemployment rate remained unchanged from 3.8% in February 2019 to 3.8% at period-end, higher than the 3.5% national average.3
Connecticut ended its fiscal year (FY) 2019 on June 30, 2019, with a budget surplus, although it achieved it through better-than-expected revenues derived from personal income tax withholding and pass-through entity tax collections. The state's budget for fiscal year 2020–2021 is structurally balanced. The state's net tax-supported debt was $6,802 per capita and 9.4% of personal income, above the $1,068 and 2.2% national medians, respectively.4
During the period, independent credit rating agency Moody's Investor Service (Moody's) maintained the state's general obligations bonds' A1 rating with a stable outlook.5 The rating reflected Moody's view of the state's high income levels, strong governance and significantly improved liquidity, offset by high fixed costs relative to the state's budget. According to Moody's, challenges include a lagging economy, recent consecutive years of population loss, significant additional leverage and declining liquidity. The outlook reflected the state's high level of budgetary reserves and strong provisions to promote fiscal discipline.
Portfolio Composition 2/29/20
| % of Total | |
| Investments* | |
|
|
|
Refunded** | 27.57% |
|
|
|
|
Higher Education | 24.67% |
|
|
|
|
Utilities | 16.32% |
|
|
|
|
Hospital & Health Care | 15.09% |
|
|
|
|
General Obligation | 5.18% |
|
|
|
|
Transportation | 4.74% |
|
|
|
|
Housing | 4.43% |
|
|
|
|
Other Revenue | 2.00% |
|
|
|
|
* Does not include cash and cash equivalents.
**Includes all refunded bonds; the percentage may differ from that in the Credit Quality Composition.
Manager's Discussion
We used various investment strategies during the 12 months under review as we sought to maximize tax-free income for shareholders. Please read the Investment Strategy and Manager's Discussion on page 5 for more information
Thank you for your continued participation in Franklin Connecticut Tax-Free Income Fund. We believe our conservative, buy-and-hold investment strategy can help us achieve high, current, tax-free income for shareholders.
The foregoing information reflects our analysis, opinions and portfolio holdings as of February 29, 2020, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.
3.Source: Bureau of Labor Statistics.
4.Source: Moody's Investors Service, "State government – US: Medians – Flat debt total signals cautious borrowing, despite infrastructure needs," 6/3/19.
5.This does not indicate Moody's rating of the Fund.
franklintempleton.com | Annual Report | 19 |
FRANKLIN CONNECTICUT TAX-FREE INCOME FUND
Performance Summary as of February 29, 2020
The performance tables and graphs do not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares. Total return reflects reinvestment of the Fund's dividends and capital gain distributions, if any, and any unrealized gains or losses. Your dividend income will vary depending on dividends or interest paid by securities in the Fund's portfolio, adjusted for operating expenses of each class. Capital gain distributions are net profits realized from the sale of portfolio securities.
Performance as of 2/29/20
Cumulative total return excludes sales charges. Average annual total return includes maximum sales charges. Sales charges will vary depending on the size of the investment and the class of share purchased. The maximum is 3.75% and the minimum is 0%. Class A: 3.75% maximum initial sales charge; Advisor Class: no sales charges. For other share classes, visit franklintempleton.com.
| Cumulative | Average Annual | |
Share Class | Total Return1 | Total Return2 | |
A3,4 |
|
|
|
1-Year | +6.54% | +2.54% |
|
|
|
|
|
5-Year | +12.84% | +1.66% |
|
|
|
|
|
10-Year | +36.50% | +2.77% |
|
|
|
|
|
Advisor |
|
|
|
1-Year | +6.71% | +6.71% |
|
|
|
|
|
5-Year | +13.56% | +2.58% |
|
|
|
|
|
10-Year | +38.09% | +3.28% |
|
|
|
|
|
| Distribution | Taxable Equivalent |
| Taxable Equivalent | |
Share Class | Rate5 | Distribution Rate6 | 30-Day Standardized Yield7 | 30-Day Standardized Yield6 | |
A | 2.35% | 4.50% | 0.66% | 1.26% |
|
|
|
|
|
|
|
Advisor | 2.67% | 5.11% | 0.92% | 1.76% |
|
|
|
|
|
|
|
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
See page 22 for Performance Summary footnotes.
20 | Annual Report | franklintempleton.com |
FRANKLIN CONNECTICUT TAX-FREE INCOME FUND
PERFORMANCE SUMMARY
Total Return Index Comparison for a Hypothetical $10,000 Investment
Total return represents the change in value of an investment over the periods shown. It includes any applicable maximum sales charge, Fund expenses, account fees and reinvested distributions. The unmanaged indexes include reinvestment of any income or distributions. They differ from the Fund in composition and do not pay management fees or expenses. One cannot invest directly in an index.
Class A (3/1/10–2/29/20)
$16,000
$14,000
$15,538
$13,138
$12,000 | $11,935 |
$10,000
$8,000
3/10 | 2/12 | 2/14 | 2/16 | 2/18 | 2/20 | |||
| Franklin Connecticut |
| Bloomberg Barclays |
| Consumer Price Index9 | |||
|
|
| ||||||
|
|
| ||||||
| Tax-Free Income Fund |
| Municipal Bond Index8 |
|
|
|
Advisor Class (3/1/10–2/29/20)
$16,000
$15,538
$14,000 | $13,809 |
$12,000 | $11,935 |
$10,000
$8,000
3/10 | 2/12 | 2/14 | 2/16 | 2/18 | 2/20 | |||
| Franklin Connecticut |
| Bloomberg Barclays |
| Consumer Price Index9 | |||
|
|
| ||||||
| Tax-Free Income Fund |
| Municipal Bond Index8 |
|
|
|
See page 22 for Performance Summary footnotes.
franklintempleton.com | Annual Report | 21 |
FRANKLIN CONNECTICUT TAX-FREE INCOME FUND
PERFORMANCE SUMMARY
Distributions (3/1/19–2/29/20) |
|
| Net Investment |
Share Class | Income |
|
|
A | $0.307315 |
|
|
A1 | $0.322403 |
|
|
C | $0.267979 |
|
|
R6 | $0.336438 |
|
|
Advisor | $0.332366 |
| |
Total Annual Operating Expenses10 | |
Share Class |
|
|
|
A | 0.92% |
|
|
Advisor | 0.67% |
|
|
Each class of shares is available to certain eligible investors and has different annual fees and expenses, as described in the prospectus.
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 invests principally in a single state, it is subject to greater risk of adverse economic and regulatory changes in that state than a geographically 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. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund's prospectus also includes a description of the main investment risks.
1.Cumulative total return represents the change in value of an investment over the periods indicated.
2.Average annual total return represents the average annual change in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.
3.Effective 9/10/18, Class A shares closed to new investors, were renamed Class A1 shares, and a new Class A share with a different expense structure became available. Class A performance shown has been calculated as follows: (a) for periods prior to 9/10/18, a restated figure is used based on the Fund's Class A1 performance that includes any Rule 12b-1 rate differential that exists between Class A1 and Class A; and (b) for periods after 9/10/18, actual Class A performance is used, reflecting all charges and fees applicable to that class.
4.Prior to 3/1/19, these shares were offered at a higher initial sales charge of 4.25%, thus actual returns (with sales charges) would have differed. Average annual total returns (with sales charges) have been restated to reflect the current maximum initial sales charge of 3.75%.
5.Distribution rate is based on an annualization of the respective class's February dividend and the maximum offering price (NAV for Advisor class) per share on 2/29/20.
6.Taxable equivalent distribution rate and yield assume the published rates as of 12/19/19 for the maximum combined effective federal and Connecticut personal income tax rate of 47.79%, based on the federal income tax rate of 37.00% plus 3.80% Medicare tax.
7.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.
8.Source: Morningstar. The Bloomberg Barclays Municipal Bond Index is a market value-weighted index engineered for the long-term tax-exempt bond market. To be included in the index, bonds must be fixed rate, have at least one year to final maturity and be rated investment grade (Baa3/BBB- or higher) by at least two of the following agencies: Moody's, S&P and Fitch.
9.Source: Bureau of Labor Statistics, bls.gov/cpi. The Consumer Price Index is a commonly used measure of the inflation rate.
10.Figures are as stated in the Fund's current prospectus and may differ from the expense ratios disclosed in the Your Fund's Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.
See www.franklintempletondatasources.com for additional data provider information.
22 | Annual Report | franklintempleton.com |
FRANKLIN CONNECTICUT TAX-FREE INCOME FUND
Your Fund's Expenses
As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including sales charges (loads) on Fund purchases and redemptions; and (2) ongoing Fund costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other mutual funds. The table assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table below provides information about actual account values and actual expenses in the columns under the heading "Actual." In these columns the Fund's actual return, which includes the effect of Fund expenses, is used to calculate the "Ending Account Value" for each class of shares. You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row for your class of shares under the headings "Actual" and "Expenses Paid During Period" (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.
Hypothetical Example for Comparison with Other Funds
Under the heading "Hypothetical" in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading "Hypothetical" is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
|
|
|
|
| Actual | Hypothetical |
|
| ||
|
|
|
| (actual return after expenses) | (5% annual return before expenses) |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
| Expenses |
| Net | |
| Beginning |
| Ending | Paid During | Ending | Paid During | Annualized | |||
Share | Account |
| Account | Period | Account | Period |
| Expense | ||
Class | Value 9/1/19 | Value 2/29/20 | 9/1/19–2/29/201, 2 | Value 2/29/20 | 9/1/19–2/29/201, 2 |
| Ratio2 | |||
A | $1,000 |
|
| $1,023.30 | $4.73 |
| $1,020.19 | $4.72 |
| 0.94% |
A1 | $1,000 |
| $1,024.00 | $3.98 |
| $1,020.93 | $3.97 | 0.79% | ||
C | $1,000 |
| $1,020.20 | $6.73 |
| $1,018.20 | $6.72 | 1.34% | ||
R6 | $1,000 |
| $1,024.70 | $3.27 |
| $1,021.63 | $3.27 | 0.65% | ||
Advisor | $1,000 |
| $1,023.60 | $3.47 |
| $1,021.43 | $3.47 | 0.69% |
1.Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 182/366 to reflect the one-half year period.
2.Reflects expenses after fee waivers and expense reimbursements, for Class R6.
franklintempleton.com | Annual Report | 23 |
Franklin Michigan Tax-Free Income Fund
This annual report for Franklin Michigan Tax-Free Income Fund covers the period ended February 29, 2020.
Your Fund's Goal and Main Investments
The Fund seeks to provide as high a level of income exempt from federal and Michigan personal income taxes as is consistent with prudent investment management and preservation of capital by investing at least 80% of its total assets in securities that pay interest free from such taxes.1
Credit Quality Composition* 2/29/20
| % of Total |
Ratings | Investments |
|
|
AAA | 9.40% |
|
|
AA | 71.60% |
|
|
A | 14.36% |
|
|
BBB | 0.93% |
|
|
Refunded | 3.71% |
|
|
*Securities, except for those labeled Not Rated, are assigned ratings by one or more Nationally Recognized Statistical Credit Rating Organizations (NRSROs), such as Standard & Poor's, Moody's and Fitch, that can be considered by the investment manager as part of its independent securities analysis. When ratings from multiple agencies are available, the highest is used, consistent with the portfolio investment process. Ratings reflect an NRSRO's opinion of an issuer's creditworthiness and typically range from AAA (highest) to D (lowest). The Below Investment Grade category consists of bonds rated below BBB-. The Refunded category generally consists of refunded bonds secured by U.S. government or other high-quality securities and not rerated by an NRSRO. The Not Rated category consists of ratable securities that have not been rated by an NRSRO. Cash and equivalents are excluded from this composition.
Performance Overview
The Fund's Class A share price, as measured by net asset value, increased from $11.31 on February 28, 2019, to $12.03 on February 29, 2020. The Fund's Class A shares paid dividends totaling 30.6754 cents per share for the reporting period.2 The Performance Summary beginning on page 26 shows that at the end of this reporting period the Fund's Class A shares' distribution rate was 2.07% based on an annualization of February's 2.1596 cents per share dividend and the maximum offering price of $12.50 on February 29, 2020. An investor in the 2020 maximum
Dividend Distributions* 3/1/19–2/29/20
|
| Dividend per Share (cents) |
| ||
| Class | Class |
|
| Advisor |
Month | A | A1 | Class C | Class R6 | Class |
|
|
|
|
|
|
March | 2.5100 | 2.6600 | 2.1300 | 2.7800 | 2.7500 |
|
|
|
|
|
|
April** | 3.8600 | 4.0100 | 3.4800 | 4.1300 | 4.1000 |
|
|
|
|
|
|
May | 2.5193 | 2.6650 | 2.1631 | 2.8164 | 2.7718 |
|
|
|
|
|
|
June | 2.2291 | 2.3644 | 1.9024 | 2.5000 | 2.4620 |
|
|
|
|
|
|
July | 2.6533 | 2.8074 | 2.2677 | 2.9647 | 2.9216 |
|
|
|
|
|
|
August | 2.4016 | 2.5427 | 2.0447 | 2.6902 | 2.6491 |
|
|
|
|
|
|
September | 2.4756 | 2.6240 | 2.1098 | 2.7703 | 2.7315 |
|
|
|
|
|
|
October | 2.4628 | 2.6100 | 2.0931 | 2.7574 | 2.7191 |
|
|
|
|
|
|
November | 2.3382 | 2.4758 | 1.9941 | 2.6133 | 2.5777 |
|
|
|
|
|
|
December | 2.5844 | 2.7337 | 2.2075 | 2.8859 | 2.8464 |
|
|
|
|
|
|
January | 2.4815 | 2.6271 | 2.1094 | 2.7731 | 2.7347 |
|
|
|
|
|
|
February | 2.1596 | 2.3021 | 1.8263 | 2.4344 | 2.3989 |
|
|
|
|
|
|
Total | 30.6754 | 32.4222 | 26.3281 | 34.1157 | 33.6628 |
|
|
|
|
|
|
*The distribution amount is the sum of all net investment income distributions for the period shown. Assumes shares were purchased and held for the entire accrual period. Since dividends accrue daily, your actual distributions will vary depending on the date you purchased your shares and any account activity. All Fund distributions will vary depending upon current market conditions, and past distributions are not indicative of future trends.
**Includes a 1.35 cent per share supplemental distribution.
combined effective federal and Michigan personal income tax bracket of 45.05% (including 3.80% Medicare tax) would need to earn a distribution rate of 3.77% from a taxable investment to match the Fund's Class A tax-free distribution rate. For other performance data, please see the Performance Summary. Dividend distributions were affected by low interest rates during the period. This and other factors resulted in reduced income for the portfolio and caused dividends to be lower at the end of the period.
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
1.For investors subject to alternative minimum tax, a small portion of Fund dividends may be taxable. Distributions of capital gains are generally taxable. To avoid imposition of 28% backup withholding on all Fund distributions and redemption proceeds, U.S. investors must be properly certified on Form W-9 and non-U.S. investors on Form W-8BEN.
2.The distribution amount is the sum of all net investment income distributions for the period shown. Assumes shares were purchased and held for the entire accrual period. Since dividends accrue daily, your actual distributions will vary depending on the date you purchased your shares and any account activity. All Fund distributions will vary depending upon current market conditions, and past distributions are not indicative of future trends.
The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund's Statement of Investments (SOI). The SOI begins on page 99.
24 | Annual Report | franklintempleton.com |
FRANKLIN MICHIGAN TAX-FREE INCOME FUND
State Update
During the 12 months under review, Michigan's economy grew at a low pace relative to many other states. Despite strong performance of the government, professional and business services, and leisure sectors, the trade war, a strike by autoworkers, a slowing manufacturing sector and other factors detracted from growth.
The state's unemployment rate dropped from 4.2% in February 2019 to 3.6% at period-end but remained above the nation's 3.5% average.3 In May 2019, lawmakers revised the state's fiscal year (FY) 2018–2019 general fund revenue estimates upwards largely due to growth in tax collections. In June, the state house passed the FY 2020 budget, which focused on funding for infrastructure, schools and other services and initiatives without hiking taxes. The state's net tax-supported debt was $630 per capita and 1.4% of personal income, below the $1,068 and 2.2% national medians, respectively.4
The independent credit rating agency Moody's Investor Service (Moody's) maintained the state's general obligations bonds' Aa1 rating with a stable outlook.5 The rating reflected Moody's view of the state's economic improvement since the last recession, relatively low net tax-supported debt burden and strong liquidity. Challenges included exposure to auto manufacturing and financially stressed local governments, and financial responsibility for a portion of the statewide teacher's pension plan. The outlook reflected Moody's view of the state's diversified economy and governance practices that enable the state to quickly respond to developing economic or fiscal challenges.
Manager's Discussion
We used various investment strategies during the 12 months under review as we sought to maximize tax-free income for shareholders. Please read the Investment Strategy and Manager's Discussion on page 5 for more information.
Thank you for your continued participation in Franklin Michigan Tax-Free Income Fund. We believe our conservative, buy-and-hold investment strategy can help us achieve high, current, tax-free income for shareholders.
Portfolio Composition 2/29/20
| % of Total | |
| Investments* | |
|
|
|
General Obligation | 38.30% |
|
|
|
|
Hospital & Health Care | 19.82% |
|
|
|
|
Higher Education | 16.21% |
|
|
|
|
Utilities | 10.11% |
|
|
|
|
Refunded** | 7.01% |
|
|
|
|
Subject to Government Appropriations | 4.87% |
|
|
|
|
Transportation | 1.98% |
|
|
|
|
Housing | 1.70% |
|
|
|
|
*Does not include cash and cash equivalents.
**Includes all refunded bonds; the percentage may differ from that in the Credit Quality Composition.
The foregoing information reflects our analysis, opinions and portfolio holdings as of February 29, 2020, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.
3.Source: Bureau of Labor Statistics.
4.Source: Moody's Investors Service,"State government – US: Medians – Flat debt total signals cautious borrowing, despite infrastructure needs," 6/3/19.
5.This does not indicate Moody's rating of the Fund.
franklintempleton.com | Annual Report | 25 |
FRANKLIN MICHIGAN TAX-FREE INCOME FUND
Performance Summary as of February 29, 2020
The performance tables and graphs do not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares. Total return reflects reinvestment of the Fund's dividends and capital gain distributions, if any, and any unrealized gains or losses. Your dividend income will vary depending on dividends or interest paid by securities in the Fund's portfolio, adjusted for operating expenses of each class. Capital gain distributions are net profits realized from the sale of portfolio securities.
Performance as of 2/29/20
Cumulative total return excludes sales charges. Average annual total return includes maximum sales charges. Sales charges will vary depending on the size of the investment and the class of share purchased. The maximum is 3.75% and the minimum is 0%. Class A: 3.75% maximum initial sales charge; Advisor Class: no sales charges. For other share classes, visit franklintempleton.com.
| Cumulative | Average Annual | |
Share Class | Total Return1 | Total Return2 | |
A3,4 |
|
|
|
1-Year | +9.19% | +5.10% |
|
|
|
|
|
5-Year | +17.18% | +2.44% |
|
|
|
|
|
10-Year | +43.27% | +3.27% |
|
|
|
|
|
Advisor |
|
|
|
1-Year | +9.44% | +9.44% |
|
|
|
|
|
5-Year | +17.90% | +3.35% |
|
|
|
|
|
10-Year | +44.99% | +3.78% |
|
|
|
|
|
| Distribution | Taxable Equivalent |
| Taxable Equivalent | |
Share Class | Rate5 | Distribution Rate6 | 30-Day Standardized Yield7 | 30-Day Standardized Yield6 | |
A | 2.07% | 3.77% | 0.79% | 1.44% |
|
|
|
|
|
|
|
Advisor | 2.39% | 4.35% | 1.05% | 1.91% |
|
|
|
|
|
|
|
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
See page 28 for Performance Summary footnotes.
26 | Annual Report | franklintempleton.com |
FRANKLIN MICHIGAN TAX-FREE INCOME FUND
PERFORMANCE SUMMARY
Total Return Index Comparison for a Hypothetical $10,000 Investment
Total return represents the change in value of an investment over the periods shown. It includes any applicable maximum sales charge, Fund expenses, account fees and reinvested distributions. The unmanaged indexes include reinvestment of any income or distributions. They differ from the Fund in composition and do not pay management fees or expenses. One cannot invest directly in an index.
Class A (3/1/10–2/29/20)
$16,000
$15,538
$14,000 | $13,790 |
| |
$12,000 | $11,935 |
$10,000
$8,000
3/10 | 2/12 | 2/14 | 2/16 | 2/18 | 2/20 | |||
| Franklin Michigan |
| Bloomberg Barclays |
| Consumer Price Index9 | |||
|
|
| ||||||
|
|
| ||||||
| Tax-Free Income Fund |
| Municipal Bond Index8 |
|
|
|
Advisor Class (3/1/10–2/29/20)
$16,000
$14,000
$15,538
$14,499
$12,000 | $11,935 |
$10,000
$8,000
3/10 | 2/12 | 2/14 | 2/16 | 2/18 | 2/20 | |||
| Franklin Michigan |
| Bloomberg Barclays |
| Consumer Price Index9 | |||
|
|
| ||||||
| Tax-Free Income Fund |
| Municipal Bond Index8 |
|
|
|
See page 28 for Performance Summary footnotes.
franklintempleton.com | Annual Report | 27 |
FRANKLIN MICHIGAN TAX-FREE INCOME FUND
PERFORMANCE SUMMARY
Distributions (3/1/19–2/29/20) |
|
| Net Investment |
Share Class | Income |
|
|
A | $0.306754 |
|
|
A1 | $0.324222 |
|
|
C | $0.263281 |
|
|
R6 | $0.341157 |
|
|
Advisor | $0.336628 |
| |
Total Annual Operating Expenses10 | |
Share Class |
|
|
|
A | 0.83% |
|
|
Advisor | 0.58% |
|
|
Each class of shares is available to certain eligible investors and has different annual fees and expenses, as described in the prospectus.
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 invests principally in a single state, it is subject to greater risk of adverse economic and regulatory changes in that state than a geographically 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. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund's prospectus also includes a description of the main investment risks.
1.Cumulative total return represents the change in value of an investment over the periods indicated.
2.Average annual total return represents the average annual change in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.
3.Effective 9/10/18, Class A shares closed to new investors, were renamed Class A1 shares, and a new Class A share with a different expense structure became available. Class A performance shown has been calculated as follows: (a) for periods prior to 9/10/18, a restated figure is used based on the Fund's Class A1 performance that includes any Rule 12b-1 rate differential that exists between Class A1 and Class A; and (b) for periods after 9/10/18, actual Class A performance is used, reflecting all charges and fees applicable to that class.
4.Prior to 3/1/19, these shares were offered at a higher initial sales charge of 4.25%, thus actual returns (with sales charges) would have differed. Average annual total returns (with sales charges) have been restated to reflect the current maximum initial sales charge of 3.75%.
5.Distribution rate is based on an annualization of the respective class's February dividend and the maximum offering price (NAV for Advisor Class) per share on 2/29/20.
6.Taxable equivalent distribution rate and yield assume the published rates as of 12/19/19 for the maximum combined effective federal and Michigan personal income tax rate of 45.05%, based on the federal income tax rate of 37.00% plus 3.80% Medicare tax.
7.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.
8.Source: Morningstar. The Bloomberg Barclays Municipal Bond Index is a market value-weighted index engineered for the long-term tax-exempt bond market. To be included in the index, bonds must be fixed rate, have at least one year to final maturity and be rated investment grade (Baa3/BBB- or higher) by at least two of the following agencies: Moody's, S&P and Fitch.
9.Source: Bureau of Labor Statistics, bls.gov/cpi. The Consumer Price Index is a commonly used measure of the inflation rate.
10.Figures are as stated in the Fund's current prospectus and may differ from the expense ratios disclosed in the Your Fund's Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.
See www.franklintempletondatasources.com for additional data provider information.
28 | Annual Report | franklintempleton.com |
FRANKLIN MICHIGAN TAX-FREE INCOME FUND
Your Fund's Expenses
As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including sales charges (loads) on Fund purchases and redemptions; and (2) ongoing Fund costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other mutual funds. The table assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table below provides information about actual account values and actual expenses in the columns under the heading "Actual." In these columns the Fund's actual return, which includes the effect of Fund expenses, is used to calculate the "Ending Account Value" for each class of shares. You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row for your class of shares under the headings "Actual" and "Expenses Paid During Period" (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.
Hypothetical Example for Comparison with Other Funds
Under the heading "Hypothetical" in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading "Hypothetical" is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
|
|
|
|
| Actual | Hypothetical |
|
| ||
|
|
|
| (actual return after expenses) | (5% annual return before expenses) |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
| Expenses |
| Net | |
| Beginning |
| Ending | Paid During | Ending | Paid During | Annualized | |||
Share | Account |
| Account | Period | Account | Period |
| Expense | ||
Class | Value 9/1/19 | Value 2/29/20 | 9/1/19–2/29/201, 2 | Value 2/29/20 | 9/1/19–2/29/201, 2 |
| Ratio2 | |||
A | $1,000 |
|
| $1,026.90 | $4.18 |
| $1,020.74 | $4.17 |
| 0.83% |
A1 | $1,000 |
| $1,028.50 | $3.43 |
| $1,021.48 | $3.42 | 0.68% | ||
C | $1,000 |
| $1,024.60 | $6.19 |
| $1,018.75 | $6.17 | 1.23% | ||
R6 | $1,000 |
| $1,029.10 | $2.72 |
| $1,022.18 | $2.72 | 0.54% | ||
Advisor | $1,000 |
| $1,029.00 | $2.93 |
| $1,021.98 | $2.92 | 0.58% |
1.Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 182/366 to reflect the one-half year period.
2.Reflects expenses after fee waivers and expense reimbursements, for Class R6.
franklintempleton.com | Annual Report | 29 |
Franklin Minnesota Tax-Free Income Fund
This annual report for Franklin Minnesota Tax-Free Income Fund covers the period ended February 29, 2020.
Your Fund's Goal and Main Investments
The Fund seeks to provide as high a level of income exempt from federal and Minnesota personal income taxes as is consistent with prudent investment management and preservation of capital by investing at least 80% of its total assets in securities that pay interest free from such taxes.1
Credit Quality Composition* 2/29/20
| % of Total |
Ratings | Investments |
|
|
AAA | 23.52% |
|
|
AA | 57.78% |
|
|
A | 13.31% |
|
|
BBB | 0.11% |
|
|
Refunded | 5.24% |
|
|
Not Rated | 0.04% |
|
|
*Securities, except for those labeled Not Rated, are assigned ratings by one or more Nationally Recognized Statistical Credit Rating Organizations (NRSROs), such as Standard & Poor's, Moody's and Fitch, that can be considered by the investment manager as part of its independent securities analysis. When ratings from multiple agencies are available, the highest is used, consistent with the portfolio investment process. Ratings reflect an NRSRO's opinion of an issuer's creditworthiness and typically range from AAA (highest) to D (lowest). The Below Investment Grade category consists of bonds rated below BBB-. The Refunded category generally consists of refunded bonds secured by U.S. government or other high-quality securities and not rerated by an NRSRO. The Not Rated category consists of ratable securities that have not been rated by an NRSRO. Cash and equivalents are excluded from this composition.
Performance Overview
The Fund's Class A share price, as measured by net asset value, increased from $12.10 on February 28, 2019, to $12.82 on February 29, 2020. The Fund's Class A shares paid dividends totaling 30.4212 cents per share for the reporting period.2 The Performance Summary beginning on page 32 shows that at the end of this reporting period the Fund's Class A shares' distribution rate was 1.84% based on an annualization of February's 2.0421 cents per share dividend and the maximum offering price of $13.32 on
Dividend Distributions* 3/1/19–2/29/20
|
| Dividend per Share (cents) |
| ||
| Class | Class |
|
| Advisor |
Month | A | A1 | Class C | Class R6 | Class |
|
|
|
|
|
|
March | 2.7200 | 2.8800 | 2.3200 | 3.0300 | 2.9800 |
|
|
|
|
|
|
April** | 3.1900 | 3.3500 | 2.7900 | 3.5000 | 3.4500 |
|
|
|
|
|
|
May | 2.6583 | 2.8147 | 2.2665 | 2.9803 | 2.9226 |
|
|
|
|
|
|
June | 2.3751 | 2.5161 | 2.0128 | 2.6632 | 2.6148 |
|
|
|
|
|
|
July | 2.7652 | 2.9338 | 2.3442 | 3.1060 | 3.0498 |
|
|
|
|
|
|
August | 2.4295 | 2.5841 | 2.0403 | 2.7424 | 2.6906 |
|
|
|
|
|
|
September | 2.5546 | 2.7164 | 2.1572 | 2.8788 | 2.8250 |
|
|
|
|
|
|
October | 2.5117 | 2.6728 | 2.1087 | 2.8364 | 2.7830 |
|
|
|
|
|
|
November | 2.3209 | 2.4723 | 1.9471 | 2.6247 | 2.5752 |
|
|
|
|
|
|
December | 2.5266 | 2.6906 | 2.1142 | 2.8617 | 2.8030 |
|
|
|
|
|
|
January | 2.3272 | 2.4868 | 1.9229 | 2.6530 | 2.5964 |
|
|
|
|
|
|
February | 2.0421 | 2.1915 | 1.6725 | 2.3475 | 2.2919 |
|
|
|
|
|
|
Total | 30.4212 | 32.3091 | 25.6964 | 34.2240 | 33.5823 |
|
|
|
|
|
|
*The distribution amount is the sum of all net investment income distributions for the period shown. Assumes shares were purchased and held for the entire accrual period. Since dividends accrue daily, your actual distributions will vary depending on the date you purchased your shares and any account activity. All Fund distributions will vary depending upon current market conditions, and past distributions are not indicative of future trends.
**Includes a 0.47 cent per share supplemental distribution.
February 29, 2020. An investor in the 2020 maximum combined effective federal and Minnesota personal income tax bracket of 50.65% (including 3.80% Medicare tax) would need to earn a distribution rate of 3.73% from a taxable investment to match the Fund's Class A tax-free distribution rate. For other performance data, please see the Performance Summary. Dividend distributions were affected by low interest rates during the period. This and other factors resulted in reduced income for the portfolio and caused dividends to be lower at the end of the period.
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from
1.For investors subject to alternative minimum tax, a small portion of Fund dividends may be taxable. Distributions of capital gains are generally taxable. To avoid imposition of 28% backup withholding on all Fund distributions and redemption proceeds, U.S. investors must be properly certified on Form W-9 and non-U.S. investors on Form W-8BEN.
2.The distribution amount is the sum of all net investment income distributions for the period shown. Assumes shares were purchased and held for the entire accrual period. Since dividends accrue daily, your actual distributions will vary depending on the date you purchased your shares and any account activity. All Fund distributions will vary depending upon current market conditions, and past distributions are not indicative of future trends.
The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund's Statement of Investments (SOI). The SOI begins on page 99.
30 | Annual Report | franklintempleton.com |
FRANKLIN MINNESOTA TAX-FREE INCOME FUND
figures shown. For most recent month-end performance, go
to franklintempleton.com or call (800) 342-5236.
Portfolio Composition 2/29/20
| % of Total | |
| Investments* | |
|
|
|
General Obligation | 46.11% |
|
|
|
|
Hospital & Health Care | 14.48% |
|
|
|
|
Utilities | 12.15% |
|
|
|
|
Higher Education | 9.30% |
|
|
|
|
Transportation | 6.02% |
|
|
|
|
Refunded** | 4.96% |
|
|
|
|
Housing | 3.91% |
|
|
|
|
Subject to Government Appropriations | 2.84% |
|
|
|
|
Tax-Supported | 0.23% |
|
|
|
|
*Does not include cash and cash equivalents. |
|
|
**Includes all refunded bonds; the percentage may differ from that in the Credit Quality Composition.
State Update
During the 12 months under review, Minnesota's economy grew but trailed many of its peers. The professional, scientific and technical services sector was a strong driver of growth and the agriculture sector performed well relative to many other industries during much of the period, although the U.S.-China trade war negatively impacted exports to China. The state's unemployment rate slightly fell from 3.2% in February 2019 to 3.1% at period-end, below the nation's 3.5% average.3
The state ended its fiscal year (FY) 2019 on June 30, 2019, with general fund revenues above forecasts as a result of strong tax collections. The enacted budget for FY 2020–2021 included increased spending, particularly in the areas of K-12 education, and health and human services. Net tax-supported debt was $1,415 per capita and 2.6% of personal income, above the $1,068 and 2.2% national medians, respectively.4
During the period under review, independent credit rating agency Standard & Poor's (S&P) maintained the state's general obligations bonds' AAA rating with a stable outlook.5 The rating reflected S&P's view of the state's diverse economy, strong financial results, healthy reserves, moderate debt with well-defined debt-management guidelines, improved pension-funded levels and expected
decrease in pension liabilities. S&P's outlook reflected its view of the state's strong reserves and the pension reform bill passed in 2018.
Manager's Discussion
We used various investment strategies during the 12 months under review as we sought to maximize tax-free income for shareholders. Please read the Investment Strategy and Manager's Discussion on page 5 for more information.
Thank you for your continued participation in Franklin Minnesota Tax-Free Income Fund. We believe our conservative, buy-and-hold investment strategy can help us achieve high, current, tax-free income for shareholders.
The foregoing information reflects our analysis, opinions and portfolio holdings as of February 29, 2020, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.
3.Source: Bureau of Labor Statistics.
4.Source: Moody's Investors Service, "State government – US: Medians – Flat debt total signals cautious borrowing, despite infrastructure needs," 6/3/19.
5.This does not indicate S&P's rating of the Fund.
franklintempleton.com | Annual Report | 31 |
FRANKLIN MINNESOTA TAX-FREE INCOME FUND
Performance Summary as of February 29, 2020
The performance tables and graphs do not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares. Total return reflects reinvestment of the Fund's dividends and capital gain distributions, if any, and any unrealized gains or losses. Your dividend income will vary depending on dividends or interest paid by securities in the Fund's portfolio, adjusted for operating expenses of each class. Capital gain distributions are net profits realized from the sale of portfolio securities.
Performance as of 2/29/20
Cumulative total return excludes sales charges. Average annual total return includes maximum sales charges. Sales charges will vary depending on the size of the investment and the class of share purchased. The maximum is 3.75% and the minimum is 0%. Class A: 3.75% maximum initial sales charge; Advisor Class: no sales charges. For other share classes, visit franklintempleton.com.
| Cumulative | Average Annual | |
Share Class | Total Return1 | Total Return2 | |
A3,4 |
|
|
|
1-Year | +8.56% | +4.49% |
|
|
|
|
|
5-Year | +16.56% | +2.33% |
|
|
|
|
|
10-Year | +44.04% | +3.32% |
|
|
|
|
|
Advisor |
|
|
|
1-Year | +8.83% | +8.83% |
|
|
|
|
|
5-Year | +17.41% | +3.26% |
|
|
|
|
|
10-Year | +45.86% | +3.85% |
|
|
|
|
|
| Distribution | Taxable Equivalent |
| Taxable Equivalent | |
Share Class | Rate5 | Distribution Rate6 | 30-Day Standardized Yield7 | 30-Day Standardized Yield6 | |
A | 1.84% | 3.73% | 0.81% | 1.64% |
|
|
|
|
|
|
|
Advisor | 2.14% | 4.34% | 1.08% | 2.19% |
|
|
|
|
|
|
|
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
See page 34 for Performance Summary footnotes.
32 | Annual Report | franklintempleton.com |
FRANKLIN MINNESOTA TAX-FREE INCOME FUND
PERFORMANCE SUMMARY
Total Return Index Comparison for a Hypothetical $10,000 Investment
Total return represents the change in value of an investment over the periods shown. It includes any applicable maximum sales charge, Fund expenses, account fees and reinvested distributions. The unmanaged indexes include reinvestment of any income or distributions. They differ from the Fund in composition and do not pay management fees or expenses. One cannot invest directly in an index.
Class A (3/1/10–2/29/20)
$16,000
$15,538
$14,000 | $13,864 |
$12,000 | $11,935 |
$10,000
$8,000
3/10 | 2/12 | 2/14 | 2/16 | 2/18 | 2/20 | |||
| Franklin Minnesota |
| Bloomberg Barclays |
| Consumer Price Index9 | |||
|
|
| ||||||
|
|
| ||||||
| Tax-Free Income Fund |
| Municipal Bond Index8 |
|
|
|
Advisor Class (3/1/10–2/29/20)
$16,000
$14,000
$15,538
$14,586
$12,000 | $11,935 |
$10,000
$8,000
3/10 | 2/12 | 2/14 | 2/16 | 2/18 | 2/20 | |||
| Franklin Minnesota |
| Bloomberg Barclays |
| Consumer Price Index9 | |||
|
|
| ||||||
| Tax-Free Income Fund |
| Municipal Bond Index8 |
|
|
|
See page 34 for Performance Summary footnotes.
franklintempleton.com | Annual Report | 33 |
FRANKLIN MINNESOTA TAX-FREE INCOME FUND
PERFORMANCE SUMMARY
Distributions (3/1/19–2/29/20) |
|
| Net Investment |
Share Class | Income |
|
|
A | $0.304212 |
|
|
A1 | $0.323091 |
|
|
C | $0.256964 |
|
|
R6 | $0.342240 |
|
|
Advisor | $0.335823 |
| |
Total Annual Operating Expenses10 | |
Share Class |
|
|
|
A | 0.83% |
|
|
Advisor | 0.58% |
|
|
Each class of shares is available to certain eligible investors and has different annual fees and expenses, as described in the prospectus.
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 invests principally in a single state, it is subject to greater risk of adverse economic and regulatory changes in that state than a geographically 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. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund's prospectus also includes a description of the main investment risks.
1.Cumulative total return represents the change in value of an investment over the periods indicated.
2.Average annual total return represents the average annual change in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.
3.Effective 9/10/18, Class A shares closed to new investors, were renamed Class A1 shares, and a new Class A share with a different expense structure became available. Class A performance shown has been calculated as follows: (a) for periods prior to 9/10/18, a restated figure is used based on the Fund's Class A1 performance that includes any Rule 12b-1 rate differential that exists between Class A1 and Class A; and (b) for periods after 9/10/18, actual Class A performance is used, reflecting all charges and fees applicable to that class
4.Prior to 3/1/19, these shares were offered at a higher initial sales charge of 4.25%, thus actual returns (with sales charges) would have differed. Average annual total returns (with sales charges) have been restated to reflect the current maximum initial sales charge of 3.75%.
5.Distribution rate is based on an annualization of the respective class's February dividend and the maximum offering price (NAV for Advisor Class) per share on 2/29/20.
6.Taxable equivalent distribution rate and yield assume the published rates as of 12/19/19 for the maximum combined effective federal and Minnesota personal income tax rate of 50.65%, based on the federal income tax rate of 37.00% plus 3.80% Medicare tax.
7.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.
8.Source: Morningstar. The Bloomberg Barclays Municipal Bond Index is a market value-weighted index engineered for the long-term tax-exempt bond market. To be included in the index, bonds must be fixed rate, have at least one year to final maturity and be rated investment grade (Baa3/BBB- or higher) by at least two of the following agencies: Moody's, S&P and Fitch.
9.Source: Bureau of Labor Statistics, bls.gov/cpi. The Consumer Price Index is a commonly used measure of the inflation rate.
10.Figures are as stated in the Fund's current prospectus and may differ from the expense ratios disclosed in the Your Fund's Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.
See www.franklintempletondatasources.com for additional data provider information.
34 | Annual Report | franklintempleton.com |
FRANKLIN MINNESOTA TAX-FREE INCOME FUND
Your Fund's Expenses
As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including sales charges (loads) on Fund purchases and redemptions; and (2) ongoing Fund costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other mutual funds. The table assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table below provides information about actual account values and actual expenses in the columns under the heading "Actual." In these columns the Fund's actual return, which includes the effect of Fund expenses, is used to calculate the "Ending Account Value" for each class of shares. You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row for your class of shares under the headings "Actual" and "Expenses Paid During Period" (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.
Hypothetical Example for Comparison with Other Funds
Under the heading "Hypothetical" in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading "Hypothetical" is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
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| Actual | Hypothetical |
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| (actual return after expenses) | (5% annual return before expenses) |
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| Expenses |
| Expenses |
| Net | |
| Beginning |
| Ending | Paid During | Ending | Paid During | Annualized | |||
Share | Account |
| Account | Period | Account | Period |
| Expense | ||
Class | Value 9/1/19 | Value 2/29/20 | 9/1/19–2/29/201, 2 | Value 2/29/20 | 9/1/19–2/29/201, 2 |
| Ratio2 | |||
A | $1,000 |
|
| $1,026.60 | $4.18 |
| $1,020.74 | $4.17 |
| 0.83% |
A1 | $1,000 |
| $1,027.40 | $3.43 |
| $1,021.48 | $3.42 | 0.68% | ||
C | $1,000 |
| $1,024.40 | $6.19 |
| $1,018.75 | $6.17 | 1.23% | ||
R6 | $1,000 |
| $1,028.10 | $2.67 |
| $1,022.23 | $2.66 | 0.53% | ||
Advisor | $1,000 |
| $1,027.10 | $2.92 |
| $1,021.98 | $2.92 | 0.58% |
1.Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 182/366 to reflect the one-half year period.
2.Reflects expenses after fee waivers and expense reimbursements for Class R6.
franklintempleton.com | Annual Report | 35 |
Franklin Ohio Tax-Free Income Fund
This annual report for Franklin Ohio Tax-Free Income Fund covers the period ended February 29, 2020.
Your Fund's Goal and Main Investments
The Fund seeks to provide as high a level of income exempt from federal and Ohio personal income taxes as is consistent with prudent investment management and preservation of capital by investing at least 80% of its total assets in securities that pay interest free from such taxes.1
Credit Quality Composition* 2/29/20
| % of Total |
Ratings | Investments |
|
|
AAA | 8.62% |
|
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AA | 54.08% |
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A | 18.84% |
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Refunded | 18.25% |
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Not Rated | 0.21% |
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*Securities, except for those labeled Not Rated, are assigned ratings by one or more Nationally Recognized Statistical Credit Rating Organizations (NRSROs), such as Standard & Poor's, Moody's and Fitch, that can be considered by the investment manager as part of its independent securities analysis. When ratings from multiple agencies are available, the highest is used, consistent with the portfolio investment process. Ratings reflect an NRSRO's opinion of an issuer's creditworthiness and typically range from AAA (highest) to D (lowest). The Below Investment Grade category consists of bonds rated below BBB-. The Refunded category generally consists of refunded bonds secured by U.S. government or other high-quality securities and not rerated by an NRSRO. The Not Rated category consists of ratable securities that have not been rated by an NRSRO. Cash and equivalents are excluded from this composition.
Performance Overview
The Fund's Class A share price, as measured by net asset value, increased from $12.49 on February 28, 2019, to $13.20 on February 29, 2020. The Fund's Class A shares paid dividends totaling 35.0857 cents per share for the reporting period.2 The Performance Summary beginning on page 38 shows that at the end of this reporting period the Fund's Class A shares' distribution rate was 2.20% based on an annualization of February's 2.5170 cents per share dividend and the maximum offering price of $13.71 on February 29, 2020. An investor in the 2020 maximum
Dividend Distributions* 3/1/19–2/29/20
|
| Dividend per Share (cents) |
| ||
| Class | Class |
|
| Advisor |
Month | A | A1 | Class C | Class R6 | Class |
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March | 3.0700 | 3.2300 | 2.6400 | 3.3700 | 3.3300 |
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April** | 3.5500 | 3.7100 | 3.1200 | 3.8500 | 3.8100 |
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May | 3.0098 | 3.1521 | 2.5870 | 3.3085 | 3.2636 |
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June | 2.6356 | 2.7729 | 2.2613 | 2.9123 | 2.8741 |
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July | 3.1500 | 3.3217 | 2.7235 | 3.4854 | 3.4410 |
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August | 2.8342 | 2.9921 | 2.4412 | 3.1431 | 3.1020 |
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September | 2.9112 | 3.0767 | 2.5096 | 3.2175 | 3.1885 |
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October | 2.9130 | 3.0771 | 2.5055 | 3.2321 | 3.1909 |
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November | 2.6690 | 2.8220 | 2.2905 | 2.9670 | 2.9287 |
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December | 2.9621 | 3.1342 | 2.5501 | 3.2950 | 3.2504 |
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January | 2.8638 | 3.0221 | 2.4520 | 3.1790 | 3.1355 |
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February | 2.5170 | 2.6710 | 2.1466 | 2.8144 | 2.7737 |
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Total | 35.0857 | 36.9819 | 30.2273 | 38.7743 | 38.2884 |
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*The distribution amount is the sum of all net investment income distributions for the period shown. Assumes shares were purchased and held for the entire accrual period. Since dividends accrue daily, your actual distributions will vary depending on the date you purchased your shares and any account activity. All Fund distributions will vary depending upon current market conditions, and past distributions are not indicative of future trends.
**Includes a 0.48 cent per share supplemental distribution.
combined effective federal and Ohio personal income tax bracket of 45.60% (including 3.80% Medicare tax) would need to earn a distribution rate of 4.04% from a taxable investment to match the Fund's Class A tax-free distribution rate. For other performance data, please see the Performance Summary. Dividend distributions were affected by low interest rates during the period. This and other factors resulted in reduced income for the portfolio and caused dividends to be lower at the end of the period.
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
1.For investors subject to alternative minimum tax, a small portion of Fund dividends may be taxable. Distributions of capital gains are generally taxable. To avoid imposition of 28% backup withholding on all Fund distributions and redemption proceeds, U.S. investors must be properly certified on Form W-9 and non-U.S. investors on Form W-8BEN.
2.The distribution amount is the sum of all net investment income distributions for the period shown. Assumes shares were purchased and held for the entire accrual period. Since dividends accrue daily, your actual distributions will vary depending on the date you purchased your shares and any account activity. All Fund distributions will vary depending upon current market conditions, and past distributions are not indicative of future trends.
The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund's Statement of Investments (SOI). The SOI begins on page 111.
36 | Annual Report | franklintempleton.com |
FRANKLIN OHIO TAX-FREE INCOME FUND
State Update
During the 12 months under review, Ohio's diverse economy continued to grow, despite challenges the agriculture sector faced during the period. The state's unemployment rate slightly fell from 4.2% in February 2019 to 4.1% at period-end, but remained above the nation's 3.5% average.3
The state's general revenue fund (GRF) exceeded its target as of the end of the fiscal year (FY) 2018–2019 fiscal biennium, Ohio's enacted biennial appropriations act for FY 2020–2021 included a GRF-spending plan that did not include new taxes or draw on the budget stabilization fund. The state's net tax-supported debt was $1,156 per capita and 2.5% of personal income, above the $1,068 and 2.2% national medians, respectively.4
During the period, independent credit rating agency Standard & Poor's (S&P) maintained the state's general obligations bonds' AA+ rating with a stable outlook.5 The rating reflected S&P's view of Ohio's long history of proactive financial and budget management and continued focus on initiatives to support economic development and growth. The rating also reflected, S&P's view of the state's commitment to funding budget reserves, improved revenue and budget performance, moderate debt and significant pension reform changes.
Manager's Discussion
We used various investment strategies during the 12 months under review as we sought to maximize tax-free income for shareholders. Please read the Investment Strategy and Manager's Discussion on page 5 for more information.
Thank you for your continued participation in Franklin Ohio Tax-Free Income Fund. We believe our conservative, buy-and-hold investment strategy can help us achieve high, current, tax-free income for shareholders.
Portfolio Composition 2/29/20
| % of Total | |
| Investments* | |
|
|
|
General Obligation | 32.82% |
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|
Refunded** | 23.46% |
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Utilities | 12.82% |
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Higher Education | 12.50% |
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Hospital & Health Care | 10.12% |
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Transportation | 3.46% |
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Subject to Government Appropriations | 3.03% |
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Tax-Supported | 0.91% |
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Other Revenue | 0.88% |
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|
*Does not include cash and cash equivalents.
**Includes all refunded bonds; the percentage may differ from that in the Credit Quality Composition.
The foregoing information reflects our analysis, opinions and portfolio holdings as of February 29, 2020, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.
3.Source: Bureau of Labor Statistics.
4.Source: Moody's Investors Service, "State government – US: Medians – Flat debt total signals cautious borrowing, despite infrastructure needs," 6/3/19.
5.This does not indicate S&P's rating of the Fund.
franklintempleton.com | Annual Report | 37 |
FRANKLIN OHIO TAX-FREE INCOME FUND
Performance Summary as of February 29, 2020
The performance tables and graphs do not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares. Total return reflects reinvestment of the Fund's dividends and capital gain distributions, if any, and any unrealized gains or losses. Your dividend income will vary depending on dividends or interest paid by securities in the Fund's portfolio, adjusted for operating expenses of each class. Capital gain distributions are net profits realized from the sale of portfolio securities.
Performance as of 2/29/20
Cumulative total return excludes sales charges. Average annual total return includes maximum sales charges. Sales charges will vary depending on the size of the investment and the class of share purchased. The maximum is 3.75% and the minimum is 0%. Class A: 3.75% maximum initial sales charge; Advisor Class: no sales charges. For other share classes, visit franklintempleton.com.
| Cumulative | Average Annual | |
Share Class | Total Return1 | Total Return2 | |
A3,4 |
|
|
|
1-Year | +8.60% | +4.53% |
|
|
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|
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5-Year | +19.20% | +2.79% |
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|
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10-Year | +49.23% | +3.69% |
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|
|
|
|
Advisor |
|
|
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1-Year | +8.86% | +8.86% |
|
|
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|
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5-Year | +20.06% | +3.72% |
|
|
|
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10-Year | +51.11% | +4.21% |
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|
| Distribution | Taxable Equivalent |
| Taxable Equivalent | |
Share Class | Rate5 | Distribution Rate6 | 30-Day Standardized Yield7 | 30-Day Standardized Yield6 | |
A | 2.20% | 4.04% | 0.79% | 1.45% |
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Advisor | 2.52% | 4.63% | 1.07% | 1.97% |
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Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
See page 40 for Performance Summary footnotes.
38 | Annual Report | franklintempleton.com |
FRANKLIN OHIO TAX-FREE INCOME FUND
PERFORMANCE SUMMARY
Total Return Index Comparison for a Hypothetical $10,000 Investment
Total return represents the change in value of an investment over the periods shown. It includes any applicable maximum sales charge, Fund expenses, account fees and reinvested distributions. The unmanaged indexes include reinvestment of any income or distributions. They differ from the Fund in composition and do not pay management fees or expenses. One cannot invest directly in an index.
Class A (3/1/10–2/29/20)
$16,000
$15,538
$14,000 |
|
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| $14,363 |
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| |
$12,000 |
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| $11,935 |
$10,000 |
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$8,000 |
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3/10 | 2/12 | 2/14 | 2/16 | 2/18 | 2/20 |
Franklin Ohio Tax-Free | Bloomberg Barclays | Consumer Price Index9 | |||
Income Fund | Municipal Bond Index8 |
|
| ||
Advisor Class (3/1/10–2/29/20) |
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| |
$16,000 |
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| $15,538 |
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| $15,111 |
$14,000 |
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|
$12,000 |
|
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| $11,935 |
$10,000
$8,000
3/10 | 2/12 | 2/14 | 2/16 | 2/18 | 2/20 | |||
| Franklin Ohio Tax-Free |
| Bloomberg Barclays |
| Consumer Price Index9 | |||
|
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| ||||||
| Income Fund |
| Municipal Bond Index8 |
|
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|
See page 40 for Performance Summary footnotes.
franklintempleton.com | Annual Report | 39 |
FRANKLIN OHIO TAX-FREE INCOME FUND
PERFORMANCE SUMMARY
Distributions (3/1/19–2/29/20) |
|
| Net Investment |
Share Class | Income |
|
|
A | $0.350857 |
|
|
A1 | $0.369819 |
|
|
C | $0.302273 |
|
|
R6 | $0.387743 |
|
|
Advisor | $0.382884 |
| |
Total Annual Operating Expenses10 | |
Share Class |
|
|
|
A | 0.80% |
|
|
Advisor | 0.55% |
|
|
Each class of shares is available to certain eligible investors and has different annual fees and expenses, as described in the prospectus.
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 invests principally in a single state, it is subject to greater risk of adverse economic and regulatory changes in that state than a geographically 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. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund's prospectus also includes a description of the main investment risks.
1.Cumulative total return represents the change in value of an investment over the periods indicated.
2.Average annual total return represents the average annual change in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.
3.Effective 9/10/18, Class A shares closed to new investors, were renamed Class A1 shares, and a new Class A share with a different expense structure became available. Class A performance shown has been calculated as follows: (a) for periods prior to 9/10/18, a restated figure is used based on the Fund's Class A1 performance that includes any Rule 12b-1 rate differential that exists between Class A1 and Class A; and (b) for periods after 9/10/18, actual Class A performance is used, reflecting all charges and fees applicable to that class.
4.Prior to 3/1/19, these shares were offered at a higher initial sales charge of 4.25%, thus actual returns (with sales charges) would have differed. Average annual total returns (with sales charges) have been restated to reflect the current maximum initial sales charge of 3.75%.
5.Distribution rate is based on an annualization of the respective class's February dividend and the maximum offering price (NAV for Advisor class) per share on 2/29/20.
6.Taxable equivalent distribution rate and yield assume the published rates as of 12/19/19 for the maximum combined effective federal and Ohio personal income tax rate of 45.60%, based on the federal income tax rate of 37.00% plus 3.80% Medicare tax.
7.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.
8.Source: Morningstar. The Bloomberg Barclays Municipal Bond Index is a market value-weighted index engineered for the long-term tax-exempt bond market. To be included in the index, bonds must be fixed rate, have at least one year to final maturity and be rated investment grade (Baa3/BBB- or higher) by at least two of the following agencies: Moody's, S&P or Fitch.
9.Source: Bureau of Labor Statistics, bls.gov/cpi. The Consumer Price Index is a commonly used measure of the inflation rate.
10.Figures are as stated in the Fund's current prospectus and may differ from the expense ratios disclosed in the Your Fund's Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.
See www.franklintempletondatasources.com for additional data provider information.
40 | Annual Report | franklintempleton.com |
FRANKLIN OHIO TAX-FREE INCOME FUND
Your Fund's Expenses
As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including sales charges (loads) on Fund purchases and redemptions; and (2) ongoing Fund costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other mutual funds. The table assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table below provides information about actual account values and actual expenses in the columns under the heading "Actual." In these columns the Fund's actual return, which includes the effect of Fund expenses, is used to calculate the "Ending Account Value" for each class of shares. You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row for your class of shares under the headings "Actual" and "Expenses Paid During Period" (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.
Hypothetical Example for Comparison with Other Funds
Under the heading "Hypothetical" in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading "Hypothetical" is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
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| Actual | Hypothetical |
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| (actual return after expenses) | (5% annual return before expenses) |
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| Expenses |
| Expenses |
| Net | |
| Beginning |
| Ending | Paid During | Ending | Paid During | Annualized | |||
Share | Account |
| Account | Period | Account | Period |
| Expense | ||
Class | Value 9/1/19 | Value 2/29/20 | 9/1/19–2/29/201, 2 | Value 2/29/20 | 9/1/19–2/29/201, 2 |
| Ratio2 | |||
A | $1,000 |
|
| $1,026.30 | $4.08 |
| $1,020.84 | $4.07 |
| 0.81% |
A1 | $1,000 |
| $1,027.80 | $3.33 |
| $1,021.58 | $3.32 | 0.66% | ||
C | $1,000 |
| $1,024.80 | $6.09 |
| $1,018.85 | $6.07 | 1.21% | ||
R6 | $1,000 |
| $1,027.70 | $2.62 |
| $1,022.28 | $2.61 | 0.52% | ||
Advisor | $1,000 |
| $1,027.50 | $2.82 |
| $1,022.08 | $2.82 | 0.56% |
1.Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 182/366 to reflect the one-half year period.
2.Reflects expenses after fee waivers and expense reimbursements, for Class R6.
franklintempleton.com | Annual Report | 41 |
Franklin Oregon Tax-Free Income Fund
This annual report for Franklin Oregon Tax-Free Income Fund covers the fiscal year ended February 29, 2020.
Your Fund's Goal and Main Investments
The Fund seeks to provide as high a level of income exempt from federal and Oregon personal income taxes as is consistent with prudent investment management and preservation of capital by investing at least 80% of its net assets in securities that pay interest free from such taxes.1
Credit Quality Composition* 2/29/20
| % of Total |
Ratings | Investments |
|
|
AAA | 8.90% |
|
|
AA | 74.49% |
|
|
A | 7.57% |
|
|
BBB | 4.32% |
|
|
Below Investment Grade | 1.70% |
|
|
Refunded | 3.02% |
|
|
*Securities, except for those labeled Not Rated, are assigned ratings by one or more Nationally Recognized Statistical Credit Rating Organizations (NRSROs), such as Standard & Poor's, Moody's and Fitch, that can be considered by the investment manager as part of its independent securities analysis. When ratings from multiple agencies are available, the highest is used, consistent with the portfolio investment process. Ratings reflect an NRSRO's opinion of an issuer's creditworthiness and typically range from AAA (highest) to D (lowest). The Below Investment Grade category consists of bonds rated below BBB-. The Refunded category generally consists of refunded bonds secured by U.S. government or other high-quality securities and not rerated by an NRSRO. The Not Rated category consists of ratable securities that have not been rated by an NRSRO. Cash and equivalents are excluded from this composition.
Performance Overview
The Fund's Class A share price, as measured by net asset value, increased from $11.37 on February 28, 2019, to $12.00 on February 29, 2020. The Fund's Class A shares paid dividends totaling 31.1379 cents per share for the reporting period.2 The Performance Summary beginning on page 44 shows that at the end of this reporting period the Fund's Class A shares' distribution rate was 2.05% based on an annualization of February's 2.1258 cents per share dividend and the maximum offering price of $12.47 on
Dividend Distributions* 3/1/19–2/29/20
|
| Dividend per Share (cents) |
| ||
| Class | Class |
|
| Advisor |
Month | A | A1 | Class C | Class R6 | Class |
|
|
|
|
|
|
March | 2.8500 | 3.0000 | 2.4700 | 3.1200 | 3.0900 |
|
|
|
|
|
|
April** | 3.6600 | 3.8100 | 3.2800 | 3.9300 | 3.9000 |
|
|
|
|
|
|
May | 2.6698 | 2.8140 | 2.3135 | 2.9442 | 2.9157 |
|
|
|
|
|
|
June | 2.3730 | 2.5036 | 2.0444 | 2.6207 | 2.5965 |
|
|
|
|
|
|
July | 2.7183 | 2.8736 | 2.3345 | 3.0109 | 2.9821 |
|
|
|
|
|
|
August | 2.3970 | 2.5398 | 2.0416 | 2.6664 | 2.6400 |
|
|
|
|
|
|
September | 2.5179 | 2.6676 | 2.1555 | 2.7950 | 2.7702 |
|
|
|
|
|
|
October | 2.5506 | 2.6998 | 2.1838 | 2.8288 | 2.8038 |
|
|
|
|
|
|
November | 2.3083 | 2.4482 | 1.9678 | 2.5681 | 2.5446 |
|
|
|
|
|
|
December | 2.5235 | 2.6746 | 2.1475 | 2.8095 | 2.7808 |
|
|
|
|
|
|
January | 2.4437 | 2.5910 | 2.0762 | 2.7216 | 2.6945 |
|
|
|
|
|
|
February | 2.1258 | 2.2658 | 1.7907 | 2.3877 | 2.3601 |
|
|
|
|
|
|
Total | 31.1379 | 32.8880 | 26.8055 | 34.4029 | 34.0783 |
|
|
|
|
|
|
*The distribution amount is the sum of all net investment income distributions for the period shown. Assumes shares were purchased and held for the entire accrual period. Since dividends accrue daily, your actual distributions will vary depending on the date you purchased your shares and any account activity. All Fund distributions will vary depending upon current market conditions, and past distributions are not indicative of future trends.
**Includes a 0.81 cent per share supplemental distribution.
February 29, 2020. An investor in the 2020 maximum combined effective federal and Oregon personal income tax bracket of 50.70% (including 3.80% Medicare tax) would need to earn a distribution rate of 4.16% from a taxable investment to match the Fund's Class A tax-free distribution rate. For other performance data, please see the Performance Summary. Dividend distributions were affected by low interest rates during the period. This and other factors resulted in reduced income for the portfolio and caused dividends to be lower at the end of the period.
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from
1.For state personal income taxes, the 80% minimum is measured by total Fund assets. For investors subject to alternative minimum tax, a small portion of Fund dividends may be taxable. Distributions of capital gains are generally taxable. To avoid imposition of 28% backup withholding on all Fund distributions and redemption proceeds, U.S. investors must be properly certified on Form W-9 and non-U.S. investors on Form W-8BEN.
2.The distribution amount is the sum of all net investment income distributions for the period shown. Assumes shares were purchased and held for the entire accrual period. Since dividends accrue daily, your actual distributions will vary depending on the date you purchased your shares and any account activity. All Fund distributions will vary depending upon current market conditions, and past distributions are not indicative of future trends.
The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund's Statement of Investments (SOI). The SOI begins on page 124.
42 | Annual Report | franklintempleton.com |
FRANKLIN OREGON TAX-FREE INCOME FUND
figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
State Update
During the 12 months under review, Oregon's economy grew but moderated during the period as the economy contended with global trade tensions and other challenges. Much of the state's growth is driven by the semiconductor manufacturing industry. Oregon's unemployment rate dropped from 4.2% in February 2019 to 3.3% at period-end, which was below the nation's 3.5% average.3
The state's 2019–2021 biennial General Fund and Lottery budget is structurally balanced. Expenditures totaled around 12% above the previous biennium's budgeted expenditures. The state's net tax-supported debt was $1,921 per capita and 4.0% of personal income, compared to the $1,068 and 2.2% national medians, respectively.4
During the period, independent credit rating agency Standard & Poor's (S&P) maintained the state's general obligations bonds' AA+ rating with a stable outlook.5 The rating reflected S&P's view of the state's willingness to adjust revenue and spending to correct structural imbalances, mechanisms to build up rainy day funds, strong budget reserves, sound financial policies and a well-funded retirement system. Challenges S&P noted include the state's dependence on personal income taxes and a requirement to provide income tax rebates if certain criteria are met. S&P's outlook reflected its belief that Oregon's finances are poised to remain strong and that solid reserves may mitigate potential future revenue cyclicality.
Manager's Discussion
We used various investment strategies during the 12 months under review as we sought to maximize tax-free income for shareholders. Please read the Investment Strategy and Manager's Discussion on page 5 for more information.
Thank you for your continued participation in Franklin Oregon Tax-Free Income Fund. We believe our conservative, buy-and-hold investment strategy can help us achieve high, current, tax-free income for shareholders.
Portfolio Composition 2/29/20
| % of Total | |
| Investments* | |
|
|
|
General Obligation | 38.80% |
|
|
|
|
Hospital & Health Care | 14.61% |
|
|
|
|
Transportation | 12.21% |
|
|
|
|
Utilities | 10.64% |
|
|
|
|
Higher Education | 7.69% |
|
|
|
|
Housing | 5.45% |
|
|
|
|
Refunded** | 5.03% |
|
|
|
|
Other Revenue | 2.90% |
|
|
|
|
Tax-Supported | 1.72% |
|
|
|
|
Subject to Government Appropriations | 0.95% |
|
|
|
|
*Does not include cash and cash equivalents.
**Includes all refunded bonds; the percentage may differ from that in the Credit Quality Composition.
The foregoing information reflects our analysis, opinions and portfolio holdings as of February 29, 2020, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.
3.Source: Bureau of Labor Statistics.
4.Source: Moody's Investors Service, "State government – US: Medians – Flat debt total signals cautious borrowing, despite infrastructure needs," 6/3/19.
5.This does not indicate S&P's rating of the Fund.
franklintempleton.com | Annual Report | 43 |
FRANKLIN OREGON TAX-FREE INCOME FUND
Performance Summary as of February 29, 2020
The performance tables and graphs do not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares. Total return reflects reinvestment of the Fund's dividends and capital gain distributions, if any, and any unrealized gains or losses. Your dividend income will vary depending on dividends or interest paid by securities in the Fund's portfolio, adjusted for operating expenses of each class. Capital gain distributions are net profits realized from the sale of portfolio securities.
Performance as of 2/29/20
Cumulative total return excludes sales charges. Average annual total return includes maximum sales charges. Sales charges will vary depending on the size of the investment and the class of share purchased. The maximum is 3.75% and the minimum is 0%. Class A: 3.75% maximum initial sales charge; Advisor Class: no sales charges. For other share classes, visit franklintempleton.com.
| Cumulative | Average Annual | |
Share Class | Total Return1 | Total Return2 | |
A3,4 |
|
|
|
1-Year | +8.39% | +4.33% |
|
|
|
|
|
5-Year | +17.14% | +2.43% |
|
|
|
|
|
10-Year | +44.33% | +3.34% |
|
|
|
|
|
Advisor |
|
|
|
1-Year | +8.75% | +8.75% |
|
|
|
|
|
5-Year | +17.97% | +3.36% |
|
|
|
|
|
10-Year | +46.20% | +3.87% |
|
|
|
|
|
| Distribution | Taxable Equivalent |
| Taxable Equivalent | |
Share Class | Rate5 | Distribution Rate6 | 30-Day Standardized Yield7 | 30-Day Standardized Yield6 | |
A | 2.05% | 4.16% | 0.93% | 1.89% |
|
|
|
|
|
|
|
Advisor | 2.36% | 4.79% | 1.21% | 2.45% |
|
|
|
|
|
|
|
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
See page 46 for Performance Summary footnotes.
44 | Annual Report | franklintempleton.com |
FRANKLIN OREGON TAX-FREE INCOME FUND
PERFORMANCE SUMMARY
Total Return Index Comparison for a Hypothetical $10,000 Investment
Total return represents the change in value of an investment over the periods shown. It includes any applicable maximum sales charge, Fund expenses, account fees and reinvested distributions. The unmanaged indexes include reinvestment of any income or distributions. They differ from the Fund in composition and do not pay management fees or expenses. One cannot invest directly in an index.
Class A (3/1/10–2/29/20)
$16,000
$15,538
$14,000 | $13,892 |
$12,000 | $11,935 |
$10,000
$8,000
3/10 | 2/12 | 2/14 | 2/16 | 2/18 | 2/20 | |||
| Franklin Oregon |
| Bloomberg Barclays |
| Consumer Price Index9 | |||
|
|
| ||||||
|
|
| ||||||
| Tax-Free Income Fund |
| Municipal Bond Index8 |
|
|
|
Advisor Class (3/1/10–2/29/20)
$16,000
$14,000
$15,538
$14,620
$12,000 | $11,935 |
$10,000
$8,000
3/10 | 2/12 | 2/14 | 2/16 | 2/18 | 2/20 | |||
| Franklin Oregon |
| Bloomberg Barclays |
| Consumer Price Index9 | |||
|
|
| ||||||
| Tax-Free Income Fund |
| Municipal Bond Index8 |
|
|
|
See page 46 for Performance Summary footnotes.
franklintempleton.com | Annual Report | 45 |
FRANKLIN OREGON TAX-FREE INCOME FUND
PERFORMANCE SUMMARY
Distributions (3/1/19–2/29/20) |
|
| Net Investment |
Share Class | Income |
|
|
A | $0.311379 |
|
|
A1 | $0.328880 |
|
|
C | $0.268055 |
|
|
R6 | $0.344029 |
|
|
Advisor | $0.340783 |
| |
Total Annual Operating Expenses10 | |
Share Class |
|
|
|
A | 0.80% |
|
|
Advisor | 0.55% |
|
|
Each class of shares is available to certain eligible investors and has different annual fees and expenses, as described in the prospectus.
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 invests principally in a single state, it is subject to greater risk of adverse economic and regulatory changes in that state than a geographically diversified fund. 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. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund's prospectus also includes a description of the main investment risks.
1.Cumulative total return represents the change in value of an investment over the periods indicated.
2.Average annual total return represents the average annual change in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.
3.Effective 9/10/18, Class A shares closed to new investors, were renamed Class A1 shares, and a new Class A share with a different expense structure became available. Class A performance shown has been calculated as follows: (a) for periods prior to 9/10/18, a restated figure is used based on the Fund's Class A1 performance that includes any Rule 12b-1 rate differential that exists between Class A1 and Class A; and (b) for periods after 9/10/18, actual Class A performance is used, reflecting all charges and fees applicable to that class.
4.Prior to 3/1/19, these shares were offered at a higher initial sales charge of 4.25%, thus actual returns (with sales charges) would have differed. Average annual total returns (with sales charges) have been restated to reflect the current maximum initial sales charge of 3.75%.
5.Distribution rate is based on an annualization of the respective class's February dividend and the maximum offering price (NAV for Advisor class) per share on 2/29/20.
6.Taxable equivalent distribution rate and yield assume the published rates as of 12/19/19 for the maximum combined effective federal and Oregon personal income tax rate of 50.70%, based on the federal income tax rate of 37.00% plus 3.80% Medicare tax.
7.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.
8.Source: Morningstar. The Bloomberg Barclays Municipal Bond Index is a market value-weighted index engineered for the long-term tax-exempt bond market. To be included in the index, bonds must be fixed rate, have at least one year to final maturity and be rated investment grade (Baa3/BBB- or higher) by at least two of the following agencies: Moody's, S&P or Fitch.
9.Source: Bureau of Labor Statistics, bls.gov/cpi. The Consumer Price Index is a commonly used measure of the inflation rate.
10.Figures are as stated in the Fund's current prospectus and may differ from the expense ratios disclosed in the Your Fund's Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.
See www.franklintempletondatasources.com for additional data provider information.
46 | Annual Report | franklintempleton.com |
FRANKLIN OREGON TAX-FREE INCOME FUND
Your Fund's Expenses
As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including sales charges (loads) on Fund purchases and redemptions; and (2) ongoing Fund costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other mutual funds. The table assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table below provides information about actual account values and actual expenses in the columns under the heading "Actual." In these columns the Fund's actual return, which includes the effect of Fund expenses, is used to calculate the "Ending Account Value" for each class of shares. You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row for your class of shares under the headings "Actual" and "Expenses Paid During Period" (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.
Hypothetical Example for Comparison with Other Funds
Under the heading "Hypothetical" in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading "Hypothetical" is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
|
|
|
|
| Actual | Hypothetical |
|
| ||
|
|
|
| (actual return after expenses) | (5% annual return before expenses) |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
| Expenses |
| Net | |
| Beginning |
| Ending | Paid During | Ending | Paid During | Annualized | |||
Share | Account |
| Account | Period | Account | Period |
| Expense | ||
Class | Value 9/1/19 | Value 2/29/20 | 9/1/19–2/29/201, 2 | Value 2/29/20 | 9/1/19–2/29/201, 2 |
| Ratio2 | |||
A | $1,000 |
|
| $1,026.90 | $4.03 |
| $1,020.89 | $4.02 |
| 0.80% |
A1 | $1,000 |
| $1,027.70 | $3.28 |
| $1,021.63 | $3.27 | 0.65% | ||
C | $1,000 |
| $1,025.50 | $6.04 |
| $1,018.90 | $6.02 | 1.20% | ||
R6 | $1,000 |
| $1,028.30 | $2.62 |
| $1,022.28 | $2.61 | 0.52% | ||
Advisor | $1,000 |
| $1,028.20 | $2.77 |
| $1,022.13 | $2.77 | 0.55% |
1.Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 182/366 to reflect the one-half year period.
2.Reflects expenses after fee waivers and expense reimbursements, for Class R6.
franklintempleton.com | Annual Report | 47 |
Franklin Pennsylvania Tax-Free Income Fund
This annual report for Franklin Pennsylvania Tax-Free Income Fund covers the fiscal year ended February 29, 2020.
Your Fund's Goal and Main Investments
The Fund seeks to provide as high a level of income exempt from federal and Pennsylvania personal income taxes as is consistent with prudent investment management and preservation of capital by investing at least 80% of its net assets in securities that pay interest free from such taxes.1
Credit Quality Composition* 2/29/20
| % of Total |
Ratings | Investments |
|
|
AAA | 0.48% |
|
|
AA | 44.56% |
|
|
A | 30.69% |
|
|
BBB | 7.19% |
|
|
Below Investment Grade | 0.75% |
|
|
Refunded | 14.74% |
|
|
Not Rated | 1.59% |
|
|
*Securities, except for those labeled Not Rated, are assigned ratings by one or more Nationally Recognized Statistical Credit Rating Organizations (NRSROs), such as Standard & Poor's, Moody's and Fitch, that can be considered by the investment manager as part of its independent securities analysis. When ratings from multiple agencies are available, the highest is used, consistent with the portfolio investment process. Ratings reflect an NRSRO's opinion of an issuer's creditworthiness and typically range from AAA (highest) to D (lowest). The Below Investment Grade category consists of bonds rated below BBB-. The Refunded category generally consists of refunded bonds secured by U.S. government or other high-quality securities and not rerated by an NRSRO. The Not Rated category consists of ratable securities that have not been rated by an NRSRO. Cash and equivalents are excluded from this composition.
Performance Overview
The Fund's Class A share price, as measured by net asset value, increased from $9.73 on February 28, 2019, to $10.11 on February 29, 2020. The Fund's Class A shares paid dividends totaling 30.4397 cents per share for the reporting period.2 The Performance Summary beginning on page 50 shows that at the end of this reporting period the Fund's Class A shares' distribution rate was 2.41% based on an
Dividend Distributions* 3/1/19–2/29/20
|
| Dividend per Share (cents) |
| ||
| Class | Class |
|
| Advisor |
Month | A | A1 | Class C | Class R6 | Class |
|
|
|
|
|
|
March | 2.8200 | 2.9500 | 2.4900 | 3.0600 | 3.0300 |
|
|
|
|
|
|
April** | 3.3900 | 3.5200 | 3.0600 | 3.6300 | 3.6000 |
|
|
|
|
|
|
May | 2.6971 | 2.8242 | 2.4081 | 2.9464 | 2.9116 |
|
|
|
|
|
|
June | 2.3188 | 2.4315 | 2.0381 | 2.5401 | 2.5113 |
|
|
|
|
|
|
July | 2.6435 | 2.7771 | 2.3166 | 2.9042 | 2.8708 |
|
|
|
|
|
|
August | 2.3360 | 2.4579 | 2.0339 | 2.5742 | 2.5435 |
|
|
|
|
|
|
September | 2.4230 | 2.5508 | 2.1143 | 2.6688 | 2.6388 |
|
|
|
|
|
|
October | 2.4649 | 2.5924 | 2.1537 | 2.7109 | 2.6811 |
|
|
|
|
|
|
November | 2.2896 | 2.4081 | 2.0011 | 2.5185 | 2.4907 |
|
|
|
|
|
|
December | 2.5082 | 2.6185 | 2.1547 | 2.7405 | 2.7090 |
|
|
|
|
|
|
January | 2.4428 | 2.5022 | 2.0327 | 2.6209 | 2.5903 |
|
|
|
|
|
|
February | 2.1058 | 2.2256 | 1.8271 | 2.3312 | 2.3050 |
|
|
|
|
|
|
Total | 30.4397 | 31.8583 | 26.6303 | 33.2457 | 32.8821 |
|
|
|
|
|
|
*The distribution amount is the sum of all net investment income distributions for the period shown. Assumes shares were purchased and held for the entire accrual period. Since dividends accrue daily, your actual distributions will vary depending on the date you purchased your shares and any account activity. All Fund distributions will vary depending upon current market conditions, and past distributions are not indicative of future trends.
**Includes a 0.57 cent per share supplemental distribution.
annualization of February's 2.1058 cents per share dividend and the maximum offering price of $10.50 on February 29, 2020. An investor in the 2020 maximum combined effective federal and Pennsylvania personal income tax bracket of 43.87% (including 3.80% Medicare tax) would need to earn a distribution rate of 4.29% from a taxable investment to match the Fund's Class A tax-free distribution rate. For other performance data, please see the Performance Summary. Dividend distributions were affected by low interest rates during the period. This and other factors resulted in reduced income for the portfolio and caused dividends to be lower at the end of the period.
Performance data represent past performance, which does not guarantee future results. Investment return and principal
1.For state personal income taxes, the 80% minimum is measured by total Fund assets. For investors subject to alternative minimum tax, a small portion of Fund dividends may be taxable. Distributions of capital gains are generally taxable. To avoid imposition of 28% backup withholding on all Fund distributions and redemption proceeds, U.S. investors must be properly certified on Form W-9 and non-U.S. investors on Form W-8BEN.
2.The distribution amount is the sum of all net investment income distributions for the period shown. Assumes shares were purchased and held for the entire accrual period. Since dividends accrue daily, your actual distributions will vary depending on the date you purchased your shares and any account activity. All Fund distributions will vary depending upon current market conditions, and past distributions are not indicative of future trends.
The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund's Statement of Investments (SOI). The SOI begins on page 136.
48 | Annual Report | franklintempleton.com |
FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND
value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
Commonwealth Update
During the 12 months under review, Pennsylvania's economy grew at a similar rate as the national economy, which began the period on a strong note but moderated later. Pennsylva- nia's professional, scientific and technical services industry was among the strongest performers during the period. The commonwealth's unemployment rate rose from 4.1% in February 2019 to 4.7% at period-end, remaining above the nation's 3.5% average.3
Pennsylvania's enacted general fund budget for fiscal year (FY) 2020 is 2.7% above FY 2019's enacted expenditures. Net tax-supported debt was $1,577 per capita and 3.0% of personal income, above the $1,068 and 2.2% national medians, respectively.4
During the period, independent credit rating agency Moody's Investor Service (Moody's) maintained the commonwealth's general obligations bonds' Aa3 rating with a stable outlook.5 The rating reflected Moody's view of Pennsylvania's large and diverse economy balanced against high fixed costs and leverage compared to most states, and weak assessments of governance and structural balance. Moody's also believes Pennsylvania has weak fund balance, though this is somewhat mitigated by the fact that the commonwealth can borrow internally. The stable outlook incorporates Moody's view of Pennsylvania's progress toward budgetary stability over recent years. Despite narrow reserves and somewhat slow revenue growth, Moody's believes the commonwealth maintains sound liquidity.
Manager's Discussion
We used various investment strategies during the 12 months under review as we sought to maximize tax-free income for shareholders. Please read the Investment Strategy and Manager's Discussion on page 5 for more information.
Thank you for your continued participation in Franklin Pennsylvania Tax-Free Income Fund. We believe our conservative, buy-and-hold investment strategy can help us achieve high, current, tax-free income for shareholders.
Portfolio Composition 2/29/20
| % of Total | |
| Investments* | |
|
|
|
Higher Education | 22.86% |
|
|
|
|
Hospital & Health Care | 21.40% |
|
|
|
|
Refunded** | 19.05% |
|
|
|
|
Utilities | 14.05% |
|
|
|
|
General Obligation | 10.98% |
|
|
|
|
Transportation | 4.81% |
|
|
|
|
Housing | 3.50% |
|
|
|
|
Subject to Government Appropriations | 2.86% |
|
|
|
|
Other Revenue | 0.49% |
|
|
|
|
*Does not include cash and cash equivalents.
**Includes all refunded bonds; the percentage may differ from that in the Credit Quality Composition.
The foregoing information reflects our analysis, opinions and portfolio holdings as of February 29, 2020, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.
3.Source: Bureau of Labor Statistics.
4.Source: Moody's Investors Service, "State government – US: Medians – Flat debt total signals cautious borrowing, despite infrastructure needs," 6/3/19.
5.This does not indicate Moody's rating of the Fund.
franklintempleton.com | Annual Report | 49 |
FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND
Performance Summary as of February 29, 2020
The performance tables and graphs do not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares. Total return reflects reinvestment of the Fund's dividends and capital gain distributions, if any, and any unrealized gains or losses. Your dividend income will vary depending on dividends or interest paid by securities in the Fund's portfolio, adjusted for operating expenses of each class. Capital gain distributions are net profits realized from the sale of portfolio securities.
Performance as of 2/29/20
Cumulative total return excludes sales charges. Average annual total return includes maximum sales charges. Sales charges will vary depending on the size of the investment and the class of share purchased. The maximum is 3.75% and the minimum is 0%. Class A: 3.75% maximum initial sales charge; Advisor Class: no sales charges. For other share classes, visit franklintempleton.com.
| Cumulative | Average Annual | |
Share Class | Total Return1 | Total Return2 | |
A3,4 |
|
|
|
1-Year | +7.14% | +3.12% |
|
|
|
|
|
5-Year | +14.98% | +2.05% |
|
|
|
|
|
10-Year | +44.52% | +3.36% |
|
|
|
|
|
Advisor |
|
|
|
1-Year | +7.28% | +7.28% |
|
|
|
|
|
5-Year | +15.81% | +2.98% |
|
|
|
|
|
10-Year | +46.32% | +3.88% |
|
|
|
|
|
| Distribution | Taxable Equivalent |
| Taxable Equivalent | |
Share Class | Rate5 | Distribution Rate6 | 30-Day Standardized Yield7 | 30-Day Standardized Yield6 | |
A | 2.41% | 4.29% | 0.84% | 1.50% |
|
|
|
|
|
|
|
Advisor | 2.73% | 4.86% | 1.10% | 1.96% |
|
|
|
|
|
|
|
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.
See page 52 for Performance Summary footnotes.
50 | Annual Report | franklintempleton.com |
FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND
PERFORMANCE SUMMARY
Total Return Index Comparison for a Hypothetical $10,000 Investment
Total return represents the change in value of an investment over the periods shown. It includes any applicable maximum sales charge, Fund expenses, account fees and reinvested distributions. The unmanaged indexes include reinvestment of any income or distributions. They differ from the Fund in composition and do not pay management fees or expenses. One cannot invest directly in an index.
Class A (3/1/10–2/29/20)
$16,000
$15,538
$14,000 | $13,910 |
$12,000 | $11,935 |
$10,000
$8,000
3/10 | 2/12 | 2/14 | 2/16 | 2/18 | 2/20 | |||
| Franklin Pennsylvania |
| Bloomberg Barclays |
| Consumer Price Index9 | |||
|
|
| ||||||
|
|
| ||||||
| Tax-Free Income Fund |
| Municipal Bond Index8 |
|
|
|
Advisor Class (3/1/10–2/29/20)
$16,000
$14,000
$15,538
$14,632
$12,000 | $11,935 |
$10,000
$8,000
3/10 | 2/12 | 2/14 | 2/16 | 2/18 | 2/20 | |||
| Franklin Pennsylvania |
| Bloomberg Barclays |
| Consumer Price Index9 | |||
|
|
| ||||||
| Tax-Free Income Fund |
| Municipal Bond Index8 |
|
|
|
See page 52 for Performance Summary footnotes.
franklintempleton.com | Annual Report | 51 |
FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND
PERFORMANCE SUMMARY
Distributions (3/1/19–2/29/20) |
|
| Net Investment |
Share Class | Income |
|
|
A | $0.304397 |
|
|
A1 | $0.318583 |
|
|
C | $0.266303 |
|
|
R6 | $0.332457 |
|
|
Advisor | $0.328821 |
| |
Total Annual Operating Expenses10 | |
Share Class |
|
|
|
A | 0.83% |
|
|
Advisor | 0.58% |
|
|
Each class of shares is available to certain eligible investors and has different annual fees and expenses, as described in the prospectus.
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 invests principally in a single state, it is subject to greater risk of adverse economic and regulatory changes in that state than a geographically diversified fund. 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. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund's prospectus also includes a description of the main investment risks.
1.Cumulative total return represents the change in value of an investment over the periods indicated.
2.Average annual total return represents the average annual change in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.
3.Effective 9/10/18, Class A shares closed to new investors, were renamed Class A1 shares, and a new Class A share with a different expense structure became available. Class A performance shown has been calculated as follows: (a) for periods prior to 9/10/18, a restated figure is used based on the Fund's Class A1 performance that includes any Rule 12b-1 rate differential that exists between Class A1 and Class A; and (b) for periods after 9/10/18, actual Class A performance is used, reflecting all charges and fees applicable to that class.
4.Prior to 3/1/19, these shares were offered at a higher initial sales charge of 4.25%, thus actual returns (with sales charges) would have differed. Average annual total returns (with sales charges) have been restated to reflect the current maximum initial sales charge of 3.75%.
5.Distribution rate is based on an annualization of the respective class's February dividend and the maximum offering price (NAV for Advisor Class) per share on 2/29/20.
6.Taxable equivalent distribution rate and yield assume the published rates as of 12/19/19 for the maximum combined effective federal and Pennsylvania personal income tax rate of 43.87%, based on the federal income tax rate of 37.00% plus 3.80% Medicare tax. This combined rate does not consider the impact of Pennsylvania's surcharge on taxable income in excess of $1 million.
7.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.
8.Source: Morningstar. The Bloomberg Barclays Municipal Bond Index is a market value-weighted index engineered for the long-term tax-exempt bond market. To be included in the index, bonds must be fixed rate, have at least one year to final maturity and be rated investment grade (Baa3/BBB- or higher) by at least two of the following agencies: Moody's, S&P or Fitch.
9.Source: Bureau of Labor Statistics, bls.gov/cpi. The Consumer Price Index is a commonly used measure of the inflation rate.
10.Figures are as stated in the Fund's current prospectus and may differ from the expense ratios disclosed in the Your Fund's and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.
See www.franklintempletondatasources.com for additional data provider information.
52 | Annual Report | franklintempleton.com |
FRANKLIN PENNSYLVANIA TAX-FREE INCOME FUND
Your Fund's Expenses
As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including sales charges (loads) on Fund purchases and redemptions; and (2) ongoing Fund costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other mutual funds. The table assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table below provides information about actual account values and actual expenses in the columns under the heading "Actual." In these columns the Fund's actual return, which includes the effect of Fund expenses, is used to calculate the "Ending Account Value" for each class of shares. You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row for your class of shares under the headings "Actual" and "Expenses Paid During Period" (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.
Hypothetical Example for Comparison with Other Funds
Under the heading "Hypothetical" in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading "Hypothetical" is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
|
|
|
|
| Actual | Hypothetical |
|
| ||
|
|
|
| (actual return after expenses) | (5% annual return before expenses) |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
| Expenses |
| Net | |
| Beginning |
| Ending | Paid During | Ending | Paid During | Annualized | |||
Share | Account |
| Account | Period | Account | Period |
| Expense | ||
Class | Value 9/1/19 | Value 2/29/20 | 9/1/19–2/29/201, 2 | Value 2/29/20 | 9/1/19–2/29/201, 2 |
| Ratio2 | |||
A | $1,000 |
|
| $1,021.40 | $4.07 |
| $1,020.84 | $4.07 |
| 0.81% |
A1 | $1,000 |
| $1,022.10 | $3.32 |
| $1,021.58 | $3.32 | 0.66% | ||
C | $1,000 |
| $1,018.20 | $6.07 |
| $1,018.85 | $6.07 | 1.21% | ||
R6 | $1,000 |
| $1,021.80 | $2.66 |
| $1,022.23 | $2.66 | 0.53% | ||
Advisor | $1,000 |
| $1,021.60 | $2.81 |
| $1,022.08 | $2.82 | 0.56% |
1.Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 182/366 to reflect the one-half year period.
2.Reflects expenses after fee waivers and expense reimbursements, for Class R6.
franklintempleton.com | Annual Report | 53 |
F R A N K L IN TAX - FREE TRUS T
Financial Highlights
Franklin Arizona Tax-Free Income Fund
Year Ended February 28,
2020a2019b
Class A
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsc:
Net investment incomed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assetsf
Expensesg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10.58$10.52
0.290.16
0.670.05
0.960.21
(0.30)(0.15)
$11.24$10.58
9.24%2.09%
0.81%0.81%
2.72%3.12%
$132,026$44,516
11.37%18.13%
aFor the year ended February 29.
bFor the period September 10, 2018 (effective date) to February 28, 2019.
cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
dBased on average daily shares outstanding.
eTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year. fRatios are annualized for periods less than one year.
gBenefit of expense reduction rounds to less than 0.01%.
|
|
|
|
54 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
FINANCIA L HIGHLIGHT S
Franklin Arizona Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Class A1
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returnd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10.56 | $10.58 | $10.78 | $11.07 | $11.22 |
|
|
|
|
|
0.31 | 0.34 | 0.37 | 0.38 | 0.41 |
0.67 | (0.01) | (0.19) | (0.29) | (0.15) |
|
|
|
|
|
0.98 | 0.33 | 0.18 | 0.09 | 0.26 |
|
|
|
|
|
(0.32) | (0.35) | (0.38) | (0.38) | (0.41) |
|
|
|
|
|
$11.22 | $10.56 | $10.58 | $10.78 | $11.07 |
|
|
|
|
|
9.42% | 3.18% | 1.62% | 0.77% | 2.39% |
0.66%e | 0.66%e | 0.65% | 0.63% | 0.62% |
2.87% | 3.27% | 3.39% | 3.47% | 3.69% |
$672,061 | $661,250 | $737,426 | $769,835 | $799,510 |
11.37% | 18.13% | 17.47% | 13.02% | 13.28% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable. eBenefit of expense reduction rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 55 |
FRANKL IN TAX-FREE TRUST
FINANCIA L HIGHLIGHT S
Franklin Arizona Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Class C
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10.75 | $10.75 | $10.95 | $11.24 | $11.39 |
|
|
|
|
|
0.26 | 0.29 | 0.31 | 0.33 | 0.35 |
0.67 | (—)d | (0.20) | (0.30) | (0.15) |
0.93 | 0.29 | 0.11 | 0.03 | 0.20 |
|
|
|
|
|
(0.26) | (0.29) | (0.31) | (0.32) | (0.35) |
|
|
|
|
|
$11.42 | $10.75 | $10.75 | $10.95 | $11.24 |
|
|
|
|
|
8.70% | 2.74% | 1.03% | 0.19% | 1.79% |
1.21%f | 1.21%f | 1.20% | 1.18% | 1.17% |
2.32% | 2.72% | 2.84% | 2.92% | 3.14% |
$80,562 | $77,216 | $105,010 | $118,381 | $113,370 |
11.37% | 18.13% | 17.47% | 13.02% | 13.28% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding. dAmount rounds to less than $0.01 per share.
eTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable. fBenefit of expense reduction rounds to less than 0.01%.
|
|
|
|
56 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
FINANCIA L HIGHLIGHT S
Franklin Arizona Tax-Free Income Fund (continued)
Year Ended February 28,
2020a2019 2018b
Class R6
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsc:
Net investment incomed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returnf . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assetsg
Expenses before waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses net of waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10.60 | $10.60 | $10.84 |
|
|
|
0.33 | 0.36 | 0.22 |
0.67 | (—)e | (0.24) |
1.00 | 0.36 | (0.02) |
|
|
|
(0.34) | (0.36) | (0.22) |
|
|
|
$11.26 | $10.60 | $10.60 |
|
|
|
9.53% | 3.48% | (0.18)% |
0.54% | 0.55% | 0.53% |
0.53%h | 0.53%h | 0.51% |
3.00% | 3.40% | 3.53% |
$16,971 | $12,562 | $10,816 |
11.37% | 18.13% | 17.47% |
aFor the year ended February 29.
bFor the period August 1, 2017 (effective date) to February 28, 2018.
cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
dBased on average daily shares outstanding. eAmount rounds to less than $0.01 per share.
fTotal return is not annualized for periods less than one year. gRatios are annualized for periods less than one year. hBenefit of expense reduction rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 57 |
FRANKL IN TAX-FREE TRUST
FINANCIA L HIGHLIGHT S
Franklin Arizona Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Advisor Class
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10.60 | $10.61 | $10.81 | $11.10 | $11.25 |
|
|
|
|
|
0.32 | 0.36 | 0.38 | 0.40 | 0.42 |
0.67 | (0.01) | (0.19) | (0.30) | (0.15) |
|
|
|
|
|
0.99 | 0.35 | 0.19 | 0.10 | 0.27 |
|
|
|
|
|
(0.33) | (0.36) | (0.39) | (0.39) | (0.42) |
|
|
|
|
|
$11.26 | $10.60 | $10.61 | $10.81 | $11.10 |
|
|
|
|
|
9.50% | 3.36% | 1.72% | 0.86% | 2.48% |
0.56%d | 0.56%d | 0.55% | 0.53% | 0.52% |
2.97% | 3.37% | 3.49% | 3.57% | 3.79% |
$124,881 | $90,140 | $86,795 | $90,707 | $57,674 |
11.37% | 18.13% | 17.47% | 13.02% | 13.28% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dBenefit of expense reduction rounds to less than 0.01%.
|
|
|
|
58 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
Statement of Investments, February 29, 2020
Franklin Arizona Tax-Free Income Fund
| Principal |
|
|
| Amount |
| Value |
|
|
|
|
Municipal Bonds 98.7% |
|
|
|
Arizona 97.4% |
|
|
|
Arizona Board of Regents Arizona State University System Revenue, |
|
|
|
Green Bonds, Refunding, Series B, 5.00%, 7/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 4,005,000 | $ | 4,984,863 |
Green Bonds, Series B, 5.00%, 7/01/42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 |
| 2,442,840 |
Refunding, Series B, 5.00%, 7/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 14,070,000 |
| 16,593,454 |
Series C, 5.00%, 7/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 12,159,600 |
Series D, 5.00%, 7/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,896,750 |
Series D, 5.00%, 7/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,874,300 |
Arizona Board of Regents COP, University of Arizona Projects, Refunding, Series C, 5.00%, 6/01/31 . . . . . | 7,025,000 |
| 7,596,554 |
Arizona Board of Regents Northern Arizona University Revenue, |
|
|
|
Stimulus Plan for Economic and Educational Development, 5.00%, 8/01/26. . . . . . . . . . . . . . . . . . . . | 2,380,000 |
| 2,693,208 |
Stimulus Plan for Economic and Educational Development, Pre-Refunded, 5.00%, 8/01/38 . . . . . . . . . | 5,000,000 |
| 5,697,950 |
Arizona Board of Regents Northern Arizona University System Revenue, |
|
|
|
Pre-Refunded, 5.00%, 6/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,005,000 |
| 9,372,334 |
Refunding, Series B, 5.00%, 6/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,000,000 |
| 5,310,800 |
Refunding, Series B, 5.00%, 6/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,355,000 |
| 1,794,576 |
Arizona Board of Regents University of Arizona Revenue, |
|
|
|
Stimulus Plan for Economic and Educational Development, 5.00%, 8/01/33. . . . . . . . . . . . . . . . . . . . | 2,200,000 |
| 2,553,738 |
Stimulus Plan for Economic and Educational Development, 5.00%, 8/01/34. . . . . . . . . . . . . . . . . . . . | 3,320,000 |
| 3,849,175 |
Stimulus Plan for Economic and Educational Development, 5.00%, 8/01/38. . . . . . . . . . . . . . . . . . . . | 10,150,000 |
| 11,344,452 |
Stimulus Plan for Economic and Educational Development, 5.00%, 8/01/44. . . . . . . . . . . . . . . . . . . . | 4,145,000 |
| 4,744,326 |
Arizona Board of Regents University of Arizona System Revenue, |
|
|
|
Green Bonds, Series A, 5.00%, 6/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 |
| 2,584,840 |
Refunding, 5.00%, 6/01/39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,750,000 |
| 3,369,245 |
Series A, 5.00%, 6/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 6,319,650 |
Stimulus Plan for Economic and Educational Development, Speed, Refunding, Series A, 4.00%, |
|
|
|
8/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 13,945,000 |
| 16,648,238 |
Arizona Health Facilities Authority Hospital Revenue, Phoenix Children's Hospital, Refunding, Series A, |
|
|
|
5.00%, 2/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,000,000 |
| 8,522,800 |
Arizona Health Facilities Authority Revenue, |
|
|
|
Catholic Healthcare West, Series B, AGMC Insured, 5.00%, 3/01/41. . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,179,650 |
Catholic Healthcare West, Series B, Sub Series B-1, 5.25%, 3/01/39 . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 10,391,000 |
Scottsdale Lincoln Hospitals Project, Refunding, Series A, 5.00%, 12/01/39 . . . . . . . . . . . . . . . . . . . | 15,000,000 |
| 17,578,500 |
Scottsdale Lincoln Hospitals Project, Refunding, Series A, 5.00%, 12/01/42 . . . . . . . . . . . . . . . . . . . | 9,535,000 |
| 11,105,319 |
Arizona IDA Education Revenue, |
|
|
|
Academies of Math and Science Projects, Credit Enhanced, Refunding, Series A, 5.00%, 7/01/42. . . . | 2,045,000 |
| 2,438,335 |
Academies of Math and Science Projects, Credit Enhanced, Refunding, Series A, 5.00%, 7/01/51. . . . | 1,080,000 |
| 1,275,750 |
Arizona Agribusiness and Equine Center Inc. Project, Credit Enhanced, Series A, 5.00%, 3/01/48 . . . . | 1,555,000 |
| 1,879,031 |
Basis Schools Projects, Credit Enhanced, Refunding, Series F, 5.00%, 7/01/47 . . . . . . . . . . . . . . . . . | 3,350,000 |
| 3,985,529 |
Arizona IDA National Charter School Revolving Loan Fund Revenue, |
|
|
|
Equitable School Revolving Fund, Series A, 5.00%, 11/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,630,000 |
| 2,041,575 |
Equitable School Revolving Fund, Series A, 5.00%, 11/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,249,770 |
Equitable School Revolving Fund, Series A, 5.00%, 11/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,645,000 |
| 8,240,398 |
Equitable School Revolving Fund, Series A, 4.00%, 11/01/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,770,000 |
| 3,155,085 |
franklintempleton.com | Annual Report | 59 |
FRANKL IN TAX-FREE TRUST
STATEMEN T OF INVEST MENT S
Franklin Arizona Tax-Free Income Fund (continued)
| Principal |
|
|
| Amount |
| Value |
|
|
|
|
Municipal Bonds (continued) |
|
|
|
Arizona (continued) |
|
|
|
Arizona IDA Student Housing Revenue, |
|
|
|
Provident Group - NCCU Properties LLC - North Carolina Central University Project, Series A, 5.00%, |
|
|
|
6/01/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 3,095,000 | $ | 3,803,074 |
Provident Group - NCCU Properties LLC - North Carolina Central University Project, Series A, 5.00%, |
|
|
|
6/01/54 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,240,000 |
| 3,959,539 |
Arizona Sports and Tourism Authority Senior Revenue, Multipurpose Stadium Facility Project, Refunding, |
|
|
|
Series A, 5.00%, 7/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,160,000 |
| 3,376,808 |
Arizona State COP, |
|
|
|
Department of Administration, Series B, AGMC Insured, 5.00%, 10/01/28 . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,016,400 |
Department of Administration, Series B, AGMC Insured, 5.00%, 10/01/29 . . . . . . . . . . . . . . . . . . . . . | 3,000,000 |
| 3,009,840 |
Arizona State IDA Senior Living Revenue, |
|
|
|
Great Lakes Senior Living Communities LLC Project, first tier, Series A, 5.00%, 1/01/38 . . . . . . . . . . . | 1,175,000 |
| 1,407,638 |
Great Lakes Senior Living Communities LLC Project, first tier, Series A, 5.00%, 1/01/43 . . . . . . . . . . . | 3,000,000 |
| 3,548,700 |
Great Lakes Senior Living Communities LLC Project, first tier, Series A, 5.00%, 1/01/54 . . . . . . . . . . . | 1,375,000 |
| 1,598,135 |
Great Lakes Senior Living Communities LLC Project, second tier, Series B, 5.00%, 1/01/43. . . . . . . . . | 1,000,000 |
| 1,150,050 |
Great Lakes Senior Living Communities LLC Project, second tier, Series B, 5.00%, 1/01/49. . . . . . . . . | 1,500,000 |
| 1,708,905 |
Great Lakes Senior Living Communities LLC Project, second tier, Series B, 5.125%, 1/01/54 . . . . . . . . | 1,000,000 |
| 1,145,220 |
Arizona State University Revenue, System, Green Bonds, Series A, 5.00%, 7/01/43 . . . . . . . . . . . . . . . . . | 2,100,000 |
| 2,723,490 |
Arizona Transportation Board Highway Revenue, |
|
|
|
Refunding, 5.00%, 7/01/31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 11,766,400 |
Refunding, 5.00%, 7/01/36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,680,000 |
| 10,668,762 |
Subordinated, Series A, Pre-Refunded, 5.00%, 7/01/36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 10,557,600 |
Subordinated, Series A, Pre-Refunded, 5.00%, 7/01/38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,750,000 |
| 6,315,627 |
Central Arizona Water Conservation District Water Delivery O and M Revenue, Central Arizona Project, |
|
|
|
5.00%, 1/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,213,470 |
El Mirage GO, AGMC Insured, 5.00%, 7/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,200,000 |
| 2,377,606 |
Gila County Revenue, Obligations Pledge, Refunding, 4.00%, 7/01/39. . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,570,000 |
| 4,264,079 |
Glendale IDAR, |
|
|
|
Midwestern University, 5.00%, 5/15/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,042,100 |
Midwestern University, 5.125%, 5/15/40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 10,086,700 |
Midwestern University, Refunding, 5.00%, 5/15/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,455,000 |
| 3,745,566 |
Glendale Municipal Property Corp. Excise Tax Revenue, |
|
|
|
Subordinate, Refunding, Series C, 5.00%, 7/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12,000,000 |
| 13,168,800 |
Subordinate, Refunding, Series C, AGMC Insured, 5.00%, 7/01/38. . . . . . . . . . . . . . . . . . . . . . . . . . | 6,530,000 |
| 7,166,022 |
Goodyear Water and Sewer Revenue, |
|
|
|
Obligation, sub. lien, Refunding, AGMC Insured, 5.25%, 7/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,056,190 |
Obligation, sub. lien, Refunding, AGMC Insured, 5.50%, 7/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 |
| 1,587,975 |
Lake Havasu Wastewater System Revenue, |
|
|
|
senior lien, Refunding, Series B, AGMC Insured, 5.00%, 7/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15,000,000 |
| 17,708,400 |
senior lien, Refunding, Series B, AGMC Insured, 5.00%, 7/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,155,000 |
| 10,781,386 |
Maricopa County Cartwright Elementary School District No. 83 GO, School Improvement, Project of 2010, |
|
|
|
Series A, AGMC Insured, 5.375%, 7/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,415,000 |
| 5,724,467 |
Maricopa County Hospital Revenue, Sun Health Corp., Pre-Refunded, 5.00%, 4/01/35 . . . . . . . . . . . . . . . | 12,090,000 |
| 14,101,897 |
Maricopa County IDA, MFHR, Senior, Western Groves Apartments Project, Series A-1, AMBAC Insured, |
|
|
|
5.30%, 12/01/22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 700,000 |
| 700,861 |
|
|
|
|
60 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
S TAT EMEN T OF INVEST MENT S
Franklin Arizona Tax-Free Income Fund (continued)
| Principal |
|
|
|
|
| Amount |
|
| Value | |
|
|
|
|
|
|
Municipal Bonds (continued) |
|
|
|
|
|
Arizona (continued) |
|
|
|
|
|
Maricopa County IDA Education Revenue, |
|
|
|
|
|
Greathearts Arizona Projects, Refunding, Series A, 5.00%, 7/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . | $ 1,000,000 | $ | 1,221,690 | ||
Greathearts Arizona Projects, Refunding, Series A, 5.00%, 7/01/52 . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,195,400 | ||
Highland Prep Projects, 5.00%, 1/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,282,860 | ||
Highland Prep Projects, 5.00%, 1/01/50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,465,000 |
| 1,828,613 | ||
Legacy Traditional Schools Projects, Credit Enhanced, Series A, 5.00%, 7/01/49 . . . . . . . . . . . . . . . . | 3,920,000 |
| 4,834,458 | ||
Reid Traditional Schools Projects, 5.00%, 7/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,120,000 |
| 1,301,003 | ||
Reid Traditional Schools Projects, 5.00%, 7/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,325,000 |
| 3,799,411 | ||
Maricopa County IDA Educational Facilities Revenue Creighton University Project, |
|
|
|
|
|
5.00%, 7/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 13,000,000 |
| 16,578,380 | ||
4.00%, 7/01/50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,040,000 |
| 3,527,646 | ||
Maricopa County IDA Hospital Revenue, |
|
|
|
|
|
HonorHealth, Refunding, Series A, 5.00%, 9/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,025,000 |
| 5,075,203 | ||
HonorHealth, Refunding, Series A, 5.00%, 9/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,000,000 |
| 4,985,160 | ||
Maricopa County IDA Senior Living Facilities Revenue, |
|
|
|
|
|
Christian Care Retirement Apartments Inc. Project, Refunding, Series A, 5.00%, 1/01/36 . . . . . . . . . . | 5,000,000 |
| 5,815,400 | ||
Christian Care Retirement Apartments Inc. Project, Refunding, Series D, 5.00%, 1/01/40 . . . . . . . . . . | 9,840,000 |
| 11,391,079 | ||
Maricopa County IDAR, |
|
|
|
|
|
Banner Health, Series A, 5.00%, 1/01/41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 36,750,000 |
| 45,389,557 | ||
Banner Health, Series A, 4.00%, 1/01/44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,515,000 |
| 11,055,669 | ||
Maricopa County PCC, |
|
|
|
|
|
PCR, El Paso Electric Co. Palo Verde Project, Refunding, Series A, 3.60%, 4/01/40 . . . . . . . . . . . . . . | 13,500,000 |
| 14,851,755 | ||
PCR, El Paso Electric Co. Palo Verde Project, Refunding, Series A, 4.50%, 8/01/42 . . . . . . . . . . . . . . | 10,000,000 |
| 10,512,800 | ||
PCR, Public Service Co. of New Mexico Palo Verde Project, Refunding, Series A, 6.25%, 1/01/38 . . . . | 5,000,000 |
| 5,070,150 | ||
PCR, Southern California Edison Co., Refunding, Series B, 5.00%, 6/01/35. . . . . . . . . . . . . . . . . . . . | 14,745,000 |
| 14,903,361 | ||
Maricopa County School District No. 214 Tolleson Union High School GO, School Improvement, Project of |
|
|
|
|
|
2017, Series A, 5.00%, 7/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,252,910 | ||
Maricopa County UHSD No. 216 Agua Fria GO, |
|
|
|
|
|
School Improvement, 3.00%, 7/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,107,900 | ||
School Improvement, 3.00%, 7/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,150,000 |
| 1,262,424 | ||
Maricopa County USD No. 11 Peoria GO, |
|
|
|
|
|
School Improvement, 5.00%, 7/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,100,000 |
| 5,735,460 | ||
School Improvement, 5.00%, 7/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,254,400 | ||
Maricopa County USD No. 95 Queen Creek GO, |
|
|
|
|
|
School Improvement, 5.00%, 7/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 500,000 |
|
| 607,360 | |
School Improvement, 5.00%, 7/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,200,000 |
| 1,449,408 | ||
McAllister Academic Village LLC Revenue, |
|
|
|
|
|
Arizona State University Hassayampa Academic Village Project, Refunding, 5.00%, 7/01/33 . . . . . . . . | 2,000,000 |
| 2,473,740 | ||
Arizona State University Hassayampa Academic Village Project, Refunding, 5.00%, 7/01/38 . . . . . . . . | 2,000,000 |
| 2,451,660 | ||
Arizona State University Hassayampa Academic Village Project, Refunding, 5.00%, 7/01/39 . . . . . . . . | 1,000,000 |
| 1,223,810 | ||
Mesa Utility Systems Revenue, |
|
|
|
|
|
5.00%, 7/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,301,010 | ||
5.00%, 7/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,265,000 |
| 1,636,847 | ||
4.00%, 7/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,425,000 |
| 1,684,094 | ||
4.00%, 7/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,135,000 |
| 7,234,944 | ||
5.00%, 7/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15,000,000 |
| 19,030,050 | ||
Series A, 5.00%, 7/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 25,820,000 |
| 33,382,420 | ||
|
|
| |||
franklintempleton.com | Annual Report |
| 61 |
FRANKL IN TAX-FREE TRUST
STATEMEN T OF INVEST MENT S
Franklin Arizona Tax-Free Income Fund (continued)
|
| Principal |
|
|
|
|
| Amount |
| Value | |
|
|
|
|
| |
Municipal Bonds (continued) |
|
|
|
| |
Arizona (continued) |
|
|
|
| |
Mohave County UHSD No. 2 Colorado River GO, School Improvement, 5.00%, 7/01/35 . . . . . . . . . . . . . . | $ 1,000,000 | $ | 1,242,380 | ||
Northern Arizona University System Revenue, |
|
|
|
| |
| Pre-Refunded, 5.00%, 6/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,820,000 |
| 3,308,114 |
|
| Refunding, 5.00%, 6/01/40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,545,000 |
| 5,174,073 |
|
Phoenix Civic Improvement Corp. Airport Revenue, |
|
|
|
| |
| junior lien, Refunding, Series D, 4.00%, 7/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 20,570,000 |
| 23,794,347 | |
| junior lien, Series A, Pre-Refunded, 5.00%, 7/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 10,138,100 | |
| junior lien, Series B, 5.00%, 7/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,500,000 |
| 10,690,110 | |
| senior lien, 5.00%, 7/01/48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 6,150,350 | |
| senior lien, Series A, 5.00%, 7/01/42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15,090,000 |
| 18,380,827 |
|
Phoenix Civic Improvement Corp. Distribution Revenue, |
|
|
|
| |
| Capital Appreciation, Civic Plaza Expansion Project, Series B, NATL Insured, 5.50%, 7/01/27 . . . . . . . | 3,945,000 |
| 5,129,092 |
|
| Capital Appreciation, Civic Plaza Expansion Project, Series B, NATL Insured, 5.50%, 7/01/28 . . . . . . . | 2,000,000 |
| 2,664,920 |
|
| Capital Appreciation, Civic Plaza Expansion Project, Series B, NATL Insured, 5.50%, 7/01/29 . . . . . . . | 2,000,000 |
| 2,729,860 |
|
| Capital Appreciation, Civic Plaza Expansion Project, Series B, NATL Insured, 5.50%, 7/01/36 . . . . . . . | 5,000,000 |
| 7,740,150 |
|
| Capital Appreciation, Civic Plaza Expansion Project, Series B, NATL Insured, 5.50%, 7/01/37 . . . . . . . | 7,000,000 |
| 10,989,300 |
|
Phoenix Civic Improvement Corp. Excise Tax Revenue, Subordinate, Refunding, Series A, 5.00%, 7/01/41 . | 10,000,000 |
| 11,871,800 |
| |
Phoenix Civic Improvement Corp. Rental Car Facility Charge Revenue, Series A, 5.00%, 7/01/45. . . . . . . . | 10,000,000 |
| 12,703,300 |
| |
Phoenix Civic Improvement Corp. Wastewater System Revenue, |
|
|
|
| |
| junior lien, Series A, 5.00%, 7/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,282,800 | |
| junior lien, Series A, 4.00%, 7/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,896,450 | |
Phoenix Civic Improvement Corp. Water System Revenue, |
|
|
|
| |
| junior lien, 5.00%, 7/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 6,125,850 | |
| junior lien, Series A, 5.00%, 7/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 11,628,400 |
|
Phoenix IDA Education Revenue, |
|
|
|
| |
| Facility, Great Hearts Academies Projects, Refunding, Series A, 5.00%, 7/01/36 . . . . . . . . . . . . . . . . | 4,065,000 |
| 4,619,791 |
|
| Facility, Great Hearts Academies Projects, Refunding, Series A, 5.00%, 7/01/41 . . . . . . . . . . . . . . . . | 1,225,000 |
| 1,380,281 |
|
| Facility, Great Hearts Academies Projects, Refunding, Series A, 5.00%, 7/01/46 . . . . . . . . . . . . . . . . | 1,335,000 |
| 1,496,281 |
|
| Facility, JMF-Higley 2012 LLC Project, 5.00%, 12/01/34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,355,000 |
| 1,484,714 |
|
| Facility, JMF-Higley 2012 LLC Project, 5.00%, 12/01/39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,610,000 |
| 6,120,061 |
|
| Facility, Vista College Preparatory Projects, Series A, 5.00%, 7/01/48 . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,215,520 |
|
Phoenix IDA Student Housing Revenue, |
|
|
|
| |
| Downtown Phoenix Student Housing II LLC, Arizona State University Project, Series A, 5.00%, |
|
|
|
|
| 7/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,212,080 | |
| Downtown Phoenix Student Housing II LLC, Arizona State University Project, Series A, 5.00%, |
|
|
|
|
| 7/01/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,325,000 |
| 4,010,382 | |
| Downtown Phoenix Student Housing LLC, Arizona State University Project, Refunding, Series A, |
|
|
|
|
| 5.00%, 7/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 600,000 |
| 742,482 | |
| Downtown Phoenix Student Housing LLC, Arizona State University Project, Refunding, Series A, |
|
|
|
|
| 5.00%, 7/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 |
| 2,452,680 | |
| Downtown Phoenix Student Housing LLC, Arizona State University Project, Refunding, Series A, |
|
|
|
|
| 5.00%, 7/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,800,000 |
| 9,460,932 | |
Pima County IDAR, |
|
|
|
| |
| Senior Living Facility, Christian Care Tucson Inc. Project, Refunding, Series A, 5.00%, 12/15/32 . . . . . | 1,765,000 |
| 2,088,701 |
|
| Senior Living Facility, Christian Care Tucson Inc. Project, Refunding, Series A, 5.00%, 6/15/37 . . . . . . | 2,240,000 |
| 2,630,522 |
|
| Senior Living Facility, Christian Care Tucson Inc. Project, Series C, 5.00%, 12/15/47 . . . . . . . . . . . . . | 3,840,000 |
| 4,458,586 |
|
Pima County USD No. 20 Vail GO, School Improvement and Refunding, BAM Insured, 5.00%, 7/01/36 . . . . | 3,305,000 |
| 4,028,498 | ||
|
|
|
| ||
62 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
S TAT EMEN T OF INVEST MENT S
Franklin Arizona Tax-Free Income Fund (continued)
| Principal |
|
|
|
|
| Amount |
|
| Value | |
|
|
|
|
|
|
Municipal Bonds (continued) |
|
|
|
|
|
Arizona (continued) |
|
|
|
|
|
Pima County USD No. 30 Sahuarita GO, |
|
|
|
|
|
School Improvement, BAM Insured, 5.00%, 7/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 2,665,000 | $ | 3,321,923 |
| |
School Improvement, BAM Insured, 5.00%, 7/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,800,000 |
|
| 3,484,404 |
|
Pima County USD No. 6 Marana GO, |
|
|
|
|
|
School Improvement, Project of 2014, Series C, BAM Insured, 5.00%, 7/01/36 . . . . . . . . . . . . . . . . . | 2,385,000 |
|
| 2,976,146 |
|
School Improvement, Project of 2014, Series D, BAM Insured, 5.00%, 7/01/38 . . . . . . . . . . . . . . . . . | 2,500,000 |
|
| 3,094,500 |
|
School Improvement, Project of 2014, Series E, AGMC Insured, 4.00%, 7/01/39 . . . . . . . . . . . . . . . . | 3,715,000 |
|
| 4,437,270 |
|
Pinal County Community College District Revenue, Central Arizona College, BAM Insured, 5.00%, 7/01/34 . | 1,065,000 |
|
| 1,302,218 |
|
Pinal County Electrical District No. 3 Electric System Revenue, |
|
|
|
|
|
Pre-Refunded, 5.25%, 7/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 |
|
| 1,588,590 |
|
Pre-Refunded, 5.25%, 7/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,800,000 |
|
| 7,201,608 |
|
Refunding, 5.00%, 7/01/35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,195,000 |
|
| 1,455,008 |
|
Queen Creek Excise Tax and State Shared Revenue, |
|
|
|
|
|
Series A, 5.00%, 8/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,500,000 |
|
| 3,170,725 |
|
Series A, 5.00%, 8/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
|
| 6,294,700 |
|
Salt River Project Agricultural Improvement and Power District Electric System Revenue, |
|
|
|
|
|
Salt River Project, Refunding, Series A, 5.00%, 12/01/30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,500,000 |
|
| 4,920,705 |
|
Salt River Project, Refunding, Series A, 5.00%, 1/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
|
| 12,813,500 |
|
Salt River Project, Refunding, Series A, 5.00%, 1/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,745,000 |
|
| 12,139,444 |
|
Salt River Project, Refunding, Series A, 5.00%, 1/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,310,000 |
|
| 4,222,600 |
|
Salt River Project, Refunding, Series A, 5.00%, 1/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,605,000 |
|
| 7,134,885 |
|
Series A, 4.00%, 1/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
|
| 6,052,600 |
|
Salt Verde Financial Corp. Senior Gas Revenue, |
|
|
|
|
|
5.00%, 12/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
|
| 13,554,000 |
|
5.00%, 12/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
|
| 7,164,400 |
|
Scottsdale Municipal Property Corp. Excise Tax Revenue, Water and Sewer Improvements Project, |
|
|
|
|
|
Pre-Refunded, 5.00%, 7/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,660,000 |
|
| 10,807,215 |
|
Student and Academic Services LLC Lease Revenue, |
|
|
|
|
|
Northern Arizona University Project, BAM Insured, 5.00%, 6/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
|
| 1,154,960 |
|
Northern Arizona University Project, BAM Insured, 5.00%, 6/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,400,000 |
|
| 1,605,030 |
|
Northern Arizona University Project, BAM Insured, 5.00%, 6/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,155,000 |
|
| 3,596,006 |
|
Tempe Excise Tax Revenue, Series A, Pre-Refunded, 5.00%, 7/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,325,000 |
|
| 2,456,246 |
|
Town of Gilbert Pledged Revenue, sub. lien, Obligations, 5.00%, 7/01/45 . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
|
| 11,800,400 |
|
Tucson Water System Revenue, Pre-Refunded, 5.00%, 7/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
|
| 5,282,250 |
|
University Medical Center Corp. Hospital Revenue, |
|
|
|
|
|
Tucson, Pre-Refunded, 5.625%, 7/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
|
| 5,774,550 |
|
Tucson, Pre-Refunded, 6.00%, 7/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
|
| 5,337,100 |
|
Yavapai County IDA Hospital Revenue, |
|
|
|
|
|
Yavapai Regional Medical Center, Refunding, 5.00%, 8/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,250,000 |
|
| 5,141,183 |
|
Yavapai Regional Medical Center, Refunding, 5.00%, 8/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,310,000 |
|
| 1,577,869 |
|
Yavapai Regional Medical Center, Refunding, 4.00%, 8/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,510,000 |
|
| 1,781,196 |
|
Yavapai Regional Medical Center, Refunding, 5.00%, 8/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,350,000 |
|
| 1,720,305 |
|
Yavapai Regional Medical Center, Refunding, 4.00%, 8/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 |
|
| 3,495,930 |
|
|
|
|
|
|
|
|
|
|
| 999,964,574 | |
|
|
|
|
|
|
franklintempleton.com | Annual Report | 63 |
FRANKL IN TAX-FREE TRUST
STATEMEN T OF INVEST MENT S
Franklin Arizona Tax-Free Income Fund (continued)
| Principal |
|
|
| Amount | Value | |
|
|
|
|
Municipal Bonds (continued) |
|
|
|
U.S. Territories 1.3% |
|
|
|
Guam 1.3% |
|
|
|
Guam Power Authority Revenue, |
|
|
|
Series A, AGMC Insured, 5.00%, 10/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 6,490,000 | $ 7,472,326 | |
Series A, AGMC Insured, 5.00%, 10/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,325,000 | 6,093,451 | |
|
|
|
|
|
| 13,565,777 | |
Total Municipal Bonds before Short Term Investments (Cost $922,771,173) |
|
|
|
| 1,013,530,351 |
| |
|
|
|
|
Short Term Investments 0.5%
Municipal Bonds 0.5%
Arizona 0.5%
aArizona Health Facilities Authority Revenue, Banner Health, Series C, LOC Bank of America, Daily VRDN
and Put, 1.22%, 1/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,800,000 | 1,800,000 |
aArizona IDA Hospital Revenue, Phoenix Children's Hospital, Refunding, Series A, LOC JPMorgan Chase
Bank, Daily VRDN and Put, 1.22%, 2/01/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,440,000 | 3,440,000 |
Total Short Term Investments (Cost $5,240,000) |
|
|
| 5,240,000 | |
Total Investments (Cost $928,011,173) 99.2% . . |
|
|
| 1,018,770,351 | |
Other Assets, less Liabilities 0.8% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
| 7,730,808 |
Net Assets 100.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
|
| $1,026,501,159 | |
|
|
|
See Abbreviations on page 169.
aVariable rate demand notes (VRDNs) are obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. Unless otherwise noted, the coupon rate is determined based on factors including supply and demand, underlying credit, tax treatment, and current short term rates. The coupon rate shown represents the rate at period end.
|
|
|
|
64 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
Financial Highlights
Franklin Colorado Tax-Free Income Fund
Year Ended February 28,
2020a2019b
Class A
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsc:
Net investment incomed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assetsf
Expensesg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11.32$11.28
0.310.17
0.660.04
0.970.21
(0.33)(0.17)
$11.96$11.32
8.69%1.89%
0.84%0.84%
2.72%3.14%
$87,684$35,153
15.00%10.85%
aFor the year ended February 29.
bFor the period September 10, 2018 (effective date) to February 28, 2019.
cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
dBased on average daily shares outstanding.
eTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year. fRatios are annualized for periods less than one year.
gBenefit of expense reduction rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 65 |
FRANKLIN TAX-FREE TRUST
FINANCIA L HIGHLIGHT S
Franklin Colorado Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Class A1
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returnd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11.31 | $11.32 | $11.66 | $11.94 | $12.13 |
|
|
|
|
|
0.33 | 0.37 | 0.37 | 0.44 | 0.46 |
0.67 | (0.01) | (0.32) | (0.28) | (0.20) |
|
|
|
|
|
1.00 | 0.36 | 0.05 | 0.16 | 0.26 |
|
|
|
|
|
(0.35) | (0.37) | (0.39) | (0.44) | (0.45) |
|
|
|
|
|
$11.96 | $11.31 | $11.32 | $11.66 | $11.94 |
|
|
|
|
|
8.95% | 3.28% | 0.38% | 1.31% | 2.26% |
0.69%e | 0.69%e | 0.68%f | 0.65% | 0.65% |
2.87% | 3.29% | 3.23% | 3.67% | 3.87% |
$477,155 | $462,925 | $521,249 | $553,317 | $553,114 |
15.00% | 10.85% | 16.78% | 13.61% | 5.17% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable. eBenefit of expense reduction rounds to less than 0.01%.
fBenefit of waiver and payments by affiliates rounds to less than 0.01%.
|
|
|
|
66 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TAX-FREE TRUS T
FINANCIA L HIGHLIGHT S
Franklin Colorado Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Class C
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returnd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11.45 | $11.46 | $11.79 | $12.07 | $12.26 |
|
|
|
|
|
0.27 | 0.31 | 0.32 | 0.38 | 0.40 |
0.68 | (0.01) | (0.33) | (0.29) | (0.20) |
|
|
|
|
|
0.95 | 0.30 | (0.01) | 0.09 | 0.20 |
|
|
|
|
|
(0.29) | (0.31) | (0.32) | (0.37) | (0.39) |
|
|
|
|
|
$12.11 | $11.45 | $11.46 | $11.79 | $12.07 |
|
|
|
|
|
8.36% | 2.67% | (0.10)% | 0.73% | 1.67% |
1.24%e | 1.24%e | 1.23%f | 1.20% | 1.20% |
2.32% | 2.74% | 2.68% | 3.12% | 3.32% |
$66,329 | $69,045 | $99,811 | $115,472 | $111,450 |
15.00% | 10.85% | 16.78% | 13.61% | 5.17% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable. eBenefit of expense reduction rounds to less than 0.01%.
fBenefit of waiver and payments by affiliates rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 67 |
FRANKLIN TAX-FREE TRUST
FINANCIA L HIGHLIGHT S
Franklin Colorado Tax-Free Income Fund (continued)
Year Ended February 28,
2020a2019 2018b
Class R6
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsc:
Net investment incomed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assetsf
Expenses before waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses net of waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11.32 | $11.33 | $11.64 |
|
|
|
0.35 | 0.39 | 0.23 |
0.66 | (0.01) | (0.32) |
|
|
|
1.01 | 0.38 | (0.09) |
|
|
|
(0.36) | (0.39) | (0.22) |
|
|
|
$11.97 | $11.32 | $11.33 |
|
|
|
9.09% | 3.40% | (0.79)% |
0.56% | 0.58% | 0.57% |
0.55%g | 0.55%g | 0.54% |
3.01% | 3.43% | 3.37% |
$14,297 | $8,396 | $7,678 |
15.00% | 10.85% | 16.78% |
aFor the year ended February 29.
bFor the period August 1, 2017 (effective date) to February 28, 2018.
cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
dBased on average daily shares outstanding. eTotal return is not annualized for periods less than one year. fRatios are annualized for periods less than one year. gBenefit of expense reduction rounds to less than 0.01%.
|
|
|
|
68 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TAX-FREE TRUS T
FINANCIA L HIGHLIGHT S
Franklin Colorado Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Advisor Class
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11.31 | $11.32 | $11.66 | $11.94 | $12.13 |
|
|
|
|
|
0.35 | 0.38 | 0.39 | 0.45 | 0.47 |
0.66 | (—)d | (0.33) | (0.28) | (0.19) |
1.01 | 0.38 | 0.06 | 0.17 | 0.28 |
|
|
|
|
|
(0.36) | (0.39) | (0.40) | (0.45) | (0.47) |
|
|
|
|
|
$11.96 | $11.31 | $11.32 | $11.66 | $11.94 |
|
|
|
|
|
9.06% | 3.38% | 0.48% | 1.41% | 2.36% |
0.59%e | 0.59%e | 0.58%f | 0.55% | 0.55% |
2.97% | 3.39% | 3.33% | 3.77% | 3.97% |
$115,924 | $92,530 | $79,093 | $73,538 | $50,589 |
15.00% | 10.85% | 16.78% | 13.61% | 5.17% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding. dAmount rounds to less than $0.01 per share.
eBenefit of expense reduction rounds to less than 0.01%.
fBenefit of waiver and payments by affiliates rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 69 |
F R A N K L IN TAX - FREE TRUS T
Statement of Investments, February 29, 2020
Franklin Colorado Tax-Free Income Fund
|
|
| Principal |
|
|
|
|
| Amount | Value | |
|
|
|
| ||
Municipal Bonds 94.6% |
|
|
| ||
Colorado 94.6% |
|
|
| ||
Adams 12 Five Star Schools GO, Adams County and the City of Broomfield, Series B, 5.00%, 12/15/36 . . . . | $ 5,000,000 | $ 6,212,450 | |||
Adams and Weld Counties School District No. 27J Brighton GO, The City and County of Broomfield, 5.00%, |
|
|
| ||
| 12/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,500,000 | 9,115,575 | ||
Adams State College Board of Trustees Institutional Enterprise Revenue, |
|
|
| ||
| 5.00%, 5/15/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 630,000 | 682,403 |
| |
|
| Pre-Refunded, 5.00%, 5/15/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 370,000 | 401,021 |
|
Adams State University Board of Trustees Institutional Enterprise Revenue, Refunding, Series A, 4.00%, |
|
|
| ||
| 5/15/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,515,000 | 1,776,035 | ||
Anthem West Metropolitan District GO, City and County of Broomfield, Refunding, BAM Insured, 5.00%, |
|
|
| ||
| 12/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,592,560 | ||
Arapahoe County School District No. 1 GO, Englewood Schools, 5.00%, 12/01/42 . . . . . . . . . . . . . . . . . . . | 7,000,000 | 8,621,550 | |||
Arapahoe County School District No. 6 GO, Littleton Public Schools, Series A, 5.50%, 12/01/43 . . . . . . . . . . | 12,980,000 | 17,134,379 |
| ||
Arapahoe County Water and Wastewater Authority Revenue, Refunding, 4.00%, 12/01/37 . . . . . . . . . . . . . . | 1,000,000 | 1,212,530 | |||
Auraria Higher Education Center Parking Enterprise Revenue, 5th and Walnut Parking Garage Project, |
|
|
| ||
| Series A, AGMC Insured, 5.00%, 4/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,150,000 | 6,834,187 | ||
Aurora Hospital Revenue, The Children's Hospital Assn. Project, Series A, 5.00%, 12/01/40. . . . . . . . . . . . . | 2,500,000 | 2,522,875 | |||
Aurora Water Revenue, Green Bonds, first lien, Refunding, 5.00%, 8/01/46 . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 6,093,000 | |||
Bell Mountain Ranch Metropolitan District GO, Consolidated, Douglas County, AGMC Insured, Pre- |
|
|
| ||
| Refunded, 5.00%, 12/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,160,000 | 3,256,601 | ||
Boulder Valley School District No. RE-2 GO, Boulder and Gilpin Counties and the City and County of |
|
|
| ||
| Broomfield, 5.00%, 12/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,931,700 | ||
Castle Rock Sales and Use Tax Revenue, |
|
|
| ||
| 5.00%, 6/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,800,000 | 2,015,100 | ||
| 5.00%, 6/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,845,000 | 2,062,968 | ||
| 5.00%, 6/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,775,000 | 3,097,205 | ||
Centennial Water and Sanitation District Water and Wastewater Revenue, |
|
|
| ||
|
| Douglas County, 5.00%, 12/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,840,900 | |
|
| Douglas County, 5.25%, 12/01/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,760,000 | 8,750,009 | |
Colorado Educational and Cultural Facilities Authority Revenue, |
|
|
| ||
|
| Alexander Dawson School, Colorado Project, 5.00%, 2/15/40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,280,000 | 5,293,886 | |
|
| Charter School, Union Colony School Project, Refunding, 5.00%, 4/01/48 . . . . . . . . . . . . . . . . . . . . . . | 715,000 | 862,161 |
|
|
| University of Denver Project, Series A, 5.00%, 3/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,950,000 | 4,788,941 | |
|
| West Ridge Academy Charter School Project, Refunding and Improvement, Series A, 5.00%, 6/01/49 . . | 400,000 | 444,188 |
|
Colorado Health Facilities Authority Revenue, |
|
|
| ||
|
| Bethesda Project, Improvement and Refunding, Series A-1, 5.00%, 9/15/48 . . . . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,567,660 | |
|
| Children's Hospital Colorado Project, Series A, 5.00%, 12/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,936,750 | |
|
| CommonSpirit Health, Refunding, Series A-2, 5.00%, 8/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 6,225,000 | |
|
| Covenant Retirement Communities Inc., Refunding, Series A, 5.00%, 12/01/35 . . . . . . . . . . . . . . . . . . | 7,150,000 | 8,267,402 | |
|
| Covenant Retirement Communities Inc., Series A, 5.75%, 12/01/36. . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,803,000 | |
|
| Covenant Retirement Communities Inc., Series A, 5.00%, 12/01/48. . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,971,450 | |
|
| The Evangelical Lutheran Good Samaritan Society Project, Pre-Refunded, 5.50%, 6/01/33 . . . . . . . . . . | 1,000,000 | 1,150,560 | |
|
| The Evangelical Lutheran Good Samaritan Society Project, Pre-Refunded, 5.00%, 12/01/33 . . . . . . . . . | 2,500,000 | 2,734,250 | |
|
| The Evangelical Lutheran Good Samaritan Society Project, Pre-Refunded, 5.625%, 6/01/43 . . . . . . . . . | 4,000,000 | 4,618,240 | |
|
| The Evangelical Lutheran Good Samaritan Society Project, Pre-Refunded, 5.00%, 6/01/47 . . . . . . . . . . | 6,000,000 | 7,736,040 | |
|
| The Evangelical Lutheran Good Samaritan Society Project, Series A, Pre-Refunded, 5.00%, 6/01/40 . . . | 4,000,000 | 4,861,120 | |
|
| The Evangelical Lutheran Good Samaritan Society Project, Series A, Pre-Refunded, 5.00%, 6/01/45 . . . | 2,750,000 | 3,342,020 | |
|
| Hospital, Adventhealth Obligated Group, Series A, 5.00%, 11/15/39 . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 6,462,000 | |
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70 |
| Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
S TAT EMEN T OF INVEST MENT S
Franklin Colorado Tax-Free Income Fund (continued)
| Principal |
|
| Amount | Value |
|
|
|
Municipal Bonds (continued) |
|
|
Colorado (continued) |
|
|
Colorado Health Facilities Authority Revenue, (continued) |
|
|
Hospital, AdventHealth Obligated Group, Refunding, Series A, 4.00%, 11/15/43 . . . . . . . . . . . . . . . . . . | $ 3,000,000 | $ 3,550,620 |
Hospital, Boulder Community Hospital Project, Series A, 6.00%, 10/01/35 . . . . . . . . . . . . . . . . . . . . . . | 5,460,000 | 5,611,679 |
Hospital, Boulder Community Hospital Project, Series A, Pre-Refunded, 6.00%, 10/01/35 . . . . . . . . . . . | 40,000 | 41,189 |
Hospital, Parkview Medical Center Inc. Project, 5.00%, 9/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,868,800 |
Sanford, Refunding, Series A, 5.00%, 11/01/49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,375,000 | 10,634,407 |
SCL Health System, Montana Facility, Refunding, Series A, 4.00%, 1/01/35 . . . . . . . . . . . . . . . . . . . . . | 3,500,000 | 4,228,875 |
Valley View Hospital Assn. Project, 5.00%, 5/15/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 | 2,314,120 |
Valley View Hospital Assn. Project, 5.00%, 5/15/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,148,420 |
Colorado High Performance Transportation Enterprise Revenue, C-470 Express Lanes, 5.00%, 12/31/47 . . . | 2,555,000 | 2,857,870 |
Colorado Housing and Finance Authority Revenue, |
|
|
MF Project, Class I, Series B-1, 3.15%, 10/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,057,110 |
MF Project, Class I, Series B-1, 3.25%, 10/01/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,056,500 |
Colorado Mesa University Enterprise Revenue, |
|
|
Board of Trustees, 5.00%, 5/15/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,000,000 | 4,788,760 |
Board of Trustees, Series B, 5.00%, 5/15/44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,275,980 |
Board of Trustees, Series B, 5.00%, 5/15/49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,565,000 | 1,985,672 |
Colorado School of Mines Institutional Enterprise Revenue, |
|
|
Board of Trustees, Series A, 5.00%, 12/01/42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,450,000 | 3,032,341 |
Board of Trustees, Series A, 5.00%, 12/01/47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,693,540 |
Refunding, Series B, 5.00%, 12/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 110,000 | 122,040 |
Colorado Springs Utilities System Revenue, |
|
|
Improvement, Series A-4, 5.00%, 11/15/48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 6,373,500 |
Improvement, Series B-1, 5.00%, 11/15/38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,000,000 | 4,529,480 |
Refunding, Series A, 5.00%, 11/15/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,612,210 |
Refunding, Series A, 5.00%, 11/15/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,665,000 | 3,187,287 |
Refunding, Series A-2, 5.00%, 11/15/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,830,350 |
Refunding, Series A-2, 5.00%, 11/15/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,000,000 | 7,502,340 |
Series D-1, Pre-Refunded, 5.25%, 11/15/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,156,000 |
Colorado State Board of Governors University Enterprise System Revenue, |
|
|
Pre-Refunded, 5.00%, 3/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,675,000 | 3,007,610 |
Refunding, Series A, 4.00%, 3/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,808,450 |
Refunding, Series A, 5.00%, 3/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 7,420,900 |
Refunding, Series A, 5.00%, 3/01/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,000,000 | 5,141,200 |
Refunding, Series B, 5.00%, 3/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,222,240 |
Refunding, Series E, 4.00%, 3/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,500,000 | 5,184,720 |
Series A, 5.00%, 3/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,010,000 | 3,527,208 |
Series A, Pre-Refunded, 5.00%, 3/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,990,000 | 4,798,015 |
Series C, Pre-Refunded, 5.00%, 3/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,460,000 | 2,769,788 |
Colorado State Building Excellent Schools Today COP, |
|
|
Series G, Pre-Refunded, 5.00%, 3/15/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 | 10,434,500 |
Series I, Pre-Refunded, 5.00%, 3/15/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,500,400 |
Series J, 5.25%, 3/15/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 6,220,400 |
Series O, 4.00%, 3/15/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,901,100 |
Colorado State COP, UCDHSC Fitzsimons Academic Projects, Refunding, Series A, 5.00%, 11/01/29 . . . . . . | 3,105,000 | 3,532,124 |
franklintempleton.com | Annual Report | 71 |
FRANKL IN TAX-FREE TRUST
STATEMEN T OF INVEST MENT S
Franklin Colorado Tax-Free Income Fund (continued)
|
|
| Principal |
|
|
|
|
| Amount | Value | |
|
|
|
| ||
Municipal Bonds (continued) |
|
|
| ||
Colorado (continued) |
|
|
| ||
Colorado Water Resources and Power Development Authority Water Resources Revenue, |
|
|
| ||
|
| Donala Water and Sanitation District Project, Series C, 5.00%, 9/01/36 . . . . . . . . . . . . . . . . . . . . . . . . | $ 1,900,000 | $ 2,010,428 |
|
|
| Fountain Colorado Electric Water and Wastewater Utility Enterprise Project, Series A, AGMC Insured, |
|
|
|
| 5.00%, 9/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,210,000 | 1,316,746 | ||
Commerce City Northern Infrastructure General Improvement District GO, Refunding and Improvement, |
|
|
| ||
| AGMC Insured, 5.00%, 12/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,040,000 | 2,259,157 | ||
Commerce City Sales and Use Tax Revenue, AGMC Insured, 5.00%, 8/01/41 . . . . . . . . . . . . . . . . . . . . . . | 4,000,000 | 4,841,800 | |||
Denver City & County School District No.1 COPS, 5.00%, 12/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 | 2,638,760 | |||
Denver City and County Airport System Revenue, |
|
|
| ||
|
| Department of Aviation, Refunding, Series C, 5.00%, 11/15/35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,977,370 |
|
|
| Department of Aviation, Refunding, Subordinate, Series B, 5.00%, 11/15/43 . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,646,400 |
|
|
| Department of Aviation, Refunding, Subordinate, Series B, 5.00%, 12/01/43 . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 6,373,350 |
|
|
| Department of Aviation, Refunding, Subordinate, Series B, 5.00%, 12/01/48 . . . . . . . . . . . . . . . . . . . . | 4,440,000 | 5,623,793 |
|
Denver City and County Board of Water Commissioners Water Revenue, Green Bonds, Series A, 5.00%, |
|
|
| ||
| 9/15/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 | 12,543,600 |
| |
Denver City and County Dedicated Tax Revenue, |
|
|
| ||
|
| Current Interest Bonds, Series A-1, 5.00%, 8/01/48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 6,032,050 |
|
|
| Refunding and Improvement, Series A, 4.00%, 8/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,500,000 | 3,914,610 |
|
Denver City and County School District No. 1 COP, Series C, 5.00%, 12/15/30 . . . . . . . . . . . . . . . . . . . . . . | 4,000,000 | 4,574,560 | |||
Denver City and County School District No. 1 GO, 5.00%, 12/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12,440,000 | 15,347,352 |
| ||
Denver Convention Center Hotel Authority Revenue, Senior, Refunding, 5.00%, 12/01/40 . . . . . . . . . . . . . . . | 9,775,000 | 11,556,982 |
| ||
Denver Health and Hospital Authority Healthcare Revenue, |
|
|
| ||
|
| Recovery Zone Facility, Pre-Refunded, 5.50%, 12/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 | 1,551,405 |
|
|
| Recovery Zone Facility, Pre-Refunded, 5.625%, 12/01/40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,000,000 | 4,140,760 |
|
|
| Refunding, Series A, 5.00%, 12/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,298,980 |
|
|
| Refunding, Series A, 5.00%, 12/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,400,000 | 1,815,352 |
|
|
| Refunding, Series A, 5.00%, 12/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,300,000 | 4,262,280 |
|
|
| Series A, 5.25%, 12/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,250,000 | 10,321,982 |
|
Denver Health and Hospital Authority Project COP, 550 Acoma Inc., 5.00%, 12/01/48 . . . . . . . . . . . . . . . . . | 3,355,000 | 4,100,011 | |||
Denver International Business Center Metropolitan District No. 1 GO, In the City and County of Denver, |
|
|
| ||
| Series A, 4.00%, 12/01/48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 350,000 | 366,188 |
| |
E-470 Public Highway Authority Revenue, |
|
|
| ||
|
| senior bond, Capital Appreciation, Series B, NATL Insured, zero cpn., 9/01/32 . . . . . . . . . . . . . . . . . . . | 7,800,000 | 3,935,880 | |
|
| senior bond, Capital Appreciation, Series B, NATL Insured, zero cpn., 9/01/33 . . . . . . . . . . . . . . . . . . . | 3,000,000 | 1,430,490 | |
|
| senior bond, Capital Appreciation, Series B, NATL Insured, zero cpn., 9/01/34 . . . . . . . . . . . . . . . . . . . | 14,075,000 | 6,341,914 | |
|
| senior bond, Series C, 5.25%, 9/01/25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,500,000 | 2,554,575 |
|
Eagle River Water and Sanitation District Enterprise Wastewater Revenue, 5.00%, 12/01/42 . . . . . . . . . . . . | 3,500,000 | 3,847,970 | |||
Eagle River Water and Sanitation District GO, 5.00%, 12/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,360,000 | 1,648,660 | |||
Fort Collins Electric Utility Enterprise Revenue, Series A, 5.00%, 12/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . | 13,500,000 | 17,044,020 |
| ||
a Grand Junction Revenue, |
|
|
| ||
|
| General Fund Bonds, Series B, 4.00%, 3/01/45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 | 1,792,800 |
|
|
| General Fund Bonds, Series B, 4.00%, 3/01/49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,240,000 | 1,474,496 |
|
Ignacio School District 11JT GO, La Plata and Archuleta Counties, Pre-Refunded, 5.00%, 12/01/31 . . . . . . . | 1,215,000 | 1,303,865 | |||
Larimer County School District No. R-1 Poudre GO, 5.00%, 12/15/40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 6,468,850 | |||
Meridian Metropolitan District GO, In Douglas County, Refunding, Series A, 5.00%, 12/01/41 . . . . . . . . . . . . | 5,000,000 | 5,307,350 | |||
Metropolitan State University of Denver Institutional Enterprise Revenue, Aerospace and Engineering |
|
|
| ||
| Sciences Building Project, 5.00%, 12/01/45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,000,000 | 4,762,840 | ||
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72 |
| Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
S TAT EMEN T OF INVEST MENT S
Franklin Colorado Tax-Free Income Fund (continued)
| Principal |
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|
|
| Amount |
| Value | |
|
|
|
|
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Municipal Bonds (continued) |
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Colorado (continued) |
|
|
|
|
Park 70 Metropolitan District GO, |
|
|
|
|
City of Aurora, Refunding and Improvement, 5.00%, 12/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 1,000,000 | $ 1,154,390 | ||
City of Aurora, Refunding and Improvement, 5.00%, 12/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 | 1,711,800 | ||
Park Creek Metropolitan District Revenue, |
|
|
|
|
Senior Limited Property Tax Supported, Refunding, Series A, 5.00%, 12/01/41. . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,508,890 | ||
Senior Limited Property Tax Supported, Refunding, Series A, 5.00%, 12/01/45. . . . . . . . . . . . . . . . . . . | 7,000,000 | 8,129,940 | ||
Senior Limited Property Tax Supported, Refunding, Series A, 5.00%, 12/01/46. . . . . . . . . . . . . . . . . . . | 2,875,000 | 3,505,545 | ||
Senior Limited Property Tax Supported, Refunding, Series A, 5.00%, 12/01/46. . . . . . . . . . . . . . . . . . . | 2,500,000 | 2,901,250 | ||
Senior Limited Property Tax Supported, Series A, AGMC Insured, Pre-Refunded, 6.00%, 12/01/38 . . . . | 2,500,000 | 2,595,675 | ||
Senior Limited Property Tax Supported, Series A, AGMC Insured, Pre-Refunded, 6.125%, 12/01/41. . . . | 2,500,000 | 2,598,000 | ||
Parker Water and Sanitation District Water and Sewer Enterprise Revenue, Douglas County, 5.00%, |
|
|
|
|
11/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,475,000 | 8,131,888 | ||
Platte River Power Authority Power Revenue, Series II, 5.00%, 6/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12,000,000 | 13,006,920 | ||
Poudre Tech Metropolitan District Unlimited Property Tax Supported Revenue, Refunding and Improvement, |
|
|
|
|
Series A, AGMC Insured, 5.00%, 12/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,435,000 | 7,630,317 | ||
Public Authority for Colorado Energy Natural Gas Purchase Revenue, 6.50%, 11/15/38 . . . . . . . . . . . . . . . . | 9,900,000 | 16,118,982 | ||
Pueblo County COP, County Judicial Complex Project, AGMC Insured, 5.00%, 9/15/42 . . . . . . . . . . . . . . . . | 10,000,000 | 10,848,700 | ||
Pueblo County School District No. 60, 5.00%, 12/15/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 6,620,350 | ||
Pueblo Urban Renewal Authority Revenue, |
|
|
|
|
Refunding and Improvement, Series B, 5.25%, 12/01/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,072,960 | ||
Refunding and Improvement, Series B, 5.50%, 12/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,010,000 | 1,088,043 | ||
Refunding and Improvement, Series B, 5.25%, 12/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,615,000 | 3,874,846 | ||
Regional Transportation District COP, Series A, 5.375%, 6/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 19,000,000 | 19,198,360 | ||
Regional Transportation District Sales Tax Revenue, |
|
|
|
|
FasTracks Project, Series A, 5.00%, 11/01/41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 | 12,383,400 | ||
FasTracks Project, Series A, 5.00%, 11/01/46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 11,000,000 | 13,569,600 | ||
FasTracks Project, Series A, Pre-Refunded, 5.00%, 11/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 | 10,278,300 | ||
Roaring Fork Transportation Authority Sales and Use Tax Revenue, Refunding and Improvement, 4.00%, |
|
|
|
|
12/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,180,850 | ||
South Timnath Metropolitan District No. 2 GO, Limited Tax, Refunding and Improvement, 5.00%, 12/01/42 . . | 5,690,000 | 6,699,065 | ||
Sterling Hills West Metropolitan District GO, Arapahoe County, Refunding, 5.00%, 12/01/39 . . . . . . . . . . . . . | 1,125,000 | 1,337,029 | ||
Thompson Crossing Metropolitan District No. 5 GO, Series B, AGMC Insured, 5.00%, 12/01/46 . . . . . . . . . . | 4,500,000 | 5,370,975 | ||
University of Colorado Enterprise Revenue, |
|
|
|
|
Refunding, Series B, 5.00%, 6/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,385,000 | 4,353,042 | ||
Refunding, Series B, 5.00%, 6/01/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,295,000 | 2,932,344 | ||
Series A, Pre-Refunded, 5.00%, 6/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,655,000 | 6,888,638 | ||
Series B, 5.00%, 6/01/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 6,300,600 | ||
University of Northern Colorado Greeley Institutional Enterprise Revenue, Series A, Pre-Refunded, 5.00%, |
|
|
|
|
6/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,690,000 | 1,778,353 | ||
Vauxmont Metropolitan DIistrict GO, Limited Tax Convertible Unlimited, Refunding, Sub, AGMC Insured, |
|
|
|
|
5.00%, 12/15/32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 480,000 |
| 559,901 | |
Vauxmont Metropolitan District GO, Limited Tax Convertible Unlimited, Sub, Refunding, AGMC Insured, |
|
|
|
|
5.00%, 12/15/27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 380,000 |
| 447,572 | |
Weld County School District #RE002 Eaton GO, 5.00%, 12/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,500,000 | 9,758,625 | ||
Weld County School District No. Re-4 GO, 5.25%, 12/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 6,285,500 | ||
Weld County School District No.6 Greeley GO, 5.00%, 12/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,750,000 | 4,879,313 | ||
Westminister Water & Wastewater Utility Enterprise Revenue, 5.00%, 12/01/34 . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,345,300 | ||
|
|
| ||
franklintempleton.com | Annual Report |
| 73 |
FRANKL IN TAX-FREE TRUST
STATEMEN T OF INVEST MENT S
Franklin Colorado Tax-Free Income Fund (continued)
| Principal |
|
|
|
| Amount |
|
| Value |
|
|
|
|
|
Municipal Bonds (continued) |
|
|
|
|
Colorado (continued) |
|
|
|
|
Winter Farm Metropolitan District No. 2 Co. GO, |
|
|
|
|
Refunding, 5.00%, 12/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 630,000 | $ | 791,734 | |
Refunding, AGMC Insured, 5.00%, 12/01/44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 500,000 |
|
| 621,545 |
Woodmoor Water and Sanitation District No. 1 Enterprise Water and Wastewater Revenue, 5.00%, 12/01/36 . | 5,000,000 |
|
| 5,336,950 |
Total Municipal Bonds before Short Term Investments (Cost $658,988,735) . . . . . . |
|
|
|
|
|
|
| 720,368,579 | |
|
|
|
|
|
Short Term Investments 4.4%
Municipal Bonds 4.4%
Colorado 4.4%
bColorado Educational and Cultural Facilities Authority Revenue, National Jewish Federation Bond Program,
Series B-4, LOC Toronto Dominion Bank, Daily VRDN and Put, 1.22%, 12/01/35 . . . . . . . . . . . . . . . . . . . . | 3,960,000 | 3,960,000 |
b Colorado State Educational and Cultural Facilities Authority Revenue, National Jewish Federation Bond |
|
|
Program, Series B-5, LOC TD Bank National Association, Daily VRDN and Put, 1.22%, 1/01/39 . . . . . . . . . | 1,000,000 | 1,000,000 |
b Denver City and County COP, |
|
|
Wellington E. Webb Municipal Office Building, Refunding, Series A2, SPA JPMorgan Chase Bank, Daily |
|
|
VRDN and Put, 1.22%, 12/01/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 22,755,000 | 22,755,000 |
Wellington E. Webb Municipal Office Building, Refunding, Series A3, SPA JPMorgan Chase Bank, Daily |
|
|
VRDN and Put, 1.22%, 12/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,055,000 | 6,055,000 |
Total Short Term Investments (Cost $33,770,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
|
| 33,770,000 | |
Total Investments (Cost $692,758,735) 99.0%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
|
| 754,138,579 | |
Other Assets, less Liabilities 1.0%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
| 7,249,936 |
Net Assets 100.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
|
| $761,388,515 | |
|
|
|
See Abbreviations on page 169.
aSecurity purchased on a when-issued basis. See Note 1(b).
bVariable rate demand notes (VRDNs) are obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. Unless otherwise noted, the coupon rate is determined based on factors including supply and demand, underlying credit, tax treatment, and current short term rates. The coupon rate shown represents the rate at period end.
|
|
|
|
74 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
Financial Highlights
Franklin Connecticut Tax-Free Income Fund
Year Ended February 28,
2020a2019b
Class A
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsc:
Net investment incomed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assetsf
Expensesg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10.05$10.01
0.290.14
0.360.04
0.650.18
(0.31)(0.14)
$10.39$10.05
6.54%1.86%
0.93%0.92%
2.83%2.98%
$21,670$13,765
11.63%15.00%
aFor the year ended February 29.
bFor the period September 10, 2018 (effective date) to February 28, 2019.
cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
dBased on average daily shares outstanding.
eTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year. fRatios are annualized for periods less than one year.
gBenefit of expense reduction rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 75 |
FRANKLIN TAX-FREE TRUST
FINANCIA L HIGHLIGHT S
Franklin Connecticut Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Class A1
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returnd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10.04 | $10.08 | $10.42 | $10.69 | $10.86 |
|
|
|
|
|
0.30 | 0.31 | 0.32 | 0.37 | 0.39 |
0.36 | (0.03) | (0.32) | (0.28) | (0.17) |
|
|
|
|
|
0.66 | 0.28 | — | 0.09 | 0.22 |
|
|
|
|
|
(0.32) | (0.32) | (0.34) | (0.36) | (0.39) |
|
|
|
|
|
$10.38 | $10.04 | $10.08 | $10.42 | $10.69 |
|
|
|
|
|
6.70% | 2.86% | 0.03% | 0.82% | 2.09% |
0.78%e | 0.77%e | 0.74% | 0.71% | 0.69% |
2.98% | 3.13% | 3.15% | 3.42% | 3.66% |
$150,081 | $160,148 | $187,638 | $222,705 | $253,012 |
11.63% | 15.00% | 4.27% | 12.40% | 7.86% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable. eBenefit of expense reduction rounds to less than 0.01%.
|
|
|
|
76 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TAX-FREE TRUS T
FINANCIA L HIGHLIGHT S
Franklin Connecticut Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Class C
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returnd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10.13 | $10.16 | $10.50 | $10.77 | $10.93 |
|
|
|
|
|
0.25 | 0.26 | 0.27 | 0.31 | 0.33 |
0.35 | (0.02) | (0.32) | (0.28) | (0.16) |
|
|
|
|
|
0.60 | 0.24 | (0.05) | 0.03 | 0.17 |
|
|
|
|
|
(0.27) | (0.27) | (0.29) | (0.30) | (0.33) |
|
|
|
|
|
$10.46 | $10.13 | $10.16 | $10.50 | $10.77 |
|
|
|
|
|
5.98% | 2.37% | (0.52)% | 0.25% | 1.62% |
1.33%e | 1.32%e | 1.29% | 1.26% | 1.24% |
2.43% | 2.58% | 2.60% | 2.87% | 3.11% |
$20,421 | $26,076 | $45,183 | $61,813 | $68,311 |
11.63% | 15.00% | 4.27% | 12.40% | 7.86% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable. eBenefit of expense reduction rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 77 |
FRANKLIN TAX-FREE TRUST
FINANCIA L HIGHLIGHT S
Franklin Connecticut Tax-Free Income Fund (continued)
Year Ended February 28,
2020a2019 2018b
Class R6
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsc:
Net investment incomed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assetsf
Expenses before waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses net of waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10.04 | $10.08 | $10.30 |
|
|
|
0.32 | 0.33 | 0.20 |
0.36 | (0.03) | (0.22) |
|
|
|
0.68 | 0.30 | (0.02) |
|
|
|
(0.34) | (0.34) | (0.20) |
|
|
|
$10.38 | $10.04 | $10.08 |
|
|
|
6.85% | 2.99% | (0.19)% |
0.70% | 0.65% | 0.77% |
0.64%g | 0.63%g | 0.60% |
3.12% | 3.27% | 3.29% |
$299 | $147 | $324 |
11.63% | 15.00% | 4.27% |
aFor the year ended February 29.
bFor the period August 1, 2017 (effective date) to February 28, 2018.
cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
dBased on average daily shares outstanding.
eTotal return is not annualized for periods less than one year.
fRatios are annualized for periods less than one year.
gBenefit of expense reduction rounds to less than 0.01%.
|
|
|
|
78 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TAX-FREE TRUS T
FINANCIA L HIGHLIGHT S
Franklin Connecticut Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Advisor Class
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$10.04 | $10.08 | $10.42 | $10.68 | $10.85 |
|
|
|
|
|
0.31 | 0.32 | 0.33 | 0.38 | 0.40 |
0.35 | (0.03) | (0.32) | (0.27) | (0.17) |
|
|
|
|
|
0.66 | 0.29 | 0.01 | 0.11 | 0.23 |
|
|
|
|
|
(0.33) | (0.33) | (0.35) | (0.37) | (0.40) |
|
|
|
|
|
$10.37 | $10.04 | $10.08 | $10.42 | $10.68 |
|
|
|
|
|
6.71% | 2.96% | 0.13% | 1.01% | 2.19% |
0.68%d | 0.67%d | 0.64% | 0.61% | 0.59% |
3.08% | 3.23% | 3.25% | 3.52% | 3.76% |
$20,024 | $19,351 | $20,855 | $26,253 | $21,254 |
11.63% | 15.00% | 4.27% | 12.40% | 7.86% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dBenefit of expense reduction rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 79 |
F R A N K L IN TAX - FREE TRUS T
Statement of Investments, February 29, 2020
Franklin Connecticut Tax-Free Income Fund
| Principal |
|
| Amount | Value |
|
|
|
Municipal Bonds 98.3% |
|
|
Connecticut 98.3% |
|
|
City of Bridgeport GO, Series A, Pre-Refunded, 5.00%, 2/15/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $10,000,000 | $ 10,815,100 |
Connecticut State Airport Authority CFC Revenue, Ground Transportation Center Project, Series A, 5.00%, |
|
|
7/01/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,400,000 | 1,743,952 |
Connecticut State GO, Series A, 4.00%, 1/15/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,000,000 | 8,413,440 |
Connecticut State Health and Educational Facilities Authority Revenue, |
|
|
Connecticut College Issue, Refunding, Series L-1, 4.00%, 7/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,557,200 |
Connecticut State University System Issue, Series N, 5.00%, 11/01/29 . . . . . . . . . . . . . . . . . . . . . . . . | 5,060,000 | 5,736,573 |
Covenant Home Inc., Series B, 5.00%, 12/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,000,000 | 4,821,280 |
Fairfield University Issue, Series Q-1, 5.00%, 7/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,000,000 | 10,691,730 |
Fairfield University Issues, New Money, Series O, Pre-Refunded, 5.00%, 7/01/35 . . . . . . . . . . . . . . . . . | 4,000,000 | 4,055,920 |
Fairfield University Issues, New Money, Series O, Pre-Refunded, 5.00%, 7/01/40 . . . . . . . . . . . . . . . . . | 5,000,000 | 5,069,050 |
Hartford Healthcare Issue, Series A, Pre-Refunded, 5.00%, 7/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . | 12,000,000 | 12,525,600 |
Nuvance Health Issue, Series A, 4.00%, 7/01/41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,105,000 | 4,744,806 |
Quinnipiac University Issue, Refunding, Series L, 5.00%, 7/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,250,000 | 9,605,392 |
Refunding, Series F, 4.00%, 7/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 345,000 | 430,253 |
Refunding, Series F, 4.00%, 7/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 310,000 | 384,719 |
Refunding, Series F, 4.00%, 7/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 480,000 | 594,120 |
Refunding, Series F, 4.00%, 7/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 300,000 | 370,164 |
Refunding, Series F, 4.00%, 7/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 315,000 | 387,923 |
Refunding, Series F, 4.00%, 7/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 380,000 | 466,359 |
Refunding, Series F, 4.00%, 7/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 860,000 | 1,050,387 |
Sacred Heart University Issue, Refunding, Series I-1, 5.00%, 7/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . | 4,375,000 | 5,356,006 |
Sacred Heart University Issue, Series G, Pre-Refunded, 5.375%, 7/01/31 . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 | 1,592,085 |
Sacred Heart University Issue, Series G, Pre-Refunded, 5.625%, 7/01/41 . . . . . . . . . . . . . . . . . . . . . . | 5,500,000 | 5,855,795 |
Sacred Heart University Issue, Series H, AGMC Insured, Pre-Refunded, 5.00%, 7/01/28 . . . . . . . . . . . . | 2,290,000 | 2,515,267 |
Stamford Hospital Issue, Series I, 5.00%, 7/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,059,850 |
Stamford Hospital Issue, Series J, 5.00%, 7/01/42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,369,100 |
Trinity Health Credit Group, Refunding, Series CT, 5.00%, 12/01/41. . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 6,045,550 |
Wesleyan University Issue, Series G, Pre-Refunded, 5.00%, 7/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,000,000 | 4,055,920 |
Western Connecticut Health Network Issue, Series M, Pre-Refunded, 5.375%, 7/01/41 . . . . . . . . . . . . . | 7,000,000 | 7,424,900 |
Yale-New Haven Hospital Issue, Series N, 5.00%, 7/01/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,488,750 |
Connecticut State HFA Housing Mortgage Finance Program Revenue, |
|
|
Refunding, Series E, Subseries E-1, 3.05%, 11/15/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,225,000 |
Refunding, Series E, Subseries E-1, 3.10%, 11/15/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 | 2,084,180 |
Connecticut State HFAR, |
|
|
State Supported Special Obligation, Series 10, 5.00%, 6/15/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 420,000 | 421,235 |
State Supported Special Obligation, Series 13, 5.00%, 6/15/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 | 1,516,845 |
Connecticut State Higher Education Supplemental Loan Authority Revenue, CHESLA Loan Program, Series |
|
|
A, 5.05%, 11/15/27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 490,000 | 491,553 |
Connecticut State Municipal Electric Energy Cooperative Power Supply System Revenue, Refunding, Series |
|
|
A, 5.00%, 1/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,322,530 |
Connecticut State Revolving Fund General Revenue, |
|
|
Green Bonds, Series A, 5.00%, 3/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,936,400 |
Green Bonds, Series A, 5.00%, 3/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,186,210 |
Green Bonds, Series A, 5.00%, 5/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,781,530 |
|
|
|
|
80 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
S TAT EMEN T OF INVEST MENT S
Franklin Connecticut Tax-Free Income Fund (continued)
| Principal |
|
|
| Amount |
| Value |
|
|
|
|
Municipal Bonds (continued) |
|
|
|
Connecticut (continued) |
|
|
|
Connecticut State Special Tax Obligation Revenue, |
|
|
|
Transportation Infrastructure Purposes, Series A, 5.00%, 10/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 5,000,000 | $ 5,698,550 | |
Transportation Infrastructure Purposes, Series A, 5.00%, 9/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,226,410 | |
Transportation Infrastructure Purposes, Series A, 5.00%, 1/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,245,810 | |
Connecticut Transmission Municipal Electric Energy Cooperative Transmission System Revenue, Series A, |
|
|
|
5.00%, 1/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,359,950 | |
Hartford County Metropolitan District Clean Water Project Revenue, |
|
|
|
Green Bonds, Refunding, Series A, 5.00%, 11/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,859,350 | |
Refunding, Series A, 5.00%, 4/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,413,650 | |
New Britain GO, Series C, AGMC Insured, 5.00%, 3/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,218,540 | |
New Haven GO, Issue of 2002, Series C, NATL Insured, ETM, 5.00%, 11/01/22 . . . . . . . . . . . . . . . . . . . . . | 25,000 | 25,077 | |
South Central Regional Water Authority Water System Revenue, |
|
|
|
Refunding, Thirty-Second Series B, 5.00%, 8/01/38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,720,000 | 2,104,764 | |
Thirtieth Series A, Pre-Refunded, 5.00%, 8/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 | 1,773,225 | |
Thirtieth Series A, Pre-Refunded, 5.00%, 8/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,615,000 | 1,909,172 | |
Stamford Water Pollution Control System and Facility Revenue, Refunding, Series A, 5.25%, 8/15/43 . . . . . . | 1,000,000 | 1,137,870 | |
Stratford GO, Refunding, 5.00%, 7/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,187,980 | |
University of Connecticut GO, |
|
|
|
Series A, 5.00%, 8/15/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,590,000 | 7,419,154 | |
Series A, 5.00%, 2/15/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 | 2,287,720 | |
Series A, 5.00%, 1/15/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,000,000 | 4,898,080 | |
Total Municipal Bonds before Short Term Investments (Cost $194,881,672) . . . . |
|
|
|
| 208,957,976 | ||
|
|
|
|
Short Term Investments (Cost $2,100,000) 1.0%
Municipal Bonds 1.0%
Connecticut 1.0%
aConnecticut State Health and Educational Facilities Authority Revenue, Yale University Issue, Series V-1,
Daily VRDN and Put, 0.99%, 7/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,100,000 | 2,100,000 |
Total Investments (Cost $196,981,672) 99.3% |
|
|
| 211,057,976 | |
Other Assets, less Liabilities 0.7%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
| 1,435,990 |
Net Assets 100.0% . . . . . . . . . . . . . . . . . . . . . . . . |
|
|
| $212,493,966 | |
|
|
|
See Abbreviations on page 169.
aVariable rate demand notes (VRDNs) are obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. Unless otherwise noted, the coupon rate is determined based on factors including supply and demand, underlying credit, tax treatment, and current short term rates. The coupon rate shown represents the rate at period end.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 81 |
F R A N K L IN TAX - FREE TRUS T
Financial Highlights
Franklin Michigan Tax-Free Income Fund
Year Ended February 28,
2020a2019b
Class A
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsc:
Net investment incomed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assetsf
Expensesg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11.31$11.19
0.290.15
0.740.12
1.030.27
(0.31)(0.15)
$12.03$11.31
9.19%2.46%
0.82%0.83%
2.51%2.86%
$74,740$33,739
4.08%11.55%
aFor the year ended February 29.
bFor the period September 10, 2018 (effective date) to February 28, 2019.
cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
dBased on average daily shares outstanding.
eTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year. fRatios are annualized for periods less than one year.
gBenefit of expense reduction rounds to less than 0.01%.
|
|
|
|
82 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TAX-FREE TRUS T
FINANCIA L HIGHLIGHT S
Franklin Michigan Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Class A1
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returnd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11.30 | $11.25 | $11.52 | $11.78 | $12.02 |
|
|
|
|
|
0.31 | 0.34 | 0.36 | 0.40 | 0.42 |
0.73 | 0.06 | (0.26) | (0.25) | (0.25) |
|
|
|
|
|
1.04 | 0.40 | 0.10 | 0.15 | 0.17 |
|
|
|
|
|
(0.32) | (0.35) | (0.37) | (0.41) | (0.41) |
|
|
|
|
|
$12.02 | $11.30 | $11.25 | $11.52 | $11.78 |
|
|
|
|
|
9.36% | 3.59% | 0.85% | 1.24% | 1.48% |
0.67%e | 0.68%e | 0.67% | 0.65% | 0.64% |
2.66% | 3.01% | 3.11% | 3.43% | 3.55% |
$731,568 | $727,705 | $797,935 | $861,662 | $896,978 |
4.08% | 11.55% | 12.74% | 12.35% | 12.04% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding. dTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable. eBenefit of expense reduction rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 83 |
FRANKLIN TAX-FREE TRUST
FINANCIA L HIGHLIGHT S
Franklin Michigan Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Class C
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returnd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11.48 | $11.43 | $11.69 | $11.95 | $12.20 |
|
|
|
|
|
0.25 | 0.28 | 0.30 | 0.35 | 0.36 |
0.74 | 0.05 | (0.26) | (0.27) | (0.26) |
|
|
|
|
|
0.99 | 0.33 | 0.04 | 0.08 | 0.10 |
|
|
|
|
|
(0.26) | (0.28) | (0.30) | (0.34) | (0.35) |
|
|
|
|
|
$12.21 | $11.48 | $11.43 | $11.69 | $11.95 |
|
|
|
|
|
8.74% | 2.96% | 0.36% | 0.66% | 0.83% |
1.22%e | 1.23%e | 1.22% | 1.20% | 1.19% |
2.11% | 2.46% | 2.56% | 2.88% | 3.00% |
$78,321 | $80,062 | $124,683 | $142,248 | $145,491 |
4.08% | 11.55% | 12.74% | 12.35% | 12.04% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable. eBenefit of expense reduction rounds to less than 0.01%.
|
|
|
|
84 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TAX-FREE TRUS T
FINANCIA L HIGHLIGHT S
Franklin Michigan Tax-Free Income Fund (continued)
Year Ended February 28,
2020a2019 2018b
Class R6
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsc:
Net investment incomed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assetsf
Expenses before waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses net of waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11.35 | $11.29 | $11.53 |
|
|
|
0.33 | 0.35 | 0.22 |
0.73 | 0.07 | (0.24) |
|
|
|
1.06 | 0.42 | (0.02) |
|
|
|
(0.34) | (0.36) | (0.22) |
|
|
|
$12.07 | $11.35 | $11.29 |
|
|
|
9.48% | 3.79% | (0.21)% |
0.55% | 0.57% | 0.58% |
0.53%g | 0.54%g | 0.53% |
2.80% | 3.15% | 3.25% |
$4,153 | $3,042 | $2,510 |
4.08% | 11.55% | 12.74% |
aFor the year ended February 29.
bFor the period August 1, 2017 (effective date) to February 28, 2018.
cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
dBased on average daily shares outstanding.
eTotal return is not annualized for periods less than one year.
fRatios are annualized for periods less than one year.
gBenefit of expense reduction rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 85 |
FRANKLIN TAX-FREE TRUST
FINANCIA L HIGHLIGHT S
Franklin Michigan Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Advisor Class
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11.34 | $11.29 | $11.55 | $11.81 | $12.06 |
|
|
|
|
|
0.32 | 0.35 | 0.37 | 0.42 | 0.43 |
0.74 | 0.06 | (0.25) | (0.26) | (0.26) |
|
|
|
|
|
1.06 | 0.41 | 0.12 | 0.16 | 0.17 |
|
|
|
|
|
(0.34) | (0.36) | (0.38) | (0.42) | (0.42) |
|
|
|
|
|
$12.06 | $11.34 | $11.29 | $11.55 | $11.81 |
|
|
|
|
|
9.44% | 3.67% | 1.03% | 1.33% | 1.50% |
0.57%d | 0.58%d | 0.57% | 0.55% | 0.54% |
2.76% | 3.11% | 3.21% | 3.53% | 3.65% |
$79,717 | $63,190 | $53,587 | $67,672 | $39,846 |
4.08% | 11.55% | 12.74% | 12.35% | 12.04% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dBenefit of expense reduction rounds to less than 0.01%.
|
|
|
|
86 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
Statement of Investments, February 29, 2020
Franklin Michigan Tax-Free Income Fund
| Principal |
|
|
|
| Amount |
| Value | |
|
|
|
|
|
Municipal Bonds 96.2% |
|
|
|
|
Michigan 96.2% |
|
|
|
|
Ann Arbor Public Schools GO, |
|
|
|
|
County of Washtenaw, Refunding, 5.00%, 5/01/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 1,000,000 | $ 1,204,950 | ||
County of Washtenaw, Refunding, 5.00%, 5/01/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,235,000 | 1,488,632 | ||
Battle Creek Water and Wastewater System Revenue, Calhoun County, Series A, 5.00%, 6/01/36 . . . . . . . . | 1,300,000 | 1,574,274 | ||
Bloomfield Charter Township GO, |
|
|
|
|
County of Oakland, Refunding, 5.00%, 5/01/29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 470,000 |
| 588,224 | |
County of Oakland, Refunding, 5.00%, 5/01/32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,243,360 | ||
Byron Center Public Schools GO, |
|
|
|
|
Kent County, School Building and Site, Series I, 5.00%, 5/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,258,030 | ||
Kent County, School Building and Site, Series I, 5.00%, 5/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,920,000 | 2,405,722 | ||
Kent County, School Building and Site, Series I, 5.00%, 5/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 650,000 |
| 810,875 | |
Kent County, School Building and Site, Series I, 5.00%, 5/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,480,000 | 1,838,012 | ||
Kent County, School Building and Site, Series I, 5.00%, 5/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,330,000 | 1,647,085 | ||
Kent County, School Building and Site, Series I, 5.00%, 5/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,290,000 | 2,832,547 | ||
Kent County, School Building and Site, Series I, 5.00%, 5/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,250,000 | 2,748,375 | ||
Kent County, School Building and Site, Series I, 5.00%, 5/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,140,000 | 5,016,479 | ||
Caledonia Community Schools GO, Counties of Kent, Allegan and Barry, Refunding, 5.00%, 5/01/26 . . . . . . | 1,000,000 | 1,243,120 | ||
Central Michigan University Revenue, |
|
|
|
|
Board of Trustees, General, Refunding, 5.00%, 10/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,910,000 | 2,248,777 | ||
Board of Trustees, General, Refunding, 5.00%, 10/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,055,000 | 1,241,735 | ||
Board of Trustees, General, Refunding, 5.00%, 10/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,600,000 | 1,884,480 | ||
Board of Trustees, General, Refunding, 5.00%, 10/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 | 2,347,180 | ||
Chippewa Valley Schools GO, |
|
|
|
|
County of Macomb, Refunding, 5.00%, 5/01/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,075,000 | 6,857,460 | ||
County of Macomb, Refunding, 5.00%, 5/01/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,425,000 | 7,246,115 | ||
County of Macomb, Refunding, 5.00%, 5/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,420,000 | 7,231,873 | ||
County of Macomb, Refunding, 5.00%, 5/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,375,390 | ||
County of Macomb, Refunding, 5.00%, 5/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,590,000 | 7,410,191 | ||
Commerce Charter Township GO, County of Oakland, Capital Improvement, Refunding, 5.00%, 12/01/38 . . . | 3,250,000 | 3,916,282 | ||
Detroit City School District GO, School Building and Site Improvement, Series A, AGMC Insured, 6.00%, |
|
|
|
|
5/01/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 | 12,814,200 | ||
Detroit Water and Sewerage Department Sewage Disposal System Revenue, senior lien, Refunding, Series |
|
|
|
|
A, AGMC Insured, 5.00%, 7/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,458,550 | ||
Detroit Water Supply System Revenue, |
|
|
|
|
second lien, Series B, NATL Insured, 5.00%, 7/01/34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 25,000 |
| 25,078 | |
senior lien, Series A, AGMC Insured, 5.00%, 7/01/34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 30,000 |
| 30,097 | |
DeWitt Public Schools GO, |
|
|
|
|
County of Clinton, School Building and Site, 5.00%, 5/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 500,000 |
| 632,750 | |
County of Clinton, School Building and Site, 5.00%, 5/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 815,000 | 1,018,139 | ||
County of Clinton, School Building and Site, 5.00%, 5/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,247,160 | ||
County of Clinton, School Building and Site, 5.00%, 5/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,245,230 | ||
County of Clinton, School Building and Site, 5.00%, 5/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,242,880 | ||
Downriver Utility Wastewater Authority Sewer System Revenue, |
|
|
|
|
AGMC Insured, 5.00%, 4/01/34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 510,000 |
| 639,443 | |
AGMC Insured, 5.00%, 4/01/36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,600,000 | 1,976,768 | ||
AGMC Insured, 5.00%, 4/01/38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 | 1,843,335 | ||
AGMC Insured, 5.00%, 4/01/43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,655,980 | ||
|
|
| ||
franklintempleton.com | Annual Report |
| 87 |
FRANKL IN TAX-FREE TRUST
STATEMEN T OF INVEST MENT S
Franklin Michigan Tax-Free Income Fund (continued)
| Principal |
|
| Amount | Value |
|
|
|
Municipal Bonds (continued) |
|
|
Michigan (continued) |
|
|
East Lansing School District GO, |
|
|
Counties of Ingham and Clinton, School Building and Site, Series I, 5.00%, 5/01/35 . . . . . . . . . . . . . . . | $ 1,500,000 | $ 1,886,475 |
Counties of Ingham and Clinton, School Building and Site, Series I, 5.00%, 5/01/37 . . . . . . . . . . . . . . . | 1,100,000 | 1,372,019 |
Counties of Ingham and Clinton, School Building and Site, Series I, 5.00%, 5/01/42 . . . . . . . . . . . . . . . | 3,500,000 | 4,279,765 |
Farmington Public School District GO, |
|
|
County of Oakland, School Building and Site, Refunding, AGMC Insured, 5.00%, 5/01/27 . . . . . . . . . . . | 1,000,000 | 1,199,360 |
County of Oakland, School Building and Site, Refunding, AGMC Insured, 5.00%, 5/01/28 . . . . . . . . . . . | 2,000,000 | 2,393,160 |
County of Oakland, School Building and Site, Refunding, AGMC Insured, 5.00%, 5/01/32 . . . . . . . . . . . | 4,035,000 | 4,807,460 |
County of Oakland, School Building and Site, Refunding, AGMC Insured, 5.00%, 5/01/33 . . . . . . . . . . . | 2,900,000 | 3,448,564 |
County of Oakland, School Building and Site, Refunding, AGMC Insured, 5.00%, 5/01/34 . . . . . . . . . . . | 3,000,000 | 3,563,010 |
County of Oakland, School Building and Site, Refunding, AGMC Insured, 5.00%, 5/01/35 . . . . . . . . . . . | 1,000,000 | 1,184,650 |
County of Oakland, School Building and Site, Refunding, BAM Insured, 4.50%, 5/01/38 . . . . . . . . . . . . | 7,225,000 | 8,693,915 |
Grand Rapids Sanitary Sewer System Revenue, |
|
|
County of Kent, 5.00%, 1/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,040,000 | 1,314,872 |
County of Kent, 5.00%, 1/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,247,370 |
County of Kent, 5.00%, 1/01/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 6,171,150 |
County of Kent, Improvement and Refunding, 5.00%, 1/01/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,560,000 | 1,802,518 |
County of Kent, Improvement and Refunding, 5.00%, 1/01/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,154,780 |
County of Kent, Improvement and Refunding, 5.00%, 1/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,095,000 | 2,412,476 |
County of Kent, Improvement and Refunding, 5.00%, 1/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,175,000 | 1,352,143 |
County of Kent, Improvement and Refunding, 5.00%, 1/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,125,000 | 1,293,188 |
County of Kent, Improvement and Refunding, 5.00%, 1/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,147,940 |
County of Kent, Improvement and Refunding, 5.00%, 1/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 | 1,721,040 |
County of Kent, Improvement and Refunding, 5.00%, 1/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 880,000 | 1,015,863 |
County of Kent, Improvement and Refunding, 5.00%, 1/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 | 2,304,480 |
Grand Rapids Sanitary Sewer System Revenue, County of Kent, Improvement and Refunding, 4.00%, |
|
|
1/01/50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,440,000 | 4,061,023 |
County of Kent, Refunding, 5.00%, 1/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,250,000 | 1,511,825 |
County of Kent, Refunding, 5.00%, 1/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,200,400 |
Grand Rapids Sanitary Sewer System Revenue, County of Kent, Improvement and Refunding, 5.00%, |
|
|
1/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 | 1,943,955 |
Grand Rapids Water Supply System Revenue, |
|
|
County of Kent, Improvement and Refunding, 5.00%, 1/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,190,000 | 2,612,079 |
County of Kent, Improvement and Refunding, 5.00%, 1/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 | 1,871,055 |
County of Kent, Improvement and Refunding, 5.00%, 1/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,525,000 | 2,999,069 |
County of Kent, Improvement and Refunding, 5.00%, 1/01/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 | 2,478,360 |
Grand Traverse County Hospital Finance Authority Revenue, |
|
|
Munson Healthcare Obligated Group, Series A, 5.00%, 7/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 | 2,266,760 |
Munson Healthcare Obligated Group, Series A, 5.00%, 7/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,110,000 | 1,365,855 |
Munson Healthcare Obligated Group, Series A, 5.00%, 7/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,500,000 | 2,827,800 |
Munson Healthcare Obligated Group, Series B, 5.00%, 7/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,625,000 | 2,020,704 |
Grand Valley State University Revenue, |
|
|
General, 5.00%, 12/01/38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 900,000 | 1,144,053 |
General, 5.00%, 12/01/43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,800,000 | 2,262,672 |
General, Refunding, Series A, 5.00%, 12/01/32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,295,000 | 5,197,594 |
|
|
|
|
88 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
S TAT EMEN T OF INVEST MENT S
Franklin Michigan Tax-Free Income Fund (continued)
| Principal |
|
|
| Amount |
| Value |
|
|
|
|
Municipal Bonds (continued) |
|
|
|
Michigan (continued) |
|
|
|
Grandville Public School District GO, |
|
|
|
School Building and Site, Series II, AGMC Insured, 5.00%, 5/01/29. . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 750,000 | $ | 896,910 |
School Building and Site, Series II, AGMC Insured, 5.00%, 5/01/30. . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,192,380 |
School Building and Site, Series II, AGMC Insured, 5.00%, 5/01/31. . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,150,000 |
| 1,367,948 |
School Building and Site, Series II, AGMC Insured, 5.00%, 5/01/32. . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,165,000 |
| 1,384,171 |
School Building and Site, Series II, AGMC Insured, 5.00%, 5/01/34. . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,315,000 |
| 1,555,277 |
School Building and Site, Series II, AGMC Insured, 5.00%, 5/01/35. . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,225,000 |
| 1,445,819 |
School Building and Site, Series II, AGMC Insured, 5.00%, 5/01/37. . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,915,000 |
| 3,425,621 |
School Building and Site, Series II, AGMC Insured, 5.00%, 5/01/40. . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,215,000 |
| 7,254,645 |
Gull Lake CSD, GO, Counties of Kalamazoo Barry and Calhoun, School Building and Site, Series I, 5.00%, |
|
|
|
5/01/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 6,159,900 |
Holly Area School District GO, |
|
|
|
County of Oakland, Refunding, 5.00%, 5/01/30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,045,000 |
| 1,216,338 |
County of Oakland, Refunding, 5.00%, 5/01/32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,040,000 |
| 1,208,345 |
Hudsonville Public Schools GO, |
|
|
|
Counties of Ottawa and Allegan, Refunding, 5.00%, 5/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,550,000 |
| 1,927,317 |
Counties of Ottawa and Allegan, Refunding, 5.00%, 5/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,500,000 |
| 3,107,650 |
Counties of Ottawa and Allegan, Refunding, 5.00%, 5/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,500,000 |
| 3,066,950 |
Jackson County Hospital Finance Authority Revenue, W.A. Foote Memorial Hospital, Series C, Assured |
|
|
|
Guaranty, Pre-Refunded, 5.00%, 6/01/26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 10,104,200 |
Kalamazoo Hospital Finance Authority Hospital Facility Revenue, |
|
|
|
Bronson Methodist Hospital, AGMC Insured, Pre-Refunded, 5.25%, 5/15/36 . . . . . . . . . . . . . . . . . . . . | 5,530,000 |
| 5,578,775 |
Bronson Methodist Hospital, Refunding, AGMC Insured, 5.25%, 5/15/36 . . . . . . . . . . . . . . . . . . . . . . . | 4,470,000 |
| 4,509,425 |
Kelloggsville Public School District GO, |
|
|
|
School Building and Site, AGMC Insured, 5.00%, 5/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,045,000 |
| 1,243,247 |
School Building and Site, AGMC Insured, 5.00%, 5/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,150,000 |
| 1,358,564 |
School Building and Site, AGMC Insured, 5.00%, 5/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,815,000 |
| 4,478,009 |
Kent County GO, |
|
|
|
Capital Improvement, 5.00%, 6/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,305,000 |
| 1,629,214 |
Capital Improvement, 5.00%, 6/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,275,000 |
| 1,586,419 |
Kentwood Public Schools GO, |
|
|
|
School Building and Site, 5.00%, 5/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,205,000 |
| 1,467,341 |
School Building and Site, 5.00%, 5/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,205,000 |
| 1,462,521 |
School Building and Site, 5.00%, 5/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,210,000 |
| 1,459,986 |
School Building and Site, 5.00%, 5/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,120,000 |
| 1,340,998 |
School Building and Site, 5.00%, 5/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,800,000 |
| 2,144,916 |
L'Anse Creuse Public Schools GO, |
|
|
|
County of Macomb, Refunding, 5.00%, 5/01/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,230,000 |
| 6,311,407 |
County of Macomb, Refunding, 5.00%, 5/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,560,000 |
| 6,682,230 |
County of Macomb, Refunding, 5.00%, 5/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,890,000 |
| 7,050,212 |
County of Macomb, Refunding, 5.00%, 5/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,220,000 |
| 7,414,738 |
County of Macomb, Refunding, 5.00%, 5/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,840,000 |
| 3,378,464 |
Lansing Board of Water and Light Utility System Revenue, |
|
|
|
Series A, 5.00%, 7/01/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 12,698,700 |
Series A, Pre-Refunded, 5.50%, 7/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 10,623,500 |
franklintempleton.com | Annual Report | 89 |
FRANKL IN TAX-FREE TRUST
STATEMEN T OF INVEST MENT S
Franklin Michigan Tax-Free Income Fund (continued)
|
|
| Principal |
|
|
|
|
| Amount | Value | |
|
|
|
| ||
Municipal Bonds (continued) |
|
|
| ||
Michigan (continued) |
|
|
| ||
Lansing Community College GO, |
|
|
| ||
|
| College Building and Site, Pre-Refunded, 5.00%, 5/01/32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 2,310,000 | $ 2,518,477 | |
|
| College Building and Site, Refunding, 5.00%, 5/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 | 2,572,080 | |
|
| College Building and Site, Refunding, 5.00%, 5/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 690,000 | 749,802 |
|
Lansing School District GO, |
|
|
| ||
|
| Counties of Ingham, Eaton and Clinton, School Building and Site, Series I, 5.00%, 5/01/37 . . . . . . . . . . | 1,490,000 | 1,810,112 | |
|
| Counties of Ingham, Eaton and Clinton, School Building and Site, Series I, 5.00%, 5/01/39 . . . . . . . . . . | 2,125,000 | 2,575,266 | |
|
| Counties of Ingham, Eaton and Clinton, School Building and Site, Series I, 5.00%, 5/01/40 . . . . . . . . . . | 2,200,000 | 2,658,832 | |
Lenawee County Hospital Finance Authority Hospital Revenue, ProMedica Healthcare Obligated Group, |
|
|
| ||
| Series B, Pre-Refunded, 6.00%, 11/15/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,430,950 | ||
Livonia Public Schools School District GO, |
|
|
| ||
|
| County of Wayne, School Building and Site, Series I, AGMC Insured, 5.00%, 5/01/36 . . . . . . . . . . . . . . | 5,725,000 | 6,443,258 | |
|
| County of Wayne, School Building and Site, Series I, AGMC Insured, 5.00%, 5/01/38 . . . . . . . . . . . . . . | 6,000,000 | 6,745,140 | |
|
| County of Wayne, School Building and Site, Series I, AGMC Insured, 5.00%, 5/01/43 . . . . . . . . . . . . . . | 16,850,000 | 18,918,674 |
|
Macomb Interceptor Drain Drainage District GO, |
|
|
| ||
|
| Drain, Limited Tax, Refunding, Series A, 5.00%, 5/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 | 2,516,060 | |
|
| Drain, Limited Tax, Refunding, Series A, 5.00%, 5/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,500,000 | 9,199,275 | |
Mason County CSD, GO, Counties of Mason, Lake and Oceana, Refunding, 5.00%, 5/01/26 . . . . . . . . . . . . | 1,100,000 | 1,324,829 | |||
Mattawan Consolidated School GO, |
|
|
| ||
|
| Counties of Van Buren and Kalamazoo, School Building and Site, Series I, 5.00%, 5/01/30 . . . . . . . . . . | 1,000,000 | 1,208,560 | |
|
| Counties of Van Buren and Kalamazoo, School Building and Site, Series I, 5.00%, 5/01/31 . . . . . . . . . . | 1,915,000 | 2,307,747 | |
|
| Counties of Van Buren and Kalamazoo, School Building and Site, Series I, 5.00%, 5/01/32 . . . . . . . . . . | 1,110,000 | 1,334,842 | |
|
| Counties of Van Buren and Kalamazoo, School Building and Site, Series I, 5.00%, 5/01/34 . . . . . . . . . . | 2,325,000 | 2,787,094 | |
|
| Counties of Van Buren and Kalamazoo, School Building and Site, Series I, 5.00%, 5/01/39 . . . . . . . . . . | 3,375,000 | 3,998,497 | |
Meridian Public Schools GO, |
|
|
| ||
|
| County of Midland, Refunding, 5.00%, 5/01/27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 735,000 | 891,842 |
|
|
| County of Midland, Refunding, 5.00%, 5/01/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 775,000 | 938,083 |
|
|
| County of Midland, Refunding, 5.00%, 5/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,130,000 | 1,361,752 | |
Michigan Finance Authority Revenue, |
|
|
| ||
|
| Clean Water Revolving Fund, Refunding, Series B, 4.00%, 10/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,750,000 | 3,271,262 | |
|
| Clean Water Revolving Fund, Refunding, Series B, 5.00%, 10/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,055,000 | 10,428,003 |
|
|
| Clean Water Revolving Fund, Refunding, Series B, 5.00%, 10/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,000,000 | 7,750,740 | |
|
| Higher Education Facilities, Limited Obligation, Kalamazoo College Project, Refunding, 4.00%, |
|
|
|
| 12/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,610,000 | 2,972,999 | ||
|
| Hospital, Henry Ford Health System, Refunding, 5.00%, 11/15/32. . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,725,000 | 3,373,005 | |
|
| Hospital, Henry Ford Health System, Refunding, 5.00%, 11/15/37. . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,235,000 | 5,194,609 | |
|
| Hospital, Henry Ford Health System, Refunding, 5.00%, 11/15/41. . . . . . . . . . . . . . . . . . . . . . . . . . . . | 22,015,000 | 26,736,777 |
|
|
| Hospital, Oakwood Obligated Group, Refunding, 5.00%, 8/15/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,585,000 | 6,316,021 | |
|
| Hospital, Oakwood Obligated Group, Refunding, 5.00%, 8/15/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,865,000 | 6,617,831 | |
|
| Hospital, Oakwood Obligated Group, Refunding, AGMC Insured, 5.00%, 11/01/32 . . . . . . . . . . . . . . . . | 10,005,000 | 10,997,796 |
|
|
| Hospital, Oakwood Obligated Group, Refunding, AGMC Insured, 5.00%, 11/01/42 . . . . . . . . . . . . . . . . | 12,000,000 | 13,068,480 |
|
|
| Hospital, Sparrow Obligated Group, AGMC Insured, 5.00%, 11/15/42 . . . . . . . . . . . . . . . . . . . . . . . . . | 8,000,000 | 8,671,600 | |
|
| State Revolving Fund, Clean Water, Pre-Refunded, 5.00%, 10/01/28 . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,322,440 | |
|
| State Revolving Fund, Clean Water, Pre-Refunded, 5.00%, 10/01/29 . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,322,440 | |
|
| State Revolving Fund, Clean Water, Pre-Refunded, 5.00%, 10/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 | 2,214,960 | |
|
| Trinity Health Corp., Refunding, Series 2016 MI, 5.00%, 12/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 19,710,000 | 23,663,826 |
|
|
| Trinity Health Corp., Series 2016 MI, Pre-Refunded, 5.00%, 12/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . | 290,000 | 360,244 |
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90 |
| Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
S TAT EMEN T OF INVEST MENT S
Franklin Michigan Tax-Free Income Fund (continued)
| Principal |
|
|
|
| Amount |
| Value | |
|
|
|
|
|
Municipal Bonds (continued) |
|
|
|
|
Michigan (continued) |
|
|
|
|
Michigan Hospital Finance Authority Revenue, |
|
|
|
|
Ascension Health Credit Group, Series B-3, 4.00%, 11/15/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 5,000,000 | $ 5,954,950 | ||
Ascension Health Credit Group, Series B-3, 4.00%, 11/15/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,370,000 | 6,382,460 | ||
Ascension Health Senior Credit Group, Refunding, Series F-7, 5.00%, 11/15/46 . . . . . . . . . . . . . . . . . . | 5,000,000 | 6,049,400 | ||
Ascension Health Senior Credit Group, Refunding, Series F-8, 5.00%, 11/15/47 . . . . . . . . . . . . . . . . . . | 10,000,000 | 12,088,900 | ||
McLaren Healthcare, Refunding, Series A, 5.00%, 6/01/26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,065,000 | 2,245,481 | ||
McLaren Healthcare, Refunding, Series A, 5.00%, 6/01/27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,285,000 | 2,482,058 | ||
McLaren Healthcare, Refunding, Series A, 5.00%, 6/01/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,615,000 | 2,837,458 | ||
McLaren Healthcare, Refunding, Series A, 5.00%, 6/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,250,000 | 2,416,972 | ||
Trinity Health Credit Group, Series B, Pre-Refunded, 5.00%, 12/01/48 . . . . . . . . . . . . . . . . . . . . . . . . . | 20,000,000 | 21,850,400 | ||
Michigan State Building Authority Revenue, |
|
|
|
|
Facilities Program, Refunding, Series I, 5.00%, 4/15/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 13,000,000 | 15,828,280 | ||
Facilities Program, Refunding, Series I, 5.00%, 10/15/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,910,000 | 11,931,937 | ||
Facilities Program, Refunding, Series I, 4.00%, 10/15/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,500,000 | 2,915,200 | ||
Facilities Program, Refunding, Series I, 5.00%, 10/15/51 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,198,700 | ||
Facilities Program, Refunding, Series I-A, 5.00%, 10/15/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,693,150 | ||
Facilities Program, Refunding, Series I-A, 5.50%, 10/15/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 | 2,154,440 | ||
Facilities Program, Refunding, Series I-A, 5.25%, 10/15/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,701,600 | ||
Michigan State HDA, SFMR, Series B, 3.10%, 12/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15,000,000 | 15,868,950 | ||
Michigan State Strategic Fund Limited Obligation Revenue, |
|
|
|
|
The Detroit Edison Co. Pollution Control Bonds Project, Refunding, Collateralized, Series BB, AMBAC |
|
|
|
|
Insured, 7.00%, 5/01/21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,204,330 | ||
I-75 Improvement Project, 5.00%, 12/31/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,000,000 | 8,646,260 | ||
Michigan State Technological University Revenue, Board of Control, General, Refunding, Series A, 5.00%, |
|
|
|
|
10/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,400,000 | 2,856,696 | ||
Michigan State University Revenue, Board of Trustees, General, Series A, 5.00%, 8/15/40. . . . . . . . . . . . . . | 8,500,000 | 10,091,285 | ||
Muskegon County GO, |
|
|
|
|
Waste Water Management System No. 1, Refunding, 5.00%, 11/01/33 . . . . . . . . . . . . . . . . . . . . . . . . | 1,360,000 | 1,648,483 | ||
Waste Water Management System No. 1, Refunding, 5.00%, 11/01/36 . . . . . . . . . . . . . . . . . . . . . . . . | 1,735,000 | 2,094,214 | ||
Northview Public Schools District GO, School Building and Site, 5.00%, 5/01/41 . . . . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,018,330 | ||
Oakland Schools Intermediate School District GO, |
|
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|
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Refunding, 5.00%, 5/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 | 1,837,515 | ||
Refunding, 5.00%, 5/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,005,000 | 1,227,085 | ||
Oakland University Board of Trustees Revenue, |
|
|
|
|
General, 5.00%, 3/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,230,000 | 8,616,352 | ||
General, 5.00%, 3/01/50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,500,000 | 4,372,025 | ||
General, Refunding, 5.00%, 3/01/27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,153,590 | ||
General, Refunding, 5.00%, 3/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,010,000 | 1,157,551 | ||
General, Refunding, 5.00%, 3/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,260,000 | 1,441,024 | ||
General, Refunding, 5.00%, 3/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,142,670 | ||
General, Refunding, 5.00%, 3/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,285,000 | 1,466,596 | ||
General, Refunding, 5.00%, 3/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,140,160 | ||
General, Refunding, 5.00%, 3/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,400,230 | ||
Rochester Community School District GO, |
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|
|
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Counties of Oakland and Macomb, School Building and Site, Series I, 5.00%, 5/01/32 . . . . . . . . . . . . . | 5,575,000 | 6,875,369 | ||
Counties of Oakland and Macomb, School Building and Site, Series I, 5.00%, 5/01/35 . . . . . . . . . . . . . | 6,450,000 | 7,879,836 | ||
Counties of Oakland and Macomb, School Building and Site, Series I, 5.00%, 5/01/36 . . . . . . . . . . . . . | 2,800,000 | 3,418,744 | ||
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franklintempleton.com | Annual Report |
| 91 |
FRANKL IN TAX-FREE TRUST
STATEMEN T OF INVEST MENT S
Franklin Michigan Tax-Free Income Fund (continued)
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| Principal |
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|
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|
| Amount | Value | |
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| ||
Municipal Bonds (continued) |
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|
| ||
Michigan (continued) |
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|
| ||
Roseville Community Schools District GO, |
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|
| ||
|
| County of Macomb, Refunding, 5.00%, 5/01/26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 1,400,000 | $ 1,688,498 |
|
|
| County of Macomb, Refunding, 5.00%, 5/01/27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,370,000 | 1,646,946 | |
|
| County of Macomb, Refunding, 5.00%, 5/01/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,040,000 | 3,646,054 | |
|
| County of Macomb, Refunding, 5.00%, 5/01/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,300,000 | 3,959,274 | |
|
| County of Macomb, Refunding, 5.00%, 5/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,620,000 | 1,937,957 | |
|
| County of Macomb, Refunding, 5.00%, 5/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,585,000 | 1,892,411 | |
Royal Oak Hospital Finance Authority Hospital Revenue, |
|
|
| ||
|
| William Beaumont Hospital Obligated Group, Refunding, Series D, 5.00%, 9/01/27 . . . . . . . . . . . . . . . . | 3,350,000 | 3,869,585 | |
|
| William Beaumont Hospital Obligated Group, Refunding, Series D, 5.00%, 9/01/28 . . . . . . . . . . . . . . . . | 2,500,000 | 2,882,625 | |
|
| William Beaumont Hospital Obligated Group, Refunding, Series D, 5.00%, 9/01/39 . . . . . . . . . . . . . . . . | 17,500,000 | 19,910,975 |
|
Saginaw Valley State University Revenue, |
|
|
| ||
|
| General, Refunding, Series A, 5.00%, 7/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,750,000 | 2,148,108 | |
|
| General, Refunding, Series A, 5.00%, 7/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,170,000 | 2,655,364 | |
|
| General, Refunding, Series A, 5.00%, 7/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,240,000 | 1,508,324 | |
Saline Area Schools GO, |
|
|
| ||
|
| County of Washtenaw, School Building and Site, 5.00%, 5/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,750,000 | 3,371,500 | |
|
| County of Washtenaw, School Building and Site, 5.00%, 5/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,950,000 | 3,592,126 | |
South Haven Public Schools GO, |
|
|
| ||
|
| School Building and Site, Series B, AGMC Insured, 5.00%, 5/01/33. . . . . . . . . . . . . . . . . . . . . . . . . . . | 350,000 | 415,818 |
|
|
| School Building and Site, Series B, AGMC Insured, 5.00%, 5/01/35. . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,575,000 | 1,864,958 | |
Sparta Area Schools GO, School Building and Site, Counties of Kent and Ottawa, Series II, 5.00%, 5/01/48 . | 5,750,000 | 7,054,675 | |||
Trenton Public Schools GO, |
|
|
| ||
|
| County of Wayne, School Building and Site, 5.00%, 5/01/42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,920,000 | 6,103,900 | |
|
| County of Wayne, School Building and Site, 5.00%, 5/01/45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 11,480,000 | 14,216,258 |
|
University of Michigan Revenue, |
|
|
| ||
|
| Regents, General, Refunding, 5.00%, 4/01/46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 | 2,413,500 | |
|
| Regents, General, Refunding, Series A, 5.00%, 4/01/37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,700,000 | 3,392,226 | |
|
| Regents, General, Refunding, Series A, 5.00%, 4/01/42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 26,635,000 | 33,233,289 |
|
|
| Regents, General, Refunding, Series A, 5.00%, 4/01/47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 6,197,250 | |
Warren Consolidated Schools District GO, Counties of Macomb and Oakland, School Building and Site, |
|
|
| ||
| 5.00%, 5/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,500,000 | 2,713,975 | ||
Wayne County Airport Authority Revenue, Airport, Detroit Metropolitan Wayne County Airport, Series A, |
|
|
| ||
| 5.00%, 12/01/43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,750,000 | 9,813,670 | ||
Wayne State University Revenue, |
|
|
| ||
|
| General, Refunding, Series A, 5.00%, 11/15/31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,860,000 | 2,178,823 | |
|
| General, Refunding, Series A, 5.00%, 11/15/33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 | 1,756,470 | |
|
| General, Series A, 5.00%, 11/15/43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,500,000 | 5,651,730 | |
|
| General, Series A, 4.00%, 11/15/48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 | 11,405,900 |
|
Western Michigan University Revenue, |
|
|
| ||
|
| General, Refunding, Series A, 5.00%, 11/15/26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 | 1,797,825 | |
|
| General, Refunding, Series A, 5.00%, 11/15/27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,160,000 | 2,581,610 | |
|
| General, Refunding, Series A, 5.00%, 11/15/28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,635,000 | 1,954,217 | |
|
| General, Refunding, Series A, 5.00%, 11/15/29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 | 2,388,500 | |
|
| General, Refunding, Series A, 5.00%, 11/15/30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,500,000 | 2,977,325 | |
|
| General, Refunding, Series A, 5.00%, 11/15/40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,560,000 | 1,842,719 | |
|
| General, Refunding, Series A, 5.00%, 11/15/45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 | 2,352,220 | |
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92 |
| Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
S TAT EMEN T OF INVEST MENT S
Franklin Michigan Tax-Free Income Fund (continued)
| Principal |
|
|
| Amount |
| Value |
|
|
|
|
Municipal Bonds (continued) |
|
|
|
Michigan (continued) |
|
|
|
Western Michigan University Revenue, (continued) |
|
|
|
General, Refunding, Series A, 5.00%, 11/15/49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 5,100,000 | $ 6,459,711 | |
Zeeland Public Schools GO, |
|
|
|
School Building and Site, Series A, AGMC Insured, 5.00%, 5/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,530,000 | 1,814,901 | |
School Building and Site, Series A, AGMC Insured, 5.00%, 5/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 | 2,365,120 | |
School Building and Site, Series A, AGMC Insured, 5.00%, 5/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 | 2,361,060 | |
School Building and Site, Series A, AGMC Insured, 5.00%, 5/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 | 2,359,420 | |
Total Municipal Bonds before Short Term Investments (Cost $847,053,534) |
|
|
|
| 931,990,020 | ||
|
|
|
|
Short Term Investments 2.7%
Municipal Bonds 2.7%
Michigan 2.7%
aGreen Lake Township EDC Revenue, Interlochen Center for the Arts Project, Refunding, LOC Harris Trust &
Savings Bank, Daily VRDN and Put, 1.22%, 6/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 600,000 | 600,000 |
aMichigan State Strategic Fund Limited Obligation Revenue, Henry Ford Museum and Greenfield Village
Project, LOC Comerica Bank, Daily VRDN and Put, 1.24%, 12/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 140,000 | 140,000 |
a University of Michigan Revenue, |
|
|
General, Series B, Daily VRDN and Put, 1.19%, 4/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,000,000 |
Regents, General, Series A, SPA Wells Fargo Bank, Daily VRDN and Put, 1.10%, 4/01/38. . . . . . . . . . . | 9,300,000 | 9,300,000 |
Regents, General, Series D-1, Daily VRDN and Put, 1.14%, 12/01/24 . . . . . . . . . . . . . . . . . . . . . . . . . | 13,035,000 | 13,035,000 |
Total Short Term Investments (Cost $26,075,000) . . . . . . . . . . . . . . . . . . . |
|
|
| 26,075,000 | |
Total Investments (Cost $873,128,534) 98.9%. . . . . . . . . . . . . . . . . . . . . . . . |
|
|
| 958,065,020 | |
Other Assets, less Liabilities 1.1%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
| 10,433,984 |
Net Assets 100.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
|
| $968,499,004 | |
|
|
|
See Abbreviations on page 169.
aVariable rate demand notes (VRDNs) are obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. Unless otherwise noted, the coupon rate is determined based on factors including supply and demand, underlying credit, tax treatment, and current short term rates. The coupon rate shown represents the rate at period end.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 93 |
F R A N K L IN TAX - FREE TRUS T
Financial Highlights
Franklin Minnesota Tax-Free Income Fund
Year Ended February 28,
2020a2019b
Class A
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsc:
Net investment incomed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assetsf
Expensesg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$12.10$11.97
0.300.16
0.720.13
1.020.29
(0.30)(0.16)
$12.82$12.10
8.56%2.45%
0.83%0.83%
2.42%2.81%
$96,802$39,129
16.45%13.97%
aFor the year ended February 29.
bFor the period September 10, 2018 (effective date) to February 28, 2019.
cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
dBased on average daily shares outstanding.
eTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year. fRatios are annualized for periods less than one year.
gBenefit of expense reduction rounds to less than 0.01%.
|
|
|
|
94 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TAX-FREE TRUS T
FINANCIA L HIGHLIGHT S
Franklin Minnesota Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Class A1
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returnd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$12.09 | $12.07 | $12.27 | $12.63 | $12.69 |
|
|
|
|
|
0.32 | 0.35 | 0.35 | 0.37 | 0.40 |
0.73 | 0.02 | (0.20) | (0.35) | (0.06) |
|
|
|
|
|
1.05 | 0.37 | 0.15 | 0.02 | 0.34 |
|
|
|
|
|
(0.32) | (0.35) | (0.35) | (0.38) | (0.40) |
|
|
|
|
|
$12.82 | $12.09 | $12.07 | $12.27 | $12.63 |
|
|
|
|
|
8.82% | 3.16% | 1.23% | 0.11% | 2.71% |
0.68%e | 0.68%e | 0.66% | 0.65% | 0.64% |
2.57% | 2.96% | 2.87% | 2.99% | 3.16% |
$606,559 | $588,878 | $657,415 | $695,040 | $731,215 |
16.45% | 13.97% | 13.77% | 13.80% | 8.61% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable. eBenefit of expense reduction rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 95 |
FRANKLIN TAX-FREE TRUST
FINANCIA L HIGHLIGHT S
Franklin Minnesota Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Class C
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returnd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$12.23 | $12.21 | $12.40 | $12.76 | $12.82 |
|
|
|
|
|
0.25 | 0.29 | 0.29 | 0.31 | 0.33 |
0.75 | 0.02 | (0.20) | (0.37) | (0.06) |
|
|
|
|
|
1.00 | 0.31 | 0.09 | (0.06) | 0.27 |
|
|
|
|
|
(0.26) | (0.29) | (0.28) | (0.30) | (0.33) |
|
|
|
|
|
$12.97 | $12.23 | $12.21 | $12.40 | $12.76 |
|
|
|
|
|
8.23% | 2.56% | 0.74% | (0.45)% | 2.12% |
1.23%e | 1.23%e | 1.21% | 1.20% | 1.19% |
2.02% | 2.41% | 2.32% | 2.44% | 2.61% |
$138,417 | $148,269 | $203,925 | $223,444 | $217,904 |
16.45% | 13.97% | 13.77% | 13.80% | 8.61% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable. eBenefit of expense reduction rounds to less than 0.01%.
|
|
|
|
96 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TAX-FREE TRUS T
FINANCIA L HIGHLIGHT S
Franklin Minnesota Tax-Free Income Fund (continued)
Year Ended February 28,
2020a2019 2018b
Class R6
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsc:
Net investment incomed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assetsf
Expenses before waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses net of waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$12.11 | $12.09 | $12.40 |
|
|
|
0.34 | 0.37 | 0.22 |
0.73 | 0.02 | (0.32) |
|
|
|
1.07 | 0.39 | (0.10) |
|
|
|
(0.34) | (0.37) | (0.21) |
|
|
|
$12.84 | $12.11 | $12.09 |
|
|
|
8.97% | 3.30% | (0.80)% |
0.55% | 0.56% | 0.54% |
0.53%g | 0.53%g | 0.51% |
2.72% | 3.11% | 3.02% |
$9,693 | $7,177 | $8,342 |
16.45% | 13.97% | 13.77% |
aFor the year ended February 29.
bFor the period August 1, 2017 (effective date) to February 28, 2018.
cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
dBased on average daily shares outstanding.
eTotal return is not annualized for periods less than one year. fRatios are annualized for periods less than one year.
gBenefit of expense reduction rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 97 |
FRANKLIN TAX-FREE TRUST
FINANCIA L HIGHLIGHT S
Franklin Minnesota Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Advisor Class
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$12.11 | $12.09 | $12.28 | $12.64 | $12.70 |
|
|
|
|
|
0.33 | 0.37 | 0.37 | 0.39 | 0.41 |
0.73 | 0.02 | (0.19) | (0.36) | (0.06) |
|
|
|
|
|
1.06 | 0.39 | 0.18 | 0.03 | 0.35 |
|
|
|
|
|
(0.34) | (0.37) | (0.37) | (0.39) | (0.41) |
|
|
|
|
|
$12.83 | $12.11 | $12.09 | $12.28 | $12.64 |
|
|
|
|
|
8.83% | 3.26% | 1.41% | 0.20% | 2.81% |
0.58%d | 0.58%d | 0.56% | 0.55% | 0.54% |
2.67% | 3.06% | 2.97% | 3.09% | 3.26% |
$203,230 | $156,683 | $160,199 | $169,533 | $121,685 |
16.45% | 13.97% | 13.77% | 13.80% | 8.61% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dBenefit of expense reduction rounds to less than 0.01%.
|
|
|
|
98 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
Statement of Investments, February 29, 2020
Franklin Minnesota Tax-Free Income Fund
| Principal |
|
|
|
| Amount |
| Value | |
|
|
|
|
|
Municipal Bonds 97.6% |
|
|
|
|
Minnesota 97.6% |
|
|
|
|
Alexandria ISD No. 206 GO, |
|
|
|
|
School Building, Minnesota School District Credit Enhancement Program, Refunding, Series A, |
|
|
|
|
3.00%, 2/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $29,905,000 | $ 32,167,612 | ||
School Building, Minnesota School District Credit Enhancement Program, Refunding, Series A, |
|
|
|
|
5.00%, 2/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 11,700,000 | 12,145,068 | ||
Anoka-Hennepin ISD No. 11 GO, |
|
|
|
|
Anoka, School Building, Minnesota School District Credit Enhancement Program, Series A, 3.25%, |
|
|
|
|
2/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,355,000 | 5,878,398 | ||
Anoka, School Building, Minnesota School District Credit Enhancement Program, Series A, 3.375%, |
|
|
|
|
2/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,020,000 | 6,574,502 | ||
Bemidji GO, Sales Tax, Pre-Refunded, 5.25%, 2/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12,055,000 | 12,544,312 | ||
Big Lake ISD No. 727 GO, |
|
|
|
|
Refunding, Series B, 5.00%, 2/01/23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,990,000 | 3,230,157 | ||
Refunding, Series B, 5.00%, 2/01/24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,240,360 | ||
Refunding, Series B, 5.00%, 2/01/25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,225,000 | 1,322,902 | ||
Brainerd ISD No. 181 GO, |
|
|
|
|
Brainerd Public Schools, Crow Wing Cass and Morrison Counties, Minnesota School District Credit |
|
|
|
|
Enhancement Program, School Building, Refunding, Series A, 4.00%, 2/01/32. . . . . . . . . . . . . . . . . | 3,065,000 | 3,599,321 | ||
Brainerd Public Schools, Crow Wing Cass and Morrison Counties, Minnesota School District Credit |
|
|
|
|
Enhancement Program, School Building, Refunding, Series A, 4.00%, 2/01/39. . . . . . . . . . . . . . . . . | 10,600,000 | 12,115,800 | ||
Brainerd Public Schools, Crow Wing Cass and Morrison Counties, Minnesota School District Credit |
|
|
|
|
Enhancement Program, School Building, Refunding, Series A, 4.00%, 2/01/42. . . . . . . . . . . . . . . . . | 1,900,000 | 2,161,611 | ||
Brainerd Public Schools, Crow Wing Cass and Morrison Counties, Minnesota School District Credit |
|
|
|
|
Enhancement Program, School Building, Refunding, Series C, 5.00%, 2/01/28 . . . . . . . . . . . . . . . . | 3,735,000 | 4,583,106 | ||
Cambridge ISD No. 911 GO, |
|
|
|
|
Cambridge Isanti Public Schools, School Building, Minnesota School District Credit Enhancement |
|
|
|
|
Program, Refunding, Series A, 3.00%, 2/01/27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,410,000 | 3,543,058 | ||
Cambridge Isanti Public Schools, School Building, Minnesota School District Credit Enhancement |
|
|
|
|
Program, Refunding, Series A, 3.00%, 2/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,585,000 | 5,744,899 | ||
Center City Health Care Facilities Revenue, Hazelden Betty Ford Foundation Project, Refunding, 4.00%, |
|
|
|
|
11/01/41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,155,580 | ||
Central Municipal Power Agency Revenue, |
|
|
|
|
Brookings, South East Twin Cities Transmission Project, 5.00%, 1/01/32. . . . . . . . . . . . . . . . . . . . . . | 1,150,000 | 1,235,089 | ||
Brookings, South East Twin Cities Transmission Project, 5.00%, 1/01/42. . . . . . . . . . . . . . . . . . . . . . | 1,615,000 | 1,726,855 | ||
Circle Pines ISD No. 12 GO, |
|
|
|
|
School Building, Minnesota School District Credit Enhancement Program, Capital Appreciation, Series |
|
|
|
|
A, zero cpn., 2/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,450,000 | 1,015,856 | ||
School Building, Minnesota School District Credit Enhancement Program, Capital Appreciation, Series |
|
|
|
|
A, zero cpn., 2/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,600,000 | 1,020,016 | ||
School Building, Minnesota School District Credit Enhancement Program, Capital Appreciation, Series |
|
|
|
|
A, zero cpn., 2/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 350,000 |
| 213,269 | |
Cloquet Public Schools ISD No. 94 GO, School Building, Series B, 5.00%, 2/01/32 . . . . . . . . . . . . . . . . . . | 3,615,000 | 4,303,911 | ||
Dakota County CDA, SFMR, MBS Program, Series A, GNMA Secured, 4.875%, 12/01/33. . . . . . . . . . . . . | 675,000 |
| 679,604 | |
Dawson-Boyd ISD No. 378 GO, School Building, Series A, 3.125%, 2/01/40 . . . . . . . . . . . . . . . . . . . . . . | 2,965,000 | 3,214,445 | ||
Dilworth-Glyndon-Felton ISD No. 2164 GO, |
|
|
|
|
Series A, 3.00%, 2/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,058,770 | ||
Series A, 3.00%, 2/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,054,290 | ||
Series A, 3.00%, 2/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,225,000 | 1,287,157 | ||
|
|
| ||
franklintempleton.com | Annual Report |
| 99 |
F R A N K L IN TAX - FREE TRUS T
NOTE S TO STATE MENT S OF INVESTMENT S
Franklin Minnesota Tax-Free Income Fund (continued)
|
| Principal |
|
|
|
| Amount | Value | |
|
|
|
| |
Municipal Bonds (continued) |
|
|
| |
Minnesota (continued) |
|
|
| |
Duluth EDA Health Care Facilities Revenue, |
|
|
| |
| Essentia Health Obligated Group, Refunding, Series A, 5.25%, 2/15/53 . . . . . . . . . . . . . . . . . . . . . . | $15,900,000 | $ 19,967,538 |
|
| Essentia Health Obligated Group, Refunding, Series A, 5.25%, 2/15/58 . . . . . . . . . . . . . . . . . . . . . . | 13,035,000 | 16,314,476 |
|
Duluth ISD No. 709 COP, |
|
|
| |
| Refunding, Series A, 5.00%, 2/01/25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,015,000 | 1,200,400 | |
| Refunding, Series A, 5.00%, 2/01/26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,740,000 | 3,330,360 | |
| Refunding, Series A, 4.00%, 2/01/27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,750,000 | 4,275,000 | |
| Refunding, Series A, 4.00%, 2/01/28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 | 1,706,775 | |
Duluth ISD No. 709 GO, |
|
|
| |
| Refunding, Series B, 4.00%, 2/01/25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,450,000 | 3,905,400 | |
| Refunding, Series B, 2.50%, 2/01/26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,840,000 | 2,993,048 | |
Edina ISD No. 273 GO, Hennepin County, Facilities Maintenance, Series A, 3.00%, 2/01/36 . . . . . . . . . . . | 1,630,000 | 1,767,246 | ||
Elk River ISD No. 728 GO, School Building, Elk River Area Schools, Series A, 4.00%, 2/01/32 . . . . . . . . . . | 6,130,000 | 6,779,044 | ||
Farmington ISD No. 192 GO, School Building, Series A, 4.00%, 2/01/28 . . . . . . . . . . . . . . . . . . . . . . . . . | 3,830,000 | 4,425,871 | ||
Fridley ISD No. 14 GO, School Building, Fridley Public Schools, Anoka County, Series A, 4.00%, 2/01/29 . . | 2,220,000 | 2,563,745 | ||
Fridley MFHR, Village Green Apartments Project, 3.75%, 11/01/34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,862,581 | 11,575,514 |
| |
Hastings ISD No. 200 GO, |
|
|
| |
| Hastings Public Schools, Minnesota School District Credit Enhancement Program, Capital |
|
|
|
| Appreciation, Series A, zero cpn., 2/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,685,000 | 2,730,231 | |
| Hastings Public Schools, Minnesota School District Credit Enhancement Program, Capital |
|
|
|
| Appreciation, Series A, zero cpn., 2/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,685,000 | 2,611,653 | |
| Hastings Public Schools, Minnesota School District Credit Enhancement Program, Capital |
|
|
|
| Appreciation, Series A, zero cpn., 2/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,685,000 | 2,497,246 | |
Hennepin County GO, |
|
|
| |
| Sales Tax, Series B, 5.00%, 12/15/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,055,000 | 1,396,504 | |
| Sales Tax, Series B, 5.00%, 12/15/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12,680,000 | 16,698,799 |
|
Hennepin County Regional Railroad Authority GO, |
|
|
| |
| Limited Tax, Series A, 5.00%, 12/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,480,000 | 5,885,645 | |
| Limited Tax, Series A, 5.00%, 12/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,220,000 | 6,842,794 | |
Hermantown ISD No. 700 GO, School Building, Series A, 4.00%, 2/01/29 . . . . . . . . . . . . . . . . . . . . . . . . | 2,310,000 | 2,558,048 | ||
Hopkins Public Schools ISD No. 270 GO, |
|
|
| |
| Hennepin County, Facilities Maintenance, Series A, 3.00%, 2/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . | 5,640,000 | 6,123,461 | |
| Hennepin County, Facilities Maintenance, Series A, 3.00%, 2/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . | 2,450,000 | 2,655,335 | |
Jordan ISD No. 717 GO, |
|
|
| |
| School Building, Refunding, Series A, 5.00%, 2/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,605,000 | 1,793,154 | |
| School Building, Series A, 5.00%, 2/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,460,000 | 1,633,390 | |
| School Building, Series A, 5.00%, 2/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,700,000 | 1,902,946 | |
| School Building, Series A, 5.00%, 2/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,805,000 | 2,021,040 | |
| School Building, Series A, 5.00%, 2/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,119,990 | |
| School Building, Series A, Pre-Refunded, 5.00%, 2/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 395,000 | 442,033 |
|
Lakeville GO, Refunding, Series B, 3.00%, 2/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,690,000 | 4,843,128 | ||
Lakeville ISD No. 194 GO, Alternative Facilities, Series B, 3.00%, 2/01/25 . . . . . . . . . . . . . . . . . . . . . . . . | 3,560,000 | 3,702,542 | ||
Metropolitan Council Minneapolis St. Paul Metropolitan Area GO, |
|
|
| |
| Transit, Series A, 3.00%, 3/01/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,400,000 | 7,140,608 | |
| Wastewater Revenue, Refunding, Series C, 3.00%, 3/01/30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,305,000 | 3,654,107 | |
Minneapolis and St. Paul Housing and RDA Health Care Facilities Revenue, Children's Hospitals and |
|
|
| |
Clinics, Series A-1, AGMC Insured, Pre-Refunded, 5.00%, 8/15/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,018,730 | ||
|
|
|
| |
100 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
NOTE S TO STATE MENT S OF INVESTMENT S
Franklin Minnesota Tax-Free Income Fund (continued)
| Principal |
|
|
| Amount |
| Value |
|
|
|
|
Municipal Bonds (continued) |
|
|
|
Minnesota (continued) |
|
|
|
Minneapolis and St. Paul Housing and RDA Health Care System Revenue, |
|
|
|
Allina Health System, Refunding, Series A, 5.00%, 11/15/26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 2,000,000 | $ | 2,520,820 |
Allina Health System, Refunding, Series A, 5.00%, 11/15/27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 |
| 2,530,800 |
Minneapolis GO, |
|
|
|
Capital Improvement, Green Bonds, 4.00%, 12/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,764,750 |
Capital Improvement, Green Bonds, 4.00%, 12/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,500,000 |
| 4,021,535 |
Green Bonds, 3.00%, 12/01/28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,400,000 |
| 1,582,602 |
Green Bonds, 3.00%, 12/01/40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,353,850 |
Minneapolis Health Care System Revenue, |
|
|
|
Fairview Health Services, Refunding, Series A, 5.00%, 11/15/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 11,778,300 |
Fairview Health Services, Series A, 5.00%, 11/15/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,000,000 |
| 7,389,120 |
Minneapolis MFHR, 14th and Central LLLP Project, 2.35%, 2/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 10,368,300 |
Minneapolis Special School District No. 1 GO, Long-Term Facilities Maintenance, Series B, 5.00%, |
|
|
|
2/01/30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,590,000 |
| 3,359,023 |
Minneapolis-St. Paul Metropolitan Airports Commission Revenue, |
|
|
|
Airport, senior bond, Refunding, Series C, 5.00%, 1/01/34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,870,000 |
| 3,583,568 |
Airport, senior bond, Refunding, Series C, 5.00%, 1/01/35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,025,000 |
| 5,018,491 |
Airport, senior bond, Refunding, Series C, 5.00%, 1/01/41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 19,655,000 |
| 24,217,515 |
Airport, senior bond, Refunding, Series C, 5.00%, 1/01/46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15,500,000 |
| 18,949,990 |
Airport, Subordinate, Refunding, Series A, 5.00%, 1/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,750,000 |
| 6,138,947 |
Airport, Subordinate, Refunding, Series B, 5.00%, 1/01/27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 |
| 1,612,965 |
Airport, Subordinate, Refunding, Series B, 5.00%, 1/01/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,250,000 |
| 2,418,593 |
Minnesota Public Facilities Authority State Revenue, Revolving Fund, Refunding, Series A, 5.00%, 3/01/24. | 17,010,000 |
| 19,840,464 |
Minnesota State Colleges and Universities Revenue, |
|
|
|
Board of Trustees, Fund, Refunding, Series A, 5.00%, 10/01/22. . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,410,000 |
| 1,560,419 |
Board of Trustees, Fund, Series A, 5.00%, 10/01/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,135,000 |
| 2,270,466 |
Minnesota State COP, Legislative Office Facility Project, 5.00%, 6/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . | 3,615,000 |
| 4,202,510 |
Minnesota State General Fund Revenue, |
|
|
|
Appropriation, Refunding, Series A, 4.00%, 3/01/26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 |
| 3,188,790 |
Appropriation, Refunding, Series A, 3.00%, 3/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,179,850 |
Appropriation, Series A, 5.00%, 6/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,500,000 |
| 9,547,540 |
Minnesota State GO, |
|
|
|
Various Purpose, Refunding, Series F, 4.00%, 10/01/25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15,000,000 |
| 16,718,700 |
Various Purpose, Series A, 5.00%, 8/01/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,215,000 |
| 5,303,608 |
Various Purpose, Series A, 5.00%, 8/01/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 13,624,100 |
Various Purpose, Series A, 5.00%, 8/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 6,587,100 |
Various Purpose, Series A, 5.00%, 8/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,540,000 |
| 4,694,394 |
Minnesota State HFA Homeownership Finance Revenue, |
|
|
|
MBS Program, Series E, GNMA Secured, 4.45%, 7/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,205,000 |
| 2,268,636 |
MBS Program, Series G, GNMA Secured, 4.00%, 7/01/26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,165,000 |
| 1,208,175 |
MBS Program, Series G, GNMA Secured, 4.40%, 7/01/32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,985,000 |
| 2,056,579 |
Minnesota State HFAR, |
|
|
|
Nonprofit Housing State Appropriation, 4.00%, 8/01/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,675,000 |
| 3,682,718 |
Nonprofit Housing State Appropriation, 5.00%, 8/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,225,000 |
| 2,352,315 |
State Appropriation Bonds, Housing Infrastructure, Series C, 4.00%, 8/01/39 . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,176,790 |
franklintempleton.com | Annual Report | 101 |
F R A N K L IN TAX - FREE TRUS T
NOTE S TO STATE MENT S OF INVESTMENT S
Franklin Minnesota Tax-Free Income Fund (continued)
|
| Principal |
|
|
|
|
| Amount |
| Value | |
|
|
|
|
| |
Municipal Bonds (continued) |
|
|
|
| |
Minnesota (continued) |
|
|
|
| |
Minnesota State Higher Education Facilities Authority Revenue, |
|
|
|
| |
| Carleton College, Refunding, 4.00%, 3/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 3,575,000 | $ | 4,087,333 | |
| College of St. Olaf, Refunding, Series 8-N, 4.00%, 10/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 |
| 1,734,075 | |
| College of St. Olaf, Refunding, Series 8-N, 4.00%, 10/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 500,000 |
| 576,220 |
|
| Macalester College, Refunding, 3.00%, 3/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,010,000 |
| 3,247,730 | |
| Macalester College, Refunding, 4.00%, 3/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 900,000 |
| 1,020,735 | |
| Macalester College, Series 7-I, Pre-Refunded, 5.00%, 6/01/35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,052,100 | |
| University of St. Thomas, 5.00%, 10/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,260,000 |
| 4,213,028 | |
| University of St. Thomas, 4.00%, 10/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,745,000 |
| 3,221,642 | |
| University of St. Thomas, Refunding, Series 8-L, 5.00%, 4/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,720,000 |
| 2,069,814 | |
| University of St. Thomas, Refunding, Series A, 4.00%, 10/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 750,000 |
| 867,368 |
|
| University of St. Thomas, Refunding, Series A, 4.00%, 10/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 750,000 |
| 865,020 |
|
| University of St. Thomas, Series 8-L, 4.00%, 4/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,200,000 |
| 4,810,470 | |
Minnesota State Housing Finance Agency Revenue, Series B, GNMA Insured, 2.80%, 1/01/44 . . . . . . . . . | 4,750,000 |
| 4,943,847 | ||
Minnesota State Municipal Power Agency Electric Revenue, |
|
|
|
| |
| 4.00%, 10/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,680,000 |
| 5,292,518 | |
| 5.00%, 10/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,650,000 |
| 5,605,203 | |
| Refunding, Series A, 4.00%, 10/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,265,000 |
| 1,398,989 | |
| Refunding, Series A, 4.00%, 10/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,200,000 |
| 1,324,944 | |
| Refunding, Series A, 4.00%, 10/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,100,890 | |
| Refunding, Series A, 5.00%, 10/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,172,420 | |
| Refunding, Series A, 5.00%, 10/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,005,000 |
| 1,178,383 | |
| Series A, 5.25%, 10/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12,000,000 |
| 12,300,000 |
|
Moorhead MN, ISD, No. 152, GO, Series A, 2.50%, 2/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,295,000 |
| 9,610,844 | ||
New Prague ISD No. 721 GO, |
|
|
|
| |
| School Building, Minnesota School District Credit Enhancement Program, Refunding, Series A, |
|
|
|
|
| 4.00%, 2/01/22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,090,000 |
| 3,179,857 | |
| School Building, Minnesota School District Credit Enhancement Program, Refunding, Series A, |
|
|
|
|
| 4.00%, 2/01/23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,045,000 |
| 3,132,970 | |
| School Building, Minnesota School District Credit Enhancement Program, Refunding, Series A, |
|
|
|
|
| 4.00%, 2/01/24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,245,000 |
| 3,338,456 | |
| School Building, Minnesota School District Credit Enhancement Program, Refunding, Series A, |
|
|
|
|
| 4.00%, 2/01/25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 |
| 2,057,420 | |
North St. Paul-Maplewood-Oakdale ISD No. 622 GO, |
|
|
|
| |
| Credit Enhancement Program, Series A, 3.00%, 2/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 23,965,000 |
| 25,488,455 |
|
| Ramsey and Washington Counties, School Building, Series A, 3.00%, 2/01/42 . . . . . . . . . . . . . . . . . | 5,975,000 |
| 6,402,451 | |
Northern Municipal Power Agency Electric System Revenue, |
|
|
|
| |
| Refunding, 5.00%, 1/01/41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 800,000 |
| 963,752 |
|
| Series A, 5.00%, 1/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,190,000 |
| 1,313,582 | |
Prior Lake ISD No. 719 GO, |
|
|
|
| |
| Capital Appreciation, School Building, Minnesota School District Credit Enhancement Program, Series |
|
|
|
|
| B, zero cpn., 2/01/27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,545,000 |
| 9,612,084 | |
| Capital Appreciation, School Building, Minnesota School District Credit Enhancement Program, Series |
|
|
|
|
| B, zero cpn., 2/01/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 13,055,000 |
| 11,644,668 |
|
| Capital Appreciation, School Building, Minnesota School District Credit Enhancement Program, Series |
|
|
|
|
| B, zero cpn., 2/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,010,000 |
| 7,430,817 | |
| Capital Appreciation, School Building, Minnesota School District Credit Enhancement Program, Series |
|
|
|
|
| B, zero cpn., 2/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,310,000 |
| 4,216,777 | |
|
|
|
| ||
102 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
NOTE S TO STATE MENT S OF INVESTMENT S
Franklin Minnesota Tax-Free Income Fund (continued)
| Principal |
|
|
| Amount |
| Value |
|
|
|
|
Municipal Bonds (continued) |
|
|
|
Minnesota (continued) |
|
|
|
Ramsey GO, |
|
|
|
Capital Improvement Plan, Refunding, Series A, 3.00%, 12/15/28. . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 1,105,000 | $ | 1,143,012 |
Capital Improvement Plan, Refunding, Series A, 3.375%, 12/15/31. . . . . . . . . . . . . . . . . . . . . . . . . . | 1,215,000 |
| 1,258,266 |
Rochester Electricity Utility Revenue, |
|
|
|
Refunding, Series A, 5.00%, 12/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 |
| 2,433,100 |
Refunding, Series A, 5.00%, 12/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,210,000 |
| 11,165,191 |
Series B, 5.00%, 12/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,137,850 |
Rochester Health Care Facilities Revenue, |
|
|
|
Mayo Clinic, 4.00%, 11/15/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,000,000 |
| 6,965,220 |
Mayo Clinic, Refunding, Series B, 5.00%, 11/15/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,425,000 |
| 6,402,355 |
Mayo Clinic, Refunding, Series B, 5.00%, 11/15/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,235,000 |
| 15,015,973 |
Mayo Clinic, Refunding, Series B, 5.00%, 11/15/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 7,424,900 |
Mayo Clinic, Refunding, Series B, 5.00%, 11/15/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,200,000 |
| 6,311,676 |
Mayo Clinic, Series D, 5.00%, 11/15/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,035,100 |
Mayo Clinic, Series E, 5.00%, 11/15/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 20,000,000 |
| 20,140,400 |
Rochester ISD No. 535 GO, |
|
|
|
Minnesota School District Credit Enhancement Program, Series A, 4.00%, 2/01/28 . . . . . . . . . . . . . . | 4,300,000 |
| 5,275,068 |
Minnesota School District Credit Enhancement Program, Series A, 4.00%, 2/01/29 . . . . . . . . . . . . . . | 6,565,000 |
| 8,030,177 |
Rosemount ISD No. 196 GO, School Building, Refunding, Series C, 4.00%, 2/01/21 . . . . . . . . . . . . . . . . . | 1,365,000 |
| 1,405,322 |
Roseville ISD No. 623 GO, |
|
|
|
Ramsey County, School Building, Minnesota School District Credit Enhancement Program, Series A, |
|
|
|
5.00%, 2/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,700,000 |
| 4,611,791 |
Ramsey County, School Building, Minnesota School District Credit Enhancement Program, Series A, |
|
|
|
4.00%, 2/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,535,000 |
| 10,980,029 |
a Saint Paul Sewer Revenue, |
|
|
|
Green Bond, Refunding, Series D, 4.00%, 12/01/23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,020,000 |
| 1,140,176 |
Green Bond, Refunding, Series D, 5.00%, 12/01/26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,165,000 |
| 1,483,092 |
Sartell ISD No. 748 GO, |
|
|
|
Capital Appreciation, School Building, Series B, zero cpn., 2/01/36. . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 |
| 1,897,260 |
Capital Appreciation, School Building, Series B, zero cpn., 2/01/37. . . . . . . . . . . . . . . . . . . . . . . . . . | 2,820,000 |
| 1,712,699 |
Capital Appreciation, School Building, Series B, zero cpn., 2/01/38. . . . . . . . . . . . . . . . . . . . . . . . . . | 5,220,000 |
| 3,053,230 |
Capital Appreciation, School Building, Series B, zero cpn., 2/01/39. . . . . . . . . . . . . . . . . . . . . . . . . . | 3,020,000 |
| 1,700,562 |
South Washington ISD No. 833 GO, South Washington County Schools, Facilities Maintenance, Series C, |
|
|
|
4.00%, 2/01/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,260,000 |
| 6,090,712 |
Southern Minnesota Municipal Power Agency Power Supply System Revenue, |
|
|
|
Capital Appreciation, Refunding, Series A, NATL Insured, zero cpn., 1/01/23 . . . . . . . . . . . . . . . . . . . | 4,000,000 |
| 3,888,760 |
Capital Appreciation, Refunding, Series A, NATL Insured, zero cpn., 1/01/26 . . . . . . . . . . . . . . . . . . . | 5,395,000 |
| 5,025,604 |
Capital Appreciation, Refunding, Series A, NATL Insured, zero cpn., 1/01/27 . . . . . . . . . . . . . . . . . . . | 6,600,000 |
| 6,036,624 |
Refunding, Series A, 5.00%, 1/01/46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,345,000 |
| 11,070,928 |
Series A, 5.00%, 1/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,315,000 |
| 1,636,767 |
Southern Minnesota Municipal Power Agency Revenue, |
|
|
|
Sereis A, 5.00%, 1/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 560,000 |
| 747,023 |
Series A, 5.00%, 1/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 700,000 |
| 936,124 |
Series A, 5.00%, 1/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 610,000 |
| 811,843 |
franklintempleton.com | Annual Report | 103 |
F R A N K L IN TAX - FREE TRUS T
NOTE S TO STATE MENT S OF INVESTMENT S
Franklin Minnesota Tax-Free Income Fund (continued)
|
| Principal |
|
|
|
|
| Amount |
| Value | |
|
|
|
|
| |
Municipal Bonds (continued) |
|
|
|
| |
Minnesota (continued) |
|
|
|
| |
St. Cloud Health Care Revenue, |
|
|
|
| |
| CentraCare Health System, Refunding, Series A, 5.125%, 5/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 750,000 | $ | 754,890 |
|
| CentraCare Health System, Refunding, Series A, 4.00%, 5/01/37. . . . . . . . . . . . . . . . . . . . . . . . . . . | 12,310,000 |
| 13,879,771 |
|
| CentraCare Health System, Refunding, Series A, 5.00%, 5/01/46. . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,650,000 |
| 5,532,942 | |
| CentraCare Health System, Series A, Pre-Refunded, 5.125%, 5/01/30 . . . . . . . . . . . . . . . . . . . . . . . | 9,250,000 |
| 9,314,657 | |
St. Cloud Public Schools ISD No. 742 COP, 4.00%, 2/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,100,970 | ||
St. Cloud Public Schools ISD No. 742 GO, |
|
|
|
| |
| Series A, 4.00%, 2/01/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,080,000 |
| 2,369,702 | |
| Series B, 4.00%, 2/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,060,000 |
| 4,690,518 | |
| Series B, 4.00%, 2/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,500,000 |
| 2,833,600 | |
| Series B, 4.00%, 2/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,250,000 |
| 2,544,885 | |
St. Francis ISD No. 15 GO, |
|
|
|
| |
| School Building, Series A, 4.00%, 2/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,025,000 |
| 1,093,101 | |
| School Building, Series A, 3.50%, 2/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,350,000 |
| 6,600,952 | |
St. Michael Albertville ISD No. 885 GO, Refunding, Series A, 4.25%, 2/01/32. . . . . . . . . . . . . . . . . . . . . . | 10,295,000 |
| 10,844,444 |
| |
St. Paul ISD No. 625 GO, |
|
|
|
| |
| School Building, Minnesota School District Credit Enhancement Program, Refunding, Series B, |
|
|
|
|
| 5.00%, 2/01/24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,925,000 |
| 3,275,971 | |
| School Building, Minnesota School District Credit Enhancement Program, Series A, 3.00%, 2/01/30 . . | 1,385,000 |
| 1,403,531 | |
| School Building, Minnesota School District Credit Enhancement Program, Series A, 3.00%, 2/01/31 . . | 1,195,000 |
| 1,209,806 | |
St. Paul Sales Tax Revenue, |
|
|
|
| |
| Series G, 5.00%, 11/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,174,050 | |
| Series G, 5.00%, 11/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,178,070 | |
University of Minnesota GO, |
|
|
|
| |
| Refunding, Series A, 5.00%, 4/01/39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,805,000 |
| 2,356,067 | |
| Refunding, Series A, 5.00%, 4/01/41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,045,000 |
| 7,853,059 | |
| Refunding, Series A, 5.00%, 4/01/44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,505,000 |
| 10,974,342 |
|
| Refunding, Series B, 5.00%, 12/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,575,000 |
| 7,187,903 | |
| Series A, 5.00%, 4/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 6,055,400 | |
| Series A, 5.00%, 9/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,410,000 |
| 5,513,382 | |
| Series B, 5.00%, 1/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,500,000 |
| 5,122,935 | |
University of Minnesota Revenue, |
|
|
|
| |
| Special Purpose, State Supported Biomedical Science Research Facilities Funding Program, Series |
|
|
|
|
| B, 5.00%, 8/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,278,100 | |
| Special Purpose, State Supported Stadium Debt, Refunding, Series A, 5.00%, 8/01/25 . . . . . . . . . . . | 5,000,000 |
| 6,102,000 | |
| Special Purpose, State Supported Stadium Debt, Refunding, Series A, 5.00%, 8/01/28 . . . . . . . . . . . | 7,225,000 |
| 8,778,881 | |
Virginia GO, |
|
|
|
| |
| Sale Tax Revenue, Series A, AGMC Insured, 4.00%, 2/01/36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,162,880 | |
| Sale Tax Revenue, Series A, AGMC Insured, 4.00%, 2/01/40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,160,000 |
| 1,336,192 | |
Virginia Independent School District #706, GO, Series A, 3.00%, 2/01/40 . . . . . . . . . . . . . . . . . . . . . . . . | 3,295,000 |
| 3,532,174 | ||
Virginia Public Goods ISD no. 706 GO, St. Louis County, School Building, Series A, 5.00%, 2/01/30 . . . . . . | 3,600,000 |
| 4,649,940 | ||
Watertown ISD No. 111 GO, |
|
|
|
| |
| Watertown-Mayer Public Schools, School Building, Capital Appreciation, Series A, 2/01/33. . . . . . . . . | 2,470,000 |
| 1,925,933 | |
| Watertown-Mayer Public Schools, School Building, Capital Appreciation, Series A, 2/01/34. . . . . . . . . | 2,470,000 |
| 1,860,602 | |
| Watertown-Mayer Public Schools, School Building, Capital Appreciation, Series A, 2/01/36. . . . . . . . . | 1,470,000 |
| 1,029,353 | |
| Watertown-Mayer Public Schools, School Building, Capital Appreciation, Series A, 2/01/37. . . . . . . . . | 2,470,000 |
| 1,671,177 | |
Waterville-Elysian-Morristown ISD No. 2143 GO, School Building, Series A, 3.00%, 2/01/32 . . . . . . . . . . . | 1,995,000 |
| 2,164,854 | ||
|
|
|
| ||
104 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
NOTE S TO STATE MENT S OF INVESTMENT S
Franklin Minnesota Tax-Free Income Fund (continued)
| Principal |
|
|
|
|
| Amount |
|
| Value | |
|
|
|
|
|
|
Municipal Bonds (continued) |
|
|
|
|
|
Minnesota (continued) |
|
|
|
|
|
West St. Paul-Mendota Heights-Eagan ISD No. 197 GO, Dakota County, School Building, Minnesota |
|
|
|
|
|
School District Credit Enhancement Program, Series A, 4.00%, 2/01/34 . . . . . . . . . . . . . . . . . . . . . . . . | $ 2,655,000 | $ | 3,093,181 | ||
Western Minnesota Municipal Power Agency Revenue, |
|
|
|
|
|
Power Supply, Series A, 5.00%, 1/01/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
|
| 6,313,250 | |
Refunding, Series A, 5.00%, 1/01/24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
|
| 5,581,500 | |
Refunding, Series A, 5.00%, 1/01/25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,370,000 |
|
| 3,760,920 | |
Refunding, Series A, 5.00%, 1/01/29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,200,000 |
|
| 1,332,060 | |
Refunding, Series A, 5.00%, 1/01/35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 |
|
| 3,641,490 | |
Refunding, Series A, 5.00%, 1/01/36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,035,000 |
|
| 2,466,339 | |
Series A, Pre-Refunded, 5.00%, 1/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,075,000 |
|
| 9,370,795 | |
Series A, Pre-Refunded, 5.00%, 1/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 11,870,000 |
|
| 13,774,779 |
|
Willmar GO, Rice Memorial Hospital Project, Refunding, Series A, 3.00%, 2/01/29 . . . . . . . . . . . . . . . . . . | 500,000 |
|
| 507,705 |
|
Total Municipal Bonds before Short Term Investments (Cost $949,456,589) . |
|
|
|
| |
| 1,029,604,821 |
| |||
Short Term Investments 2.0% |
|
|
|
|
|
|
|
|
|
| |
Municipal Bonds 2.0% |
|
|
|
|
|
Minnesota 2.0% |
|
|
|
|
|
b Minneapolis and St. Paul Housing and RDA Health Care System Revenue, |
|
|
|
|
|
Allina Health System, Refunding, Series B-1, LOC JPMorgan Chase Bank, Daily VRDN and Put, |
|
|
|
|
|
1.20%, 11/15/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,500,000 |
|
| 7,500,000 | |
Allina Health System, Refunding, Series B-2, LOC JPMorgan Chase Bank, Daily VRDN and Put, |
|
|
|
|
|
1.22%, 11/15/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,225,000 |
|
| 6,225,000 | |
b Minnesota State Higher Education Facilities Authority Revenue, St. Paul Concordia University, Series |
|
|
|
|
|
Six-Q, LOC US Bank National Association, Daily VRDN and Put, 1.22%, 4/01/37 . . . . . . . . . . . . . . . . . . | 6,745,000 |
|
| 6,745,000 | |
Total Short Term Investments (Cost $20,470,000) . . . . . . . . . . . . . . . . . . . . . . . . . |
|
|
|
| |
|
|
| 20,470,000 | ||
Total Investments (Cost $969,926,589) 99.6% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
|
|
| |
|
|
| 1,050,074,821 | ||
Other Assets, less Liabilities 0.4% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
|
| 4,627,427 | |
Net Assets 100.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| |||
| $1,054,702,248 | ||||
|
|
|
|
|
|
See Abbreviations on page 169.
aSecurity purchased on a when-issued basis. See Note 1(b).
bVariable rate demand notes (VRDNs) are obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. Unless otherwise noted, the coupon rate is determined based on factors including supply and demand, underlying credit, tax treatment, and current short term rates. The coupon rate shown represents the rate at period end.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 105 |
F R A N K L IN TAX - FREE TRUS T
Financial Highlights
Franklin Ohio Tax-Free Income Fund
Year Ended February 28,
2020a2019b
Class A
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsc:
Net investment incomed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assetsf
Expensesg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$12.49$12.38
0.350.17
0.710.11
1.060.28
(0.35)(0.17)
$13.20$12.49
8.60%2.30%
0.81%0.80%
2.69%2.88%
$160,174$75,132
4.56%13.09%
aFor the year ended February 29.
bFor the period September 10, 2018 (effective date) to February 28, 2019.
cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
dBased on average daily shares outstanding.
eTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year. fRatios are annualized for periods less than one year.
gBenefit of expense reduction rounds to less than 0.01%.
|
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|
|
106 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TAX-FREE TRUS T
FINANCIA L HIGHLIGHT S
Franklin Ohio Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Class A1
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . .
Total from investment operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returnd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$12.49 | $12.46 | $12.56 | $12.90 | $12.91 |
|
|
|
|
|
0.37 | 0.38 | 0.38 | 0.41 | 0.44 |
0.71 | 0.03 | (0.10) | (0.34) | (0.01) |
|
|
|
|
|
1.08 | 0.41 | 0.28 | 0.07 | 0.43 |
|
|
|
|
|
(0.37) | (0.38) | (0.38) | (0.41) | (0.44) |
|
|
|
|
|
$13.20 | $12.49 | $12.46 | $12.56 | $12.90 |
|
|
|
|
|
8.76% | 3.34% | 2.26% | 0.52% | 3.43% |
0.66%e | 0.65%e | 0.64% | 0.63% | 0.63% |
2.84% | 3.03% | 3.02% | 3.17% | 3.41% |
$996,280 | $985,590 | $1,090,194 | $1,120,704 | $1,186,318 |
4.56% | 13.09% | 15.46% | 14.17% | 6.53% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable. eBenefit of expense reduction rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 107 |
FRANKLIN TAX-FREE TRUST
FINANCIA L HIGHLIGHT S
Franklin Ohio Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Class C
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returnd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$12.66 | $12.63 | $12.72 | $13.06 | $13.07 |
|
|
|
|
|
0.30 | 0.31 | 0.32 | 0.34 | 0.37 |
0.72 | 0.03 | (0.10) | (0.34) | (0.01) |
|
|
|
|
|
1.02 | 0.34 | 0.22 | — | 0.36 |
|
|
|
|
|
(0.30) | (0.31) | (0.31) | (0.34) | (0.37) |
|
|
|
|
|
$13.38 | $12.66 | $12.63 | $12.72 | $13.06 |
|
|
|
|
|
8.16% | 2.72% | 1.75% | (0.05)% | 2.82% |
1.21%e | 1.20%e | 1.19% | 1.18% | 1.18% |
2.29% | 2.48% | 2.47% | 2.62% | 2.86% |
$203,367 | $215,045 | $308,088 | $330,566 | $322,560 |
4.56% | 13.09% | 15.46% | 14.17% | 6.53% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable. eBenefit of expense reduction rounds to less than 0.01%.
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|
108 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TAX-FREE TRUS T
FINANCIA L HIGHLIGHT S
Franklin Ohio Tax-Free Income Fund (continued)
Year Ended February 28,
2020a2019 2018b
Class R6
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsc:
Net investment incomed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assetsf
Expenses before waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses net of waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$12.50 | $12.47 | $12.73 |
|
|
|
0.38 | 0.39 | 0.23 |
0.73 | 0.03 | (0.26) |
|
|
|
1.11 | 0.42 | (0.03) |
|
|
|
(0.39) | (0.39) | (0.23) |
|
|
|
$13.22 | $12.50 | $12.47 |
|
|
|
8.90% | 3.47% | (0.24)% |
0.53% | 0.53% | 0.52% |
0.52%g | 0.51%g | 0.50% |
2.98% | 3.17% | 3.16% |
$10,638 | $6,942 | $7,847 |
4.56% | 13.09% | 15.46% |
aFor the year ended February 29.
bFor the period August 1, 2017 (effective date) to February 28, 2018.
cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
dBased on average daily shares outstanding.
eTotal return is not annualized for periods less than one year.
fRatios are annualized for periods less than one year.
gBenefit of expense reduction rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 109 |
FRANKLIN TAX-FREE TRUST
FINANCIA L HIGHLIGHT S
Franklin Ohio Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Advisor Class
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$12.50 | $12.47 | $12.57 | $12.91 | $12.92 |
|
|
|
|
|
0.38 | 0.39 | 0.40 | 0.42 | 0.45 |
0.71 | 0.03 | (0.10) | (0.34) | (0.01) |
|
|
|
|
|
1.09 | 0.42 | 0.30 | 0.08 | 0.44 |
|
|
|
|
|
(0.38) | (0.39) | (0.40) | (0.42) | (0.45) |
|
|
|
|
|
$13.21 | $12.50 | $12.47 | $12.57 | $12.91 |
|
|
|
|
|
8.86% | 3.43% | 2.36% | 0.62% | 3.53% |
0.56%d | 0.55%d | 0.54% | 0.53% | 0.53% |
2.94% | 3.13% | 3.12% | 3.27% | 3.51% |
$243,913 | $179,427 | $170,329 | $143,603 | $80,279 |
4.56% | 13.09% | 15.46% | 14.17% | 6.53% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dBenefit of expense reduction rounds to less than 0.01%.
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110 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
Statement of Investments, February 29, 2020
Franklin Ohio Tax-Free Income Fund
| Principal |
|
|
|
|
| Amount |
|
| Value | |
|
|
|
|
|
|
Municipal Bonds 98.4% |
|
|
|
|
|
Ohio 98.4% |
|
|
|
|
|
Akron Income Tax Revenue, |
|
|
|
|
|
Community Learning Centers, Pre-Refunded, 5.00%, 12/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 4,250,000 | $ | 4,653,198 | ||
Community Learning Centers, Series A, Pre-Refunded, 4.50%, 12/01/33 . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 10,092,000 | ||
Akron Waterworks System Mortgage Revenue, Improvement and Refunding, Assured Guaranty, 5.00%, |
|
|
|
|
|
3/01/34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,003,000 | ||
Allen County Hospital Facilities Revenue, |
|
|
|
|
|
Catholic Healthcare Partners, Series A, Pre-Refunded, 5.25%, 6/01/38. . . . . . . . . . . . . . . . . . . . . . . | 15,000,000 |
| 15,161,700 | ||
Catholic Healthcare Partners, Series B, Pre-Refunded, 5.25%, 9/01/27. . . . . . . . . . . . . . . . . . . . . . . | 7,570,000 |
| 7,735,102 | ||
American Municipal Power Inc. Revenue, |
|
|
|
|
|
Combined Hydroelectric Projects, Green Bonds, Refunding, Series A, 5.00%, 2/15/46 . . . . . . . . . . . . | 7,500,000 |
| 8,819,025 | ||
Greenup Hydroelectric Project, Series A, 4.00%, 2/15/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,119,730 | ||
Greenup Hydroelectric Project, Series A, 5.00%, 2/15/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,894,800 | ||
Prairie State Energy Campus Project, Refunding, Series A, 5.00%, 2/15/28. . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,780,550 | ||
Prairie State Energy Campus Project, Refunding, Series A, 5.00%, 2/15/37. . . . . . . . . . . . . . . . . . . . | 3,700,000 |
| 4,606,204 | ||
Prairie State Energy Campus Project, Refunding, Series A, 5.00%, 2/15/38. . . . . . . . . . . . . . . . . . . . | 3,500,000 |
| 4,343,080 | ||
Prairie State Energy Campus Project, Refunding, Series C, 4.00%, 2/15/39. . . . . . . . . . . . . . . . . . . . | 18,795,000 |
| 22,037,701 | ||
Prairie State Energy Campus Project, Series A, BAM Insured, Pre-refunded, 5.25%, 2/15/31 . . . . . . . | 10,000,000 |
| 10,863,300 | ||
Solar Electricity Prepayment Project, Green Bonds, Series A, 5.00%, 2/15/44 . . . . . . . . . . . . . . . . . . | 3,345,000 |
| 4,155,962 | ||
Anthony Wayne Local School District GO, Lucas Wood and Fulton Counties, School Facilities Construction |
|
|
|
|
|
and Improvement, Series A, 4.00%, 12/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 |
| 3,376,740 | ||
Apollo Career Center Joint Vocational School District GO, Counties of Allen Auglaize Hardin Hancock |
|
|
|
|
|
Putnam and Van Wert, Various Purpose School Improvement, Refunding, 4.00%, 12/01/39 . . . . . . . . . . . | 6,530,000 |
| 7,591,713 | ||
Ashland City School District GO, Classroom Facilities and School Improvement, Series 2, 4.00%, 11/01/49. | 6,685,000 |
| 6,697,234 | ||
Bath Local School District GO, |
|
|
|
|
|
Allen County, School Improvement, AGMC Insured, 4.00%, 12/01/44 . . . . . . . . . . . . . . . . . . . . . . . . | 1,295,000 |
| 1,316,989 | ||
Allen County, School Improvement, AGMC Insured, 5.00%, 12/01/49 . . . . . . . . . . . . . . . . . . . . . . . . | 5,380,000 |
| 5,520,364 | ||
Beaver Local School District GO, School Facilities, 4.00%, 12/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 |
| 3,162,990 | ||
Big Walnut Local School District GO, Delaware County, School Facilities Construction and Improvement, |
|
|
|
|
|
5.00%, 12/01/53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,155,000 |
| 11,348,904 | ||
Bloom-Carroll Local School District GO, County of Fairfield, School Improvement, Series A, 5.00%, |
|
|
|
|
|
11/01/55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,025,000 |
| 8,684,094 | ||
Bluffton Village Hospital Facilities Revenue, |
|
|
|
|
|
Blanchard Valley Health System, Refunding, 4.00%, 12/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,655,000 |
| 1,876,820 | ||
Blanchard Valley Health System, Refunding, 4.00%, 12/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,900,000 |
| 2,151,085 | ||
Bowling Green State University Revenue, General Receipts, Refunding, Series B, 5.00%, 6/01/42 . . . . . . . | 3,250,000 |
| 3,996,363 | ||
Brecksville-Broadview Heights City School District GO, School Facilities Improvement, Pre-Refunded, |
|
|
|
|
|
5.25%, 12/01/54 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,390,000 |
| 8,618,514 | ||
Brooklyn City School District GO, |
|
|
|
|
|
School Improvement, AGMC Insured, Pre-Refunded, 5.25%, 12/01/43 . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 |
| 3,099,540 | ||
School Improvement, AGMC Insured, Pre-Refunded, 5.50%, 12/01/49 . . . . . . . . . . . . . . . . . . . . . . . | 7,780,000 |
| 8,052,533 | ||
School Improvement, Refunding, AGMC Insured, 5.00%, 12/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,905,000 |
| 2,344,007 | ||
School Improvement, Refunding, AGMC Insured, 5.00%, 12/01/49 . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,000,000 |
| 10,894,500 | ||
Butler County Hospital Facilities Revenue, |
|
|
|
|
|
Cincinnati Children's Hospital Medical Center, Refunding, Series X, 5.00%, 5/15/29 . . . . . . . . . . . . . . | 6,750,000 |
| 9,033,862 | ||
Kettering Health Network Obligated Group Project, 6.375%, 4/01/36. . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,275,100 | ||
Kettering Health Network Obligated Group Project, 5.625%, 4/01/41. . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,221,300 | ||
UC Health, Refunding, 4.00%, 11/15/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 |
| 2,289,200 | ||
|
|
| |||
franklintempleton.com | Annual Report |
| 111 |
FRANKL IN TAX-FREE TRUST
STATEMEN T OF INVEST MENT S
Franklin Ohio Tax-Free Income Fund (continued)
|
| Principal |
|
|
|
|
| Amount |
| Value | |
|
|
|
|
| |
Municipal Bonds (continued) |
|
|
|
| |
Ohio (continued) |
|
|
|
| |
Butler County Hospital Facilities Revenue, (continued) |
|
|
|
| |
| UC Health, Refunding, 4.00%, 11/15/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 2,140,000 | $ | 2,444,543 | |
| UC Health, Refunding, 4.00%, 11/15/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 |
| 1,708,500 | |
| UC Health, Refunding, 5.00%, 11/15/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 20,270,000 |
| 23,884,749 |
|
Canal Winchester Local School District GO, |
|
| �� |
| |
| Capital Appreciation, Refunding, Series B, NATL Insured, zero cpn., 12/01/32 . . . . . . . . . . . . . . . . . . | 3,955,000 |
| 3,177,249 | |
| Capital Appreciation, Refunding, Series B, NATL Insured, zero cpn., 12/01/33 . . . . . . . . . . . . . . . . . . | 2,000,000 |
| 1,566,740 | |
Central Solid Waste Authority GO, |
|
|
|
| |
| Improvement, Solid Waste Facilities, Pre-Refunded, 4.00%, 12/01/32 . . . . . . . . . . . . . . . . . . . . . . . . | 1,505,000 |
| 1,612,592 | |
| Improvement and Refunding, Solid Waste Facilities, Pre-Refunded, 4.00%, 12/01/32 . . . . . . . . . . . . . | 15,440,000 |
| 16,561,716 |
|
Chillicothe City School District GO, |
|
|
|
| |
| Capital Appreciation, School Improvement, Refunding, NATL Insured, zero cpn., 12/01/22 . . . . . . . . . | 1,905,000 |
| 1,850,536 | |
| Capital Appreciation, School Improvement, Refunding, NATL Insured, zero cpn., 12/01/23 . . . . . . . . . | 1,905,000 |
| 1,825,485 | |
| Capital Appreciation, School Improvement, Refunding, NATL Insured, zero cpn., 12/01/24 . . . . . . . . . | 1,905,000 |
| 1,800,530 | |
Chillicothe Hospital Facilities Revenue, Adena Health System Obligated Group Project, Refunding and |
|
|
|
| |
Improvement, 5.00%, 12/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 6,159,000 | ||
Cincinnati City School District GO, |
|
|
|
| |
| Classroom Facilities Construction and Improvement, Refunding, NATL Insured, 5.25%, 12/01/27. . . . . | 14,900,000 |
| 19,606,314 |
|
| Classroom Facilities Construction and Improvement, Refunding, NATL Insured, 5.25%, 12/01/28. . . . . | 8,180,000 |
| 11,030,566 |
|
Cincinnati GO, Various Purpose, Improvement and Refunding, Series A, 5.25%, 12/01/40 . . . . . . . . . . . . . | 6,500,000 |
| 7,879,170 | ||
Cleveland Airport System Revenue, |
|
|
|
| |
| Series A, AGMC Insured, Pre-Refunded, 5.00%, 1/01/30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 |
| 3,232,140 | |
| Series A, AGMC Insured, Pre-Refunded, 5.00%, 1/01/31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 |
| 1,616,070 | |
Cleveland GO, |
|
|
|
| |
| Pre-Refunded, 5.00%, 12/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,965,000 |
| 3,348,137 | |
| Refunding, 5.00%, 12/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 35,000 |
| 39,413 |
|
Cleveland Municipal School District GO, |
|
|
|
| |
| School Improvement, Refunding, 5.00%, 12/01/25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,600,000 |
| 3,999,204 | |
| School Improvement, Refunding, 5.00%, 12/01/27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,109,160 | |
Cleveland Public Library Facilities Notes Revenue, Cuyahoga County, Series A, 4.00%, 12/01/45. . . . . . . . | 5,000,000 |
| 5,925,000 | ||
Cleveland Public Power System Revenue, |
|
|
|
| |
| Capital Appreciation, Series B-2, NATL Insured, zero cpn., 11/15/38. . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 6,201,500 | |
| Refunding, Series A, 4.00%, 11/15/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 |
| 1,802,850 | |
| Refunding, Series A, 4.00%, 11/15/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 600,000 |
| 719,076 |
|
Cleveland Water PCR, Green Bonds, 5.00%, 11/15/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 |
| 2,391,900 | ||
Columbus GO, |
|
|
|
| |
| Various Purpose, Refunding, Series 3, 5.00%, 2/15/27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 6,394,750 | |
| Various Purpose, Series A, 5.00%, 2/15/25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,825,000 | |
| Various Purpose, Series A, 5.00%, 4/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,000,000 |
| 9,186,520 | |
Columbus Metropolitan Library Special Obligation Revenue, |
|
|
|
| |
| Library Fund Facilities Notes, Series 1, 4.00%, 12/01/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,970,000 |
| 3,035,993 | |
| Library Fund Facilities Notes, Series 1, 4.00%, 12/01/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,125,000 |
| 4,214,801 | |
| Library Fund Facilities Notes, Series 1, 4.00%, 12/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,620,000 |
| 6,750,282 | |
| Library Fund Facilities Notes, Series 1, Pre-Refunded, 4.00%, 12/01/27 . . . . . . . . . . . . . . . . . . . . . . | 3,765,000 |
| 3,856,490 | |
Columbus Sewerage System Revenue, |
|
|
|
| |
| Refunding, 5.00%, 6/01/29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 6,241,350 | |
| Refunding, 4.00%, 6/01/31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15,000,000 |
| 16,943,400 |
|
|
|
|
| ||
112 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
S TAT EMEN T OF INVEST MENT S
Franklin Ohio Tax-Free Income Fund (continued)
| Principal |
|
|
| Amount |
| Value |
|
|
|
|
Municipal Bonds (continued) |
|
|
|
Ohio (continued) |
|
|
|
Coventry Local School District GO, School Improvement, 5.25%, 11/01/47 . . . . . . . . . . . . . . . . . . . . . . . | $ 5,000,000 | $ | 5,329,500 |
Cuyahoga Community College District General Receipts Revenue, Series D, 5.00%, 8/01/32 . . . . . . . . . . . | 2,310,000 |
| 2,526,701 |
Cuyahoga County EDR, Recovery Zone Facility, Medical Mart/Convention Center Project, Series F, 5.00%, |
|
|
|
12/01/27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15,000,000 |
| 15,461,850 |
Cuyahoga County Excise Tax Revenue, Sports Facilities Improvement Project, Pre-Refunded, 5.00%, |
|
|
|
12/01/25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 500,000 |
| 576,510 |
Dayton City School District GO, School Facilities Construction and Improvement, Refunding, 5.00%, |
|
|
|
11/01/30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 6,771,750 |
Dayton Metro Library GO, Library Improvement, Series A, Pre-Refunded, 4.75%, 12/01/38 . . . . . . . . . . . . | 20,000,000 |
| 21,376,400 |
Deer Park Community City School District GO, County of Hamilton, School Improvement, Refunding, |
|
|
|
Series A, 5.25%, 12/01/53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 |
| 3,536,760 |
Defiance City School District GO, Defiance and Paulding Counties, Various Purpose, Refunding, 5.00%, |
|
|
|
12/01/46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,635,000 |
| 7,275,808 |
Delaware City School District GO, School Facilities Construction and Improvement, Pre-Refunded, 5.75%, |
|
|
|
12/01/49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,000,000 |
| 6,951,360 |
Dublin City School District GO, Franklin Delaware and Union Counties, School Facilities Construction and |
|
|
|
Improvement, Series A, 4.00%, 12/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 11,690,800 |
Elyria City School District GO, Classroom Facilities and School Improvement, Series A, 5.00%, 12/01/43 . . | 5,500,000 |
| 6,625,190 |
Franklin County Convention Facilities Authority Revenue, Tax and Lease Revenue Anticipation, Refunding, |
|
|
|
5.00%, 12/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 20,000,000 |
| 23,456,000 |
Franklin County Hospital Facilities Revenue, |
|
|
|
Nationwide Children's Hospital Project, Refunding, Series A, 4.00%, 11/01/44 . . . . . . . . . . . . . . . . . . | 7,050,000 |
| 8,122,094 |
Nationwide Children's Hospital Project, Refunding, Series C, 5.00%, 11/01/34 . . . . . . . . . . . . . . . . . . | 2,600,000 |
| 3,234,218 |
Nationwide Children's Hospital Project, Refunding, Series C, 4.00%, 11/01/40 . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,755,850 |
OhioHealth Corp., 5.00%, 5/15/33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,290,000 |
| 7,512,587 |
Franklin County Revenue, Trinity Health Credit Group, Series OH, 5.00%, 12/01/46 . . . . . . . . . . . . . . . . . | 7,500,000 |
| 9,211,350 |
Franklin County Sales Tax Revenue, Various Purpose, 5.00%, 6/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,000,000 |
| 7,620,720 |
Fremont City School District GO, Sandusky County, School Facilities Construction and Improvement, |
|
|
|
Series A, 5.00%, 1/15/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 13,970,000 |
| 16,484,879 |
Grandview Heights City School District GO, |
|
|
|
Franklin County, School Facilities Construction and Improvement, 4.00%, 12/01/51 . . . . . . . . . . . . . . | 1,980,000 |
| 2,285,217 |
Franklin County, School Facilities Construction and Improvement, 5.00%, 12/01/53 . . . . . . . . . . . . . . | 2,150,000 |
| 2,718,396 |
Greenville City School District GO, School Improvement, Pre-Refunded, 5.25%, 1/01/41 . . . . . . . . . . . . . . | 2,000,000 |
| 2,161,900 |
Groveport-Madison Local School District GO, School Facilities Construction and Improvement, Pre- |
|
|
|
Refunded, 5.00%, 10/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,205,000 |
| 6,871,913 |
Hamilton County Hospital Facilities Revenue, TriHealth Inc. Obligated Group Project, Series A, 5.00%, |
|
|
|
8/15/42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 6,090,600 |
Hamilton County Student Housing Revenue, |
|
|
|
Stratford Heights Project, University of Cincinnati, Refunding, AGMC Insured, 5.00%, 6/01/30. . . . . . . | 7,000,000 |
| 7,068,040 |
Stratford Heights Project, University of Cincinnati, Refunding, AGMC Insured, 4.75%, 6/01/39. . . . . . . | 7,000,000 |
| 7,055,440 |
Highland Local School District GO, Medina and Summit Counties, School Improvement, Series A, |
|
|
|
Pre-Refunded, 5.25%, 12/01/54 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12,000,000 |
| 13,710,840 |
Hilliard School District GO, |
|
|
|
Capital Appreciation, School Construction, Refunding, NATL Insured, zero cpn., 12/01/20 . . . . . . . . . | 4,525,000 |
| 4,496,176 |
School Improvement, 4.00%, 12/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 11,305,900 |
Hudson City School District GO, School Improvement, 4.00%, 12/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . | 18,870,000 |
| 21,180,631 |
franklintempleton.com | Annual Report | 113 |
FRANKL IN TAX-FREE TRUST
STATEMEN T OF INVEST MENT S
Franklin Ohio Tax-Free Income Fund (continued)
| Principal |
|
|
| Amount |
| Value |
|
|
|
|
Municipal Bonds (continued) |
|
|
|
Ohio (continued) |
|
|
|
Indian Creek Local School District GO, |
|
|
|
School Facilities Construction and Improvement, Jefferson County, Series A, 5.00%, 11/01/55 . . . . . . | $ 3,000,000 | $ | 3,687,120 |
School Facilities Construction and Improvement, Jefferson County, Series B, BAM Insured, 5.00%, |
|
|
|
11/01/55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,910,000 |
| 4,791,627 |
JobsOhio Beverage System Statewide Liquor Profits Revenue, senior lien, Series A, Pre-Refunded, 5.00%, |
|
|
|
1/01/38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 26,010,000 |
| 29,073,718 |
Lakewood City School District GO, School Facilities Improvement, Series A, Pre-Refunded, 5.00%, |
|
|
|
11/01/43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,895,000 |
| 12,118,726 |
Lakota Local School District GO, |
|
|
|
Butler County, Refunding, Series A, NATL Insured, 5.25%, 12/01/26 . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 |
| 2,565,460 |
Butler County, Refunding, Series C, 5.00%, 12/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,035,000 |
| 4,800,924 |
Lancaster City School District GO, |
|
|
|
Fairfield County, School Facilities Construction and Improvement, Pre-Refunded, 5.00%, 10/01/49 . . . | 9,540,000 |
| 10,565,359 |
Fairfield County, School Facilities Construction and Improvement, Pre-Refunded, 5.00%, 10/01/49 . . . | 460,000 |
| 508,820 |
Little Miami Local School District GO, |
|
|
|
Counties of Warren and Clermont, School Improvement, State Credit Enhanced, Series A, 5.00%, |
|
|
|
11/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,188,300 |
Counties of Warren and Clermont, School Improvement, State Credit Enhanced, Series A, 5.00%, |
|
|
|
11/01/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,460,000 |
| 2,906,023 |
Madeira City School District GO, School Improvement, Refunding, AGMC Insured, 5.25%, 12/01/32. . . . . . | 9,605,000 |
| 13,358,250 |
Mahoning County Hospital Facilities Revenue, Western Reserve Care System Project, NATL Insured, |
|
|
|
ETM, 5.50%, 10/15/25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,150,000 |
| 3,606,246 |
Marysville Exempted Village School District GO, |
|
|
|
Capital Appreciation, Refunding, NATL Insured, zero cpn., 12/01/20 . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 992,820 |
Capital Appreciation, Refunding, NATL Insured, zero cpn., 12/01/21 . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 982,770 |
Marysville Wastewater Treatment System Revenue, |
|
|
|
Refunding, BAM Insured, 4.00%, 12/01/40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,015,000 |
| 3,311,284 |
Refunding, BAM Insured, 4.00%, 12/01/46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,370,000 |
| 10,341,482 |
Refunding, BAM Insured, 5.00%, 12/01/47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,035,000 |
| 5,892,007 |
Miami County Hospital Facilities Revenue, Kettering Health Network Obligated Group Project, Refunding |
|
|
|
and Improvement, 5.00%, 8/01/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12,000,000 |
| 14,805,840 |
Miami University Revenue, |
|
|
|
General Receipts, Refunding, 5.00%, 9/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,000,000 |
| 4,241,120 |
General Receipts, Refunding, 5.00%, 9/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,320,000 |
| 2,721,337 |
General Receipts, Refunding, 5.00%, 9/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,500,000 |
| 4,089,750 |
General Receipts, Refunding, 5.00%, 9/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 6,074,700 |
Miami Valley Career Technology Center GO, Montgomery Butler Champaign Darke Greene Miami Preble |
|
|
|
Shelby and Warren Counties, Various Purpose School Improvement, 5.00%, 12/01/44 . . . . . . . . . . . . . . | 20,000,000 |
| 24,895,400 |
Middletown City School District GO, |
|
|
|
Counties of Butler and Warren, School Improvement, Pre-Refunded, 5.25%, 12/01/40 . . . . . . . . . . . . | 2,625,000 |
| 2,942,966 |
Counties of Butler and Warren, School Improvement, Pre-Refunded, 5.25%, 12/01/48 . . . . . . . . . . . . | 15,000,000 |
| 16,816,950 |
Napoleon City School District GO, School Facilities Construction and Improvement, 5.00%, 12/01/49 . . . . . | 11,460,000 |
| 12,533,802 |
The New Albany Community Authority Community Facilities Revenue, |
|
|
|
Refunding, Series C, 5.00%, 10/01/23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,100,000 |
| 1,213,784 |
Refunding, Series C, 5.00%, 10/01/24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,250,000 |
| 1,376,938 |
New Albany Plain Local School District GO, School Improvement, Refunding, 4.00%, 12/01/49 . . . . . . . . . | 10,000,000 |
| 10,606,200 |
|
|
|
|
114 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
S TAT EMEN T OF INVEST MENT S
Franklin Ohio Tax-Free Income Fund (continued)
| Principal |
|
|
| Amount |
| Value |
|
|
|
|
Municipal Bonds (continued) |
|
|
|
Ohio (continued) |
|
|
|
Northeast Regional Sewer District Revenue, |
|
|
|
Wastewater Improvement, Pre-Refunded, 5.00%, 11/15/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 5,500,000 | $ | 6,580,255 |
Wastewater Improvement, Refunding, 3.00%, 11/15/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,500,000 |
| 4,988,385 |
Wastewater Improvement, Refunding, 4.00%, 11/15/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 11,655,700 |
Wastewater Improvement, Refunding, 4.00%, 11/15/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,000,000 |
| 6,598,740 |
Northeastern Local School District GO, |
|
|
|
Counties of Clark and Champaign, School Improvement, AGMC Insured, 5.25%, 12/01/45 . . . . . . . . . | 5,420,000 |
| 6,946,706 |
Counties of Clark and Champaign, School Improvement, AGMC Insured, 4.00%, 12/01/55 . . . . . . . . . | 5,000,000 |
| 5,676,300 |
Northmont City School District GO, School Improvement, Series A, Pre-Refunded, 5.00%, 11/01/49. . . . . . | 5,130,000 |
| 5,491,870 |
Northwest Local School District GO, Hamilton and Butler Counties, School Improvement, Pre-Refunded, |
|
|
|
5.00%, 12/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,760,000 |
| 4,342,875 |
Norwood City School District GO, |
|
|
|
School Improvement, Series A, 5.00%, 11/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,937,250 |
School Improvement, Series A, 5.25%, 11/01/51 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,645,000 |
| 9,200,605 |
Oakwood City School District GO, School Facilities Construction and Improvement Bonds, 4.00%, |
|
|
|
12/01/48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,340,000 |
| 7,349,835 |
Ohio Center for Local Government Capital Asset Financing Program Fractionalized Interests GO, AGMC |
|
|
|
Insured, 5.25%, 12/01/23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 445,000 |
| 446,469 |
Ohio State Air Quality Development Authority Revenue, Environmental Improvement, Buckeye Power Inc. |
|
|
|
Project, 6.00%, 12/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,020,000 |
| 6,244,907 |
Ohio State GO, |
|
|
|
Common School, Series A, 5.00%, 3/15/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,763,600 |
Common School, Series A, 5.00%, 6/15/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 12,203,600 |
Highway Capital Improvements, Full Faith and Credit/Highway User Receipts, Series V, 5.00%, |
|
|
|
5/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,298,340 |
Highway Capital Improvements, Full Faith and Credit/Highway User Receipts, Series V, 5.00%, |
|
|
|
5/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,000,000 |
| 5,190,840 |
Ohio State Higher Educational Facility Commission Revenue, |
|
|
|
Case Western Reserve University Project, Refunding, 5.00%, 12/01/40 . . . . . . . . . . . . . . . . . . . . . . | 6,000,000 |
| 7,330,260 |
Denison University Project, Refunding and Improvement, 5.00%, 11/01/26 . . . . . . . . . . . . . . . . . . . . | 1,445,000 |
| 1,569,588 |
Hospital Facilities, Summa Health System, 2010 Project, Refunding, AGMC Insured, 5.25%, 11/15/40 . | 21,805,000 |
| 22,004,080 |
Hospital Facilities, Summa Health System, AGMC Insured, 5.75%, 11/15/40 . . . . . . . . . . . . . . . . . . . | 1,665,000 |
| 1,682,100 |
Hospital Facilities, Summa Health System, AGMC Insured, Pre-Refunded, 5.75%, 11/15/40 . . . . . . . . | 2,835,000 |
| 2,862,528 |
Kenyon College 2010 Project, Pre-Refunded, 5.25%, 7/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 20,460,000 |
| 20,755,852 |
Kenyon College 2010 Project, Refunding, 5.25%, 7/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,540,000 |
| 9,677,948 |
Kenyon College 2016 Project, Refunding, 5.00%, 7/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,500,000 |
| 12,620,055 |
Kenyon College 2016 Project, Refunding, 4.00%, 7/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 11,193,600 |
Kenyon College 2017 Project, 5.00%, 7/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,250,000 |
| 1,530,288 |
Kenyon College 2017 Project, 4.00%, 7/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,633,350 |
Xavier University Project, 5.00%, 5/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 14,500,000 |
| 14,575,255 |
Xavier University Project, 4.375%, 5/01/42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,070,000 |
| 8,995,064 |
Ohio State Higher Educational Facility Revenue, University of Dayton 2018 Project, Series A, 4.00%, |
|
|
|
12/01/43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 11,885,000 |
| 13,626,271 |
Ohio State Hospital Revenue, |
|
|
|
Cleveland Clinic Health System Obligated Group, Refunding, Series A, 3.25%, 1/01/35 . . . . . . . . . . . | 10,000,000 |
| 10,915,900 |
University Hospitals Health System Inc, Refunding, Series A, 3.00%, 1/15/45 . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,259,650 |
franklintempleton.com | Annual Report | 115 |
FRANKL IN TAX-FREE TRUST
STATEMEN T OF INVEST MENT S
Franklin Ohio Tax-Free Income Fund (continued)
|
| Principal |
|
|
|
|
| Amount |
| Value | |
|
|
|
|
| |
Municipal Bonds (continued) |
|
|
|
| |
Ohio (continued) |
|
|
|
| |
Ohio State Turnpike and Infrastructure Commission Revenue, |
|
|
|
| |
| Capital Appreciation, junior lien, Series A-2, zero cpn., 2/15/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $10,485,000 | $ | 6,015,978 | |
| Infrastructure Projects, junior lien, Series A-1, 5.25%, 2/15/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,200,000 |
| 4,695,390 | |
Ohio State Turnpike Commission Revenue, Capital Appreciation, junior lien, Series A-2, BAM Insured, zero |
|
|
|
| |
cpn., 2/15/38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,665,000 |
| 2,544,976 | ||
Ohio State Turnpike Revenue, Series A, 5.00%, 2/15/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 33,350,000 |
| 41,796,221 |
| |
Ohio State University Revenue, General Receipts, Series A, 4.00%, 12/01/30 . . . . . . . . . . . . . . . . . . . . . | 4,325,000 |
| 4,889,629 | ||
Ohio State Water Development Authority Revenue, Fresh Water, 5.00%, 6/01/44 . . . . . . . . . . . . . . . . . . . | 4,000,000 |
| 5,230,320 | ||
Ohio State Water Development Authority Water PCR, Loan Fund, Series B, 5.00%, 12/01/44 . . . . . . . . . . | 20,000,000 |
| 26,149,000 |
| |
Olentangy Local School District GO, Delaware and Franklin Counties, School Facilities Construction and |
|
|
|
| |
Improvement, 4.00%, 12/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15,235,000 |
| 17,085,748 |
| |
Perrysburg Exempted Village School GO, School Facilities Construction and Improvement, 5.00%, |
|
|
|
| |
12/01/38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,225,000 |
| 3,794,051 | ||
Princeton City School District COP, Board of Education, School Facilities Project, Pre-Refunded, 4.50%, |
|
|
|
| |
12/01/41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 |
| 3,196,200 | ||
Princeton City School District GO, |
|
|
|
| |
| School Improvement, Capital Appreciation, Refunding, zero cpn., 12/01/40 . . . . . . . . . . . . . . . . . . . . | 6,000,000 |
| 3,820,620 | |
| School Improvement, Capital Appreciation, Refunding, zero cpn., 12/01/41 . . . . . . . . . . . . . . . . . . . . | 6,000,000 |
| 3,703,500 | |
| School Improvement, Pre-Refunded, 5.00%, 12/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12,000,000 |
| 14,378,760 |
|
Reading Community City School District GO, Classroom Facilities, Refunding, Series A, 5.00%, 11/01/46 . . | 2,000,000 |
| 2,326,280 | ||
Revere Local School District GO, |
|
|
|
| |
| School Facilities Improvement, Series A, Pre-Refunded, 5.00%, 12/01/42 . . . . . . . . . . . . . . . . . . . . . | 3,025,000 |
| 3,311,982 | |
| School Facilities Improvement, Series A, Pre-Refunded, 5.00%, 12/01/45 . . . . . . . . . . . . . . . . . . . . . | 2,560,000 |
| 2,802,867 | |
Riverside Local School District GO, School Construction and Improvement, Series A, BAM Insured, |
|
|
|
| |
Pre-Refunded, 5.00%, 10/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,843,000 | ||
Ross County Hospital Facilities Revenue, Adena Health System Obligated Group Project, Refunding and |
|
|
|
| |
Improvement, 5.00%, 12/01/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 6,188,000 | ||
Sandusky City School District GO, Classroom Facilities and School Improvement, Series 1, Pre-Refunded, |
|
|
|
| |
5.00%, 11/01/50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,000,000 |
| 6,541,500 | ||
South-Western City School District of Ohio Franklin and Pickaway Counties GO, |
|
|
|
| |
| School Facilities Construction and Improvement, Pre-Refunded, 4.00%, 12/01/42 . . . . . . . . . . . . . . . | 10,000,000 |
| 10,714,900 |
|
| School Facilities Construction and Improvement, Series A, 4.00%, 12/01/48 . . . . . . . . . . . . . . . . . . . | 3,500,000 |
| 4,115,265 | |
Springboro Community City School District GO, |
|
|
|
| |
| Refunding, AGMC Insured, 5.25%, 12/01/27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,175,000 |
| 6,684,651 | |
| Refunding, AGMC Insured, 5.25%, 12/01/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 |
| 2,642,140 | |
St. Bernard Income Tax Revenue, Various Purpose, Special Obligations, AGMC Insured, 5.00%, 12/01/43 . | 3,760,000 |
| 4,207,929 | ||
Strongsville City School District GO, School Improvement, 4.00%, 12/01/45 . . . . . . . . . . . . . . . . . . . . . . . | 17,515,000 |
| 17,823,264 |
| |
Summit County Port Authority Lease Revenue, The University of Akron Student Housing Project, |
|
|
|
| |
Pre-Refunded, 6.00%, 1/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 11,580,000 |
| 12,074,165 |
| |
Switzerland of Ohio Local School District GO, Counties Monroe Belmont and Noble, School Improvement, |
|
|
|
| |
Pre-Refunded, 4.00%, 12/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,500,000 |
| 6,064,355 | ||
Sylvania City School District GO, School Improvement, Refunding, BAM Insured, 5.00%, 12/01/36 . . . . . . . | 9,700,000 |
| 11,460,841 |
| |
Three Rivers Local School District GO, Refunding, 5.00%, 12/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,885,000 |
| 6,870,031 | ||
Toledo City School District GO, School Facilities Improvement, Series B, Pre-Refunded, 5.00%, 12/01/32 . . | 7,830,000 |
| 8,725,360 | ||
Toledo GO, Various Purpose Improvement, Refunding, AGMC Insured, 5.00%, 12/01/28 . . . . . . . . . . . . . . | 3,000,000 |
| 3,089,430 | ||
Toledo Water System Revenue, |
|
|
|
| |
| Improvement and Refunding, 5.00%, 11/15/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 19,395,000 |
| 21,610,491 |
|
| Series A, 4.00%, 11/15/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,125,000 |
| 9,539,914 | |
|
|
|
| ||
116 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
S TAT EMEN T OF INVEST MENT S
Franklin Ohio Tax-Free Income Fund (continued)
| Principal |
|
|
|
| Amount |
| Value | |
|
|
|
|
|
Municipal Bonds (continued) |
|
|
|
|
Ohio (continued) |
|
|
|
|
Union County GO, Memorial Hospital, 5.00%, 12/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 5,000,000 | $ | 6,105,000 | |
University of Akron General Receipts Revenue, |
|
|
|
|
Refunding, Series A, 5.00%, 1/01/31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,365,000 |
| 5,133,415 | |
Refunding, Series A, 5.00%, 1/01/36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 11,065,000 |
| 13,423,615 |
|
Refunding, Series A, 5.00%, 1/01/38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 13,225,000 |
| 15,977,122 |
|
Refunding, Series A, 5.00%, 1/01/42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,725,000 |
| 7,158,826 | |
Refunding, Series A, BAM Insured, 5.00%, 1/01/34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,000,000 |
| 7,308,960 | |
University of Cincinnati General Receipt Revenue, Refunding, Series F, 5.00%, 6/01/32 . . . . . . . . . . . . . . | 140,000 |
| 144,257 |
|
University of Cincinnati General Receipts Revenue, |
|
|
|
|
Refunding, Series A, 4.00%, 6/01/48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 11,450,000 |
|
Series C, Pre-Refunded, 5.00%, 6/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,255,000 |
| 7,224,650 | |
Series F, Pre-Refunded, 5.00%, 6/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,665,000 |
| 5,838,179 | |
University of Ohio General Receipts Revenue, Refunding, Series A, 5.00%, 12/01/44 . . . . . . . . . . . . . . . . | 7,000,000 |
| 8,518,790 | |
Upper Arlington City School District GO, Franklin County, School Facilities Construction and Improvement |
|
|
|
|
Bonds, Refunding, Series A, 5.00%, 12/01/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 13,000,000 |
| 16,201,900 |
|
Warrensville Heights City School District GO, |
|
|
|
|
School Improvement, Series A, 5.00%, 12/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 650,000 |
| 756,626 |
|
School Improvement, Series A, 5.25%, 12/01/55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,740,000 |
| 2,038,184 | |
a West Carrollton City School District GO, |
|
|
|
|
3.00%, 12/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,540,000 |
| 2,680,919 | |
3.00%, 12/01/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,645,000 |
| 1,726,082 | |
4.00%, 12/01/56 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,500,000 |
| 3,948,350 | |
Westerville City School District GO, |
|
|
|
|
a 3.00%, 12/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,675,000 |
| 3,938,314 | |
Refunding, XLCA Insured, 5.00%, 12/01/27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,820,000 |
| 4,856,213 | |
Westerville Ohio Special Obligation Non-Tax Revenue, 5.00%, 12/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . | 2,765,000 |
| 3,228,055 | |
Willoughby Eastlake City School District GO, School Improvement, Pre-Refunded, 5.00%, 12/01/46 . . . . . . | 10,000,000 |
| 12,290,200 | |
Winton Woods City School District GO, County of Hamilton, Board of Education, Classroom Facilities, |
|
|
|
|
Refunding, 4.00%, 11/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,000,000 |
| 7,981,190 | |
Wyoming City School District GO, School Improvement, Pre-Refunded, 5.00%, 12/01/42 . . . . . . . . . . . . . | 7,250,000 |
| 7,937,808 | |
Xenia Community School District GO, School Facilities Construction and Improvement, Refunding, 5.00%, |
|
|
|
|
12/01/40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,285,000 |
| 8,460,070 | |
Total Municipal Bonds before Short Term Investments (Cost $1,454,524,276) . . |
|
|
| |
|
| 1,588,644,582 | ||
|
|
|
|
|
franklintempleton.com | Annual Report | 117 |
FRANKL IN TAX-FREE TRUST
STATEMEN T OF INVEST MENT S
Franklin Ohio Tax-Free Income Fund (continued)
Principal
AmountValue
Short Term Investments 1.5%
Municipal Bonds 1.5%
Ohio 1.5%
bAllen County Hospital Facilities Revenue, Catholic Healthcare Partners, Series C, LOC Bank of Montreal,
Daily VRDN and Put, 1.19%, 6/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 9,800,000 | $ | 9,800,000 |
bOhio State Hospital Revenue, Cleveland Clinic Health System Obligated Group, Refunding, Series B, SPA
Wells Fargo Bank, Daily VRDN and Put, 1.16%, 1/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 14,905,000 | 14,905,000 |
Total Short Term Investments (Cost $24,705,000) |
|
|
| 24,705,000 | |
Total Investments (Cost $1,479,229,276) 99.9%. . . |
|
|
| 1,613,349,582 | |
Other Assets, less Liabilities 0.1% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
| 1,022,515 |
Net Assets 100.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
|
| $1,614,372,097 | |
|
|
|
See Abbreviations on page 169.
aSecurity purchased on a when-issued basis. See Note 1(b).
bVariable rate demand notes (VRDNs) are obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. Unless otherwise noted, the coupon rate is determined based on factors including supply and demand, underlying credit, tax treatment, and current short term rates. The coupon rate shown represents the rate at period end.
|
|
|
|
118 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
Financial Highlights
Franklin Oregon Tax-Free Income Fund
Year Ended February 28,
2020a2019b
Class A
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsc:
Net investment incomed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assetsf
Expensesg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11.37$11.30
0.300.16
0.640.07
0.940.23
(0.31)(0.16)
$12.00$11.37
8.39%2.09%
0.80%0.80%
2.58%3.05%
$162,664$62,119
15.49%9.09%
aFor the year ended February 29.
bFor the period September 10, 2018 (effective date) to February 28, 2019.
cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
dBased on average daily shares outstanding.
eTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year. fRatios are annualized for periods less than one year.
gBenefit of expense reduction rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 119 |
FRANKLIN TAX-FREE TRUST
FINANCIA L HIGHLIGHT S
Franklin Oregon Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Class A1
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returnd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11.36 | $11.37 | $11.60 | $11.89 | $12.02 |
|
|
|
|
|
0.32 | 0.36 | 0.37 | 0.40 | 0.42 |
0.64 | (0.01) | (0.22) | (0.29) | (0.12) |
|
|
|
|
|
0.96 | 0.35 | 0.15 | 0.11 | 0.30 |
|
|
|
|
|
(0.33) | (0.36) | (0.38) | (0.40) | (0.43) |
|
|
|
|
|
$11.99 | $11.36 | $11.37 | $11.60 | $11.89 |
|
|
|
|
|
8.56% | 3.13% | 1.29% | 0.90% | 2.54% |
0.65%e | 0.65%e | 0.64% | 0.63% | 0.63% |
2.73% | 3.20% | 3.22% | 3.37% | 3.55% |
$866,593 | $843,042 | $932,929 | $962,953 | $960,516 |
15.49% | 9.09% | 12.63% | 16.89% | 11.84% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable. eBenefit of expense reduction rounds to less than 0.01%.
|
|
|
|
120 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TAX-FREE TRUS T
FINANCIA L HIGHLIGHT S
Franklin Oregon Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Class C
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returnd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11.54 | $11.55 | $11.77 | $12.06 | $12.19 |
|
|
|
|
|
0.26 | 0.30 | 0.32 | 0.34 | 0.36 |
0.66 | (0.01) | (0.22) | (0.30) | (0.13) |
|
|
|
|
|
0.92 | 0.29 | 0.10 | 0.04 | 0.23 |
|
|
|
|
|
(0.27) | (0.30) | (0.32) | (0.33) | (0.36) |
|
|
|
|
|
$12.19 | $11.54 | $11.55 | $11.77 | $12.06 |
|
|
|
|
|
8.05% | 2.51% | 0.80% | 0.32% | 1.95% |
1.20%e | 1.20%e | 1.19% | 1.18% | 1.18% |
2.18% | 2.65% | 2.67% | 2.82% | 3.00% |
$127,898 | $128,133 | $175,054 | $197,041 | $190,047 |
15.49% | 9.09% | 12.63% | 16.89% | 11.84% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable. eBenefit of expense reduction rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 121 |
FRANKLIN TAX-FREE TRUST
FINANCIA L HIGHLIGHT S
Franklin Oregon Tax-Free Income Fund (continued)
Year Ended February 28,
2020a2019 2018b
Class R6
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsc:
Net investment incomed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assetsf
Expenses before waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses net of waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11.37 | $11.38 | $11.66 |
|
|
|
0.33 | 0.38 | 0.23 |
0.64 | (0.02) | (0.29) |
|
|
|
0.97 | 0.36 | (0.06) |
|
|
|
(0.34) | (0.37) | (0.22) |
|
|
|
$12.00 | $11.37 | $11.38 |
|
|
|
8.69% | 3.24% | (0.50)% |
0.53% | 0.53% | 0.53% |
0.52%g | 0.52%g | 0.51% |
2.86% | 3.33% | 3.35% |
$19,823 | $13,308 | $13,217 |
15.49% | 9.09% | 12.63% |
aFor the year ended February 29.
bFor the period August 1, 2017 (effective date) to February 28, 2018.
cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
dBased on average daily shares outstanding.
eTotal return is not annualized for periods less than one year.
fRatios are annualized for periods less than one year.
gBenefit of expense reduction rounds to less than 0.01%.
|
|
|
|
122 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TAX-FREE TRUS T
FINANCIA L HIGHLIGHT S
Franklin Oregon Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Advisor Class
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11.37 | $11.38 | $11.61 | $11.90 | $12.03 |
|
|
|
|
|
0.33 | 0.37 | 0.39 | 0.41 | 0.43 |
0.65 | (0.01) | (0.23) | (0.29) | (0.12) |
|
|
|
|
|
0.98 | 0.36 | 0.16 | 0.12 | 0.31 |
|
|
|
|
|
(0.34) | (0.37) | (0.39) | (0.41) | (0.44) |
|
|
|
|
|
$12.01 | $11.37 | $11.38 | $11.61 | $11.90 |
|
|
|
|
|
8.75% | 3.22% | 1.38% | 0.99% | 2.64% |
0.55%d | 0.55%d | 0.54% | 0.53% | 0.53% |
2.83% | 3.30% | 3.32% | 3.47% | 3.65% |
$145,073 | $107,253 | $101,300 | $96,539 | $51,607 |
15.49% | 9.09% | 12.63% | 16.89% | 11.84% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dBenefit of expense reduction rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 123 |
F R A N K L IN TAX - FREE TRUS T
Statement of Investments, February 29, 2020
Franklin Oregon Tax-Free Income Fund
| Principal |
|
|
| Amount |
| Value |
|
|
|
|
Municipal Bonds 96.9% |
|
|
|
Oregon 95.8% |
|
|
|
Astoria Hospital Facilities Authority Revenue, |
|
|
|
Columbia Memorial Hospital, 5.00%, 8/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 4,250,000 | $ | 4,974,540 |
Columbia Memorial Hospital, 4.00%, 8/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,750,000 |
| 1,898,050 |
Columbia Memorial Hospital, Refunding, 5.00%, 8/01/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,325,000 |
| 1,428,522 |
Central Lincoln People's Utility District Revenue, Electric System, 5.00%, 12/01/45 . . . . . . . . . . . . . . . . . . | 2,900,000 |
| 3,446,012 |
City of Tigard Water System Revenue, |
|
|
|
Washington County, 5.00%, 8/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 11,050,000 |
| 12,045,052 |
Washington County, 5.00%, 8/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 20,915,000 |
| 22,746,317 |
Washington County, 5.00%, 8/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 23,545,000 |
| 27,738,835 |
Clackamas Community College District GO, |
|
|
|
Convertible Deferred Interest, Series A, zero cpn. to 6/15/20, 5.00% thereafter, 6/15/38 . . . . . . . . . . . | 760,000 |
| 929,070 |
Convertible Deferred Interest, Series A, zero cpn. to 6/15/20, 5.00% thereafter, 6/15/39 . . . . . . . . . . . | 1,000,000 |
| 1,220,170 |
Convertible Deferred Interest, Series A, zero cpn. to 6/15/20, 5.00% thereafter, 6/15/40 . . . . . . . . . . . | 1,250,000 |
| 1,522,225 |
Clackamas County School District No. 12 North Clackamas GO, |
|
|
|
5.00%, 6/15/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,720,000 |
| 6,016,678 |
5.00%, 6/15/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,750,000 |
| 2,225,790 |
Capital Appreciation, Series A, zero cpn., 6/15/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 4,834,800 |
Capital Appreciation, Series A, zero cpn., 6/15/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 17,030,000 |
| 7,844,359 |
Capital Appreciation, Series A, zero cpn., 6/15/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 16,625,000 |
| 7,294,385 |
Series B, 5.00%, 6/15/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,000,000 |
| 10,134,240 |
Series B, 5.00%, 6/15/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 12,595,100 |
Clackamas County School District No. 46 Oregon Trail GO, |
|
|
|
Capital Appreciation, Refunding, zero cpn., 6/15/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12,130,000 |
| 8,689,204 |
Capital Appreciation, Refunding, zero cpn., 6/15/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12,495,000 |
| 8,680,027 |
Clackamas County School District No. 62 Oregon City GO, |
|
|
|
Full Faith and Credit, MAC Insured, Pre-Refunded, 5.00%, 6/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . | 550,000 |
| 645,200 |
Full Faith and Credit, Refunding, 5.00%, 6/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 990,000 |
| 1,146,668 |
Full Faith and Credit, Refunding, 5.00%, 6/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 780,000 |
| 915,010 |
Full Faith and Credit, Refunding, MAC Insured, 5.00%, 6/01/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 560,000 |
| 652,294 |
Full Faith and Credit, Refunding, MAC Insured, 5.00%, 6/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 700,000 |
| 814,450 |
Full Faith and Credit Obligations, Pre-Refunded, MAC Insured, 5.00%, 6/01/29 . . . . . . . . . . . . . . . . . | 440,000 |
| 516,160 |
Refunding, Series B, 5.00%, 6/15/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 20,000,000 |
| 25,050,200 |
Clackamas County School District No. 7J Lake Oswego GO, Refunding, AGMC Insured, 5.25%, 6/01/25 . . | 3,075,000 |
| 3,773,702 |
Clackamas River Water Revenue, Clackamas County, 5.00%, 11/01/43. . . . . . . . . . . . . . . . . . . . . . . . . . | 1,970,000 |
| 2,315,873 |
Columbia and Washington Counties School District No. 47J Vernonia GO, Pre-Refunded, 5.00%, 6/15/35. . | 5,175,000 |
| 5,236,790 |
Coos County School District No. 9 Coos Bay GO, 5.00%, 6/15/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,005,000 |
| 6,326,820 |
Crook County School District GO, |
|
|
|
Crook and Deschutes Counties, 5.00%, 6/15/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,475,000 |
| 5,034,509 |
Crook and Deschutes Counties, 5.00%, 6/15/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,090,000 |
| 9,073,663 |
Deschutes County Hospital Facility Authority Hospital Revenue, St. Charles Health System Inc., Refunding, |
|
|
|
Series A, 5.00%, 1/01/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,440,000 |
| 9,780,441 |
Eugene Electric Utility System Revenue, |
|
|
|
5.00%, 8/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,580,000 |
| 4,445,787 |
Series A, Pre-Refunded, 5.00%, 8/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,745,000 |
| 7,149,565 |
Eugene Water Utility System Revenue, Refunding, 5.00%, 8/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,425,000 |
| 4,661,516 |
|
|
|
|
124 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
S TAT EMEN T OF INVEST MENT S
Franklin Oregon Tax-Free Income Fund (continued)
| Principal |
|
|
|
|
| Amount |
|
| Value | |
|
|
|
|
|
|
Municipal Bonds (continued) |
|
|
|
|
|
Oregon (continued) |
|
|
|
|
|
Forest Grove Revenue, |
|
|
|
|
|
Campus Improvement, Pacific University Project, Refunding, Series A, 5.00%, 5/01/36 . . . . . . . . . . . . | $ 2,500,000 | $ | 2,884,450 | ||
Student Housing, Oak Tree Foundation Project, Refunding, 4.00%, 3/01/37 . . . . . . . . . . . . . . . . . . . . | 3,500,000 |
| 3,730,615 | ||
Independence GO, |
|
|
|
|
|
Full Faith and Credit, City Hall Project, AGMC Insured, Pre-Refunded, 5.00%, 6/15/35 . . . . . . . . . . . . | 2,110,000 |
| 2,135,489 | ||
Full Faith and Credit, City Hall Project, AGMC Insured, Pre-Refunded, 5.00%, 6/15/40 . . . . . . . . . . . . | 3,975,000 |
| 4,023,018 | ||
Jackson County School District No. 5 Ashland GO, |
|
|
|
|
|
5.00%, 6/15/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,015,000 |
| 6,564,635 | ||
5.00%, 6/15/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,475,000 |
| 7,132,118 | ||
5.00%, 6/15/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,970,000 |
| 7,757,836 | ||
5.00%, 6/15/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,495,000 |
| 8,422,131 | ||
5.00%, 6/15/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,000,000 |
| 7,763,820 | ||
Jackson County School District No. 6 Central Point GO, |
|
|
|
|
|
Deferred Interest, Series B, zero cpn., 6/15/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 705,000 |
|
| 402,040 | |
Deferred Interest, Series B, zero cpn., 6/15/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 710,000 |
|
| 388,966 | |
Deferred Interest, Series B, zero cpn., 6/15/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 610,000 |
|
| 320,927 | |
Deferred Interest, Series B, zero cpn., 6/15/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 820,000 |
|
| 414,789 | |
Deferred Interest, Series B, zero cpn., 6/15/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,115,000 |
|
| 541,277 | |
Deferred Interest, Series B, zero cpn., 6/15/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 985,000 |
|
| 459,936 | |
Deferred Interest, Series B, zero cpn., 6/15/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,190,000 |
|
| 531,930 | |
Deferred Interest, Series B, zero cpn., 6/15/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,170,000 |
|
| 502,503 | |
Deferred Interest, Series B, zero cpn., 6/15/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,320,000 |
|
| 544,645 | |
Deferred Interest, Series B, zero cpn., 6/15/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,270,000 |
|
| 503,568 | |
Jefferson County School District No. 509J GO, |
|
|
|
|
|
Jefferson and Wasco Counties, Refunding, 5.00%, 6/15/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,129,180 | ||
Jefferson and Wasco Counties, Refunding, 5.00%, 6/15/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,410,000 |
| 1,589,225 | ||
Jefferson and Wasco Counties, Series B, 5.00%, 6/15/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 |
| 2,258,360 | ||
Jefferson School District No. 14J GO, Marion and Linn Counties, Series B, 5.00%, 6/15/41 . . . . . . . . . . . . | 1,360,000 |
| 1,677,138 | ||
Keizer Special Assessment, Full Faith and Credit, Keizer Station Area A Local ID, 5.20%, 6/01/31 . . . . . . . | 1,660,000 |
| 1,665,163 | ||
Klamath County School District GO, |
|
|
|
|
|
5.00%, 6/15/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,155,000 |
| 1,303,406 | ||
5.00%, 6/15/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,095,000 |
| 1,234,941 | ||
5.00%, 6/15/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,126,410 | ||
Klamath Falls Intercommunity Hospital Authority Revenue, Sky Lakes Medical Center Project, Refunding, |
|
|
|
|
|
5.00%, 9/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,183,080 | ||
Lane and Douglas Counties School District No. 28J Fern Ridge GO, |
|
|
|
|
|
Series A, 5.00%, 6/15/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,175,000 |
| 3,969,131 | ||
Series A, 5.00%, 6/15/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,115,000 |
| 2,622,875 | ||
Series A, 5.00%, 6/15/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 |
| 2,453,960 | ||
Linn and Marion Counties School District No. 129J Santiam Canyon GO, |
|
|
|
|
|
5.00%, 6/15/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,306,050 | ||
5.00%, 6/15/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,330,000 |
| 3,010,290 | ||
Medford Hospital Facilities Authority Revenue, |
|
|
|
|
|
Hospital, Asante Health System, Refunding, AGMC Insured, 5.125%, 8/15/40 . . . . . . . . . . . . . . . . . . | 25,000,000 |
| 25,369,500 | ||
Hospital, Asante Health System, Series A, AGMC Insured, 5.00%, 8/15/40 . . . . . . . . . . . . . . . . . . . . | 10,050,000 |
| 10,192,006 | ||
Rogue Valley Manor, Refunding, Series A, 5.00%, 10/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 |
| 1,665,600 | ||
Rogue Valley Manor, Refunding, Series A, 5.00%, 10/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,420,000 |
| 10,368,594 | ||
|
|
| |||
franklintempleton.com | Annual Report |
| 125 |
FRANKL IN TAX-FREE TRUST
STATEMEN T OF INVEST MENT S
Franklin Oregon Tax-Free Income Fund (continued)
|
| Principal |
|
|
|
|
| Amount |
| Value | |
|
|
|
|
| |
Municipal Bonds (continued) |
|
|
|
| |
Oregon (continued) |
|
|
|
| |
Metro Dedicated Tax Revenue, |
|
|
|
| |
| Oregon Convention Center Hotel Project, 5.00%, 6/15/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 7,500,000 | $ | 9,201,525 | |
| Oregon Convention Center Hotel Project, 5.00%, 6/15/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,950,000 |
| 13,345,422 |
|
Multnomah and Clackamas Counties School District No. 10Jt Gresham-Barlow GO, |
|
|
|
| |
| Deferred Interest, Series A, zero cpn., 6/15/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,500,000 |
| 5,540,020 | |
| Series B, 5.00%, 6/15/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,885,000 |
| 9,931,236 | |
Multnomah County David Douglas School District No. 40 GO, |
|
|
|
| |
| Series B, zero cpn., 6/15/24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,640,000 |
| 1,567,233 | |
| Series B, zero cpn., 6/15/25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,325,000 |
| 1,250,032 | |
| Series B, zero cpn., 6/15/26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,585,000 |
| 2,392,392 | |
| Series B, zero cpn., 6/15/27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,655,000 |
| 2,409,758 | |
| Series B, zero cpn., 6/15/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,495,000 |
| 2,219,652 | |
| Series B, zero cpn., 6/15/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,595,000 |
| 2,257,884 | |
| Series B, zero cpn., 6/15/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,885,000 |
| 1,595,671 | |
| Series B, zero cpn., 6/15/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,030,000 |
| 1,678,079 | |
| Series B, zero cpn., 6/15/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 |
| 1,616,460 | |
Multnomah County Hospital Facilities Authority Revenue, Terwilliger Plaza Inc., Refunding, 5.00%, |
|
|
|
| |
12/01/29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,690,000 |
| 4,015,679 | ||
Multnomah County School District No. 3 Park Rose GO, |
|
|
|
| |
| Series A, Pre-Refunded, 5.00%, 6/30/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 |
| 2,111,300 | |
| Series A, Pre-Refunded, 5.00%, 6/30/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 |
| 1,583,475 | |
Multnomah County School District No. 7 Reynolds GO, Refunding, 5.00%, 6/01/35 . . . . . . . . . . . . . . . . . . | 6,605,000 |
| 6,667,747 | ||
North Bend School District No. 13 GO, Coos County, AGMC Insured, 5.00%, 6/15/22 . . . . . . . . . . . . . . . . | 55,000 |
| 55,173 |
| |
Oregon Health and Science University Revenue, |
|
|
|
| |
| Capital Appreciation, Refunding, Series A, NATL Insured, zero cpn., 7/01/21 . . . . . . . . . . . . . . . . . . . | 4,500,000 |
| 4,343,490 | |
| Series A, 5.00%, 7/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 12,335,200 |
|
Oregon State Department of Administrative Services Lottery Revenue, |
|
|
|
| |
| Series A, 5.00%, 4/01/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,800,000 |
| 6,520,128 | |
| Series A, 5.00%, 4/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,599,700 | |
Oregon State Department of Transporation Highway User Tax Revenue, sub. lien, Refunding, Series A, |
|
|
|
| |
5.00%, 11/15/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 30,000,000 |
| 39,354,900 |
| |
Oregon State Facilities Authority Revenue, |
|
|
|
| |
| College Housing North West Project, Series A, 4.00%, 10/01/26 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,675,000 |
| 1,730,761 | |
| College Housing North West Project, Series A, 5.00%, 10/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,670,000 |
| 1,812,935 | |
| College Housing North West Project, Series A, 5.00%, 10/01/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,000,000 |
| 4,298,600 | |
| Legacy Health Project, Refunding, Series A, 5.00%, 6/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,000,000 |
| 9,522,160 | |
| Legacy Health System, Refunding, Series A, 5.00%, 3/15/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 |
| 1,504,005 | |
| Lewis and Clark College Project, Refunding, Series A, 5.75%, 10/01/41 . . . . . . . . . . . . . . . . . . . . . . | 30,000,000 |
| 32,186,100 |
|
| Limited College Project, Refunding, Series A, 5.00%, 10/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 |
| 2,043,120 | |
| Limited College Project, Refunding, Series A, 5.00%, 10/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,975,000 |
| 3,037,862 | |
| Limited College Project, Refunding, Series A, 5.25%, 10/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,750,000 |
| 3,830,513 | |
| Providence Health and Services, Series C, 5.00%, 10/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,000,000 |
| 4,744,640 | |
| Reed College Project, Series A, Pre-Refunded, 5.00%, 7/01/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 |
| 1,520,970 | |
| Reed College Project, Series A, Pre-Refunded, 4.75%, 7/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 |
| 2,026,320 | |
| Reed College Project, Series A, Pre-Refunded, 5.125%, 7/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 10,143,800 |
|
| Samaritan Health Services, Refunding, Series A, 5.25%, 10/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . | 13,990,000 |
| 14,282,111 |
|
| Samaritan Health Services Project, Refunding, Series A, 5.00%, 10/01/41 . . . . . . . . . . . . . . . . . . . . | 7,800,000 |
| 9,179,898 | |
|
|
|
| ||
126 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
S TAT EMEN T OF INVEST MENT S
Franklin Oregon Tax-Free Income Fund (continued)
| Principal |
|
|
|
|
| Amount |
|
| Value | |
|
|
|
|
|
|
Municipal Bonds (continued) |
|
|
|
|
|
Oregon (continued) |
|
|
|
|
|
Oregon State Facilities Authority Revenue, (continued) |
|
|
|
|
|
Samaritan Health Services Project, Refunding, Series A, 5.00%, 10/01/46 . . . . . . . . . . . . . . . . . . . . | $ 3,500,000 | $ | 4,096,330 | ||
Student Housing, CHF Ashland LLC, Southern Oregon University Project, Assured Guaranty, 5.00%, |
|
|
|
|
|
7/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,910,000 |
| 9,605,871 | ||
Willamette University Projects, Refunding, Series B, 5.00%, 10/01/40 . . . . . . . . . . . . . . . . . . . . . . . . | 1,950,000 |
| 2,360,690 | ||
Oregon State GO, |
|
|
|
|
|
Article XI-G OHSU Project, Series H, 5.00%, 8/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15,000,000 |
| 18,811,650 | ||
Article XI-Q State Projects, Series A, 5.00%, 5/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 12,464,600 | ||
Article XI-Q State Projects, Series A, 5.00%, 5/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 6,502,800 | ||
Elderly and Disabled Housing, Series A, 4.70%, 8/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,050,000 |
| 3,055,643 | ||
Higher Education, Article XI-F(1), Series M, 5.00%, 8/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,315,000 |
| 3,952,939 | ||
Higher Education, Article XI-G, Series O, 5.00%, 8/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,005,000 |
| 8,408,942 | ||
Higher Education, Article XI-G Projects, Series G, 5.00%, 8/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . | 25,370,000 |
| 33,174,827 | ||
Higher Education, Article XI-G University Projects, Refunding, Series L, 5.00%, 8/01/42 . . . . . . . . . . . | 3,270,000 |
| 4,100,940 | ||
State Board of Higher Education, Refunding, Series B, 5.00%, 8/01/38. . . . . . . . . . . . . . . . . . . . . . . | 1,020,000 |
| 1,023,131 | ||
Various Projects, Series H, Pre-Refunded, 5.00%, 5/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,090,250 | ||
Oregon State Housing and Community Services Department Mortgage Revenue, |
|
|
|
|
|
SFM Program, Refunding, Series B, 2.90%, 7/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 30,000,000 |
| 30,989,400 | ||
SFM Program, Series A, 2.90%, 7/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 13,905,000 |
| 14,420,180 | ||
SFM Program, Series C, 4.75%, 7/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 220,000 |
|
| 220,235 | |
Oregon State University General Revenue, Series A, 5.00%, 4/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12,500,000 |
| 14,611,500 | ||
Philomath School District No. 17J GO, Benton and Polk Counties, Series B, zero cpn., 6/15/31 . . . . . . . . . | 1,000,000 |
|
| 831,270 | |
Port of Portland International Airport Revenue, |
|
|
|
|
|
Series Twenty-Five A, 5.00%, 7/01/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12,425,000 |
| 15,752,291 | ||
Series Twenty-Five B, 5.00%, 7/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 16,250,000 |
| 20,436,975 | ||
Series Twenty-Four A, 5.00%, 7/01/47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,700,000 |
| 5,738,465 | ||
Series Twenty-Four B, 5.00%, 7/01/47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,395,000 |
| 11,222,327 | ||
Portland GO, |
|
|
|
|
|
Oregon Convention Center Completion Project, Limited Tax, Capital Appreciation, Series B, zero cpn., |
|
|
|
|
|
6/01/21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
|
| 989,870 | |
Oregon Convention Center Completion Project, Limited Tax, Refunding, Series A, 5.00%, 6/01/28 . . . . | 7,840,000 |
| 8,242,819 | ||
Oregon Convention Center Completion Project, Limited Tax, Refunding, Series A, 5.00%, 6/01/29 . . . . | 8,330,000 |
| 8,755,913 | ||
Oregon Convention Center Completion Project, Limited Tax, Refunding, Series A, 5.00%, 6/01/30 . . . . | 8,750,000 |
| 9,193,975 | ||
Portland River District Urban Renewal and Redevelopment Tax Allocation, |
|
|
|
|
|
Refunding, Series B, 5.00%, 6/15/22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,035,000 |
| 1,130,706 | ||
Series C, 5.00%, 6/15/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,088,900 | ||
Series C, 5.00%, 6/15/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,088,190 | ||
Portland Sewer System Revenue, second lien, Series A, 5.00%, 3/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . | 25,270,000 |
| 25,270,000 | ||
Portland Urban Renewal and Redevelopment Tax Allocation, |
|
|
|
|
|
Interstate Corridor, Series B, 5.00%, 6/15/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,050,210 | ||
Interstate Corridor, Series B, 5.00%, 6/15/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,049,820 | ||
Interstate Corridor, Series B, 5.00%, 6/15/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,049,160 | ||
Lents Town Center, Series B, 5.00%, 6/15/27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,500,000 |
| 2,528,400 | ||
Lents Town Center, Series B, 5.00%, 6/15/28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,175,000 |
| 1,188,242 | ||
Lents Town Center, Series B, 4.75%, 6/15/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,010,280 | ||
Lents Town Center, Series B, 5.00%, 6/15/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,800,000 |
| 1,820,124 | ||
North Macadam, Series B, 5.00%, 6/15/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,250,000 |
| 4,296,920 | ||
|
|
| |||
franklintempleton.com | Annual Report |
| 127 |
FRANKL IN TAX-FREE TRUST
STATEMEN T OF INVEST MENT S
Franklin Oregon Tax-Free Income Fund (continued)
| Principal |
|
|
| Amount |
| Value |
|
|
|
|
Municipal Bonds (continued) |
|
|
|
Oregon (continued) |
|
|
|
Portland Urban Renewal and Redevelopment Tax Allocation, (continued) |
|
|
|
North Macadam, Series B, 5.00%, 6/15/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 4,725,000 | $ | 4,776,597 |
Portland Water System Revenue, second lien, Refunding, Series A, 5.00%, 5/01/44 . . . . . . . . . . . . . . . . . | 18,000,000 |
| 23,496,300 |
Redmond School District No. 2J GO, Deschutes and Jefferson Counties, Series A, NATL Insured, 5.00%, |
|
|
|
6/15/21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 85,000 |
| 85,272 |
Salem Hospital Facility Authority Revenue, |
|
|
|
Capital Manor Project, 5.00%, 5/15/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 555,000 |
| 666,150 |
Capital Manor Project, 5.00%, 5/15/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 500,000 |
| 595,235 |
Capital Manor Project, 5.00%, 5/15/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,181,930 |
Capital Manor Project, 5.00%, 5/15/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,700,000 |
| 2,000,169 |
Capital Manor Project, 5.00%, 5/15/53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,250,000 |
| 3,809,293 |
Salem Health Projects, Refunding, Series A, 5.00%, 5/15/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 40,500,000 |
| 48,077,145 |
Salem-Keizer School District No. 24J GO, Marion and Polk Counties, Series B, zero cpn., 6/15/30 . . . . . . . | 8,500,000 |
| 7,232,140 |
Seaside School District No. 10 GO, |
|
|
|
Clatsop County, Series B, 5.00%, 6/15/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 |
| 2,529,460 |
Clatsop County, Series B, 5.00%, 6/15/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,500,000 |
| 3,155,775 |
Sherwood GO, Washington County, Full Faith and Credit Obligations, Refunding, AGMC Insured, 5.00%, |
|
|
|
6/01/36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,240,000 |
| 4,441,612 |
Tillamook and Yamhill Counties School District No. 101 Nestucca Valley GO, |
|
|
|
Series A, 5.00%, 6/15/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,520,000 |
| 3,236,335 |
Series B, 5.00%, 6/15/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,850,000 |
| 3,669,204 |
Tri-County Metropolitan Transportation District Revenue, |
|
|
|
Capital Grant Receipt, Series A, 5.00%, 10/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,865,000 |
| 8,734,202 |
Payroll Tax, senior lien, Series A, 5.00%, 9/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 18,650,000 |
| 22,996,009 |
Payroll Tax, senior lien, Series A, 4.00%, 9/01/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,850,000 |
| 8,995,943 |
Payroll Tax, senior lien, Series A, 5.00%, 9/01/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 18,505,000 |
| 23,153,086 |
Payroll Tax, senior lien, Series A, Pre-Refunded, 5.00%, 9/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 11,000,000 |
| 12,158,960 |
Payroll Tax, senior lien, Series A, Pre-Refunded, 5.00%, 9/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,000,000 |
| 7,370,100 |
Umatilla County Pendleton School District No. 16R GO, Series A, Pre-Refunded, 5.00%, 6/15/37. . . . . . . . | 4,970,000 |
| 5,849,491 |
University of Oregon General Revenue, |
|
|
|
Series A, 5.00%, 4/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 20,000,000 |
| 23,442,600 |
Series A, 5.00%, 4/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 11,690,000 |
| 14,046,587 |
Warm Springs Reservation Confederated Tribes Hydroelectric Revenue, |
|
|
|
Pelton-Round Butte Project, Tribal Economic Development, Green Bond, Refunding, Series B, 5.00%, |
|
|
|
11/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 250,000 |
| 309,375 |
Pelton-Round Butte Project, Tribal Economic Development, Green Bond, Refunding, Series B, 5.00%, |
|
|
|
11/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 200,000 |
| 246,284 |
Pelton-Round Butte Project, Tribal Economic Development, Green Bond, Refunding, Series B, 5.00%, |
|
|
|
11/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 750,000 |
| 916,718 |
Pelton-Round Butte Project, Tribal Economic Development, Green Bond, Refunding, Series B, 5.00%, |
|
|
|
11/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 700,000 |
| 848,631 |
Washington and Clackamas Counties School District No. 23J GO, |
|
|
|
Tigard-Tualatin, 5.00%, 6/15/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,400,000 |
| 11,865,714 |
Tigard-Tualatin, 5.00%, 6/15/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,000,000 |
| 7,557,060 |
Tigard-Tualatin, Series A, 5.00%, 6/15/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 6,545,450 |
Tigard-Tualatin, Series A, 5.00%, 6/15/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 16,410,000 |
| 21,430,968 |
|
|
|
|
128 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
S TAT EMEN T OF INVEST MENT S
Franklin Oregon Tax-Free Income Fund (continued)
| Principal |
|
|
|
| Amount |
| Value | |
|
|
|
|
|
Municipal Bonds (continued) |
|
|
|
|
Oregon (continued) |
|
|
|
|
Washington Clackamas and Yamhill Counties Sherwood School District No. 88J GO, |
|
|
|
|
Series A, zero cpn., 6/15/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 2,350,000 | $ | 1,339,218 |
|
Series A, zero cpn., 6/15/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,275,000 |
| 1,783,565 |
|
Washington Counties School District No. 48J Beaverton GO, |
|
|
|
|
Series B, 5.00%, 6/15/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,000,000 |
| 9,359,760 |
|
Series B, 5.00%, 6/15/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 11,000,000 |
| 12,856,250 |
|
Series D, 5.00%, 6/15/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 12,623,100 |
|
Series D, 15/35, 5.00%, 6/15/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 12,647,300 |
|
Washington County School District No. 15 Forest Grove GO, |
|
|
|
|
Series B, zero cpn., 6/15/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,545,000 |
| 2,192,059 |
|
Series B, zero cpn., 6/15/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,490,000 |
| 2,086,446 |
|
Series B, zero cpn., 6/15/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,140,000 |
| 2,566,762 |
|
Washington Multnomah and Yamhill Countys or School District No.1J GO, Washington, Yamhill, |
|
|
|
|
Multnomah Counties, 4.00%, 6/15/39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,750,000 |
| 10,750,425 |
|
Washington Multnomah and Yamhill CSD GO No.1 J, 4.00%, 6/15/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,350,000 |
| 6,527,214 |
|
Woodburn School District No. 103 GO, |
|
|
|
|
Marion County, 5.00%, 6/15/33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,930,000 |
| 3,528,013 |
|
Marion County, 5.00%, 6/15/34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,200,000 |
| 3,844,608 |
|
Marion County, 5.00%, 6/15/35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,075,000 |
| 2,487,593 |
|
Yachats Rural Fire Protection District GO, Lincoln County, AGMC Insured, 5.00%, 6/15/47 . . . . . . . . . . . . | 1,600,000 |
| 1,948,800 |
|
|
|
|
|
|
|
|
| 1,266,993,270 | |
U.S. Territories 1.1% |
|
|
|
|
|
|
|
| |
Puerto Rico 1.1% |
|
|
|
|
Children's Trust Fund Tobacco Settlement Revenue, Asset-Backed, Refunding, 5.625%, 5/15/43 . . . . . . . . | 6,000,000 |
| 6,210,120 | |
a Puerto Rico Electric Power Authority Power Revenue, Series WW-RSA-1, 5.25%, 7/01/33 . . . . . . . . . . . . . | 9,690,000 |
| 7,764,112 | |
|
|
| 13,974,232 | |
Total Municipal Bonds before Short Term Investments (Cost $1,178,098,771) |
|
|
| |
|
| 1,280,967,502 | ||
|
|
|
|
|
franklintempleton.com | Annual Report | 129 |
FRANKL IN TAX-FREE TRUST
STATEMEN T OF INVEST MENT S
Franklin Oregon Tax-Free Income Fund (continued)
| Principal |
|
|
|
| Amount |
| Value | |
|
|
|
|
|
Short Term Investments 2.4% |
|
|
|
|
Municipal Bonds 2.4% |
|
|
|
|
Oregon 2.4% |
|
|
|
|
b Oregon State Facilities Authority Revenue, |
|
|
|
|
PeaceHealth, Refunding, Series B, LOC TD Bank National Association, Daily VRDN and Put, 1.18%, |
|
|
|
|
8/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $26,700,000 | $ | 26,700,000 |
|
PeaceHealth, Refunding, Series B, LOC US Bank National Association, Daily VRDN and Put, 1.16%, |
|
|
|
|
8/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,500,000 |
| 4,500,000 | |
Total Short Term Investments (Cost $31,200,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
|
| |
|
| 31,200,000 | ||
Total Investments (Cost $1,209,298,771) 99.3%. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
|
| |
|
| 1,312,167,502 | ||
Other Assets, less Liabilities 0.7% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 9,883,575 | |
Net Assets 100.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| ||
| $1,322,051,077 | |||
|
|
|
|
|
See Abbreviations on page 169.
aSee Note 7 regarding defaulted securities.
bVariable rate demand notes (VRDNs) are obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. Unless otherwise noted, the coupon rate is determined based on factors including supply and demand, underlying credit, tax treatment, and current short term rates. The coupon rate shown represents the rate at period end.
|
|
|
|
130 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
Financial Highlights
Franklin Pennsylvania Tax-Free Income Fund
Year Ended February 28,
2020a2019b
Class A
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsc:
Net investment incomed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assetsf
Expensesg . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 9.73 | $ 9.74 |
|
|
0.290.16
0.39(0.01)
0.680.15
(0.30)(0.16)
$10.11 | $ 9.73 |
|
|
7.14%1.59%
0.82%0.83%
2.98%3.40%
$105,032$52,673
13.61%6.40%
aFor the year ended February 29.
bFor the period September 10, 2018 (effective date) to February 28, 2019.
cThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
dBased on average daily shares outstanding.
eTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year. fRatios are annualized for periods less than one year.
gBenefit of expense reduction rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 131 |
FRANKLIN TAX-FREE TRUST
FINANCIA L HIGHLIGHT S
Franklin Pennsylvania Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Class A1
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returnd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 9.73 | $ 9.78 | $10.12 | $10.33 | $10.51 |
|
|
|
|
|
0.31 | 0.34 | 0.35 | 0.39 | 0.40 |
0.39 | (0.04) | (0.32) | (0.22) | (0.18) |
|
|
|
|
|
0.70 | 0.30 | 0.03 | 0.17 | 0.22 |
|
|
|
|
|
(0.32) | (0.35) | (0.37) | (0.38) | (0.40) |
|
|
|
|
|
$10.11 | $ 9.73 | $ 9.78 | $10.12 | $10.33 |
|
|
|
|
|
7.29% | 3.17% | 0.31% | 1.62% | 2.15% |
0.67%e | 0.68%e | 0.66% | 0.64% | 0.64% |
3.13% | 3.55% | 3.49% | 3.73% | 3.92% |
$772,506 | $784,367 | $860,737 | $942,320 | $965,479 |
13.61% | 6.40% | 13.33% | 10.88% | 4.73% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable. eBenefit of expense reduction rounds to less than 0.01%.
|
|
|
|
132 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TAX-FREE TRUS T
FINANCIA L HIGHLIGHT S
Franklin Pennsylvania Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Class C
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returnd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 9.86 | $ 9.91 | $10.24 | $10.45 | $10.63 |
|
|
|
|
|
0.26 | 0.30 | 0.30 | 0.33 | 0.35 |
0.39 | (0.05) | (0.31) | (0.22) | (0.19) |
|
|
|
|
|
0.65 | 0.25 | (0.01) | 0.11 | 0.16 |
|
|
|
|
|
(0.27) | (0.30) | (0.32) | (0.32) | (0.34) |
|
|
|
|
|
$10.24 | $ 9.86 | $ 9.91 | $10.24 | $10.45 |
|
|
|
|
|
6.64% | 2.56% | (0.15)% | 1.04% | 1.56% |
1.22%e | 1.23%e | 1.21% | 1.19% | 1.19% |
2.58% | 3.00% | 2.94% | 3.18% | 3.37% |
$146,042 | $173,240 | $245,520 | $283,260 | $282,541 |
13.61% | 6.40% | 13.33% | 10.88% | 4.73% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable. eBenefit of expense reduction rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 133 |
FRANKLIN TAX-FREE TRUST
FINANCIA L HIGHLIGHT S
Franklin Pennsylvania Tax-Free Income Fund (continued)
Year Ended February 28,
2020a2019 2018b
Class R6
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsc:
Net investment incomed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assetsf
Expenses before waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses net of waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 9.75 | $ 9.80 | $10.06 |
|
|
|
0.32 | 0.36 | 0.21 |
0.38 | (0.04) | (0.25) |
|
|
|
0.70 | 0.32 | (0.04) |
|
|
|
(0.33) | (0.37) | (0.22) |
|
|
|
$10.12 | $ 9.75 | $ 9.80 |
|
|
|
7.32% | 3.30% | (0.43)% |
0.55% | 0.57% | 0.57% |
0.53%g | 0.54%g | 0.52% |
3.27% | 3.69% | 3.63% |
$2,905 | $2,282 | $2,085 |
13.61% | 6.40% | 13.33% |
aFor the year ended February 29. bFor the period August 1, 2017 (effective date) to February 28, 2018. cThe amount shown for a share outstanding throughout the
period may not correlate with the Statement of Operations for the period due to the timing of sales and
repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund. dBased on average daily shares outstanding.
eTotal return is not annualized for periods less than one year.
fRatios are annualized for periods less than one year.
gBenefit of expense reduction rounds to less than 0.01%.
|
|
|
|
134 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKLIN TAX-FREE TRUS T
FINANCIA L HIGHLIGHT S
Franklin Pennsylvania Tax-Free Income Fund (continued)
Year Ended February 28,
2020a | 2019 | 2018 | 2017 | 2016a |
Advisor Class
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assets
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 9.75 | $ 9.80 | $10.13 | $10.34 | $10.52 |
|
|
|
|
|
0.32 | 0.36 | 0.36 | 0.40 | 0.41 |
0.38 | (0.05) | (0.31) | (0.22) | (0.18) |
|
|
|
|
|
0.70 | 0.31 | 0.05 | 0.18 | 0.23 |
|
|
|
|
|
(0.33) | (0.36) | (0.38) | (0.39) | (0.41) |
|
|
|
|
|
$10.12 | $ 9.75 | $ 9.80 | $10.13 | $10.34 |
|
|
|
|
|
7.28% | 3.27% | 0.51% | 1.72% | 2.25% |
0.57%d | 0.58%d | 0.56% | 0.54% | 0.54% |
3.23% | 3.65% | 3.59% | 3.83% | 4.02% |
$98,190 | $81,595 | $79,153 | $85,753 | $52,807 |
13.61% | 6.40% | 13.33% | 10.88% | 4.73% |
aFor the year ended February 29.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dBenefit of expense reduction rounds to less than 0.01%.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 135 |
F R A N K L IN TAX - FREE TRUS T
Statement of Investments, February 29, 2020
Franklin Pennsylvania Tax-Free Income Fund
| Principal |
|
| Amount | Value |
|
|
|
Municipal Bonds 95.4% |
|
|
Pennsylvania 94.7% |
|
|
Abington School District GO, Montgomery County, Series A, 4.00%, 10/01/42 . . . . . . . . . . . . . . . . . . . . . | $12,000,000 | $ 13,729,320 |
Allegheny County GO, |
|
|
Series C-65, 5.375%, 5/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,160,000 | 2,270,851 |
Series C-65, Pre-Refunded, 5.375%, 5/01/31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,840,000 | 2,990,861 |
Allegheny County Higher Education Building Authority University Revenue, |
|
|
Duquesne University, Series A, Pre-Refunded, 5.50%, 3/01/31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 | 3,140,310 |
Robert Morris University, 5.00%, 10/15/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,156,190 |
Robert Morris University, 5.00%, 10/15/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,625,000 | 1,849,786 |
Robert Morris University, Refunding, 5.00%, 10/15/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,080,000 | 2,361,008 |
Allegheny County Sanitary Authority Sewer Revenue, |
|
|
Allegheny County, 5.00%, 6/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,000,000 | 8,798,230 |
Allegheny County, AGMC Insured, 5.00%, 6/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,148,950 |
Berks County IDA Healthcare Facilities Revenue, |
|
|
The Highlands at Wyomissing, Refunding, 5.00%, 5/15/38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,030,000 | 1,189,331 |
The Highlands at Wyomissing, Refunding, 5.00%, 5/15/48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,137,360 |
The Highlands at Wyomissing, Refunding, Series A, 5.00%, 5/15/42. . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,172,010 |
The Highlands at Wyomissing, Refunding, Series A, 5.00%, 5/15/47. . . . . . . . . . . . . . . . . . . . . . . . . | 600,000 | 697,302 |
The Highlands at Wyomissing, Series C, 5.00%, 5/15/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,245,000 | 1,420,582 |
The Berks County Municipal Authority Revenue, The Reading Hospital and Medical Center Project, Series |
|
|
A, 5.00%, 11/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 | 10,587,300 |
Bethlehem GO, Lehigh and Northampton Counties, Series B, AGMC Insured, Pre-Refunded, 6.50%, |
|
|
12/01/32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,970,000 | 5,323,864 |
Bucks County IDA Hospital Revenue, St. Lukes University Health Network Project, 4.00%, 8/15/44 . . . . . . | 1,500,000 | 1,696,515 |
Bucks County IDAR, George School Project, 5.00%, 9/15/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,306,400 |
Bucks County Water and Sewer Authority Sewer System Revenue, Series A, AGMC Insured, Pre- |
|
|
Refunded, 5.00%, 12/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,500,000 | 2,579,275 |
Bucks County Water and Sewer Authority Water System Revenue, AGMC Insured, Pre-Refunded, 5.00%, |
|
|
12/01/41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 | 10,740,500 |
Butler County Hospital Authority Hospital Revenue, Butler Health System Project, Refunding, Series A, |
|
|
5.00%, 7/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,625,000 | 1,876,095 |
Canon-McMillan School District GO, |
|
|
Washington County, Refunding, BAM Insured, 4.00%, 6/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,075,000 | 6,837,473 |
Washington County, Refunding, BAM Insured, 4.00%, 6/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,680,000 | 8,629,402 |
Washington County, Refunding, BAM Insured, 4.00%, 6/01/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,250,000 | 5,884,410 |
Washington County, Refunding, BAM Insured, 4.00%, 6/01/50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,000,000 | 6,703,680 |
Centennial School District GO, Bucks County, Series A, 5.00%, 12/15/37 . . . . . . . . . . . . . . . . . . . . . . . . | 5,855,000 | 6,047,981 |
Central Bradford Progress Authority Revenue, Guthrie Health Issue, Pre-Refunded, 5.375%, 12/01/41 . . . . | 3,000,000 | 3,233,430 |
Centre County Hospital Authority Revenue, |
|
|
Mount Nittany Medical Center Project, Refunding, Series A, 5.00%, 11/15/42 . . . . . . . . . . . . . . . . . . | 1,215,000 | 1,483,722 |
Mount Nittany Medical Center Project, Refunding, Series A, 4.00%, 11/15/47 . . . . . . . . . . . . . . . . . . | 1,840,000 | 2,052,796 |
Chester County GO, |
|
|
4.00%, 7/15/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,178,060 |
4.00%, 7/15/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,120,000 | 1,313,894 |
4.00%, 7/15/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,330,000 | 1,554,810 |
Chester County Health and Education Facilities Authority Revenue, Health System, Main Line Health |
|
|
System, Series A, 4.00%, 9/01/50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,000,000 | 10,687,500 |
|
|
|
|
136 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
S TAT EMEN T OF INVEST MENT S
Franklin Pennsylvania Tax-Free Income Fund (continued)
| Principal |
|
|
|
|
| Amount |
|
| Value | |
|
|
|
|
|
|
Municipal Bonds (continued) |
|
|
|
|
|
Pennsylvania (continued) |
|
|
|
|
|
Chester County IDA Student Housing Revenue, |
|
|
|
|
|
University Student Housing LLC Project at West Chester University of Pennsylvania, Series A, 5.00%, |
|
|
|
|
|
8/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 500,000 | $ |
| 554,490 | |
University Student Housing LLC Project at West Chester University of Pennsylvania, Series A, 5.00%, |
|
|
|
|
|
8/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 |
| 1,648,440 | ||
Commonwealth Financing Authority Revenue, |
|
|
|
|
|
Series A, 5.00%, 6/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 11,804,500 | ||
Series B, 5.00%, 6/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,051,500 | ||
Cumberland County Municipal Authority Revenue, Dickinson College Project, 5.00%, 11/01/42 . . . . . . . . . | 4,500,000 |
| 4,913,010 | ||
Dallas Area Municipal Authority University Revenue, Misericordia University Project, Refunding, 5.00%, |
|
|
|
|
|
5/01/37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,500,000 |
| 2,742,000 | ||
Dauphin County General Authority Health System Revenue, Pinnacle Health System Project, Series A, |
|
|
|
|
|
5.00%, 6/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15,590,000 |
| 16,807,891 | ||
Delaware County Authority Revenue, |
|
|
|
|
|
Elwyn Project, Refunding, 5.00%, 6/01/27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,040,000 |
| 3,412,917 | ||
Elwyn Project, Refunding, 5.00%, 6/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,620,000 |
| 1,807,191 | ||
Haverford College, Pre-Refunded, 5.00%, 11/15/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,375,000 |
| 2,394,523 | ||
Haverford College, Refunding, 5.00%, 11/15/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 625,000 |
|
| 629,413 | |
Villanova University, 4.00%, 8/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,120,000 |
| 2,339,293 | ||
Delaware County Authority University Revenue, |
|
|
|
|
|
Neumann University, 5.00%, 10/01/25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,250,000 |
| 1,280,138 | ||
Neumann University, 5.25%, 10/01/31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,250,000 |
| 1,274,500 | ||
Delaware County Regional Water Quality Control Authority Revenue, Sewer, 4.00%, 11/01/36 . . . . . . . . . . | 2,005,000 |
| 2,284,016 | ||
Delaware County Vocational and Technical School Authority Lease Revenue, Intermediate No. 25 Project, |
|
|
|
|
|
BAM Insured, 5.00%, 11/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,250,000 |
| 1,408,438 | ||
East Hempfield Township IDAR, |
|
|
|
|
|
Student Services Inc., Student Housing Project at Millersville University of Pennsylvania, 5.00%, |
|
|
|
|
|
7/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,250,000 |
| 3,563,007 | ||
Student Services Inc., Student Housing Project at Millersville University of Pennsylvania, 5.00%, |
|
|
|
|
|
7/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,750,000 |
| 4,278,300 | ||
Erie Parking Authority Parking Facilities Revenue, |
|
|
|
|
|
Guaranteed, AGMC Insured, Pre-Refunded, 5.125%, 9/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,100,000 |
| 1,123,320 | ||
Guaranteed, Refunding, AGMC Insured, 5.125%, 9/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,150,000 |
| 3,208,559 | ||
Erie Water Authority Water Revenue, Erie County, Refunding, 5.00%, 12/01/43 . . . . . . . . . . . . . . . . . . . . | 6,000,000 |
| 7,231,680 | ||
Falls Township Authority Water and Sewer Revenue, Bucks County, Guaranteed, 5.00%, 12/01/41 . . . . . . . | 2,210,000 |
| 2,355,352 | ||
Franklin County IDAR, The Chambersburg Hospital Project, Pre-Refunded, 5.375%, 7/01/42 . . . . . . . . . . . | 10,000,000 |
| 10,148,700 | ||
Geisinger Authority Revenue, Geisinger Health System, Montour County, Refunding, Series A-1, 5.00%, |
|
|
|
|
|
2/15/45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 19,055,000 |
| 22,983,760 | ||
General Authority of Southcentral Pennsylvania Revenue, |
|
|
|
|
|
Assn. of Independent Colleges and Universities, Financing Program, York College of Pennsylvania |
|
|
|
|
|
Project, Series II, Pre-Refunded, 5.75%, 11/01/41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,500,000 |
| 10,045,680 | ||
WellSpan Health Obligated Group, Refunding, Series A, 5.00%, 6/01/44 . . . . . . . . . . . . . . . . . . . . . . | 11,955,000 |
| 13,500,064 | ||
Lackawanna County GO, |
|
|
|
|
|
Refunding, Series B, AGMC Insured, 5.00%, 9/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,025,000 |
| 3,083,171 | ||
Refunding, Series B, AGMC Insured, 5.00%, 9/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,735,000 |
| 2,787,047 | ||
Series B, AGMC Insured, Pre-Refunded, 5.00%, 9/01/30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,075,000 |
| 5,179,443 | ||
Series B, AGMC Insured, Pre-Refunded, 5.00%, 9/01/35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,765,000 |
| 4,863,064 | ||
|
|
| |||
franklintempleton.com | Annual Report |
| 137 |
FRANKL IN TAX-FREE TRUST
STATEMEN T OF INVEST MENT S
Franklin Pennsylvania Tax-Free Income Fund (continued)
|
| Principal |
|
|
|
|
| Amount |
| Value | |
|
|
|
|
| |
Municipal Bonds (continued) |
|
|
|
| |
Pennsylvania (continued) |
|
|
|
| |
Lancaster County Hospital Authority Revenue, University of Pennsylvania Health System, Refunding, |
|
|
|
| |
Series B, 5.00%, 8/15/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 4,165,000 | $ | 5,015,076 | ||
Lancaster IDAR, |
|
|
|
| |
| Willow Valley Communities Project, 5.00%, 12/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,850,000 |
| 2,210,140 | |
| Willow Valley Communities Project, 5.00%, 12/01/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,300,000 |
| 2,737,207 | |
Latrobe IDA College Revenue, St. Vincent College Project, 5.00%, 5/01/43 . . . . . . . . . . . . . . . . . . . . . . . | 4,120,000 |
| 4,421,790 | ||
Lehigh County Authority Water and Sewer Revenue, City of Allentown Concession, Series A, 5.00%, |
|
|
|
| |
12/01/43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,240,000 |
| 5,917,846 | ||
Lycoming County Authority Revenue, |
|
|
|
| |
| AICUP Financing Program, Lycoming College Project, Series MM1, 5.25%, 11/01/38 . . . . . . . . . . . . . | 1,400,000 |
| 1,607,172 | |
| AICUP Financing Program, Lycoming College Project, Series MM1, 5.25%, 11/01/43 . . . . . . . . . . . . . | 1,495,000 |
| 1,712,597 | |
Monroe County Hospital Authority Hospital Revenue, Pocono Medical Center, Series A, Pre-Refunded, |
|
|
|
| |
5.00%, 1/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,000,000 |
| 4,294,320 | ||
Montgomery County Higher Education and Health Authority Revenue, |
|
|
|
| |
| Arcadia University, 5.625%, 4/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,750,000 |
| 5,771,390 | |
| Thomas Jefferson University, Refunding, 4.00%, 9/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 11,556,100 | |
| Thomas Jefferson University, Refunding, 4.00%, 9/01/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 |
| 3,443,310 | |
| Thomas Jefferson University, Refunding, Series A, 5.00%, 9/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 |
| 3,750,090 | |
Montgomery County IDA Health System Revenue, Jefferson Health System, Series A, Pre-Refunded, |
|
|
|
| |
5.00%, 10/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,600,000 |
| 10,433,280 | ||
Montgomery County IDAR, |
|
|
|
| |
| Meadowood Senior Living Project, Refunding, Series A, 5.00%, 12/01/38 . . . . . . . . . . . . . . . . . . . . . | 2,500,000 |
| 2,911,550 | |
| New Regional Medical Center Project, Mortgage, FHA Insured, Pre-Refunded, 5.375%, 8/01/38 . . . . . | 4,995,000 |
| 5,088,157 | |
| Waverly Heights Ltd. Project, Refunding, 5.00%, 12/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,195,890 | |
| Waverly Heights Ltd. Project, Refunding, 5.00%, 12/01/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,191,910 | |
Northampton County General Purpose Authority Hospital Revenue, |
|
|
|
| |
| St. Luke's Hospital Project, Series B, 5.50%, 8/15/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,200,000 |
| 2,239,798 | |
| St. Luke's University Health Network Project, Refunding, Series A, 5.00%, 8/15/43. . . . . . . . . . . . . . . | 2,285,000 |
| 2,823,529 | |
| St. Luke's University Health Network Project, Refunding, Series A, 5.00%, 8/15/46. . . . . . . . . . . . . . . | 10,000,000 |
| 11,919,500 | |
| St. Luke's University Health Network Project, Refunding, Series A, 5.00%, 8/15/48. . . . . . . . . . . . . . . | 2,500,000 |
| 3,069,475 | |
Northeastern Hospital and Education Authority Revenue, |
|
|
|
| |
| King's College Project, Refunding, 5.00%, 5/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,224,680 | |
| Wilkes University Project, Series A, 5.25%, 3/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,400,000 |
| 2,534,856 | |
Pennsylvania State Economic Development Financing Authority Revenue, |
|
|
|
| |
| UPMC, Refunding, Series A, 4.00%, 11/15/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,757,000 | |
| UPMC, Series A, 5.00%, 2/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,751,950 | |
| Water Facilities, Aqua Pennsylvania Inc. Project, Series B, 5.00%, 12/01/43 . . . . . . . . . . . . . . . . . . . | 25,000,000 |
| 25,732,250 | |
Pennsylvania State HFA, |
|
|
|
| |
| SFMR, 3.40%, 10/01/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,000,000 |
| 6,422,220 | |
| SFMR, Series 130A, 3.00%, 10/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,230,100 | |
Pennsylvania State Higher Educational Facilities Authority Revenue, |
|
|
|
| |
| AICUP Financing Program, Gwynedd Mercy College Project, Series KK1, 5.375%, 5/01/42 . . . . . . . . | 1,800,000 |
| 1,937,574 | |
| AICUP Financing Program, St. Francis University Project, Series JJ2, Pre-Refunded, 6.25%, 11/01/41. | 3,840,000 |
| 4,185,946 | |
| Bryn Mawr College, Refunding, 4.00%, 12/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,177,930 | |
| Bryn Mawr College, Refunding, 5.00%, 12/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,365,000 |
| 7,489,186 | |
| Bryn Mawr College, Refunding, 4.00%, 12/01/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,500,000 |
| 2,930,450 | |
| Edinboro University Foundation, Student Housing Project, Pre-Refunded, 6.00%, 7/01/43 . . . . . . . . . . | 3,500,000 |
| 3,559,640 | |
|
|
|
| ||
138 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
S TAT EMEN T OF INVEST MENT S
Franklin Pennsylvania Tax-Free Income Fund (continued)
| Principal |
|
|
| Amount |
| Value |
|
|
|
|
Municipal Bonds (continued) |
|
|
|
Pennsylvania (continued) |
|
|
|
Pennsylvania State Higher Educational Facilities Authority Revenue, (continued) |
|
|
|
Foundation for Indiana University, Student Housing Project, Series B, Pre-Refunded, 5.00%, 7/01/41 . . | $ 1,250,000 | $ | 1,371,438 |
Shippensburg University Student Services Inc. Student Housing Project at Shippensburg University of |
|
|
|
Pennsylvania, Pre-Refunded, 5.00%, 10/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,400,000 |
| 1,548,582 |
Shippensburg University Student Services Inc. Student Housing Project at Shippensburg University of |
|
|
|
Pennsylvania, Pre-Refunded, 6.25%, 10/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,000,000 |
| 7,593,390 |
Shippensburg University Student Services Inc. Student Housing Project at Shippensburg University of |
|
|
|
Pennsylvania, Pre-Refunded, 5.00%, 10/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,000,000 |
| 2,212,260 |
St. Joseph's University, Series A, 5.00%, 11/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15,000,000 |
| 15,360,900 |
Temple University, First Series, 5.00%, 4/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15,000,000 |
| 16,080,000 |
Thomas Jefferson University, Pre-Refunded, 5.00%, 3/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 16,980,000 |
| 16,980,000 |
Thomas Jefferson University, Refunding, Series A, 5.00%, 9/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,465,000 |
| 8,734,946 |
The Trustees of the University of Pennsylvania, Series A, 5.00%, 8/15/36 . . . . . . . . . . . . . . . . . . . . . | 2,750,000 |
| 3,438,737 |
The Trustees of the University of Pennsylvania, Series A, 4.00%, 2/15/43 . . . . . . . . . . . . . . . . . . . . . | 12,575,000 |
| 14,569,898 |
The Trustees of the University of Pennsylvania, Series A, 5.00%, 8/15/46 . . . . . . . . . . . . . . . . . . . . . | 14,000,000 |
| 17,211,040 |
The Trustees of the University of Pennsylvania, Series A, 5.00%, 2/15/48 . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 6,271,800 |
The Trustees of the University of Pennsylvania, Series A, Pre-Refunded, 5.00%, 9/01/41 . . . . . . . . . . | 25,000,000 |
| 26,058,250 |
University of the Sciences in Philadelphia, 5.00%, 11/01/42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,422,300 |
University of Pennsylvania Health System, 5.00%, 8/15/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,475,000 |
| 7,698,386 |
University of Pennsylvania Health System, Pre-Refunded, 5.75%, 8/15/41 . . . . . . . . . . . . . . . . . . . . | 3,950,000 |
| 4,233,096 |
University of Pennsylvania Health System, Series A, 4.00%, 8/15/42 . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,766,750 |
University of Pennsylvania Health System, Series A, 5.00%, 8/15/42 . . . . . . . . . . . . . . . . . . . . . . . . | 9,000,000 |
| 11,153,880 |
University of Pittsburgh Medical Center, Series E, 5.00%, 5/15/31 . . . . . . . . . . . . . . . . . . . . . . . . . . | 13,000,000 |
| 13,110,370 |
Pennsylvania State Higher Educational Facilities Authority Student Housing Revenue, |
|
|
|
University Properties Inc. Student Housing Project at East Stroudsburg University of Pennsylvania, |
|
|
|
5.00%, 7/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,500,000 |
| 5,552,525 |
University Properties Inc. Student Housing Project at East Stroudsburg University of Pennsylvania, |
|
|
|
Refunding, Series A, 5.00%, 7/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,175,820 |
Pennsylvania State Turnpike Commission Oil Franchise Tax Revenue, Senior, Refunding, Series A, 5.00%, |
|
|
|
12/01/48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 18,600,000 |
| 23,421,306 |
Pennsylvania State Turnpike Commission Turnpike Revenue, |
|
|
|
Motor License Fund-Enhanced Turnpike, Special, Subordinate, Series A, Pre-Refunded, 5.50%, |
|
|
|
12/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,177,050 |
Series B, Pre-Refunded, 5.00%, 12/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,595,000 |
| 8,757,187 |
Series C, 5.00%, 12/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,405,000 |
| 2,727,414 |
Pennsylvania State University Revenue, |
|
|
|
5.00%, 3/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,500,000 |
| 1,500,000 |
5.00%, 9/01/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,955,000 |
| 7,545,878 |
Series A, 5.00%, 9/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,490,000 |
| 12,457,504 |
Series A, 5.00%, 9/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 12,288,300 |
Series A, 5.00%, 9/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15,750,000 |
| 19,690,650 |
Series A, 5.00%, 9/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,475,000 |
| 7,110,820 |
Series A, 5.00%, 9/01/46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,780,000 |
| 7,497,758 |
Series A, 5.00%, 9/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 |
| 12,419,300 |
Series A, 5.00%, 9/01/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,720,000 |
| 8,682,845 |
a Series A, 4.00%, 9/01/50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,972,050 |
franklintempleton.com | Annual Report | 139 |
FRANKL IN TAX-FREE TRUST
STATEMEN T OF INVEST MENT S
Franklin Pennsylvania Tax-Free Income Fund (continued)
| Principal |
|
| Amount | Value |
|
|
|
Municipal Bonds (continued) |
|
|
Pennsylvania (continued) |
|
|
Philadelphia Airport Revenue, |
|
|
Refunding, Series B, 5.00%, 7/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $10,000,000 | $ 12,119,700 |
Series A, AGMC Insured, 5.00%, 6/15/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,055,050 |
Series A, AGMC Insured, 5.00%, 6/15/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,054,200 |
Philadelphia Authority for IDR, |
|
|
The Children's Hospital of Philadelphia Project, Series A, 5.00%, 7/01/42 . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,785,450 |
International Apartments at Temple University, Series A, 5.625%, 6/15/42 . . . . . . . . . . . . . . . . . . . . . | 4,000,000 | 4,039,920 |
Temple University, First Series, 5.00%, 4/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,735,500 |
Thomas Jefferson University, Refunding, Series A, 5.00%, 9/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . | 11,150,000 | 13,334,396 |
Philadelphia Gas Works Revenue, |
|
|
1998 General Ordinance, Ninth Series, 5.25%, 8/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,490,000 | 3,553,483 |
1998 General Ordinance, Ninth Series, Pre-Refunded, 5.25%, 8/01/40 . . . . . . . . . . . . . . . . . . . . . . . | 2,230,000 | 2,270,452 |
1998 General Ordinance, Refunding, Fifteenth Series, 5.00%, 8/01/42 . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 6,070,250 |
1998 General Ordinance, Refunding, Fifteenth Series, 5.00%, 8/01/47 . . . . . . . . . . . . . . . . . . . . . . . | 6,000,000 | 7,236,300 |
1998 General Ordinance, Refunding, Fourteenth Series, 5.00%, 10/01/32 . . . . . . . . . . . . . . . . . . . . . | 1,000,000 | 1,224,740 |
Twelfth, Series B, NATL Insured, ETM, 7.00%, 5/15/20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 105,000 | 106,279 |
Philadelphia GO, |
|
|
Series A, Pre-Refunded, 5.25%, 7/15/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,303,900 |
Series B, 5.00%, 2/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,300,000 | 4,309,107 |
Series B, 5.00%, 2/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,950,000 | 6,448,761 |
Series B, 5.00%, 2/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,500,000 | 3,244,901 |
Series B, 5.00%, 2/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,500,000 | 3,237,125 |
Philadelphia Hospitals and Higher Education Facilities Authority Revenue, The Children's Hospital of |
|
|
Philadelphia Project, Series C, 5.00%, 7/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,247,450 |
Philadelphia Housing Authority Capital Fund Program Revenue, Series A, AGMC Insured, 5.00%, |
|
|
12/01/21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,017,850 |
Philadelphia Water and Wastewater Revenue, |
|
|
Series A, 5.00%, 7/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 | 11,504,500 |
Series A, 5.00%, 1/01/41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 13,000,000 | 13,406,510 |
Series A, 5.00%, 10/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 | 12,340,700 |
Series A, 5.125%, 1/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,345,000 |
Series A, 5.00%, 10/01/43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 6,301,050 |
Series A, 5.00%, 7/01/45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,707,200 |
Series A, 5.00%, 10/01/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 6,129,650 |
Series B, 5.00%, 11/01/49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 6,379,300 |
Series C, AGMC Insured, Pre-Refunded, 5.00%, 8/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,380,000 | 5,474,311 |
Series C, AGMC Insured, Pre-Refunded, 5.00%, 8/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,620,000 | 1,648,058 |
Pine-Richland School District GO, Allegheny County, Assured Guaranty, 5.00%, 3/01/39 . . . . . . . . . . . . . . | 15,130,000 | 15,388,118 |
Pocono Mountains Industrial Park Authority Hospital Revenue, St. Luke's Hospital, Monroe Project, Series |
|
|
A, 5.00%, 8/15/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 | 5,801,200 |
Scranton-Lackawanna Health and Welfare Authority Revenue, University of Scranton, Refunding, 5.00%, |
|
|
11/01/37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,000,000 | 4,680,160 |
South Fork Municipal Authority Hospital Revenue, Conemaugh Valley Memorial Hospital, Series B, |
|
|
Assured Guaranty, Pre-Refunded, 5.375%, 7/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10,000,000 | 10,145,300 |
|
|
|
|
140 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
S TAT EMEN T OF INVEST MENT S
Franklin Pennsylvania Tax-Free Income Fund (continued)
| Principal |
|
|
|
| Amount |
| Value | |
|
|
|
|
|
Municipal Bonds (continued) |
|
|
|
|
Pennsylvania (continued) |
|
|
|
|
State College Area School District GO, |
|
|
|
|
Centre County, 5.00%, 5/15/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 1,075,000 | $ | 1,374,237 |
|
Centre County, 5.00%, 3/15/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 16,400,000 |
| 19,272,788 |
|
Centre County, 5.00%, 5/15/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,500,000 |
| 4,404,750 |
|
State Public School Building Authority Revenue, |
|
|
|
|
Commonwealth of Pennsylvania, School Lease, The School District of Philadelphia Project, |
|
|
|
|
Refunding, Series A, AGMC Insured, 5.00%, 6/01/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,095,000 |
| 8,702,727 |
|
Commonwealth of Pennsylvania, School Lease, The School District of Philadelphia Project, |
|
|
|
|
Refunding, Series A, AGMC Insured, 5.00%, 6/01/33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,000,000 |
| 3,673,140 |
|
Swarthmore Borough Authority Revenue, Swarthmore College, 5.00%, 9/15/43 . . . . . . . . . . . . . . . . . . . . | 1,000,000 |
| 1,128,420 |
|
Union County Higher Educational Facilities Financing Authority University Revenue, Bucknell University, |
|
|
|
|
Series A, 5.00%, 4/01/42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
| 5,404,600 |
|
Washington County IDA College Revenue, |
|
|
|
|
Washington and Jefferson College, Pre-Refunded, 5.25%, 11/01/30 . . . . . . . . . . . . . . . . . . . . . . . . . | 7,525,000 |
| 7,579,105 |
|
Washington and Jefferson College Project, Pre-Refunded, 5.00%, 11/01/36 . . . . . . . . . . . . . . . . . . . | 8,470,000 |
| 8,527,511 |
|
|
|
|
|
|
|
|
| 1,064,232,093 | |
U.S. Territories 0.7% |
|
|
|
|
|
|
|
| |
Puerto Rico 0.7% |
|
|
|
|
b Puerto Rico Electric Power Authority Power Revenue, Series XX-RSA-1, 5.25%, 7/01/40 . . . . . . . . . . . . . | 10,000,000 |
| 8,012,500 | |
.Total Municipal Bonds before Short Term Investments (Cost $1,003,154,930) . . |
|
| 1,072,244,593 | |
Short Term Investments 4.1% |
|
|
|
|
|
|
|
| |
Municipal Bonds 4.1% |
|
|
|
|
Pennsylvania 4.1% |
|
|
|
|
c Geisinger Authority Revenue, |
|
|
|
|
Geisinger Health System, Montour County, Refunding, Series A, SPA TD Bank National Association, |
|
|
|
|
Daily VRDN and Put, 1.15%, 5/15/35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15,100,000 |
| 15,100,000 | |
Geisinger Health System, Montour County, Series A, SPA TD Bank National Association, Daily VRDN |
|
|
|
|
and Put, 1.15%, 10/01/43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 17,100,000 |
| 17,100,000 | |
c Pennsylvania State Higher Educational Facilities Authority Revenue, Drexel University Multi-Modal, Series |
|
|
|
|
B, LOC TD Bank National Association, Daily VRDN and Put, 1.18%, 5/01/30 . . . . . . . . . . . . . . . . . . . . . | 12,600,000 |
| 12,600,000 |
|
franklintempleton.com | Annual Report | 141 |
FRANKL IN TAX-FREE TRUST
STATEMEN T OF INVEST MENT S
Franklin Pennsylvania Tax-Free Income Fund (continued)
Principal
AmountValue
Short Term Investments (continued)
Municipal Bonds (continued)
Pennsylvania (continued)
cPhiladelphia Hospitals and Higher Education Facilities Authority Revenue, The Children's Hospital of
Philadelphia Project, Series B, SPA Bank of America, Daily VRDN and Put, 1.24%, 7/01/41. . . . . . . . . . . | $1,500,000 | $ | 1,500,000 |
Total Short Term Investments (Cost $46,300,000) . . . . . . . . . . . . . . . . . . |
|
|
|
|
| 46,300,000 | |
Total Investments (Cost $1,049,454,930) 99.5%. . . . . . . . . . . . . . . . . . . . . |
|
| |
| 1,118,544,593 | ||
Other Assets, less Liabilities 0.5% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 6,129,720 |
Net Assets 100.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| |
| $1,124,674,313 | ||
|
|
|
|
See Abbreviations on page 169.
aSecurity purchased on a when-issued basis. See Note 1(b). bSee Note 7 regarding defaulted securities.
cVariable rate demand notes (VRDNs) are obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. Unless otherwise noted, the coupon rate is determined based on factors including supply and demand, underlying credit, tax treatment, and current short term rates. The coupon rate shown represents the rate at period end.
|
|
|
|
142 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
FINANCIA L S TAT EMENTS
Statements of Assets and Liabilities
February 29, 2020
Franklin | Franklin | Franklin | Franklin |
Arizona | Colorado | Connecticut | Michigan |
Tax-Free | Tax-Free | Tax-Free | Tax-Free |
Income Fund | Income Fund | Income Fund | Income Fund |
|
|
|
|
Assets:
Investments in securities:
Cost - Unaffiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . .
Value - Unaffiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . .
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables:
Capital shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liabilities:
Payables:
Investment securities purchased . . . . . . . . . . . . . . . . . . . . .
Capital shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . .
Management fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distribution fees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfer agent fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses and other liabilities . . . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net assets, at value . . . . . . . . . . . . . . . . . . . . . . .
Net assets consist of:
Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total distributable earnings (losses) . . . . . . . . . . . . . . . . . . . .
Net assets, at value . . . . . . . . . . . . . . . . . . . . . . .
| $ | 928,011,173 | $692,758,735 | $196,981,672 | $873,128,534 |
|
|
|
|
| |
| $1,018,770,351 | $754,138,579 | $211,057,976 | $958,065,020 | |
|
| 118,165 | 36,882 | 37,083 | 40,144 |
|
| 2,884,513 | 3,587,798 | 50,358 | 384,859 |
|
| 8,282,612 | 8,416,056 | 1,747,904 | 12,157,690 |
|
| 1,253 | 925 | 260 | 12,059 |
|
|
|
|
|
|
|
| 1,030,056,894 | 766,180,240 | 212,893,581 | 970,659,772 |
|
|
|
|
|
|
|
| — | 3,168,234 | — | — |
|
| 2,649,771 | 1,019,445 | 152,948 | 1,274,345 |
|
| 405,141 | 305,928 | 98,844 | 383,706 |
|
| 120,059 | 87,980 | 26,644 | 112,722 |
|
| 97,062 | 82,137 | 24,329 | 103,315 |
|
| 235,798 | 83,573 | 75,373 | 225,649 |
|
| 47,904 | 44,428 | 21,477 | 61,031 |
|
|
|
|
|
|
|
| 3,555,735 | 4,791,725 | 399,615 | 2,160,768 |
|
|
|
|
| |
| $1,026,501,159 | $761,388,515 | $212,493,966 | $968,499,004 | |
|
|
|
|
|
|
| $ | 995,009,758 | $746,852,497 | $233,770,280 | $952,357,745 |
|
| 31,491,401 | 14,536,018 | (21,276,314) | 16,141,259 |
|
|
|
|
| |
| $1,026,501,159 | $761,388,515 | $212,493,966 | $968,499,004 | |
|
|
|
|
|
|
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 143 |
FRANKL IN TAX-FREE TRUST
FINANCIA L STATEMENT S
Statements of Assets and Liabilities (continued)
February 29, 2020
Franklin | Franklin | Franklin | Franklin |
Arizona | Colorado | Connecticut | Michigan |
Tax-Free | Tax-Free | Tax-Free | Tax-Free |
Income Fund | Income Fund | Income Fund | Income Fund |
|
|
|
|
Class A:
Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value per sharea . . . . . . . . . . . . . . . . . . . . . . . . . .
Maximum offering price per share (net asset value per share ÷ 96.25%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class A1:
Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value per sharea . . . . . . . . . . . . . . . . . . . . . . . . . .
Maximum offering price per share (net asset value per share ÷ 96.25%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class C:
Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value and maximum offering price per sharea . . . . . .
Class R6:
Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value and maximum offering price per share . . . . . .
Advisor Class:
Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value and maximum offering price per share . . . . . .
$132,026,213 | $ 87,683,529 | $ 21,670,112 | $ 74,740,497 | |||
|
|
|
|
|
| |
11,745,607 | 7,329,207 |
| 2,085,990 | 6,212,346 | ||
|
|
|
|
|
| |
$11.24 | $11.96 |
| $10.39 | $12.03 | ||
|
|
|
|
|
|
|
$11.68 | $12.43 |
| $10.79 | $12.50 |
| |
|
|
|
|
|
| |
$672,061,320 | $477,155,235 | $150,080,565 | $731,567,768 | |||
|
|
|
|
|
| |
59,896,112 | 39,905,540 |
| 14,463,860 | 60,882,891 | ||
|
|
|
|
|
| |
$11.22 | $11.96 |
| $10.38 | $12.02 | ||
|
|
|
|
|
| |
$11.66 | $12.43 |
| $10.78 | $12.49 | ||
|
|
|
|
| ||
$ 80,562,126 | $ 66,329,044 | $ 20,420,683 | $ 78,320,583 | |||
|
|
|
|
|
| |
7,057,092 | 5,478,912 |
| 1,951,748 | 6,413,106 | ||
|
|
|
|
|
| |
$11.42 | $12.11 |
| $10.46 | $12.21 | ||
|
|
|
|
|
| |
$ 16,970,593 | $ 14,296,834 | $ | 299,063 | $ 4,153,104 | ||
|
|
|
|
|
| |
1,507,680 | 1,194,702 |
| 28,820 | 344,191 | ||
|
|
|
|
|
| |
$11.26 | $11.97 |
| $10.38 | $12.07 | ||
|
|
|
|
| ||
$124,880,907 | $115,923,873 | $ 20,023,543 | $ 79,717,052 | |||
|
|
|
|
|
| |
11,093,862 | 9,694,188 |
| 1,930,930 | 6,612,151 | ||
|
|
|
|
|
| |
$11.26 | $11.96 |
| $10.37 | $12.06 | ||
|
|
|
|
|
|
|
aRedemption price is equal to net asset value less contingent deferred sales charges, if applicable.
|
|
|
|
144 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
FINANCIA L S TAT EMENTS
Statements of Assets and Liabilities (continued)
February 29, 2020
Franklin | Franklin | Franklin | Franklin |
Minnesota | Ohio | Oregon | Pennsylvania |
Tax-Free | Tax-Free | Tax-Free | Tax-Free |
Income Fund | Income Fund | Income Fund | Income Fund |
|
|
|
|
Assets:
Investments in securities:
Cost - Unaffiliated issuers . . . . . . . . . . . . . . . . . . . . . .
Value - Unaffiliated issuers . . . . . . . . . . . . . . . . . . . . .
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables:
Capital shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liabilities:
Payables:
Investment securities purchased. . . . . . . . . . . . . . . . . .
Capital shares redeemed. . . . . . . . . . . . . . . . . . . . . . .
Management fees. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distribution fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfer agent fees . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders . . . . . . . . . . . . . . . . . . . .
Accrued expenses and other liabilities . . . . . . . . . . . . . .
Total liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . .
Net assets, at value . . . . . . . . . . . . . . . . . . .
Net assets consist of:
Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total distributable earnings (losses) . . . . . . . . . . . . . . . .
Net assets, at value . . . . . . . . . . . . . . . . . . .
| $ | 969,926,589 | $1,479,229,276 | $1,209,298,771 | $1,049,454,930 |
|
|
|
|
|
|
| |
| $1,050,074,821 | $1,613,349,582 | $1,312,167,502 | $1,118,544,593 |
| |
|
| 235,117 | 315,031 | 131,212 | 221,468 |
|
|
| 1,582,884 | 990,814 | 1,595,948 | 1,179,529 |
|
|
| 7,284,592 | 15,403,551 | 12,447,392 | 13,352,571 |
|
|
| 1,290 | 1,972 | 1,619 | 1,387 |
|
|
|
|
|
|
|
|
|
| 1,059,178,704 | 1,630,060,950 | 1,326,343,673 | 1,133,299,548 |
|
|
|
|
|
|
|
|
|
| 2,604,411 | 12,087,518 | — | 5,803,700 |
|
|
| 969,000 | 2,250,048 | 3,272,364 | 1,796,357 |
|
|
| 415,586 | 625,526 | 516,314 | 442,171 |
|
|
| 137,978 | 214,346 | 166,005 | 157,398 |
|
|
| 147,683 | 177,875 | 124,688 | 117,805 |
|
|
| 142,934 | 238,547 | 150,232 | 239,342 |
|
|
| 58,864 | 94,993 | 62,993 | 68,462 |
|
|
|
|
|
|
|
|
|
| 4,476,456 | 15,688,853 | 4,292,596 | 8,625,235 |
|
|
|
|
|
|
| |
| $1,054,702,248 | $1,614,372,097 | $1,322,051,077 | $1,124,674,313 |
| |
|
|
|
|
|
|
|
| $ | 984,764,207 | $1,514,375,736 | $1,291,635,316 | $1,146,798,814 |
|
|
| 69,938,041 | 99,996,361 | 30,415,761 | (22,124,501) | |
|
|
|
|
|
| |
| $1,054,702,248 | $1,614,372,097 | $1,322,051,077 | $1,124,674,313 |
| |
|
|
|
|
|
|
|
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 145 |
FRANKL IN TAX-FREE TRUST
FINANCIA L STATEMENT S
Statements of Assets and Liabilities (continued)
February 29, 2020
Franklin | Franklin | Franklin | Franklin |
Minnesota | Ohio | Oregon | Pennsylvania |
Tax-Free | Tax-Free | Tax-Free | Tax-Free |
Income Fund | Income Fund | Income Fund | Income Fund |
|
|
|
|
Class A:
Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value per sharea . . . . . . . . . . . . . . . . . . . . . .
Maximum offering price per share (net asset value per share ÷ 96.25%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class A1:
Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value per sharea . . . . . . . . . . . . . . . . . . . . . .
Maximum offering price per share (net asset value per share ÷ 96.25%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class C:
Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value and maximum offering price per sharea . .
Class R6:
Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value and maximum offering price per share . . .
Advisor Class:
Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value and maximum offering price per share . . .
$ 96,802,356 | $160,174,117 | $162,663,997 | $105,032,124 | ||
|
|
|
|
| |
7,550,721 | 12,130,020 | 13,550,092 | 10,389,047 | ||
|
|
|
|
| |
$12.82 | $13.20 | $12.00 | $10.11 | ||
|
|
|
|
|
|
$13.32 | $13.71 | $12.47 | $10.50 |
| |
|
|
|
|
|
|
$606,558,989 | $996,279,961 | $866,592,875 | $772,505,982 | ||
|
|
|
|
| |
47,316,448 | 75,492,579 | 72,249,773 | 76,429,526 | ||
|
|
|
|
| |
$12.82 | $13.20 | $11.99 | $10.11 | ||
|
|
|
|
| |
$13.32 | $13.71 | $12.46 | $10.50 | ||
|
|
|
|
| |
$138,417,484 | $203,366,950 | $127,898,197 | $146,041,859 | ||
|
|
|
|
| |
10,674,139 | 15,197,436 | 10,494,377 | 14,257,535 | ||
|
|
|
|
| |
$12.97 | $13.38 | $12.19 | $10.24 | ||
|
|
|
|
| |
$ 9,693,367 | $ 10,637,744 | $ 19,823,363 | $ 2,904,533 | ||
|
|
|
|
| |
754,892 | 804,962 | 1,651,422 | 286,915 | ||
|
|
|
|
| |
$12.84 | $13.22 | $12.00 | $10.12 | ||
|
|
|
|
| |
$203,230,052 | $243,913,325 | $145,072,645 | $ 98,189,815 | ||
|
|
|
|
| |
15,834,142 | 18,461,214 | 12,077,857 | 9,700,652 | ||
|
|
|
|
| |
$12.83 | $13.21 | $12.01 | $10.12 | ||
|
|
|
|
|
|
aRedemption price is equal to net asset value less contingent deferred sales charges, if applicable.
|
|
|
|
146 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
FINANCIA L S TAT EMENTS
Statements of Operations
for the year ended February 29, 2020
Franklin | Franklin | Franklin | Franklin |
Arizona | Colorado | Connecticut | Michigan |
Tax-Free | Tax-Free | Tax-Free | Tax-Free |
Income Fund | Income Fund | Income Fund | Income Fund |
|
|
|
|
Investment income: Interest:
Unaffiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses:
Management fees (Note 3a) . . . . . . . . . . . . . . . . . . . . . . . . . .
Distribution fees: (Note 3c)
Class A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class A1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfer agent fees: (Note 3e)
Class A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class A1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class R6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Advisor Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Custodian fees (Note 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reports to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Registration and filing fees . . . . . . . . . . . . . . . . . . . . . . . . . . .
Professional fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trustees' fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expense reductions (Note 4). . . . . . . . . . . . . . . . . . . . . .
Expenses waived/paid by affiliates (Note 3f) . . . . . . . . . . .
Net expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . .
Realized and unrealized gains (losses): Net realized gain (loss) from:
Investments:
Unaffiliated issuers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in unrealized appreciation (depreciation) on: Investments:
Unaffiliated issuers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss). . . . . . . . . . . . . . . . . . . .
Net increase (decrease) in net assets resulting from operations . .
$33,732,217 | $25,299,857 | $ | 8,136,091 | $31,099,144 |
|
|
|
|
|
|
|
|
|
4,576,574 | 3,468,925 |
| 1,205,099 | 4,453,858 |
|
|
215,214 | 148,007 |
| 44,403 | 129,189 |
|
|
671,604 | 470,393 |
| 155,540 | 730,336 |
|
|
509,875 | 433,541 |
| 152,614 | 506,918 |
|
|
51,921 | 39,205 |
| 12,352 | 35,573 |
| |
405,029 | 311,324 |
| 108,155 | 502,931 |
| |
47,308 | 44,141 |
| 16,326 | 53,706 |
| |
5,768 | 4,826 |
| 213 | 1,686 |
| |
64,245 | 69,929 |
| 13,884 | 48,358 |
| |
6,947 | 5,515 |
| 1,564 | 6,833 |
| |
34,261 | 32,928 |
| 15,710 | 49,975 |
| |
48,702 | 30,827 |
| 21,585 | 55,176 |
| |
52,787 | 72,968 |
| 50,461 | 53,648 |
| |
6,218 | 4,643 |
| 1,454 | 6,144 |
| |
64,749 | 49,566 |
| 21,639 | 75,305 |
| |
|
|
|
|
|
| |
6,761,202 | 5,186,738 |
| 1,820,999 | 6,709,636 |
| |
(3,494) | (2,620) |
| (879) | (3,580) | ||
(1,305) | (1,514) |
| (138) | (620) | ||
|
|
|
|
|
| |
6,756,403 | 5,182,604 |
| 1,819,982 | 6,705,436 |
| |
|
|
|
|
|
| |
26,975,814 | 20,117,253 |
| 6,316,109 | 24,393,708 |
| |
|
|
|
|
|
| |
1,141,751 | (1,814,943) |
| 251,416 | 989,794 |
| |
|
|
|
|
|
| |
57,289,938 | 42,068,102 |
| 7,147,022 | 57,391,323 |
| |
|
|
|
|
|
| |
58,431,689 | 40,253,159 |
| 7,398,438 | 58,381,117 |
| |
|
|
|
|
| ||
$85,407,503 | $60,370,412 | $13,714,547 | $82,774,825 |
| ||
|
|
|
|
|
|
|
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 147 |
FRANKL IN TAX-FREE TRUST
FINANCIA L STATEMENT S
Statements of Operations (continued)
for the year ended February 29, 2020
Franklin | Franklin | Franklin | Franklin | |
Minnesota | Ohio | Oregon | Pennsylvania | |
Tax-Free | Tax-Free | Tax-Free | Tax-Free | |
Income Fund | Income Fund | Income Fund | Income Fund | |
|
|
|
|
|
Investment income: Interest:
Unaffiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses:
Management fees (Note 3a) . . . . . . . . . . . . . . . . . . . . . . . . . .
Distribution fees: (Note 3c)
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class A1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transfer agent fees: (Note 3e)
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class A1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class R6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Advisor Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Custodian fees (Note 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reports to shareholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Registration and filing fees . . . . . . . . . . . . . . . . . . . . . . . . . . .
Professional fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trustees' fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expense reductions (Note 4) . . . . . . . . . . . . . . . . . . . . .
Expenses waived/paid by affiliates (Note 3f) . . . . . . . . . . .
Net expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . .
Realized and unrealized gains (losses): Net realized gain (loss) from:
Investments:
Unaffiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in unrealized appreciation (depreciation) on: Investments:
Unaffiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gain (loss) . . . . . . . . . . . . . . . . . . .
Net increase (decrease) in net assets resulting from operations . .
$32,199,357 | $ | 53,373,613 | $ | 41,587,546 | $42,221,803 |
|
|
|
|
|
|
|
|
4,733,384 |
| 7,138,490 |
| 5,817,869 | 5,253,930 |
|
161,466 |
| 279,146 |
| 272,631 | 191,753 |
|
597,556 |
| 990,496 |
| 856,958 | 784,258 |
|
936,159 |
| 1,353,490 |
| 825,333 | 1,043,034 |
|
52,729 |
| 77,473 |
| 65,127 | 51,556 | |
487,587 |
| 687,034 |
| 511,749 | 527,193 | |
117,518 |
| 144,440 |
| 75,825 | 107,873 | |
4,207 |
| 3,820 |
| 6,243 | 1,217 | |
146,565 |
| 144,856 |
| 73,656 | 60,486 | |
7,234 |
| 11,130 |
| 9,076 | 8,128 | |
50,856 |
| 70,791 |
| 46,063 | 60,438 | |
51,110 |
| 56,748 |
| 25,499 | 29,023 | |
55,614 |
| 57,712 |
| 73,148 | 105,674 | |
6,493 |
| 10,003 |
| 8,019 | 7,373 | |
71,435 |
| 90,989 |
| 69,187 | 64,785 | |
|
|
|
|
|
| |
7,479,913 |
| 11,116,618 |
| 8,736,383 | 8,296,721 | |
(3,750) |
| (5,810) |
| (4,523) | (4,343) | |
(1,711) |
| (1,261) |
| (1,277) | (447) | |
|
|
|
|
|
| |
7,474,452 |
| 11,109,547 |
| 8,730,583 | 8,291,931 | |
|
|
|
|
|
| |
24,724,905 |
| 42,264,066 |
| 32,856,963 | 33,929,872 | |
|
|
|
|
|
| |
540,440 |
| 611,043 |
| 1,617,254 | (252,539) | |
|
|
|
|
|
| |
57,624,768 |
| 84,496,281 |
| 67,050,410 | 42,950,125 | |
|
|
|
|
|
| |
58,165,208 |
| 85,107,324 |
| 68,667,664 | 42,697,586 | |
|
|
|
| |||
$82,890,113 | $127,371,390 | $101,524,627 | $76,627,458 | |||
|
|
|
|
|
|
|
|
|
|
|
148 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
FINANCIA L S TAT EMENTS
Statements of Changes in Net Assets
|
|
| Franklin Arizona |
| Franklin Colorado | |||
|
|
| Tax-Free Income Fund |
| Tax-Free Income Fund | |||
|
|
|
|
|
|
| ||
|
|
| Year Ended February 28, |
| Year Ended February 28, | |||
|
|
|
|
|
|
|
|
|
|
|
| 2020a | 2019 |
| 2020a | 2019 |
|
Increase (decrease) in net assets: |
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ | 26,975,814 | $ 29,070,360 | $ | 20,117,253 | $ 22,053,998 |
| |
Net realized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 1,141,751 | (3,016,468) |
| (1,814,943) | (650,247) | |
Net change in unrealized appreciation (depreciation) . . . . . . . |
|
| 57,289,938 | 2,034,735 |
| 42,068,102 | (228,447) | |
Net increase (decrease) in net assets resulting from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 85,407,503 | 28,088,627 |
| 60,370,412 | 21,175,304 |
|
Distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (2,332,745) | (329,120) |
| (1,629,360) | (292,633) | |
Class A1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (19,798,266) | (23,221,984) |
| (14,061,542) | (16,333,215) | |
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (1,873,636) | (2,509,936) |
| (1,626,856) | (2,359,389) | |
Class R6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (454,208) | (424,153) |
| (338,651) | (275,326) | |
Advisor Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (3,212,942) | (3,022,932) |
| (3,239,638) | (2,952,598) | |
|
|
|
|
|
|
|
| |
Total distributions to shareholders . . . . . . . . . . . . . . . . . . . . . . |
|
| (27,671,797) | (29,508,125) |
| (20,896,047) | (22,213,161) | |
Capital share transactions: (Note 2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 82,123,507 | 44,062,262 |
| 49,176,416 | 34,737,451 | |
Class A1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (29,484,449) | (74,841,448) |
| (11,721,010) | (57,418,201) | |
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (1,420,659) | (27,394,481) |
| (6,420,157) | (30,354,829) | |
Class R6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 3,516,275 | 1,770,118 |
| 5,282,633 | 727,826 | |
Advisor Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 28,347,443 | 3,459,608 |
| 17,547,065 | 13,563,508 | |
|
|
|
|
|
|
|
| |
Total capital share transactions . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 83,082,117 | (52,943,941) |
| 53,864,947 | (38,744,245) | |
|
|
|
|
|
|
|
| |
Net increase (decrease) in net assets . . . . . . . . . . . . . . . |
|
| 140,817,823 | (54,363,439) |
| 93,339,312 | (39,782,102) | |
Net assets: |
|
|
|
|
|
|
|
|
Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 885,683,336 | 940,046,775 |
| 668,049,203 | 707,831,305 | |
|
|
|
|
|
| |||
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $1,026,501,159 | $885,683,336 | $761,388,515 | $668,049,203 | ||||
|
|
|
|
|
|
|
|
|
aFor the year ended February 29.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 149 |
FRANKL IN TAX-FREE TRUST
FINANCIA L STATEMENT S
Statements of Changes in Net Assets (continued)
|
|
| Franklin Connecticut |
| Franklin Michigan | ||||
|
|
| Tax-Free Income Fund |
| Tax-Free Income Fund | ||||
|
|
|
|
|
|
| |||
|
|
| Year Ended February 28, |
| Year Ended February 28, | ||||
|
|
|
|
|
|
|
|
|
|
|
|
| 2020a |
| 2019 |
| 2020a | 2019 |
|
Increase (decrease) in net assets: |
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
Net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ | 6,316,109 | $ | 7,196,011 | $ | 24,393,708 | $ 27,445,588 |
| |
Net realized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 251,416 |
| (574,865) |
| 989,794 | 1,077,246 |
|
Net change in unrealized appreciation (depreciation) . . . . . . . . . |
|
| 7,147,022 |
| (316,038) |
| 57,391,323 | 3,321,573 |
|
Net increase (decrease) in net assets resulting from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 13,714,547 |
| 6,305,108 |
| 82,774,825 | 31,844,407 |
|
Distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (524,971) |
| (130,696) |
| (1,330,288) | (313,581) | |
Class A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (4,928,971) |
| (5,650,306) |
| (20,296,801) | (23,369,782) | |
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (618,568) |
| (966,266) |
| (1,732,856) | (2,588,466) | |
Class R6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (8,134) |
| (6,772) |
| (102,923) | (89,516) | |
Advisor Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (648,491) |
| (653,361) |
| (2,007,966) | (1,749,364) | |
|
|
|
|
|
|
|
|
| |
Total distributions to shareholders. . . . . . . . . . . . . . . . . . . . . . . . |
|
| (6,729,135) |
| (7,407,401) |
| (25,470,834) | (28,110,709) | |
Capital share transactions: (Note 2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 7,305,774 |
| 13,582,140 |
| 37,749,449 | 33,005,165 | |
Class A1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (15,075,347) |
| (26,635,624) |
| (40,857,366) | (73,128,521) | |
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (6,401,568) |
| (18,752,227) |
| (6,528,627) | (44,426,861) | |
Class R6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 144,007 |
| (175,178) |
| 889,801 | 516,884 | |
Advisor Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 48,683 |
| (1,429,416) |
| 12,204,055 | 9,322,287 | |
|
|
|
|
|
|
|
|
| |
Total capital share transactions . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (13,978,451) |
| (33,410,305) |
| 3,457,312 | (74,711,046) | |
|
|
|
|
|
|
|
|
| |
Net increase (decrease) in net assets . . . . . . . . . . . . . . . . |
|
| (6,993,039) |
| (34,512,598) |
| 60,761,303 | (70,977,348) | |
Net assets: |
|
|
|
|
|
|
|
|
|
Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 219,487,005 |
| 253,999,603 |
| 907,737,701 | 978,715,049 | |
|
|
|
|
|
| ||||
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $212,493,966 | $219,487,005 | $968,499,004 | $907,737,701 | |||||
|
|
|
|
|
|
|
|
|
|
aFor the year ended February 29.
|
|
|
|
150 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
FINANCIA L S TAT EMENTS
Statements of Changes in Net Assets (continued)
|
|
| Franklin Minnesota |
| Franklin Ohio | |||||
|
|
| Tax-Free Income Fund |
| Tax-Free Income Fund | |||||
|
|
|
|
|
|
| ||||
|
|
| Year Ended February 28, |
| Year Ended February 28, | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2020a |
| 2019 |
| 2020a |
| 2019 |
|
Increase (decrease) in net assets: |
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . | $ | 24,724,905 | $ | 28,182,336 | $ | 42,264,066 | $ | 44,485,312 |
| |
Net realized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 540,440 |
| (814,919) |
| 611,043 |
| (1,187,498) | |
Net change in unrealized appreciation (depreciation) . . . |
|
| 57,624,768 |
| 1,702,695 |
| 84,496,281 |
| 3,580,616 |
|
Net increase (decrease) in net assets resulting from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 82,890,113 |
| 29,070,112 |
| 127,371,390 |
| 46,878,430 |
|
Distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (1,538,044) |
| (319,694) |
| (2,999,229) |
| (650,097) | |
Class A1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (15,480,525) |
| (18,382,969) |
| (28,487,537) |
| (31,610,658) | |
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (2,941,646) |
| (4,182,708) |
| (4,836,261) |
| (6,553,396) | |
Class R6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (226,880) |
| (245,683) |
| (255,652) |
| (234,944) | |
Advisor Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (4,802,895) |
| (4,983,682) |
| (6,178,640) |
| (5,595,932) | |
|
|
|
|
|
|
|
|
|
| |
Total distributions to shareholders . . . . . . . . . . . . . . . . . . |
|
| (24,989,990) |
| (28,114,736) |
| (42,757,319) |
| (44,645,027) | |
Capital share transactions: (Note 2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 53,802,482 |
| 38,372,541 |
| 78,713,171 |
| 73,713,773 | |
Class A1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (17,081,906) |
| (69,061,621) |
| (43,978,495) |
| (106,068,594) | |
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (18,170,817) |
| (55,265,299) |
| (23,167,170) |
| (92,221,547) | |
Class R6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 2,026,637 |
| (1,152,365) |
| 3,219,335 |
| (909,915) | |
Advisor Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 36,090,930 |
| (3,595,292) |
| 52,834,804 |
| 8,931,582 | |
|
|
|
|
|
|
|
|
|
| |
Total capital share transactions . . . . . . . . . . . . . . . . . . . . |
|
| 56,667,326 |
| (90,702,036) |
| 67,621,645 |
| (116,554,701) | |
|
|
|
|
|
|
|
|
|
| |
Net increase (decrease) in net assets . . . . . . . . . . . |
|
| 114,567,449 |
| (89,746,660) |
| 152,235,716 |
| (114,321,298) | |
Net assets: |
|
|
|
|
|
|
|
|
|
|
Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 940,134,799 |
| 1,029,881,459 |
| 1,462,136,381 |
| 1,576,457,679 | |
|
|
|
|
|
|
| ||||
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $1,054,702,248 | $ | 940,134,799 | $1,614,372,097 | $1,462,136,381 | |||||
|
|
|
|
|
|
|
|
|
|
|
aFor the year ended February 29.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 151 |
FRANKL IN TAX-FREE TRUST
FINANCIA L STATEMENT S
Statements of Changes in Net Assets (continued)
|
|
| Franklin Oregon |
| Franklin Pennsylvania | |||||
|
|
| Tax-Free Income Fund |
| Tax-Free Income Fund | |||||
|
|
|
|
|
|
| ||||
|
|
| Year Ended February 28, |
| Year Ended February 28, | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2020a |
| 2019 |
| 2020a |
| 2019 |
|
Increase (decrease) in net assets: |
|
|
|
|
|
|
|
|
|
|
Operations: |
|
|
|
|
|
|
|
|
|
|
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . | $ | 32,856,963 | $ | 36,971,494 | $ | 33,929,872 | $ | 39,014,936 |
| |
Net realized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 1,617,254 |
| (462,604) |
| (252,539) |
| 1,478,839 |
|
Net change in unrealized appreciation (depreciation) . . . |
|
| 67,050,410 |
| (1,970,261) |
| 42,950,125 |
| (6,620,458) | |
Net increase (decrease) in net assets resulting from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 101,524,627 |
| 34,538,629 |
| 76,627,458 |
| 33,873,317 |
|
Distributions to shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (2,821,896) |
| (440,694) |
| (2,301,344) |
| (552,264) | |
Class A1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (24,156,902) |
| (28,449,005) |
| (25,168,435) |
| (29,946,504) | |
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (2,874,855) |
| (3,964,840) |
| (4,276,294) |
| (6,445,382) | |
Class R6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (482,897) |
| (440,643) |
| (85,365) |
| (76,068) | |
Advisor Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (3,572,254) |
| (3,347,127) |
| (2,959,543) |
| (2,934,883) | |
|
|
|
|
|
|
|
|
|
| |
Total distributions to shareholders . . . . . . . . . . . . . . . . . . |
|
| (33,908,804) |
| (36,642,309) |
| (34,790,981) |
| (39,955,101) | |
Capital share transactions: (Note 2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 94,317,482 |
| 61,443,188 |
| 49,405,503 |
| 52,225,940 | |
Class A1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (23,085,408) |
| (87,922,657) |
| (41,245,981) |
| (71,773,715) | |
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| (7,180,504) |
| (46,252,427) |
| (33,218,954) |
| (70,730,726) | |
Class R6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 5,595,974 |
| 114,776 |
| 527,396 |
| 209,240 | |
Advisor Class . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 30,932,107 |
| 6,075,970 |
| 13,213,261 |
| 2,813,572 | |
|
|
|
|
|
|
|
|
|
| |
Total capital share transactions . . . . . . . . . . . . . . . . . . . . |
|
| 100,579,651 |
| (66,541,150) |
| (11,318,775) |
| (87,255,689) | |
|
|
|
|
|
|
|
|
|
| |
Net increase (decrease) in net assets . . . . . . . . . . . |
|
| 168,195,474 |
| (68,644,830) |
| 30,517,702 |
| (93,337,473) | |
Net assets: |
|
|
|
|
|
|
|
|
|
|
Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| 1,153,855,603 |
| 1,222,500,433 |
| 1,094,156,611 |
| 1,187,494,084 | |
|
|
|
|
|
| |||||
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $1,322,051,077 | $1,153,855,603 | $1,124,674,313 | $1,094,156,611 | ||||||
|
|
|
|
|
|
|
|
|
|
|
aFor the year ended February 29.
|
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|
152 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
Notes to Financial Statements
1. Organization and Significant Accounting Policies
Franklin Tax-Free Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of twenty three separate funds (Funds), eight of which are included in this report and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). The Funds offer five classes of shares: Class A, Class A1, Class C, Class R6 and Advisor Class. Class C shares automatically convert to Class A shares after they have been held for 10 years. Each class of shares may differ by its initial sales load, contingent deferred sales charges, voting rights on matters affecting a single class, its exchange privilege and fees due to differing arrangements for distribution and transfer agent fees.
The following summarizes the Funds' significant accounting policies.
a. Financial Instrument Valuation
The Funds' investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Funds calculate the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Trust's Board of Trustees (the Board), the Funds' administrator has responsibility for oversight of valuation, including leading the cross-functional Valuation Committee (VC). The Funds may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.
Debt securities generally trade in the over-the-counter market rather than on a securities exchange. The Funds' pricing services use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, credit spreads, estimated default rates, anticipated market interest rate volatility, coupon rates, anticipated timing of principal repayments, underlying
collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair value.
The Funds have procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Funds primarily employ a market-based approach which may use related or comparable assets or liabilities, recent transac- tions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.
b. Securities Purchased on a When-Issued Basis
Certain or all Funds purchase securities on a when-issued basis, with payment and delivery scheduled for a future date. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Funds will generally purchase these securities with the intention of holding the securities, they may sell the securities before the settlement date. Sufficient assets have been segregated for these securities.
c. Income Taxes
It is each Fund's policy to qualify as a regulated investment company under the Internal Revenue Code. Each Fund intends to distribute to shareholders substantially all of its income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.
Each Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of February 29, 2020, each Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax
franklintempleton.com | Annual Report | 153 |
F R A N K L IN TAX - FREE TRUS T
NOTE S TO FINANCIA L STATEMEN T S
1.Organization and Significant Accounting Policies (continued)
c. Income Taxes (continued)
years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.
d.Security Transactions, Investment Income, Expenses and Distributions
Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest income and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. Dividends from net investment income are normally declared daily; these dividends may be reinvested or paid monthly to shareholders. Distributions from realized capital gains and other distributions, if any, are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.
Common expenses incurred by the Trust are allocated among the Funds based on the ratio of net assets of each Fund to the combined net assets of the Trust or based on the ratio of number of shareholders of each Fund to the combined number of shareholders of the Trust. Fund specific expenses are charged directly to the Fund that incurred the expense.
Realized and unrealized gains and losses and net investment income, excluding class specific expenses, are allocated daily to each class of shares based upon the relative proportion of net assets of each class. Differences in per share distributions by class are generally due to differences in class specific expenses.
e. Insurance
The scheduled payments of interest and principal for each insured municipal security in the Trust are insured by either a new issue insurance policy or a secondary insurance policy. Some municipal securities in the Funds are secured by collateral guaranteed by an agency of the U.S. government. Depending on the type of coverage, premiums for insurance are either added to the cost basis of the security or paid by a third party.
Insurance companies typically insure municipal bonds that tend to be of very high quality, with the majority of underlying municipal bonds rated A or better. However, an event involving an insurer could have an adverse effect on the value of the securities insured by that insurance company. There can be no assurance the insurer will be able to fulfill its obligations under the terms of the policy.
f. Accounting Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
g. Guarantees and Indemnifications
Under the Trust's organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Funds, enters into contracts with service providers that contain general indemnification clauses. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.
|
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|
154 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
NOTE S TO FINANCIA L STAT EMEN TS
2. Shares of Beneficial Interest
At February 29, 2020, there were an unlimited number of shares authorized (without par value). Transactions in the Funds' shares were as follows:
| Franklin Arizona | Franklin Colorado | |||||
| Tax-Free Income Fund | Tax-Free Income Fund | |||||
|
|
|
|
|
|
|
|
| Shares |
| Amount | Shares |
| Amount | |
|
|
|
|
|
|
|
|
Class A Shares: |
|
|
|
|
|
|
|
Year ended February 29, 2020 |
|
|
|
|
|
|
|
Shares solda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,061,636 | $ | 87,843,839 | 4,719,149 | $ | 54,949,727 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . | 200,876 |
| 2,200,242 | 136,713 |
| 1,595,412 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (724,150) |
| (7,920,574) | (632,549) |
| (7,368,723) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7,538,362 | $ | 82,123,507 | 4,223,313 | $ | 49,176,416 |
|
Year ended February 28, 2019b |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Shares solda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,472,392 | $ | 46,844,249 | 3,602,303 | $ | 40,276,422 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . | 29,128 |
| 306,796 | 25,606 |
| 288,448 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (294,275) |
| (3,088,783) | (522,015) |
| (5,827,419) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,207,245 | $ | 44,062,262 | 3,105,894 | $ | 34,737,451 |
|
Class A1 Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Year ended February 29, 2020 |
|
|
|
|
|
|
|
Shares sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,367,115 | $ | 36,498,589 | 2,054,179 | $ | 23,918,501 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . | 1,567,850 |
| 17,087,280 | 1,118,244 |
| 13,013,213 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (7,636,387) |
| (83,070,318) | (4,187,488) |
| (48,652,724) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (2,701,422) | $ | (29,484,449) | (1,015,065) | $ | (11,721,010) |
|
Year ended February 28, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Shares sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,673,827 | $ | 49,282,451 | 3,266,829 | $ | 36,883,616 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . | 1,887,427 |
| 19,870,667 | 1,336,153 |
| 15,069,918 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (13,690,538) |
| (143,994,566) | (9,709,486) |
| (109,371,735) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (7,129,284) | $ | (74,841,448) | (5,106,504) | $ | (57,418,201) |
|
Class C Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Year ended February 29, 2020 |
|
|
|
|
|
|
|
Shares sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,664,994 | $ | 18,433,750 | 1,017,925 | $ | 11,983,060 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . | 157,621 |
| 1,747,106 | 133,092 |
| 1,567,577 |
|
Shares redeemeda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (1,950,683) |
| (21,601,515) | (1,700,603) |
| (19,970,794) |
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (128,068) | $ | (1,420,659) | (549,586) | $ | (6,420,157) | |
Year ended February 28, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Shares sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 899,371 | $ | 9,627,048 | 480,319 | $ | 5,482,383 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . | 219,034 |
| 2,346,035 | 199,188 |
| 2,274,740 |
|
Shares redeemeda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (3,698,158) |
| (39,367,564) | (3,359,173) |
| (38,111,952) |
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (2,579,753) | $ | (27,394,481) | (2,679,666) | $ | (30,354,829) |
|
|
|
|
|
|
|
|
|
franklintempleton.com | Annual Report | 155 |
F R A N K L IN TAX - FREE TRUS T
NOTE S TO FINANCIA L STATEMEN T S
2. Shares of Beneficial Interest (continued)
|
| Franklin Arizona | Franklin Colorado |
| ||||
|
| Tax-Free Income Fund | Tax-Free Income Fund |
| ||||
|
|
|
|
|
|
|
|
|
|
| Shares |
| Amount | Shares |
| Amount |
|
|
|
|
|
|
|
|
|
|
Class R6 Shares: |
|
|
|
|
|
|
|
|
Year ended February 29, 2020 |
|
|
|
|
|
|
|
|
Shares sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 610,842 | $ | 6,669,514 | 524,006 | $ | 6,108,954 |
| |
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . | 41,271 |
| 451,599 | 28,666 |
| 334,441 |
| |
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (329,905) |
| (3,604,838) | (99,578) |
| (1,160,762) |
| |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 322,208 | $ | 3,516,275 | 453,094 | $ | 5,282,633 |
| |
Year ended February 28, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Shares sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 505,972 | $ | 5,350,913 | 362,071 | $ | 4,082,157 |
| |
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . | 40,175 |
| 424,147 | 24,039 |
| 271,249 |
| |
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (380,612) |
| (4,004,942) | (322,157) |
| (3,625,580) |
| |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 165,535 | $ | 1,770,118 | 63,953 | $ | 727,826 |
| |
Advisor Class Shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Year ended February 29, 2020 |
|
|
|
|
|
|
|
|
Shares sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,340,408 | $ | 47,470,120 | 3,011,612 | $ | 34,907,451 |
| |
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . | 252,359 |
| 2,762,201 | 266,337 |
| 3,102,143 |
| |
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (2,004,683) |
| (21,884,878) | (1,762,527) |
| (20,462,529) |
| |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,588,084 | $ | 28,347,443 | 1,515,422 | $ | 17,547,065 |
| |
Year ended February 28, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Shares sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,829,181 | $ | 40,445,495 | 4,014,901 | $ | 45,293,847 |
| |
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . | 240,787 |
| 2,543,068 | 248,832 |
| 2,806,022 |
| |
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (3,746,746) |
| (39,528,955) | (3,068,980) |
| (34,536,361) |
| |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 323,222 | $ | 3,459,608 | 1,194,753 | $ | 13,563,508 |
| |
|
|
|
|
|
|
|
|
|
aMay include a portion of Class C shares that were automatically converted to Class A. |
|
|
|
|
|
|
|
|
bFor the period September 10, 2018 (effective date) to February 28, 2019. |
|
|
|
|
|
|
|
|
|
| Franklin Connecticut | Franklin Michigan |
| ||||
|
| Tax-Free Income Fund | Tax-Free Income Fund |
| ||||
|
|
|
|
|
|
|
|
|
|
| Shares |
| Amount | Shares |
| Amount |
|
|
|
|
|
|
|
|
|
|
Class A Shares: |
|
|
|
|
|
|
|
|
Year ended February 29, 2020 |
|
|
|
|
|
|
|
|
Shares solda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 964,186 | $ | 9,818,136 | 3,802,213 | $ | 44,425,894 |
| |
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . . | 48,283 |
| 493,122 | 103,843 |
| 1,217,159 |
| |
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (295,523) |
| (3,005,484) | (675,810) |
| (7,893,604) |
| |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 716,946 | $ | 7,305,774 | 3,230,246 | $ | 37,749,449 |
| |
Year ended February 28, 2019b |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Shares solda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,469,597 | $ | 14,583,725 | 3,137,898 | $ | 34,745,452 |
| |
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . . | 12,561 |
| 125,691 | 26,019 |
| 292,010 |
| |
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (113,114) |
| (1,127,276) | (181,817) |
| (2,032,297) |
| |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,369,044 | $ | 13,582,140 | 2,982,100 | $ | 33,005,165 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
156 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
NOTE S TO FINANCIA L STAT EMEN TS
| Franklin Connecticut | Franklin Michigan | |||||
| Tax-Free Income Fund | Tax-Free Income Fund |
| ||||
| Shares |
| Amount | Shares |
| Amount | |
|
|
|
|
|
|
|
|
Class A1 Shares: |
|
|
|
|
|
|
|
Year ended February 29, 2020 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 458,551 | $ | 4,686,045 | 1,425,069 | $ | 16,611,056 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . . | 387,962 |
| 3,954,452 | 1,503,126 |
| 17,552,461 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (2,329,545) |
| (23,715,844) | (6,440,823) |
| (75,020,883) |
|
|
|
|
|
|
|
| |
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (1,483,032) | $(15,075,347) | (3,512,628) | $ | (40,857,366) |
| |
|
|
|
|
|
|
|
|
Year ended February 28, 2019 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 531,115 | $ | 5,333,216 | 2,769,668 | $ | 31,077,729 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . . | 448,667 |
| 4,497,294 | 1,790,868 |
| 20,078,461 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (3,643,781) |
| (36,466,134) | (11,096,040) |
| (124,284,711) |
|
|
|
|
|
|
|
| |
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (2,663,999) | $(26,635,624) | (6,535,504) | $ | (73,128,521) |
| |
|
|
|
|
|
|
|
|
Class C Shares: |
|
|
|
|
|
|
|
Year ended February 29, 2020 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 342,083 | $ | 3,512,841 | 1,164,245 | $ | 13,797,257 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . . | 53,928 |
| 554,120 | 130,094 |
| 1,543,501 |
|
Shares redeemeda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (1,019,257) |
| (10,468,529) | (1,852,423) |
| (21,869,385) |
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (623,246) | $ | (6,401,568) | (558,084) | $ | (6,528,627) | |
|
|
|
|
|
|
|
|
Year ended February 28, 2019 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 143,338 | $ | 1,448,470 | 474,235 | $ | 5,393,713 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . . | 84,763 |
| 856,959 | 207,285 |
| 2,361,278 |
|
Shares redeemeda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (2,098,797) |
| (21,057,656) | (4,620,726) |
| (52,181,852) |
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (1,870,696) | $(18,752,227) | (3,939,206) | $ | (44,426,861) |
| |
|
|
|
|
|
|
|
|
Class R6 Shares: |
|
|
|
|
|
|
|
Year ended February 29, 2020 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 13,754 | $ | 139,500 | 91,345 | $ | 1,068,364 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . . | 797 |
| 8,135 | 8,759 |
| 102,820 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (356) |
| (3,628) | (23,957) |
| (281,383) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 14,195 | $ | 144,007 | 76,147 | $ | 889,801 |
|
|
|
|
|
|
|
|
|
Year ended February 28, 2019 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,018 | $ | 50,330 | 128,314 | $ | 1,444,867 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . . | 675 |
| 6,772 | 7,947 |
| 89,421 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (23,189) |
| (232,280) | (90,502) |
| (1,017,404) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (17,496) | $ | (175,178) | 45,759 | $ | 516,884 |
|
|
|
|
|
|
|
|
|
franklintempleton.com | Annual Report | 157 |
F R A N K L IN TAX - FREE TRUS T
NOTE S TO FINANCIA L STATEMEN T S
2. Shares of Beneficial Interest (continued)
|
|
| Franklin Connecticut | Franklin Michigan |
| ||||
|
|
| Tax-Free Income Fund | Tax-Free Income Fund |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Amount | Shares |
| Amount |
|
|
|
|
|
|
|
|
|
|
|
Advisor Class Shares: |
|
|
|
|
|
|
|
| |
Year ended February 29, 2020 |
|
|
|
|
|
|
|
| |
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 613,321 | $ | 6,243,181 | 1,964,333 | $ | 23,027,381 |
| ||
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . . | 48,272 |
| 491,979 | 157,109 |
| 1,842,365 |
| ||
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (658,670) |
| (6,686,477) | (1,082,628) |
| (12,665,691) |
| ||
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,923 | $ | 48,683 | 1,038,814 | $ | 12,204,055 |
| ||
Year ended February 28, 2019 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| ||
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 492,895 | $ | 4,935,038 | 2,616,170 | $ | 29,445,369 |
| ||
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . . . | 47,013 |
| 470,872 | 140,906 |
| 1,584,501 |
| ||
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (681,706) |
| (6,835,326) | (1,932,151) |
| (21,707,583) |
| ||
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (141,798) | $ | (1,429,416) | 824,925 | $ | 9,322,287 |
| ||
aMay include a portion of Class C shares that were automatically converted to Class A. |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| ||
bFor the period September 10, 2018 (effective date) to February 28, 2019. |
|
|
|
|
|
|
|
| |
|
|
| Franklin Minnesota | Franklin Ohio |
| ||||
|
|
| Tax-Free Income Fund | Tax-Free Income Fund |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| Shares |
| Amount | Shares |
| Amount |
|
|
|
|
|
|
|
|
|
|
|
Class A Shares: |
|
|
|
|
|
|
|
| |
Year ended February 29, 2020 |
|
|
|
|
|
|
|
| |
Shares solda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,814,682 | $ | 60,031,592 | 6,795,833 | $ | 87,458,472 |
| ||
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 118,094 |
| 1,477,000 | 223,324 |
| 2,880,621 |
| ||
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (617,078) |
| (7,706,110) | (902,512) |
| (11,625,922) |
| ||
|
|
|
|
|
|
|
|
| |
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,315,698 | $ | 53,802,482 | 6,116,645 | $ | 78,713,171 |
| ||
|
|
|
|
|
|
|
|
|
|
Year ended February 28, 2019b |
|
|
|
|
|
|
|
| |
Shares solda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,471,174 | $ | 41,193,528 | 6,230,489 | $ | 76,399,134 |
| ||
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 25,165 |
| 302,349 | 50,280 |
| 624,333 |
| ||
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (261,316) |
| (3,123,336) | (267,394) |
| (3,309,694) |
| ||
|
|
|
|
|
|
|
|
| |
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,235,023 | $ | 38,372,541 | 6,013,375 | $ | 73,713,773 |
| ||
|
|
|
|
|
|
|
|
|
|
Class A1 Shares: |
|
|
|
|
|
|
|
| |
Year ended February 29, 2020 |
|
|
|
|
|
|
|
| |
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,284,425 | $ | 40,947,538 | 3,810,729 | $ | 48,907,076 |
| ||
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 1,093,377 |
| 13,639,953 | 2,014,709 |
| 25,922,089 |
| ||
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (5,753,414) |
| (71,669,397) | (9,256,382) |
| (118,807,660) |
| ||
|
|
|
|
|
|
|
|
| |
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (1,375,612) | $ | (17,081,906) | (3,430,944) | $ | (43,978,495) |
| ||
|
|
|
|
|
|
|
|
|
|
Year ended February 28, 2019 |
|
|
|
|
|
|
|
| |
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,257,294 | $ | 51,180,666 | 4,312,003 | $ | 53,510,875 |
| ||
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 1,361,470 |
| 16,351,081 | 2,321,383 |
| 28,795,138 |
| ||
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (11,384,714) | (136,593,368) | (15,201,731) |
| (188,374,607) |
| |||
|
|
|
|
|
|
|
| ||
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (5,765,950) | $ | (69,061,621) | (8,568,345) | $(106,068,594) |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
158 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
NOTE S TO FINANCIA L STAT EMEN TS
| Franklin Minnesota | Franklin Ohio |
| ||||
| Tax-Free Income Fund | Tax-Free Income Fund |
| ||||
| Shares |
| Amount | Shares |
| Amount |
|
|
|
|
|
|
|
|
|
Class C Shares: |
|
|
|
|
|
|
|
Year ended February 29, 2020 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,601,343 | $ | 20,199,230 | 2,283,887 | $ | 29,786,736 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 223,164 |
| 2,815,070 | 350,621 |
| 4,572,885 |
|
Shares redeemeda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (3,270,276) |
| (41,185,117) | (4,420,520) |
| (57,526,791) |
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (1,445,769) | $ | (18,170,817) | (1,786,012) | $ | (23,167,170) |
|
|
|
|
|
|
|
|
|
Year ended February 28, 2019 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 832,569 | $ | 10,099,531 | 1,324,282 | $ | 16,661,477 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 330,463 |
| 4,015,048 | 492,550 |
| 6,194,895 |
|
Shares redeemeda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (5,748,166) |
| (69,379,878) | (9,226,881) |
| (115,077,919) |
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (4,585,134) | $ | (55,265,299) | (7,410,049) | $ | (92,221,547) |
|
|
|
|
|
|
|
|
|
Class R6 Shares: |
|
|
|
|
|
|
|
Year ended February 29, 2020 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 249,218 | $ | 3,107,945 | 349,829 | $ | 4,505,283 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 17,467 |
| 218,452 | 18,974 |
| 244,769 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (104,207) |
| (1,299,760) | (118,977) |
| (1,530,717) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 162,478 | $ | 2,026,637 | 249,826 | $ | 3,219,335 |
|
|
|
|
|
|
|
|
|
Year ended February 28, 2019 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 235,655 | $ | 2,831,307 | 178,486 | $ | 2,214,776 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 18,564 |
| 223,299 | 18,163 |
| 225,608 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (351,834) |
| (4,206,971) | (270,522) |
| (3,350,299) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (97,615) | $ | (1,152,365) | (73,873) | $ | (909,915) |
|
|
|
|
|
|
|
|
|
Advisor Class Shares: |
|
|
|
|
|
|
|
Year ended February 29, 2020 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,918,231 | $ | 61,263,780 | 5,774,953 | $ | 74,297,443 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 375,123 |
| 4,689,137 | 443,356 |
| 5,715,066 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (2,399,236) |
| (29,861,987) | (2,108,985) |
| (27,177,705) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,894,118 | $ | 36,090,930 | 4,109,324 | $ | 52,834,804 |
|
|
|
|
|
|
|
|
|
Year ended February 28, 2019 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,456,943 | $ | 77,601,949 | 4,944,933 | $ | 61,429,440 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 403,743 |
| 4,855,002 | 411,754 |
| 5,113,342 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (7,175,645) |
| (86,052,243) | (4,660,022) |
| (57,611,200) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (314,959) | $ | (3,595,292) | 696,665 | $ | 8,931,582 |
|
|
|
|
|
|
|
|
|
aMay include a portion of Class C shares that were automatically converted to Class A. bFor the period September 10, 2018 (effective date) to February 28, 2019.
franklintempleton.com | Annual Report | 159 |
F R A N K L IN TAX - FREE TRUS T
NOTE S TO FINANCIA L STATEMEN T S
2. Shares of Beneficial Interest (continued)
| Franklin Oregon | Franklin Pennsylvania |
| ||||
| Tax-Free Income Fund | Tax-Free Income Fund |
| ||||
| Shares |
| Amount | Shares |
| Amount |
|
|
|
|
|
|
|
|
|
Class A Shares: |
|
|
|
|
|
|
|
Year ended February 29, 2020 |
|
|
|
|
|
|
|
Shares solda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,821,390 | $ | 102,920,549 | 6,286,755 | $ | 62,389,689 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 233,418 |
| 2,732,041 | 217,848 |
| 2,166,093 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (970,175) |
| (11,335,108) | (1,526,218) |
| (15,150,279) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8,084,633 | $ | 94,317,482 | 4,978,385 | $ | 49,405,503 |
|
|
|
|
|
|
|
|
|
Year ended February 28, 2019b |
|
|
|
|
|
|
|
Shares solda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,753,366 | $ | 64,683,035 | 5,891,427 | $ | 56,882,555 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 37,994 |
| 429,968 | 53,243 |
| 516,433 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (325,901) |
| (3,669,815) | (534,008) |
| (5,173,048) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,465,459 | $ | 61,443,188 | 5,410,662 | $ | 52,225,940 |
|
|
|
|
|
|
|
|
|
Class A1 Shares: |
|
|
|
|
|
|
|
Year ended February 29, 2020 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,647,678 | $ | 54,057,915 | 3,607,852 | $ | 35,709,420 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 1,910,051 |
| 22,277,059 | 2,266,052 |
| 22,499,914 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (8,539,624) |
| (99,420,382) | (10,029,133) |
| (99,455,315) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (1,981,895) | $ | (23,085,408) | (4,155,229) | $ | (41,245,981) |
|
|
|
|
|
|
|
|
|
Year ended February 28, 2019 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6,416,083 | $ | 72,723,407 | 3,612,877 | $ | 35,176,931 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 2,309,492 |
| 26,124,703 | 2,755,522 |
| 26,821,492 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (16,549,910) |
| (186,770,767) | (13,759,505) |
| (133,772,138) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (7,824,335) | $ | (87,922,657) | (7,391,106) | $ | (71,773,715) |
|
|
|
|
|
|
|
|
|
Class C Shares: |
|
|
|
|
|
|
|
Year ended February 29, 2020 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,432,978 | $ | 28,811,943 | 1,387,673 | $ | 13,946,172 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 236,076 |
| 2,796,966 | 387,768 |
| 3,900,703 |
|
Shares redeemeda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (3,279,068) |
| (38,789,413) | (5,081,672) |
| (51,065,829) |
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (610,014) | $ | (7,180,504) | (3,306,231) | $ | (33,218,954) |
|
|
|
|
|
|
|
|
|
Year ended February 28, 2019 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,148,936 | $ | 13,197,361 | 996,605 | $ | 9,824,819 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 332,784 |
| 3,824,278 | 596,346 |
| 5,881,592 |
|
Shares redeemeda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (5,538,841) |
| (63,274,066) | (8,804,115) |
| (86,437,137) |
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (4,057,121) | $ | (46,252,427) | (7,211,164) | $ | (70,730,726) |
|
|
|
|
|
|
|
|
|
|
|
|
|
160 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
NOTE S TO FINANCIA L STAT EMEN TS
| Franklin Oregon | Franklin Pennsylvania |
| ||||
| Tax-Free Income Fund | Tax-Free Income Fund |
| ||||
| Shares |
| Amount | Shares |
| Amount |
|
|
|
|
|
|
|
|
|
Class R6 Shares: |
|
|
|
|
|
|
|
Year ended February 29, 2020 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 605,625 | $ | 7,056,533 | 87,172 | $ | 868,055 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 40,739 |
| 476,076 | 8,047 |
| 80,076 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (165,899) |
| (1,936,635) | (42,431) |
| (420,735) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 480,465 | $ | 5,595,974 | 52,788 | $ | 527,396 |
|
|
|
|
|
|
|
|
|
Year ended February 28, 2019 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 372,489 | $ | 4,215,235 | 117,921 | $ | 1,147,509 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 38,301 |
| 433,533 | 7,394 |
| 72,060 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (401,706) |
| (4,533,992) | (103,978) |
| (1,010,329) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,084 | $ | 114,776 | 21,337 | $ | 209,240 |
|
|
|
|
|
|
|
|
|
Advisor Class Shares: |
|
|
|
|
|
|
|
Year ended February 29, 2020 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4,166,300 | $ | 48,624,793 | 3,336,834 | $ | 33,139,613 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 288,112 |
| 3,367,698 | 264,571 |
| 2,632,196 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (1,807,421) |
| (21,060,384) | (2,271,911) |
| (22,558,548) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,646,991 | $ | 30,932,107 | 1,329,494 | $ | 13,213,261 |
|
|
|
|
|
|
|
|
|
Year ended February 28, 2019 |
|
|
|
|
|
|
|
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,810,933 | $ | 43,123,387 | 2,850,152 | $ | 27,725,166 |
|
Shares issued in reinvestment of distributions . . . . . . . . . . . . . . . . | 276,318 |
| 3,129,499 | 261,971 |
| 2,553,175 |
|
Shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (3,555,074) |
| (40,176,916) | (2,820,400) |
| (27,464,769) |
|
|
|
|
|
|
|
|
|
Net increase (decrease) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 532,177 | $ | 6,075,970 | 291,723 | $ | 2,813,572 |
|
|
|
|
|
|
|
|
|
aMay include a portion of Class C shares that were automatically converted to Class A. bFor the period September 10, 2018 (effective date) to February 28, 2019.
3. Transactions with Affiliates
Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Trust are also officers and/or directors of the following subsidiaries:
Subsidiary | Affiliation |
|
|
Franklin Advisers, Inc. (Advisers) | Investment manager |
|
|
Franklin Templeton Services, LLC (FT Services) | Administrative manager |
|
|
Franklin Templeton Distributors, Inc. (Distributors) | Principal underwriter |
|
|
Franklin Templeton Investor Services, LLC (Investor Services) | Transfer agent |
|
|
franklintempleton.com | Annual Report | 161 |
F R A N K L IN TAX - FREE TRUS T
NOTE S TO FINANCIA L STATEMEN T S
3. Transactions with Affiliates (continued)
a. Management Fees
The Funds pay an investment management fee to Advisers based on the month-end net assets of each of the Funds as follows:
Annualized Fee Rate | Net Assets |
|
|
0.625% | Up to and including $100 million |
|
|
0.500% | Over $100 million, up to and including $250 million |
|
|
0.450% | Over $250 million, up to and including $7.5 billion |
|
|
0.440% | Over $7.5 billion, up to and including $10 billion |
|
|
0.430% | Over $10 billion, up to and including $12.5 billion |
|
|
0.420% | Over $12.5 billion, up to and including $15 billion |
|
|
0.400% | Over $15 billion, up to and including $17.5 billion |
|
|
0.380% | Over $17.5 billion, up to and including $20 billion |
|
|
0.360% | In excess of $20 billion |
|
|
For the year ended February 29, 2020, each Fund's gross effective investment management fee rate based on average daily net assets was as follows:
Franklin | Franklin | Franklin | Franklin | |
Arizona | Colorado | Connecticut | Michigan | |
Tax-Free | Tax-Free | Tax-Free | Tax-Free | |
Income Fund | Income Fund | Income Fund | Income Fund | |
|
|
|
|
|
0.479% | 0.488% | 0.557% | 0.478% |
|
Franklin | Franklin | Franklin | Franklin | |
Minnesota | Ohio | Oregon | Pennsylvania | |
Tax-Free | Tax-Free | Tax-Free | Tax-Free | |
Income Fund | Income Fund | Income Fund | Income Fund | |
|
|
|
|
|
0.477% | 0.468% | 0.473% | 0.473% |
|
b. Administrative Fees
Under an agreement with Advisers, FT Services provides administrative services to the Funds. The fee is paid by Advisers based on each of the Funds' average daily net assets, and is not an additional expense of the Funds.
c. Distribution Fees
The Board has adopted distribution plans for each share class, with the exception of Class R6 and Advisor Class shares, pursuant to Rule 12b-1 under the 1940 Act. Under the Funds' Class A and A1 reimbursement distribution plans, the Funds reimburse Distributors for costs incurred in connection with the servicing, sale and distribution of each Fund's shares up to the maximum annual plan rate for each class. Under the Class A and A1 reimbursement distribution plans, costs exceeding the maximum for the current plan year cannot be reimbursed in subsequent periods. In addition, under the Funds' Class C compensation distribution plans, the Funds pay Distributors for costs incurred in connection with the servicing, sale and distribution of each Fund's shares up to the maximum annual plan rate. The plan year, for purposes of monitoring compliance with the maximum annual plan rates, is February 1 through January 31 for each Fund.
|
|
|
|
162 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
NOTE S TO FINANCIA L STAT EMEN TS
The maximum annual plan rates, based on the average daily net assets, for each class, are as follows:
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 0.25% |
Class A1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 0.10% |
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 0.65% |
d. Sales Charges/Underwriting Agreements
Front-end sales charges and contingent deferred sales charges (CDSC) do not represent expenses of the Funds. These charges are deducted from the proceeds of sales of fund shares prior to investment or from redemption proceeds prior to remittance, as applicable. Distributors has advised the Funds of the following commission transactions related to the sales and redemptions of the Funds' shares for the year:
| Franklin | Franklin | Franklin | Franklin |
| Arizona | Colorado | Connecticut | Michigan |
| Tax-Free | Tax-Free | Tax-Free | Tax-Free |
| Income Fund | Income Fund | Income Fund | Income Fund |
|
|
|
|
|
Sales charges retained net of commissions paid to |
|
|
|
|
unaffiliated brokers/dealers . . . . . . . . . . . . . . . . . . . | $36,802 | $30,984 | $4,093 | $24,549 |
CDSC retained . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $20,523 | $ 5,304 | $ (127) | $13,516 |
| Franklin | Franklin | Franklin | Franklin |
| Minnesota | Ohio | Oregon | Pennsylvania |
| Tax-Free | Tax-Free | Tax-Free | Tax-Free |
| Income Fund | Income Fund | Income Fund | Income Fund |
|
|
|
|
|
Sales charges retained net of commissions paid to |
|
|
|
|
unaffiliated brokers/dealers . . . . . . . . . . . . . . . . . . . | $35,789 | $62,399 | $60,358 | $37,891 |
CDSC retained . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 9,747 | $22,919 | $ 1,573 | $ 8,804 |
Effective March 1, 2019, certain front-end sales charges on Class A and A1 shares were lowered. Further details are disclosed in the Funds' Prospectus.
e. Transfer Agent Fees
Each class of shares pays transfer agent fees to Investor Services for its performance of shareholder servicing obligations. The fees are based on an annualized asset based fee of 0.02% plus a transaction based fee. In addition, each class reimburses Investor Services for out of pocket expenses incurred and, except for Class R6, reimburses shareholder servicing fees paid to third parties. These fees are allocated daily based upon their relative proportion of such classes' aggregate net assets. Class R6 pays Investor Services transfer agent fees specific to that class.
For the year ended February 29, 2020, the Funds paid transfer agent fees as noted in the Statements of Operations of which the following amounts were retained by Investor Services:
| Franklin | Franklin | Franklin | Franklin |
| Arizona | Colorado | Connecticut | Michigan |
| Tax-Free | Tax-Free | Tax-Free | Tax-Free |
| Income Fund | Income Fund | Income Fund | Income Fund |
|
|
|
|
|
Transfer agent fees . . . . . . . . . . . . . . . . . . . . . . . . . . | $270,672 | $211,657 | $79,169 | $340,910 |
franklintempleton.com | Annual Report | 163 |
F R A N K L IN TAX - FREE TRUS T
NOTE S TO FINANCIA L STATEMEN T S
3. Transactions with Affiliates (continued) e. Transfer Agent Fees (continued)
| Franklin | Franklin | Franklin | Franklin |
| Minnesota | Ohio | Oregon | Pennsylvania |
| Tax-Free | Tax-Free | Tax-Free | Tax-Free |
| Income Fund | Income Fund | Income Fund | Income Fund |
|
|
|
|
|
Transfer agent fees . . . . . . . . . . . . . . . . . . . . . . . . . . | $321,609 | $463,196 | $346,650 | $384,278 |
f. Waiver and Expense Reimbursements |
|
|
|
|
Investor Services has contractually agreed in advance to waive or limit its fees so that the Class R6 transfer agent fees do not exceed 0.03% based on the average net assets of the class until June 30, 2020.
Prior to July 1, 2019, for Franklin Arizona Tax-Free Income Fund, Investor Services had voluntarily agreed in advance to waive or limit its fees so that the Class R6 transfer agent fees did not exceed 0.03% based on the average net assets of the class.
g. Interfund Transactions
Certain or all Funds engaged in purchases and sales of investments with funds or other accounts that have common investment managers (or affiliated investment managers), directors, trustees or officers. These purchases and sales for the year ended February 29, 2020, were as follows:
| Franklin | Franklin | Franklin | Franklin |
| Arizona | Colorado | Connecticut | Michigan |
| Tax-Free | Tax-Free | Tax-Free | Tax-Free |
| Income Fund | Income Fund | Income Fund | Income Fund |
|
|
|
|
|
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $53,925,000 | $71,820,000 | $1,300,000 | $30,610,000 |
Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $25,700,000 | $65,105,000 | $7,100,000 | $ 9,000,000 |
| Franklin | Franklin | Franklin | Franklin |
| Minnesota | Ohio | Oregon | Pennsylvania |
| Tax-Free | Tax-Free | Tax-Free | Tax-Free |
| Income Fund | Income Fund | Income Fund | Income Fund |
|
|
|
|
|
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $50,900,000 | $37,185,000 | $118,985,000 | $101,805,000 |
Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $43,400,000 | $32,000,000 | $178,565,000 | $ 61,825,000 |
4. Expense Offset Arrangement
The Funds have entered into an arrangement with their custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds' custodian expenses. During the year ended February 29, 2020, the custodian fees were reduced as noted in the Statements of Operations.
5. Income Taxes
For tax purposes, capital losses may be carried over to offset future capital gains.
|
|
|
|
164 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
NOTE S TO FINANCIA L STAT EMEN TS
At February 29, 2020, the capital loss carryforwards were as follows:
|
| Franklin | Franklin | Franklin | Franklin |
|
| Arizona | Colorado | Connecticut | Michigan |
|
| Tax-Free | Tax-Free | Tax-Free | Tax-Free |
|
| Income Fund | Income Fund | Income Fund | Income Fund |
|
|
|
|
|
|
Capital loss carryforwards not subject to expiration: |
|
|
|
| |
Short term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $14,068,474 | $15,324,045 | $ 7,217,969 | $12,135,309 | |
Long term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 45,070,093 | 32,054,981 | 28,184,198 | 56,793,692 | |
|
|
|
|
|
|
Total capital loss carryforwards . . . . . . . . . . . . . . . . | $59,138,567 | $47,379,026 | $35,402,167 | $68,929,001 | |
|
|
|
|
|
|
|
| Franklin | Franklin | Franklin | Franklin |
|
| Minnesota | Ohio | Oregon | Pennsylvania |
|
| Tax-Free | Tax-Free | Tax-Free | Tax-Free |
|
| Income Fund | Income Fund | Income Fund | Income Fund |
|
|
|
|
|
|
Capital loss carryforwards not subject to expiration: |
|
|
|
| |
Short term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 8,015,698 | $18,712,526 | $18,913,644 | $12,586,107 | |
Long term . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,525,891 | 15,808,552 | 53,704,100 | 79,281,529 | |
|
|
|
|
|
|
Total capital loss carryforwards . . . . . . . . . . . . . . . . | $10,541,589 | $34,521,078 | $72,617,744 | $91,867,636 | |
|
|
|
|
|
|
During the year ended February 29, 2020, the following Funds utilized capital loss carryforwards as follows:
Franklin | Franklin | Franklin | Franklin |
Michigan | Minnesota | Ohio | Oregon |
Tax-Free | Tax-Free | Tax-Free | Tax-Free |
Income Fund | Income Fund | Income Fund | Income Fund |
|
|
|
|
$271,762 | $242,219 | $614,214 | $1,507,875 |
The tax character of distributions paid during the years ended February 29, 2020 and 2019, was as follows:
| Franklin Arizona | Franklin Colorado | Franklin Connecticut |
| ||||
| Tax-Free Income Fund | Tax-Free Income Fund | Tax-Free Income Fund | |||||
|
|
|
|
|
|
|
| |
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 |
| |
|
|
|
|
|
|
|
|
|
Distributions paid from tax exempt |
|
|
|
|
|
|
|
|
income . . . . . . . . . . . . . . . . . . . . . . | $27,671,797 | $29,508,125 | $20,896,047 | $22,213,161 | $ 6,729,135 | $ 7,407,401 | ||
| Franklin Michigan | Franklin Minnesota | Franklin Ohio |
| ||||
| Tax-Free Income Fund | Tax-Free Income Fund | Tax-Free Income Fund | |||||
|
|
|
|
|
|
|
| |
| 2020 | 2019 | 2020 | 2019 | 2020 | 2019 |
| |
|
|
|
|
|
|
|
|
|
Distributions paid from tax exempt |
|
|
|
|
|
|
|
|
income . . . . . . . . . . . . . . . . . . . . . . | $25,470,834 | $28,110,709 | $24,989,990 | $28,114,736 | $42,757,319 | $44,645,027 | ||
| Franklin Oregon | Franklin Pennsylvania |
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| Tax-Free Income Fund | Tax-Free Income Fund |
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| 2020 | 2019 | 2020 | 2019 |
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Distributions paid from tax exempt |
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income . . . . . . . . . . . . . . . . . . . . . . | $33,908,804 | $36,642,309 | $34,790,981 | $39,955,101 |
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franklintempleton.com |
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| Annual Report |
| 165 |
F R A N K L IN TAX - FREE TRUS T
NOTE S TO FINANCIA L STATEMEN T S
5. Income Taxes (continued)
At February 29, 2020, the cost of investments, net unrealized appreciation (depreciation) and undistributed tax exempt income for income tax purposes were as follows:
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| Franklin |
| Franklin |
| Franklin |
| Franklin |
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| Arizona |
| Colorado | Connecticut |
| Michigan |
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| Tax-Free |
| Tax-Free |
| Tax-Free |
| Tax-Free |
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| Income Fund | Income Fund | Income Fund | Income Fund |
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Cost of investments . . . . . . . . . . . . . . . . . . . . . . . . . | $928,228,595 | $692,757,376 | $196,981,389 | $873,215,999 |
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Unrealized appreciation . . . . . . . . . . . . . . . . . . . . . . | $ | 90,783,096 | $ | 61,381,203 | $ | 14,076,587 | $ | 84,936,941 |
| |
Unrealized depreciation . . . . . . . . . . . . . . . . . . . . . . |
|
| (241,340) |
| — |
| — |
| (87,920) |
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Net unrealized appreciation (depreciation) . . . . . . . . . | $ | 90,541,756 | $ | 61,381,203 | $ | 14,076,587 | $ | 84,849,021 |
| |
Distributable earnings: |
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Undistributed tax exempt income . . . . . . . . . . . . . . . . | $ | 324,013 | $ | 617,412 | $ | 124,635 | $ | 446,895 |
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| Franklin |
| Franklin |
| Franklin |
| Franklin |
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| Minnesota |
| Ohio |
| Oregon | Pennsylvania |
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| Tax-Free |
| Tax-Free |
| Tax-Free |
| Tax-Free |
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| Income Fund | Income Fund | Income Fund | Income Fund |
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Cost of investments . . . . . . . . . . . . . . . . . . . . . . . . . | $969,643,521 | $1,479,131,982 | $1,209,678,195 | $1,050,133,102 |
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Unrealized appreciation . . . . . . . . . . . . . . . . . . . . . . | $ | 80,431,300 | $ | 134,217,600 | $ | 104,924,779 | $ | 70,956,551 |
| |
Unrealized depreciation . . . . . . . . . . . . . . . . . . . . . . |
|
| — |
| — |
| (2,435,472) |
| (2,545,060) |
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Net unrealized appreciation (depreciation) . . . . . . . . . | $ | 80,431,300 | $ | 134,217,600 | $ | 102,489,307 | $ | 68,411,491 |
| |
Distributable earnings: |
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Undistributed tax exempt income . . . . . . . . . . . . . . . . | $ | 191,270 | $ | 538,386 | $ | 694,427 | $ | 1,570,995 |
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Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of bond discounts, defaulted securities, non-deductible expenses and workout costs.
6. Investment Transactions
Purchases and sales of investments (excluding short term securities) for the year ended February 29, 2020, were as follows:
| Franklin | Franklin | Franklin | Franklin |
| Arizona | Colorado | Connecticut | Michigan |
| Tax-Free | Tax-Free | Tax-Free | Tax-Free |
| Income Fund | Income Fund | Income Fund | Income Fund |
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|
|
|
|
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $203,660,944 | $143,316,711 | $24,676,069 | $46,050,244 |
Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $106,655,692 | $103,284,225 | $38,456,114 | $37,053,585 |
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166 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
NOTE S TO FINANCIA L STAT EMEN TS
| Franklin |
| Franklin | Franklin | Franklin |
| Minnesota |
| Ohio | Oregon | Pennsylvania |
| Tax-Free |
| Tax-Free | Tax-Free | Tax-Free |
| Income Fund | Income Fund | Income Fund | Income Fund | |
|
|
|
|
| |
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $206,571,541 | $123,044,126 | $310,955,494 | $146,497,543 | |
Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $161,819,501 | $ | 68,665,320 | $183,895,394 | $192,234,091 |
7. Defaulted Securities
Certain or all Funds held defaulted securities and/or other securities for which the income has been deemed uncollectible. At February 29, 2020, the aggregate value of these securities for Franklin Oregon Tax-Free Income Fund and Franklin Pennsylvania Tax-Free Income Fund was $7,764,112 and $8,012,500, representing 0.6% and 0.7%, respectively, of each Fund's net assets. The Funds discontinue accruing income on securities for which income has been deemed uncollectible and provide an estimate for losses on interest receivable. The securities have been identified in the accompanying Statements of Investments.
8. Concentration of Risk
Certain or all Funds invest a large percentage of their total assets in obligations of issuers within their respective state and U.S. territories. Such concentration may subject the Funds to risks associated with industrial or regional matters, and economic, political or legal developments occurring within those states and U.S. territories. Investing in Puerto Rico securities may expose the Funds to heightened risks due to recent adverse economic and market changes, credit downgrades and ongoing restructuring discussions. In addition, investments in these securities are sensitive to interest rate changes and credit risk of the issuer and may subject the Funds to increased market volatility. The market for these investments may be limited, which may make them difficult to buy or sell.
9. Credit Facility
The Funds, together with other U.S. registered and foreign investment funds (collectively, Borrowers), managed by Franklin Templeton, are borrowers in a joint syndicated senior unsecured credit facility totaling $2 billion (Global Credit Facility) which matures on February 5, 2021. This Global Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests.
Under the terms of the Global Credit Facility, the Funds shall, in addition to interest charged on any borrowings made by the Funds and other costs incurred by the Funds, pay their share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon its relative share of the aggregate net assets of all of the Borrowers, including an annual commitment fee of 0.15% based upon the unused portion of the Global Credit Facility. These fees are reflected in other expenses in the Statements of Operations. During the year ended February 29, 2020, the Funds did not use the Global Credit Facility.
10. Fair Value Measurements
The Funds follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Funds' own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds' financial instruments and are summarized in the following fair value hierarchy:
•Level 1 – quoted prices in active markets for identical financial instruments
franklintempleton.com | Annual Report | 167 |
F R A N K L IN TAX - FREE TRUS T
NOTE S TO FINANCIA L STATEMEN T S
10.Fair Value Measurements (continued)
•Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)
•Level 3 – significant unobservable inputs (including the Funds' own assumptions in determining the fair value of financial instruments)
The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.
At February 29, 2020, all of the Funds' investments in financial instruments carried at fair value were valued using Level 2 inputs. For detailed categories, see the accompanying Statements of Investments.
11. Subsequent Events
The Funds have evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure, except for the following:
Subsequent to February 29, 2020, there has been a global outbreak of a novel coronavirus disease (COVID-19), which the World Health Organization has declared a pandemic. Unexpected events like COVID-19 can cause adverse effects on many companies, sectors, nations, regions and the market in general, in ways that cannot be foreseen. The effects of this pandemic may materially impact the value and performance of the Funds, their ability to buy and sell fund investments at appropriate valuations and their ability to achieve their investment objectives.
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168 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUS T
NOTE S TO FINANCIA L STAT EMEN TS
Abbreviations
Selected Portfolio
AGMC | Assured Guaranty Municipal Corp. |
AMBAC | American Municipal Bond Assurance Corp. |
BAM | Build America Mutual Assurance Co. |
CDA | Community Development Authority/Agency |
COP | Certificate of Participation |
CSD | Central School District |
EDA | Economic Development Authority |
EDR | Economic Development Revenue |
ETM | Escrow to Maturity |
FHA | Federal Housing Authority/Agency |
GNMA | Government National Mortgage Association |
GO | General Obligation |
HFA | Housing Finance Authority/Agency |
HFAR | Housing Finance Authority Revenue |
ID | Improvement District |
IDA | Industrial Development Authority/Agency |
IDAR | Industrial Development Authority Revenue |
IDR | Industrial Development Revenue |
ISD | Independent School District |
LOC | Letter of Credit |
MAC | Municipal Assurance Corp. |
MBS | Mortgage-Backed Security |
MF | Multi-Family |
MFHR | Multi-Family Housing Revenue |
NATL | National Public Financial |
PCC | Pollution Control Corp. |
PCR | Pollution Control Revenue |
RDA | Redevelopment Agency/ |
SFM | Single Family Mortgage |
SFMR | Single Family Mortgage |
SPA | Standby Purchase Agreement |
USD | Unified/Union School District |
XLCA | XL Capital Assurance |
franklintempleton.com | Annual Report | 169 |
F R A N K L IN TAX - FREE TRUS T
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Franklin Tax-Free Trust and Shareholders of Franklin Arizona Tax-Free Income Fund, Franklin Colorado Tax-Free Income Fund, Franklin Connecticut Tax-Free Income Fund, Franklin Michigan Tax-Free Income Fund, Franklin Minnesota Tax-Free Income Fund, Franklin Ohio Tax-Free Income Fund, Franklin Oregon Tax-Free Income Fund and Franklin Pennsylvania Tax-Free Income Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Franklin Arizona Tax-Free Income Fund, Franklin Colorado Tax-Free Income Fund, Franklin Connecticut Tax-Free Income Fund, Franklin Michigan Tax-Free Income Fund, Franklin Minnesota Tax-Free Income Fund, Franklin Ohio Tax-Free Income Fund, Franklin Oregon Tax-Free Income Fund and Franklin Pennsylvania Tax-Free Income Fund (the "Funds") as of February 29, 2020, the related statements of operations for the year ended February 29, 2020, the statements of changes in net assets for each of the two years in the period ended February 29, 2020, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of February 29, 2020, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended February 29, 2020 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of February 29, 2020 by correspon- dence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
PricewaterhouseCoopers LLP
San Francisco, California
April 16, 2020
We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.
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170 | Annual Report | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
Tax Information (unaudited)
Under Section 852(b)(5)(A) of the Internal Revenue Code, the Funds hereby report 100% of the distributions paid from net investment income as exempt-interest dividends for the fiscal year ended February 29, 2020. A portion of the Funds' exempt-interest dividends may be subject to the federal alternative minimum tax. By mid-February 2021, shareholders will be notified of amounts for use in preparing their 2020 income tax returns.
franklintempleton.com | Annual Report | 171 |
F R A N K L IN TAX - FREE TRUS T
Board Members and Officers
The name, year of birth and address of the officers and board members, as well as their affiliations, positions held with the Trust, principal occupations during at least the past five years and number of U.S. registered portfolios overseen in the Franklin Templeton fund complex, are shown below. Generally, each board member serves until that person's successor is elected and qualified.
Independent Board Members
|
|
| Number of Portfolios in |
|
Name, Year of Birth |
| Length of | Fund Complex Overseen | Other Directorships Held |
and Address | Position | Time Served | by Board Member* | During at Least the Past 5 Years |
|
|
|
|
|
Harris J. Ashton (1932) | Trustee | Since 1984 | 131 | Bar-S Foods (meat packing company) |
One Franklin Parkway |
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| (1981-2010). |
San Mateo, CA 94403-1906 |
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|
|
|
Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Director, RBC Holdings, Inc. (bank holding company) (until 2002); and President, Chief Executive Officer and Chairman of the Board, General Host Corporation (nursery and craft centers) (until 1998).
Terrence J. Checki (1945) | Trustee | Since 2017 | 110 | Hess Corporation (exploration of oil |
One Franklin Parkway |
|
|
| and gas) (2014-present). |
San Mateo, CA 94403-1906 |
|
|
|
|
Principal Occupation During at Least the Past 5 Years:
Member of the Council on Foreign Relations (1996-present); Member of the National Committee on U.S.-China Relations (1999-present); member of the Board of Trustees of the Economic Club of New York (2013-present); member of the Board of Trustees of the Foreign Policy Association (2005-present) and member of various other boards of trustees and advisory boards; and formerly, Executive Vice President of the Federal Reserve Bank of New York and Head of its Emerging Markets and Internal Affairs Group and Member of Management Committee (1995-2014); and Visiting Fellow at the Council on Foreign Relations (2014).
Mary C. Choksi (1950) | Trustee | Since 2014 | 131 | Avis Budget Group Inc. (car rental) |
One Franklin Parkway |
|
|
| (2007-present), Omnicom Group Inc. |
San Mateo, CA 94403-1906 |
|
|
| (advertising and marketing |
|
|
|
| communications services) |
(2011-present) and White Mountains Insurance Group, Ltd. (holding company) (2017-present).
Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Founder and Senior Advisor, Strategic Investment Group (investment management group) (2015-2017); Founding Partner and Senior Managing Director, Strategic Investment Group (1987–2015); Founding Partner and Managing Director, Emerging Markets Management LLC (investment management firm) (1987-2011); and Loan Officer/Senior Loan Officer/Senior Pension Investment Officer, World Bank Group (international financial institution) (1977-1987).
Edith E. Holiday (1952) | Lead | Trustee since 1998 131 | Hess Corporation (exploration of oil |
One Franklin Parkway | Independent | Lead | and gas) (1993-present), Canadian |
San Mateo, CA 94403-1906 | Trustee | Independent | National Railway (railroad) |
|
| Trustee since | (2001-present), White Mountains |
|
| March 2019 | Insurance Group, Ltd. (holding |
|
|
| company) (2004-present), Santander |
|
|
| Consumer USA Holdings, Inc. |
|
|
| (consumer finance) (2016-present), |
|
|
| RTI International Metals, Inc. |
|
|
| (manufacture and distribution of |
|
|
| titanium) (1999-2015) and H.J. Heinz |
|
|
| Company (processed foods and allied |
|
|
| products) (1994-2013). |
Principal Occupation During at Least the Past 5 Years:
Director or Trustee of various companies and trusts; and formerly, Assistant to the President of the United States and Secretary of the Cabinet (1990-1993); General Counsel to the United States Treasury Department (1989-1990); and Counselor to the Secretary and Assistant Secretary for Public Affairs and Public Liaison–United States Treasury Department (1988-1989).
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172 | Annual Report | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
Independent Board Members (continued)
|
|
| Number of Portfolios in |
|
Name, Year of Birth |
| Length of | Fund Complex Overseen | Other Directorships Held |
and Address | Position | Time Served | by Board Member* | During at Least the Past 5 Years |
|
|
|
|
|
J. Michael Luttig (1954) | Trustee | Since 2009 | 131 | Boeing Capital Corporation (aircraft |
One Franklin Parkway |
|
|
| financing) (2006-2010). |
San Mateo, CA 94403-1906 |
|
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|
|
Principal Occupation During at Least the Past 5 Years:
Private investor; and formerly, Counselor and Senior Advisor to the Chairman, CEO, and Board of Directors, of The Boeing Company (aerospace company), and member of the Executive Council (May 2019-January 1, 2020); Executive Vice President, General Counsel and member of the Executive Council, The Boeing Company (2006-2019); and Federal Appeals Court Judge, United States Court of Appeals for the Fourth Circuit (1991-2006).
Larry D. Thompson (1945) | Trustee | Since 2007 | 131 | The Southern Company (energy |
One Franklin Parkway |
|
|
| company) (2014-present; previously |
San Mateo, CA 94403-1906 |
|
|
| 2010-2012), Graham Holdings |
|
|
|
| Company (education and media |
|
|
|
| organization) (2011-present) and |
|
|
|
| Cbeyond, Inc. (business |
|
|
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| communications provider) |
|
|
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| (2010-2012). |
Principal Occupation During at Least the Past 5 Years:
Director of various companies; Counsel, Finch McCranie, LLP (law firm) (2015-present); Independent Compliance Monitor and Auditor, Volkswagen AG (manufacturer of automobiles and commercial vehicles) (2017-present); John A. Sibley Professor of Corporate and Business Law, University of Georgia School of Law (2015-present; previously 2011-2012); and formerly, Executive Vice President - Government Affairs, General Counsel and Corporate Secretary, PepsiCo, Inc. (consumer products) (2012-2014); Senior Vice President - Government Affairs, General Counsel and Secretary, PepsiCo, Inc. (2004-2011); Senior Fellow of The Brookings Institution (2003-2004); Visiting Professor, University of Georgia School of Law (2004); and Deputy Attorney General, U.S. Department of Justice (2001-2003).
Interested Board Members and Officers
|
|
| Number of Portfolios in |
|
Name, Year of Birth |
| Length of | Fund Complex Overseen | Other Directorships Held |
and Address | Position | Time Served | by Board Member* | During at Least the Past 5 Years |
|
|
|
|
|
**Gregory E. Johnson (1961) | Trustee | Since 2007 | 142 | None |
One Franklin Parkway |
|
|
|
|
San Mateo, CA 94403-1906 |
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|
Principal Occupation During at Least the Past 5 Years:
Executive Chairman, Chairman of the Board and Director, Franklin Resources, Inc.; officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 39 of the investment companies in Franklin Templeton; Vice Chairman, Investment Company Institute; and formerly, Chief Executive Officer (2013-2020) and President (1994-2015), Franklin Resources, Inc.
**Rupert H. Johnson, Jr. (1940) | Chairman of | Since 2013 | 131 | None |
One Franklin Parkway | the Board and |
|
|
|
San Mateo, CA 94403-1906 | Trustee |
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|
|
Principal Occupation During at Least the Past 5 Years:
Director (Vice Chairman), Franklin Resources, Inc.; Director, Franklin Advisers, Inc.; and officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 37 of the investment companies in Franklin Templeton.
Sheila Amoroso (1959) | Vice President Since 1999 | Not Applicable | Not Applicable |
One Franklin Parkway |
|
|
|
San Mateo, CA 94403-1906 |
|
|
|
Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Advisers, Inc.; and officer of seven of the investment companies in Franklin Templeton.
franklintempleton.com | Annual Report | 173 |
F R A N K L IN TAX - FREE TRUS T
Interested Board Members and Officers (continued)
|
|
| Number of Portfolios in |
|
Name, Year of Birth |
| Length of | Fund Complex Overseen | Other Directorships Held |
and Address | Position | Time Served | by Board Member* | During at Least the Past 5 Years |
|
|
|
|
|
Alison E. Baur (1964) | Vice President | Since 2012 | Not Applicable | Not Applicable |
One Franklin Parkway |
|
|
|
|
San Mateo, CA 94403-1906 |
|
|
|
|
Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton.
Breda M. Beckerle (1958) | Interim Chief | Since January | Not Applicable | Not Applicable |
280 Park Avenue | Compliance | 2020 |
|
|
New York, NY 10017 | Officer |
|
|
|
Principal Occupation During at Least the Past 5 Years:
Chief Compliance Officer, Fiduciary Investment Management International, Inc., Franklin Advisers, Inc., Franklin Advisory Services, LLC, Franklin Mutual Advisers, LLC, Franklin Templeton Institutional, LLC; and officer of 41 of the investment companies in Franklin Templeton.
Sonal Desai, Ph.D. (1963) | President and Since 2018 | Not Applicable | Not Applicable |
One Franklin Parkway | Chief Executive |
|
|
San Mateo, CA 94403-1906 | Officer – |
|
|
| Investment |
|
|
| Management |
|
|
Principal Occupation During at Least the Past 5 Years:
Director and Executive Vice President, Franklin Advisers, Inc.; Executive Vice President, Franklin Templeton Institutional, LLC; and officer of 17 of the investment companies in Franklin Templeton.
Gaston Gardey (1967) | Treasurer, Chief Since 2009 | Not Applicable | Not Applicable |
One Franklin Parkway | Financial |
|
|
San Mateo, CA 94403-1906 | Officer, and |
|
|
| Chief |
|
|
| Accounting |
|
|
| Officer |
|
|
Principal Occupation During at Least the Past 5 Years:
Treasurer, U.S. Fund Administration & Reporting and officer of 24 of the investment companies in Franklin Templeton.
Steven J. Gray (1955) | Vice President | Vice President | Not Applicable | Not Applicable |
One Franklin Parkway | and Co- | since 2009 and |
|
|
San Mateo, CA 94403-1906 | Secretary | Co-Secretary |
|
|
|
| since |
|
|
|
| 2019 |
|
|
Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 41 of the investment companies in Franklin Templeton.
Matthew T. Hinkle (1971) | Chief Executive Since 2017 | Not Applicable | Not Applicable |
One Franklin Parkway | Officer – |
|
|
San Mateo, CA 94403-1906 | Finance and |
|
|
| Administration |
|
|
Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 41 of the investment companies in Franklin Templeton; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).
|
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174 | Annual Report | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
Interested Board Members and Officers (continued)
|
|
| Number of Portfolios in |
|
Name, Year of Birth |
| Length of | Fund Complex Overseen | Other Directorships Held |
and Address | Position | Time Served | by Board Member* | During at Least the Past 5 Years |
|
|
|
|
|
Robert Lim (1948) | Vice President | Since 2016 | Not Applicable | Not Applicable |
One Franklin Parkway | – AML |
|
|
|
San Mateo, CA 94403-1906 | Compliance |
|
|
|
Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 41 of the investment companies in Franklin Templeton.
|
| Not Applicable |
|
|
| Not Applicable |
|
Navid J. Tofigh (1972) | Vice President Since 2015 | Not Applicable | Not Applicable |
One Franklin Parkway |
|
|
|
San Mateo, CA 94403-1906 |
|
|
|
Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 41 of the investment companies in Franklin Templeton.
Craig S. Tyle (1960) | Vice President Since 2005 | Not Applicable | Not Applicable |
One Franklin Parkway |
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San Mateo, CA 94403-1906 |
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Principal Occupation During at Least the Past 5 Years:
General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton.
Thomas Walsh (1961) | Vice President Since 1999 | Not Applicable | Not Applicable |
One Franklin Parkway |
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San Mateo, CA 94403-1906 |
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Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Advisers, Inc.; and officer of seven of the investment companies in Franklin Templeton.
Lori A. Weber (1964) | Vice President | Vice President | Not Applicable | Not Applicable |
300 S.E. 2nd Street | and Co- | since 2011 and |
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Fort Lauderdale, FL 33301-1923 | Secretary | Co-Secretary |
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Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 41 of the investment companies in Franklin Templeton.
*We base the number of portfolios on each separate series of the U.S. registered investment companies within the Franklin Templeton Investments fund complex. These portfolios have a common investment manager or affiliated investment managers.
**Gregory E. Johnson is considered to be an interested person of the Fund under the federal securities laws due to his position as an officer and director of Franklin Resources, Inc. (Resources), which is the parent company of the Fund's investment manager and distributor. Rupert H. Johnson, Jr. is considered to be an interested person of the Fund under the federal securities laws due to his position as an officer and director and major shareholder of Resources.
Note 1: Rupert H. Johnson, Jr. is the uncle of Gregory E. Johnson. Note 2: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.
The Sarbanes-Oxley Act of 2002 and Rules adopted by the Securities and Exchange Commission require the Fund to disclose whether the Fund's Audit Committee includes at least one member who is an audit committee financial expert within the meaning of such Act and Rules. The Fund's Board has determined that there is at least one such financial expert on the Audit Committee and has designated Mary C. Choksi as its audit committee financial expert. The Board believes that Ms.
Choksi qualifies as such an expert in view of her extensive business background and experience. She currently serves as a director of Avis Budget Group, Inc. (2007-present) and formerly, Founder and Senior Advisor, Strategic Investment Group (1987 to 2017). Ms. Choksi has been a Member of the
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F R A N K L IN TAX - FREE TRUS T
Fund's Audit Committee since 2014. As a result of such background and experience, the Board believes that Ms. Choksi has acquired an understanding of generally accepted accounting principles and financial statements, the general application of such principles in connection with the accounting estimates, accruals and reserves, and analyzing and evaluating financial statements that present a breadth and level of complexity of accounting issues generally comparable to those of the Fund, as well as an understanding of internal controls and procedures for financial reporting and an understanding of audit committee functions. Ms. Choksi is an independent Board member as that term is defined under the relevant Securities and Exchange Commission Rules and Releases.
The Statement of Additional Information (SAI) includes additional information about the board members and is available, without charge, upon request. Shareholders may call (800) DIAL BEN/342-5236 to request the SAI.
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Shareholder Information
Board Approval of Investment
Management Agreements
FRANKLIN TAX-FREE TRUST
Franklin Arizona Tax-Free Income Fund
Franklin Colorado Tax-Free Income Fund
Franklin Connecticut Tax-Free Income Fund
Franklin Michigan Tax-Free Income Fund
Franklin Minnesota Tax-Free Income Fund
Franklin Ohio Tax-Free Income Fund
Franklin Oregon Tax-Free Income Fund
Franklin Pennsylvania Tax-Free Income Fund
(each a Fund)
At an in-person meeting held on February 25, 2020 (Meeting), the Board of Trustees (Board) of Franklin Tax-Free Trust (Trust), including a majority of the trustees who are not "interested persons" as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved the continuance of the investment management agreement between Franklin Advisers, Inc. (Manager) and the Trust, on behalf of each Fund (each a Management Agreement) for an additional one-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the continuation of each Management Agreement. Although the Management Agreements for the Funds were considered at the same Board meeting, the Board considered the information provided to it about the Funds together and with respect to each Fund separately as the Board deemed appropriate.
In considering the continuation of each Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board also reviewed and considered information provided in response to a detailed set of requests for information submitted to the Manager by Independent Trustee counsel on behalf of the Independent Trustees in connection with the annual contract renewal process. In addition, prior to the Meeting, the Independent Trustees held a telephonic contract renewal meeting at which the Independent Trustees conferred amongst themselves and Independent Trustee counsel about contract renewal matters and, in some cases, requested additional information from the Manager relating to the contract. The Board reviewed and considered all of the factors it deemed relevant in approving the continuance of each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services provided
F R A N K L IN TA X - FREE TRUS T
by the Manager; (ii) the investment performance of each Fund; (iii) the costs of the services provided and profits realized by the Manager and its affiliates from the relationship with each Fund; (iv) the extent to which economies of scale are realized as each Fund grows; and
(v)whether fee levels reflect these economies of scale for the benefit of Fund investors.
In approving the continuance of each Management Agreement, the Board, including a majority of the Independent Trustees, determined that the terms of the Management Agreement are fair and reasonable and that the continuance of such Management Agreement is in the best interests of the applicable Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board's determination.
Nature, Extent and Quality of Services
The Board reviewed and considered information regarding the nature, extent and quality of investment management services provided by the Manager and its affiliates to the Funds and their shareholders. This information included, among other things, the qualifications, background and experience of the senior management and investment personnel of the Manager, as well as information on succession planning where appropriate; the structure of investment personnel compensation; oversight of third-party service providers; investment performance reports and related financial information for each Fund; reports on expenses and shareholder services; legal and compliance matters; risk controls; pricing and other services provided by the Manager and its affiliates; and management fees charged by the Manager and its affiliates to US funds and other accounts, including management's explanation of differences among accounts where relevant. The Board also reviewed and considered an annual report on payments made by Franklin Templeton (FT) or the Funds to financial intermediaries, as well as a memorandum relating to third-party servicing arrangements, which included discussion of the changing distribution landscape for the Funds. The Board noted management's continuing efforts and expenditures in establishing effective business continuity plans and developing strategies to address areas of heightened concern in the mutual fund industry, such as cybersecurity and liquidity risk management.
The Board also reviewed and considered the benefits provided to Fund shareholders of investing in a fund that is part of the FT family of funds. The Board noted the financial
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FRANKL IN TAX-FREE TRUST SHAREHOLDE R INFORMATIO N
position of Franklin Resources, Inc. (FRI), the Manager's parent, and its commitment to the mutual fund business as evidenced by its continued introduction of new funds, reassessment of the fund offerings in response to the market environment and project initiatives and capital investments relating to the services provided to the Funds by the FT organization. The Board specifically noted FT's commitment to enhancing services and controlling costs, as reflected in its plan to outsource certain administrative functions, and growth opportunities, as evidenced by its upcoming acquisition of the Legg Mason companies. The Board acknowledged the change in leadership at FRI and the opportunity to hear from Jennifer Johnson, President and Chief Executive Officer of FRI, about goals she has for the company that will benefit the Funds.
Following consideration of such information, the Board was satisfied with the nature, extent and quality of services provided by the Manager and its affiliates to the Funds and their shareholders.
Fund Performance
The Board reviewed and considered the performance results of each Fund over various time periods ended December 31, 2019. The Board considered the performance returns for each Fund in comparison to the performance returns of mutual funds deemed comparable to the Fund included in a universe (Performance Universe) selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data. The Board received a description of the methodology used by Broadridge to select the mutual funds included in a Performance Universe. The Board also reviewed and considered Fund performance reports provided and discussions that occurred with portfolio managers at Board meetings throughout the year. A summary of each Fund's performance results is below.
Franklin Arizona Tax-Free Income Fund and Franklin Ohio Tax-Free Income Fund - The Performance Universe for the Franklin Arizona Tax-Free Income Fund included the Fund and all retail and institutional "other states" municipal debt funds. The Performance Universe for the Franklin Ohio Tax-Free Income Fund included the Fund and all retail and institutional Ohio municipal debt funds. The Board noted that the Funds' annualized income returns and annualized total returns for the one-, three-, five- and 10-year periods were above the medians of their respective Performance Universes. The Board concluded that the Funds' performance was satisfactory.
Franklin Colorado Tax-Free Income Fund - The Performance Universe for the Fund included the Fund and all retail and institutional "other states" municipal debt funds. The Board noted that the Fund's annualized income return for the one-, three-, five- and 10-year periods was above the median of its Performance Universe. The Board also noted that the Fund's annualized total return for the three-year period was below the median of its Performance Universe, but for the one-, five- and 10-year periods was above the median of its Performance Universe. The Board concluded that the Fund's performance was satisfactory.
Franklin Connecticut Tax-Free Income Fund and Franklin Pennsylvania Tax-Free Income Fund - The Performance Universe for the Franklin Connecticut Tax-Free Income Fund included the Fund and all retail and institutional "other states" municipal debt funds. The Performance Universe for the Franklin Pennsylvania Tax-Free Income Fund included the Fund and all retail and institutional Pennsylvania municipal debt funds. The Board noted that the Funds' annualized income returns for the one-, three-, five- and
10-year periods were above the medians of their respective Performance Universes. The Board also noted that the Funds' annualized total returns for the one-, three-, five-, and 10-year periods were below the medians of their respective Performance Universes. Given the Funds' income-oriented investment objectives, the Board concluded that the Funds' performance was satisfactory.
Franklin Michigan Tax-Free Income Fund - The Performance Universe for the Fund included the Fund and all retail and institutional "other states" municipal debt funds. The Board noted that the Fund's annualized income return for the one-, three-, five- and 10-year periods was above the median of its Performance Universe. The Board also noted that the Fund's annualized total return for the five- and 10-year periods was below the median of its Performance Universe, but for the one- and three-year periods was above the median of its Performance Universe. Given the Fund's income-oriented investment objective, the Board concluded that the Fund's performance was satisfactory.
Franklin Minnesota Tax-Free Income Fund – The Performance Universe for the Fund included the Fund and all retail and institutional Minnesota municipal debt funds. The Board noted that the Fund's annualized income return for the one-, three-, five- and 10-year periods was above the median of its Performance Universe. The Board also noted that the Fund's annualized total return for the three-, five- and
10-year periods was below the median of its Performance
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Universe, and for the one-year period was equal to the median of its Performance Universe. Given the Fund's income-oriented investment objective, the Board concluded that the Fund's performance was satisfactory.
Franklin Oregon Tax-Free Income Fund – The Performance Universe for the Fund included the Fund and all retail and institutional "other states" municipal debt funds. The Board noted that the Fund's annualized income return for the one-, three-, five- and 10-year periods was above the median of its Performance Universe. The Board also noted that the Fund's annualized total return for the three-year period was below the median of its Performance Universe, for the one- and five-year periods was above the median of its Performance Universe and for the 10-year period was equal to the median of its Performance Universe. The Board concluded that the Fund's performance was satisfactory.
Comparative Fees and Expenses
The Board reviewed and considered information regarding each Fund's actual total expense ratio and its various components, including, as applicable, management fees; transfer agent expenses; underlying fund expenses; Rule 12b-1 and non-Rule 12b-1 service fees; and other non-management fees. The Board also noted the quarterly and annual reports it receives on all marketing support payments made by FT to financial intermediaries. The Board considered the actual total expense ratio and, separately, the contractual management fee rate, without the effect of fee waivers, if any (Management Rate) of each Fund in comparison to the median expense ratio and median Management Rate, respectively, of other mutual funds deemed comparable to and with a similar expense structure to the Fund selected by Broadridge (Expense Group). Broadridge fee and expense data is based upon information taken from each fund's most recent annual report, which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis
conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges, and the actual total expense ratio, for comparative consistency, was shown for Class A1 for each Fund and for Class A shares for each other fund in the applicable Expense Group. The Board received a description of the methodology used by
Broadridge to select the mutual funds included in an Expense Group.
Franklin Arizona Tax-Free Income Fund, Franklin Colorado Tax-Free Income Fund, Franklin Michigan Tax-Free Income Fund, Franklin Oregon Tax-Free Income Fund and Franklin Pennsylvania Tax-Free Income Fund - The Expense Group for each Fund, except for the Franklin Pennsylvania Tax-Free Income Fund, included the Fund and nine other "other states" municipal debt funds. The Expense Group for the Franklin Pennsylvania Tax-Free Income Fund included the Fund and twelve other Pennsylvania municipal debt funds. The Board noted that the Management Rates and actual total expense ratios for the Funds were below the medians of their respective Expense Groups. The Board concluded that the Management Rates charged to the Funds are reasonable.
Franklin Connecticut Tax-Free Income Fund - The Expense Group for the Fund included the Fund and nine other "other states" municipal debt funds. The Board noted that the Management Rate for the Fund was above the median of its Expense Group, but its actual total expense ratio was in the second quintile and below the median of its Expense Group. The Board concluded that the Management Rate charged to the Fund is reasonable. In doing so, the Board noted that the Fund's Management Rate was less than one basis point higher than the median of its Expense Group. The Board also noted the Fund's first (best) quintile annualized income return for the one-, three- and five-year periods.
Franklin Minnesota Tax-Free Income Fund and Franklin Ohio Tax-Free Income Fund - The Expense Group for the Franklin Minnesota Tax-Free Income Fund included the Fund and seven other Minnesota municipal debt funds. The Expense Group for the Franklin Ohio Tax-Free Income Fund included the Fund and seven other Ohio municipal debt funds. The Board noted that the Management Rates for these Funds were equal to the medians of their respective Expense Groups and the actual total expense ratios for these Funds were below the medians of their respective Expense Groups. The Board concluded that the Management Rates charged to these Funds are reasonable.
Profitability
The Board reviewed and considered information regarding the profits realized by the Manager and its affiliates in connection with the operation of each Fund. In this respect, the Board considered the Fund profitability analysis provided by the Manager that addresses the overall profitability of FT's US fund business, as well as its profits in providing
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FRANKL IN TAX-FREE TRUST SHAREHOLDE R INFORMATIO N
investment management and other services to each of the individual funds during the 12-month period ended September 30, 2019, being the most recent fiscal year-end for FRI. The Board noted that although management continually makes refinements to its methodologies used in calculating profitability in response to organizational and product-related changes, the overall methodology has remained consistent with that used in the Funds' profitability report presentations from prior years. Additionally, PricewaterhouseCoopers LLP, auditor to FRI and certain FT funds, was engaged by the Manager to review and assess the allocation methodologies to be used solely by the Funds' Board with respect to the profitability analysis.
The Board noted management's belief that costs incurred in establishing the infrastructure necessary for the type of mutual fund operations conducted by the Manager and its affiliates may not be fully reflected in the expenses allocated to each Fund in determining its profitability, as well as the fact that the level of profits, to a certain extent, reflected operational cost savings and efficiencies initiated by management. As part of this evaluation, the Board considered the initiative currently underway to outsource certain operations, which effort would require considerable up front expenditures by the Manager but, over the long run is expected to result in greater efficiencies. The Board also noted management's expenditures in improving shareholder services provided to the Funds, as well as the need to implement systems and meet additional regulatory and compliance requirements resulting from recent SEC and other regulatory requirements, notably in the area of cybersecurity protections.
The Board also considered the extent to which the Manager and its affiliates might derive ancillary benefits from fund operations, including revenues generated from transfer agent services, potential benefits resulting from personnel and systems enhancements necessitated by fund growth, as well as increased leverage with service providers and counterparties. Based upon its consideration of all these factors, the Board concluded that the level of profits realized by the Manager and its affiliates from providing services to each Fund was not excessive in view of the nature, extent and quality of services provided to each Fund.
Economies of Scale
The Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as each Fund grows larger and whether each Fund's management fee structure reflects any economies of scale for the benefit
of shareholders. With respect to possible economies of scale, the Board noted the existence of management fee breakpoints, which operate generally to share any economies of scale with a Fund's shareholders by reducing the Fund's effective management fees as the Fund grows in size. The Board considered the Manager's view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments the Manager incurs across the FT family of funds as a whole. The Board noted that the Franklin Connecticut Tax-Free Income Fund does not have an asset size that would likely enable the Fund to achieve economies of scale and that the Franklin Michigan Tax-Free Income Fund, Franklin Minnesota Tax-Free Income Fund and Franklin Pennsylvania Tax-Free Income Fund had experienced a decrease in assets and would not be expected to demonstrate additional economies of scale in the near term. The Board concluded that to the extent economies of scale may be realized by the Manager and its affiliates, each Fund's management fee structure provided a sharing of benefits with the Fund and its shareholders as the Fund grows.
Conclusion
Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved the continuation of each Management Agreement for an additional one-year period.
Proxy Voting Policies and Procedures
The Trust's investment manager has established Proxy Voting Policies and Procedures (Policies) that the Trust uses to determine how to vote proxies relating to portfolio securities. Shareholders may view the Trust's complete Policies online at franklintempleton.com. Alternatively, shareholders may request copies of the Policies free of charge by calling the Proxy Group collect at (954) 527-7678 or by sending a written request to: Franklin Templeton Companies, LLC, 300 S.E. 2nd Street, Fort Lauderdale, FL 33301, Attention: Proxy Group. Copies of the Trust's proxy voting records are also made available online at franklintempleton.com and posted on the U.S. Securities and Exchange Commission's website at sec.gov and reflect the most recent 12-month period ended June 30.
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SHAREHOLDE R INFORMATIO N
Quarterly Statement of Investments
The Trust files a complete statement of investments with the U.S. Securities and Exchange Commission for the first and third quarters for each fiscal year as an exhibit to its report on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the Commission's website at sec.gov. The filed form may also be viewed and copied at the Commission's Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling (800) SEC-0330.
Householding of Reports and
Prospectuses
You will receive each Fund's financial reports every six months as well as an annual updated summary prospectus (prospectus available upon request). To reduce Fund expenses, we try to identify related shareholders in a household and send only one copy of the financial reports and summary prospectus. This process, called "house- holding," will continue indefinitely unless you instruct us otherwise. If you prefer not to have these documents householded, please call us at (800) 632-2301. At any time you may view current prospectuses/summary prospectuses and financial reports on our website. If you choose, you may receive these documents through electronic delivery.
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Authorized for distribution only when accompanied or preceded by a summary prospectus and/or prospectus. Investors should carefully consider a fund's investment goals, risks, charges and expenses before investing. A prospectus contains this and other information; please read it carefully before investing.
To help ensure we provide you with quality service, all calls to and from our service areas are monitored and/or recorded.
Annual Report and Shareholder Letter
Franklin Tax-Free Trust
Investment Manager | Distributor | Shareholder Services |
Franklin Advisers, Inc. | Franklin Templeton Distributors, Inc. | (800) 632-2301 |
| (800) DIAL BEN® / 342-5236 |
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| franklintempleton.com |
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© 2020 Franklin Templeton Investments. All rights reserved. |
| TF3 A 04/20 |
ANNUAL REPORT
Franklin Municipal Green Bond Fund
This inaugural annual report for Franklin Municipal Green Bond Fund covers the period since the Fund's inception on October 1, 2019, through February 29, 2020.
Your Fund's Goal and Main Investments
The Fund seeks to maximize income exempt from federal income taxes to the extent consistent with prudent investing and the preservation of shareholders' capital.1 Under normal market conditions, the Fund invests at least 80% of its net assets in municipal securities whose interest is free from regular federal income taxes. In addition, the Fund invests at least 80% of its net assets in municipal green bonds, which are bonds that promote environmental sustainability. There is no regulation or universal framework for giving a bond a "green" designation. We define green bonds as those whose proceeds go toward renewable energy, energy efficiency, pollution prevention, and other environmentally sustainable uses listed in the prospectus.
Credit Quality Composition* 2/29/20
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Ratings | Investments | ||
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AAA | 30.35% | ||
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AA | 51.89% | ||
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A | 17.76% |
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*Securities, except for those labeled Not Rated, are assigned ratings by one or more Nationally Recognized Statistical Credit Rating Organizations (NRSROs), such as Standard & Poor's, Moody's and Fitch, that can be considered by the investment manager as part of its independent securities analysis. When ratings from multiple agencies are available, the highest is used, consistent with the portfolio investment process. Ratings reflect an NRSRO's opinion of an issuer's creditworthiness and typically range from AAA (highest) to D (lowest). The Below Investment Grade category consists of bonds rated below BBB-. The Refunded category generally consists of refunded bonds secured by U.S. government or other high-quality securities and not rerated by an NRSRO. The Not Rated category consists of ratable securities that have not been rated by an NRSRO. Cash and equivalents are excluded from this composition.
Performance Overview
The Fund's Advisor Class share price, as measured by net asset value, increased from $10.00 on October 1, 2019, to $10.35 on February 29, 2020. The Fund's Advisor Class shares paid dividends totaling 3.3237 cents per share for the reporting period.2 The Performance Summary beginning on page 4 shows that at the end of this reporting period the Fund's Advisor Class shares' distribution rate was 1.19% based on an annualization of February's 1.0274 cent per share dividend and the net asset value of $10.35 on February 29, 2020. An investor in the 2020 maximum federal personal income tax bracket of 37.00% (plus 3.80% Medicare tax) would need to earn a distribution rate of 2.01% from a taxable investment to match the Fund's Advisor tax-free distribution rate. For other performance data, please see the Performance Summary.
Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown.
Municipal Bond Market Overview
The financial markets experienced volatility during the five months ended February 29, 2020. Trade disputes, uncertainties about the prospects for global economic growth and speculations on major central banks' future policy decisions weighed on financial markets throughout the period. U.S. equities experienced heightened volatility, most notably in the final two weeks of the period, as fears grew about a global outbreak of the novel coronavirus (COVID-19), which contributed to a flight to perceived quality that benefited high-quality fixed income assets such as municipal bonds and U.S. Treasuries. Municipal bonds posted positive returns as strong demand dynamics, combined with interest-rate declines, continued to buoy the market.
1.For investors subject to alternative minimum tax, a small portion of Fund dividends may be taxable. Distributions of capital gains are generally taxable. To avoid imposition of 28% backup withholding on all Fund distributions and redemption proceeds, U.S. investors must be properly certified on Form W-9 and non-U.S. investors on Form W-8BEN.
2.The distribution amount is the sum of all net investment income distributions for the period shown. Assumes shares were purchased and held for the entire accrual period. Since dividends accrue daily, your actual distributions will vary depending on the date you purchased your shares and any account activity. All Fund distributions will vary depending upon current market conditions, and past distributions are not indicative of future trends.
The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund's Statement of Investments (SOI). The SOI begins on page 8.
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F R A N K L IN MUNICIPA L GREEN BON D FUN D
Dividend Distributions*
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| October | 0.0400 |
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| November | 0.4138 |
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| ecember | 0.8352 |
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| January | 1.0073 |
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| February | 1.0274 | ||||
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| Total | 3.3237 | ||||
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*The distribution amount is the sum of all net investment income distributions for the period shown. Assumes shares were purchased and held for the entire accrual period. Since dividends accrue daily, your actual distributions will vary depending on the date you purchased your shares and any account activity. All Fund distributions will vary depending upon current market conditions, and past distributions are not indicative of future trends.
Investment-grade municipal bonds, as measured by the Bloomberg Barclays Municipal Bond Index, performed well during the five-month period, though they underperformed U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index. They also underperformed investment- grade corporate bonds, as measured by the Bloomberg Barclays U.S. Corporate Bond Index. All three of these fixed income sectors outperformed U.S. stocks, as measured by the Standard & Poor's® 500 Index.
Municipal bonds with long maturities generally outperformed municipal bonds with shorter maturities during the five-month period. The best-performing maturity group in the Bloomberg Barclays Municipal Bond Index was the long (22+ years) bond. Within investment-grade municipal bonds, lower-quality bonds generally posted stronger returns than their higher-quality counterparts. High-yield municipal bonds, as measured by the Bloomberg Barclays High Yield Municipal Bond Index, generally outperformed investment- grade municipal bonds, as measured by the Bloomberg Barclays Municipal Bond Index.
Municipal issuance during the reporting period totaled approximately $211 billion, a 53% increase from total issuance for the prior year's five-month period.3 New issuance totaled approximately $68 billion during the first two months of calendar-year 2020, a 32% increase from the same period in 2019.3 Over the period, taxable municipal bond issuance increased as issuers took advantage of historically low interest rates to advance tax-exempt debt
refundings. In calendar-year 2019, taxable issuance totaled approximately $70 billion, a 135% increase from 2018.3
The Investment Company Institute reported positive municipal bond mutual fund flows during each month over the five months under review. During the period, total net inflows recorded a robust total of approximately $47 billion.4 Calendar-year 2019 ended as one of the strongest years on record for positive net inflows into the municipal bond asset class as investor demand for tax-exempt income surged. Given the global economic uncertainty and municipal bonds' generally high credit quality and favorable tax treatment, we expect investor demand to remain healthy.
The U.S. Federal Reserve (Fed) lowered its target range for the federal funds rate by 0.25% at its October 2019 meeting. The target range for the federal funds rate was 1.50–1.75% at period-end. In its press release following the October decision, the Fed cited muted inflation pressures and global growth concerns as the primary catalysts for the decision. The Fed noted, however, that the labor market remained strong and economic activity rose at a moderate pace. On February 28, 2020, Fed Chair Jerome Powell indicated the Fed is prepared to use its tools as appropriate to support the U.S. economy amid the economic risks posed by the COVID-19 outbreak, although economic fundamentals remained robust.
At period-end, we maintained our positive view of the municipal bond market. We believe municipal bonds continue to be an attractive asset class among fixed income securities, and we intend to follow our disciplined approach of investing to maximize income, while seeking value in the municipal bond market.
Investment Strategy
We use a consistent, disciplined strategy in an effort maximize tax-exempt income for our shareholders by selecting securities we believe will provide the best balance between risk and return within the Fund's range of allowable investments. We typically use a buy-and-hold strategy, which means we generally hold securities in the Fund's portfolio for income purposes, rather than trading securities for capital gains, although we may sell a security at any time if we believe it could help the Fund meet its goal.
3.Source: The Bond Buyer, Thomson Reuters.
4.Source: Investment Company Institute. See www.franklintempletondatasources.com for additional data provider information.
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F R A N K L IN MUNICIPAL GREEN BON D FUN D
Portfolio Composition 2/29/20
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Utilities | 20.41% |
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Transportation | 17.28% | ||
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Housing | 13.36% | ||
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Higher Education | 10.63% | ||
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General Obligation | 12.65% |
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Tax-Supported | 8.45% | ||
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Other Revenue | 6.42% | ||
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Subject to Government Appropriations | 5.41% | ||
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Hospital & Health Care | 5.39% |
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*Does not include cash and cash equivalents.
Manager's Discussion
During the reporting period, we implemented the initial build out of the Fund's portfolio. The Fund invests in municipal bonds that support environmental sustainability and stewardship, while also delivering income that is exempt from federal taxes. Examples of the type of projects which the Fund invests in include water and sewer utility systems, stormwater management infrastructure, energy efficient and LEED (Leadership in Energy and Environmental Design) certified buildings, land conservation and clean energy.
The strategy considers all U.S. tax-exempt municipal bond offerings that carry the "Green Bond" designation in the governing bond documents. We are focused on ensuring the authenticity and intentionality of the Green Bond designation. Issuers must demonstrate that bond proceeds are being used for projects or programs dedicated to environmental sustainability. These projects and programs should generally fall into one of the 10 eligible categories outlined in the Green Bond Principles (GBP), a set of voluntary guidelines to ensure the integrity of the Green Bond designation. In addition, the internal selection framework incorporates disclosure and reporting policies, environmental impact, and external verification.
In addition, the strategy considers municipal bonds that are not labeled Green Bonds but that provide funding to environmentally-friendly projects and programs. From that universe, we will determine whether individual issuers meet the internal threshold for investment based on an internal Green Bond selection framework. The internal methodology gauges the credibility of the Green Bond designation and ensures that the investment is aligned with the Fund's objective of investing in projects dedicated to promoting environmental sustainability. Franklin recognizes the GBP
and encourages issuers to adhere to them. However, the ultimate evaluation does not require strict adherence with the GBP.
The foregoing information reflects our analysis, opinions and portfolio holdings as of February 29, 2020, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.
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3 | Annual Report | franklintempleton.com |
F R A N K L IN MUNICIPA L GREEN BON D FUN D
Performance Summary as of February 29, 2020
The performance tables do not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares. Total return reflects reinvestment of the Fund's dividends and capital gain distributions, if any, and any unrealized gains or losses. Your dividend income will vary depending on dividends or interest paid by securities in the Fund's portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized
from the sale of portfolio securities.
Performance as of 2/29/201
Cumulative total return excludes sales charges. Average annual total return includes maximum sales charges. Sales charges will vary depending on the size of the investment and the class of share purchased. Advisor Class shares are offered without sales charges.
|
| Cumulative | Average Annual |
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Share Class | Total Return2 | Total Return3 |
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Advisor |
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Since Inception (10/1/19) | +3.84% | +3.84% |
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| Taxable Equivalent | |
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Share | Distribution | Taxable Equivalent | 30-Day Standardized Yield6 |
| 30-Day Standardized Yield5 | |||
Class | Rate4 | Distribution Rate5 | (with fee waiver) | (without fee waiver) | (with fee waiver) | (without fee waiver) | ||
Advisor | 1.19% | 2.01% | 1.10% | -1.74% | 1.86% | -2.94% | ||
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Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown.
See page 5 for Performance Summary footnotes.
franklintempleton.com | Annual Report | 4 |
F R A N K L IN MUNICIPAL GREEN BON D FUN D
PERFORMANCE SUM M A RY
Distributions (3/1/19–2/29/20) |
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| Net Investment |
| |
Share Class | Income |
| |
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Advisor | $0.033237 |
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| |
Total Annual Operating Expenses7 |
| ||
| With Fee | Without Fee | |
Share Class | Waiver | Waiver | |
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Advisor | 0.46% |
| 2.80% |
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|
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. 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. Some sectors might be more likely to issue Green Bonds, and events or factors impacting these sectors may have a greater effect on, and may more adversely affect, the Fund than they would a fund that does not invest in issuers with a common purpose. 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. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund's prospectus also includes a description of the main investment risks.
1.The Fund has an expense reduction contractually guaranteed through 9/30/20. Fund investment results reflect the expense reduction; without this reduction, the results would have been lower.
2.Cumulative total return represents the change in value of an investment over the periods indicated.
3.Average annual total return represents the average annual change in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.
4.Distribution rate is based on an annualization of the respective class's February dividend and the maximum offering price (NAV for Advisor Class) per share on 2/29/20.
5.Taxable equivalent distribution rate and yield assume the 2020 maximum federal income tax rate of 37.00% plus 3.80% Medicare tax.
6.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.
7.Figures are as stated in the Fund's current prospectus and may differ from the expense ratios disclosed in the Your Fund's Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.
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5 | Annual Report | franklintempleton.com |
FRANKLIN MUNICIPAL GREEN BOND FUND
Your Fund's Expenses
As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including sales charges (loads) on Fund purchases and redemptions; and (2) ongoing Fund costs, including management fees, distribution and service (12b-1) fees, and other Fund expenses. All mutual funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other mutual funds. The table assumes a $1,000 investment held for the six months indicated.
Actual Fund Expenses
The table below provides information about actual account values and actual expenses in the columns under the heading "Actual." In these columns the Fund's actual return, which includes the effect of Fund expenses, is used to calculate the "Ending Account Value." You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row for your class of shares under the headings "Actual" and "Expenses Paid During Period" (if Actual Expenses Paid During Period were $7.50, then 8.6 x $7.50
=$64.50). In this illustration, the actual expenses paid this period are $64.50.
Hypothetical Example for Comparison with Other Funds
Under the heading "Hypothetical" in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example for the class of shares you hold with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading "Hypothetical" is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.
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| Actual | Hypothetical |
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| (actual return after expenses) | (5% annual return before expenses) |
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| Expenses |
| Expenses |
| Net | |
| Beginning | Ending | Paid During | Ending | Paid During | Annualized | |||
Share | Account | Account | Period | Account | Period |
| Expense | ||
Class | Value1 |
| Value 2/29/20 | 10/1/19–2/29/202, 3 | Value 2/29/20 | 9/1/19–2/29/202, 3 |
| Ratio3 | |
Advisor | $1,000 |
| $1,038.40 | $1.93 |
| $1,022.58 | $2.31 |
| 0.46% |
1.October 1, 2019 for Actual; September 1, 2019 for Hypothetical.
2.Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 182/366 to reflect the one-half year period. Non-recurring expenses are not annualized. For Actual expenses, the multiplier is 151/366 to reflect the number of days since commencement of operations.
3.Reflects expenses after fee waivers and expense reimbursements.
franklintempleton.com | Annual Report | 6 |
F R A N K L IN TAX - FREE TRUS T
Financial Highlights
Franklin Municipal Green Bond Fund
Year Ended
February 29,
2020a
Advisor Class
Per share operating performance
(for a share outstanding throughout the year)
Net asset value, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income from investment operationsb:
Net investment incomec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total from investment operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less distributions from:
Net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value, end of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total returnd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ratios to average net assetse
Expenses before waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expenses net of waiver and payments by affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental data
Net assets, end of year (000's) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portfolio turnover rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 10.00
0.03
0.35
0.38
(0.03)
$ 10.35
3.84%
3.25%
0.46%
0.81%
$ 5,175
—%
aFor the period October 1, 2019 (commencement of operations) to February 29, 2020.
bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of the Fund's shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
cBased on average daily shares outstanding.
dTotal return is not annualized for periods less than one year.
eRatios are annualized for periods less than one year, except for non-recurring expenses, if any.
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7 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
Statement of Investments, February 29, 2020
Franklin Municipal Green Bond Fund
| Principal |
|
|
| Amount |
| Value |
Municipal Bonds 80.9% |
|
|
|
Arizona 3.5% |
|
|
|
Arizona Board of Regents Arizona State University System Revenue, Green Bonds, Series B, 5.00%, 7/01/42 . | $150,000 | $ 183,213 | |
California 16.6% |
|
|
|
|
|
| |
California Infrastructure and Economic Development Bank Lease Revenue, California State Teachers |
|
|
|
Retirement System Headquarters Expansion, Green Bonds, Climate Bond Certified, 5.00%, 8/01/49. . . . . . . | 180,000 | 234,558 | |
California State HFA, MF Green Mortgage-backed Revenue, Noble Towers Apartments, Green M-TEBS, |
|
|
|
Refunding, Series N, FNMA Insured, 2.35%, 12/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 99,753 | 105,865 | |
Los Angeles County MTA Sales Tax Revenue, Green Bonds, Proposition C, Senior, Refunding, Series A, |
|
|
|
5.00%, 7/01/44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 150,000 | 194,036 | |
San Diego Assn. of Governments Capital Grant Receipts Revenue, Mid-Coast Corridor Transit Project, Green |
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Bonds, Series B, 1.80%, 11/15/27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 150,000 | 153,084 | |
San Francisco BART District GO, Election of 2004, Green Bonds, Series F-1, 3.00%, 8/01/36 . . . . . . . . . . . . | 150,000 | 170,271 | |
|
|
|
|
|
| 857,814 | |
Colorado 3.6% |
|
|
|
|
|
| |
Denver City and County Board of Water Commissioners Water Revenue, Green Bonds, Series A, 5.00%, |
|
|
|
9/15/47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 150,000 | 188,154 | |
District of Columbia 3.8% |
|
|
|
|
|
| |
District of Columbia Water and Sewer Authority Public Utility Revenue, Green Bonds, sub. lien, Series A, |
|
|
|
5.00%, 10/01/44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 150,000 | 194,828 | |
Florida 5.7% |
|
|
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|
| |
Palm Beach County Water and Sewer Revenue, FPL Reclaimed Water Project, Refunding, 4.00%, 10/01/31 . . | 100,000 | 124,327 | |
Tampa Special Assessment Revenue, Central and Lower Basin Stormwater Improvements, Green Bonds, |
|
|
|
5.00%, 5/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 135,000 | 172,707 | |
|
|
|
|
|
| 297,034 | |
Georgia 2.5% |
|
|
|
|
|
| |
Private Colleges and Universities Authority Revenue, Emory University, Green Bonds, Refunding, Series B, |
|
|
|
5.00%, 9/01/48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 100,000 | 129,015 | |
Maine 2.3% |
|
|
|
|
|
| |
Portland General Airport Revenue, Green Bonds, Refunding, 4.00%, 1/01/35 . . . . . . . . . . . . . . . . . . . . . . . . | 100,000 | 119,824 | |
Maryland 2.2% |
|
|
|
|
|
| |
Washington Suburban Sanitary District Revenue, Montgomery and Prince George's Counties, Consolidated |
|
|
|
Public Improvement, Green Bonds, Second Series, 3.00%, 6/01/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 100,000 | 111,778 | |
Massachusetts 4.6% |
|
|
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|
|
| |
Massachusetts State Clean Water Trust Revenue, Revolving Fund, Green Bonds, 5.00%, 8/01/36 . . . . . . . . . | 100,000 | 133,322 | |
Massachusetts State HFAR, Housing, Sustainability, Series C-1, 2.65%, 12/01/34 . . . . . . . . . . . . . . . . . . . . . | 100,000 | 104,952 | |
|
|
|
|
|
| 238,274 | |
Minnesota 2.1% |
|
|
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|
| |
Minneapolis GO, Green Bonds, 3.00%, 12/01/40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 100,000 | 107,077 | |
New York 15.4% |
|
|
|
|
|
| |
Battery Park City Authority Revenue, Senior, Sustainability, Series A, 5.00%, 11/01/49 . . . . . . . . . . . . . . . . . . | 100,000 | 131,094 | |
MTA Dedicated Tax Fund Revenue, Green Bonds, Climate Bond Certified, Refunding, Subseries B-2, 4.00%, |
|
|
|
11/15/32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 160,000 | 190,853 | |
MTA Revenue, Transportation, Green Bonds, Climate Bond Certified, Refunding, Series C, Subseries C-1, |
|
|
|
3.375%, 11/15/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 105,000 | 115,450 |
franklintempleton.com | Annual Report | 8 |
F R A N K L IN TAX - FREE TRUS T
STATEMEN T OF INVEST MENT S
Franklin Municipal Green Bond Fund (continued)
| Principal |
|
|
| Amount |
| Value |
|
|
|
|
Municipal Bonds (continued) |
|
|
|
New York (continued) |
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|
|
New York State Dormitory Authority Revenues, Non-State Supported Debt, Cornell University, Green Bonds, |
|
|
|
Series D, 5.00%, 7/01/35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $100,000 | $ 149,064 | |
New York State HFAR, |
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|
|
Affordable Housing, Climate Bond Certified/Sustainability, Series N, 2.60%, 11/01/34 . . . . . . . . . . . . . . . | 100,000 | 105,446 | |
Affordable Housing, Climate Bond Certified/Sustainability, Series P, 2.00%, 5/01/28 . . . . . . . . . . . . . . . . | 100,000 | 104,048 | |
|
|
|
|
|
| 795,955 | |
Ohio 5.6% |
|
|
|
|
|
| |
American Municipal Power Inc. Revenue, Combined Hydroelectric Project, Refunding, Series A, 5.00%, |
|
|
|
2/15/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 100,000 | 133,012 | |
Ohio State GO, |
|
|
|
Conservation Projects, Series A, 4.00%, 3/01/29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 25,000 | 31,421 | |
Conservation Projects, Series A, 4.00%, 3/01/30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 100,000 | 127,701 | |
|
|
|
|
|
| 292,134 | |
Pennsylvania 2.5% |
|
|
|
| �� |
| |
Philadelphia School District GO, Green Bonds, Series B, 5.00%, 9/01/29 . . . . . . . . . . . . . . . . . . . . . . . . . . . | 100,000 | 130,679 | |
Rhode Island 3.1% |
|
|
|
|
|
| |
Rhode Island Housing and Mortgage Finance Corp. Revenue, MF Development, Sustainability, Series 1-B, |
|
|
|
FHA Insured, 2.75%, 10/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 150,000 | 158,975 | |
Vermont 4.5% |
|
|
|
|
|
| |
Vermont Educational and Health Buildings Financing Agency Revenue, The University of Vermont Medical |
|
|
|
Center Project, Green Bonds, Series B, 5.00%, 12/01/38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 195,000 | 233,912 | |
Washington 2.9% |
|
|
|
|
|
| |
FYI Properties Lease Revenue, Green Bonds, Washington District Project, Refunding, 5.00%, 6/01/21 . . . . . . | 140,000 | 147,246 | |
Total Municipal Bonds before Short Term Investments (Cost $4,011,107) . . . . . . . . |
|
|
|
| 4,185,912 | ||
Short Term Investments 16.4% |
|
|
|
|
|
| |
Municipal Bonds 16.4% |
|
|
|
California 1.9% |
|
|
|
Hayward USD, GO, Alameda County, Election of 2018, Green Bonds, Series B, 4.00%, 8/01/20 . . . . . . . . . . . | 100,000 | 101,381 | |
|
|
|
|
Maryland 1.9%
aMontgomery County GO, Consolidated Public Improvement, Series E, SPA US Bank National Association,
Daily VRDN and Put, 1.17%, 11/01/37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 100,000 | 100,000 |
|
|
|
Ohio 1.9%
aOhio State Hospital Revenue, Cleveland Clinic Health System Obligated Group, Refunding, Series B, SPA
Wells Fargo Bank, Daily VRDN and Put, 1.16%, 1/01/39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 100,000 | 100,000 |
|
|
|
Oregon 3.9%
aOregon State Facilities Authority Revenue, PeaceHealth, Refunding, Series B, LOC TD Bank National
Association, Daily VRDN and Put, 1.18%, 8/01/34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 200,000 | 200,000 |
|
|
|
Pennsylvania 3.9%
aGeisinger Authority Revenue, Geisinger Health System, Montour County, Refunding, Series A, SPA TD Bank
| National Association, Daily VRDN and Put, 1.15%, 5/15/35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 200,000 | 200,000 |
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9 |
| Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUST
STAT EMEN T OF INVEST MENT S
Franklin Municipal Green Bond Fund (continued)
Principal
Amount Value
Short Term Investments (continued)
Municipal Bonds (continued)
Virginia 1.9%
aVirginia College Building Authority Educational Facilities Revenue, University of Richmond Project, SPA Wells
Fargo Bank, Daily VRDN and Put, 1.19%, 11/01/36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $100,000 | $ 100,000 |
| |
Washington 1.0% |
|
|
|
|
|
|
|
| |
King County GO, Limited Tax, Green Bonds, Series A, 5.00%, 6/01/20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 50,000 | 50,519 | ||
Total Short Term Investments (Cost $851,775) . . . . . |
|
| ||
| 851,900 | |||
Total Investments (Cost $4,862,882) 97.3% . . . . . . . . . |
|
| ||
| 5,037,812 | |||
Other Assets, less Liabilities 2.7% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
| 137,305 | ||
Net Assets 100.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
| ||
| $5,175,117 | |||
|
|
|
|
|
See Abbreviations on page 19.
aVariable rate demand notes (VRDNs) are obligations which contain a floating or variable interest rate adjustment formula and an unconditional right of demand to receive payment of the principal balance plus accrued interest at specified dates. Unless otherwise noted, the coupon rate is determined based on factors including supply and demand, underlying credit, tax treatment, and current short term rates. The coupon rate shown represents the rate at period end.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 10 |
FRANKL IN TAX-FREE TRUST
FINANCIA L STATEMENT S
Statement of Assets and Liabilities
February 29, 2020
Franklin Municipal Green Bond Fund
Assets:
Investments in securities:
Cost - Unaffiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Value - Unaffiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Receivables:
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Affiliates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Offering costs (Note 1d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liabilities:
Payables:
Transfer agent fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reports to shareholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Distributions to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Organization costs (Note 1d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net assets consist of:
Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total distributable earnings (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net assets, at value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net asset value and maximum offering price per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$4,862,882
$5,037,812 41,019
36,740
66,902
19,761
6
5,202,240
82
1,915
5,137
17,409
2,580
27,123
$5,175,117
$4,998,320 176,797
$5,175,117
500,000
$10.35
|
|
|
|
11 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
FINANCIA L S TAT EMENTS
Statement of Operations
for the year ended February 29, 2020a
Franklin Municipal Green Bond Fund
Investment income: |
|
|
| |
Interest: |
|
|
| |
Unaffiliated issuers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 26,350 |
|
| |
Expenses: |
|
|
| |
|
|
| ||
Management fees (Note 3a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 13,165 |
| ||
Transfer agent fees (Note 3d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 448 |
| ||
Custodian fees (Note 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12 |
| ||
Reports to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,204 |
| ||
Registration and filing fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 700 |
| ||
Professional fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 33,725 |
| ||
Organization costs (Note 1d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 23,878 |
| ||
Amortization of offering costs (Note 1d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 14,036 |
| ||
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,443 |
| ||
|
|
|
| |
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 89,611 |
| ||
Expenses waived/paid by affiliates (Note 3e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (80,067) | |||
|
|
|
| |
Net expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9,544 |
| ||
|
|
|
| |
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 16,806 |
| ||
|
|
|
|
|
Realized and unrealized gains (losses): |
|
|
| |
Net change in unrealized appreciation (depreciation) on: |
|
|
| |
Investments: |
|
|
| |
Unaffiliated issuers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 174,930 |
| ||
|
|
| ||
Net realized and unrealized gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 174,930 |
| ||
|
|
| ||
Net increase (decrease) in net assets resulting from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $191,736 |
| ||
|
|
|
|
|
aFor the period October 1, 2019 (commencement of operations) to February 29, 2020.
franklintempleton.com | The accompanying notes are an integral part of these financial statements. | Annual Report | 12 |
FRANKL IN TAX-FREE TRUST
FINANCIA L STATEMENT S
Statements of Changes in Net Assets
Franklin Municipal Green Bond Fund
| Year Ended February 29, | ||
|
|
|
|
| 2020a | ||
Increase (decrease) in net assets: |
|
|
|
Operations: |
|
|
|
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 16,806 |
| |
Net change in unrealized appreciation (depreciation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 174,930 |
| |
|
|
|
|
Net increase (decrease) in net assets resulting from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 191,736 |
|
|
|
|
| |
Distributions to shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | (16,619) | ||
|
|
|
|
Capital share transactions (Note 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,000,000 |
|
|
|
|
|
|
Net increase (decrease) in net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,175,117 |
|
|
Net assets: |
|
|
|
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $5,175,117 |
|
|
|
|
|
|
aFor the period October 1, 2019 (commencement of operations) to February 29, 2020.
|
|
|
|
13 | Annual Report | The accompanying notes are an integral part of these financial statements. | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
Notes to Financial Statements
Franklin Municipal Green Bond Fund
1. Organization and Significant Accounting Policies
Franklin Tax-Free Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of twenty-three separate funds and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). Franklin Municipal Green Bond Fund (Fund) is included in this report. The Fund has four classes of shares: Class A, Class C, Class R6 and Advisor Class. Each class of shares may differ by its initial sales load, contingent deferred sales charges, voting rights on matters affecting a single class, its exchange privilege and fees due to differing arrangements for distribution and transfer agent fees.
The Fund commenced operations effective October 1, 2019, with one class of shares, Advisor Class.
The following summarizes the Fund's significant accounting policies.
a. Financial Instrument Valuation
The Fund's investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Trust's Board of Trustees (the Board), the Fund's administrator has responsibility for oversight of valuation, including leading the cross-functional Valuation Committee (VC). The Fund may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.
Debt securities generally trade in the over-the-counter market rather than on a securities exchange. The Fund's pricing services use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, credit spreads, estimated default rates, anticipated market interest rate volatility, coupon
rates, anticipated timing of principal repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair value.
The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transac- tions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.
b. Income Taxes
It is the Fund's policy to qualify as a regulated investment company under the Internal Revenue Code. The Fund intends to distribute to shareholders substantially all of its income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.
The Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of February 29, 2020, the Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years. (or expected to be taken in future tax years).
c.Security Transactions, Investment Income, Expenses and Distributions
Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest income and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. Distributions from realized capital gains and other distributions, if any, are recorded on the ex-dividend date. Distributable earnings are determined
franklintempleton.com | Annual Report | 14 |
F R A N K L IN TAX - FREE TRUS T
NOTE S TO FINANCIA L STATEMEN T S
Franklin Municipal Green Bond Fund (continued)
1.Organization and Significant Accounting Policies (continued)
c.Security Transactions, Investment Income, Expenses and Distributions (continued)
according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.
Common expenses incurred by the Trust are allocated among the Funds based on the ratio of net assets of each Fund to the combined net assets of the Trust or based on the ratio of number of shareholders of each Fund to the combined number of shareholders of the Trust. Fund specific expenses are charged directly to the Fund that incurred the expense.
Realized and unrealized gains and losses and net investment income, excluding class specific expenses, are allocated daily to each class of shares based upon the relative proportion of net assets of each class. Differences in per share distributions by class are generally due to differences in class specific expenses.
d. Organization and Offering Costs
Organization costs were expensed as incurred. Offering costs are amortized on a straight line basis over twelve months.
e. Accounting Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
f. Guarantees and Indemnifications
Under the Fund's organizational documents, its officers and trustees are indemnified by the Fund against certain liabilities arising out of the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts with service providers that contain general indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. Currently, the Fund expects the risk of loss to be remote.
2. Shares of Beneficial Interest
At February 29, 2020, there were an unlimited number of shares authorized (without par value). Transactions in the Fund's shares were as follows:
Year Ended February 29,
2020*
Shares Amount
Shares sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 500,000 | $5,000,000 |
*For the period October 1, 2019 (commencement of operations) to February 29, 2020.
|
|
|
|
15 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUST
NOTE S TO FINANCIA L STAT EMEN TS
Franklin Municipal Green Bond Fund (continued)
3. Transactions with Affiliates
Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Fund are also officers and/or directors of the following subsidiaries:
Subsidiary | Affiliation |
|
|
Franklin Advisers, Inc. (Advisers) | Investment manager |
|
|
Franklin Templeton Services, LLC (FT Services) | Administrative manager |
|
|
Franklin Templeton Distributors, Inc. (Distributors) | Principal underwriter |
|
|
Franklin Templeton Investor Services, LLC (Investor Services) | Transfer agent |
|
|
a. Management Fees
The Fund pays an investment management fee to Advisers based on the month-end net assets of the Fund as follows:
Annualized Fee Rate | Net Assets |
|
|
0.625% | Up to and including $100 million |
|
|
0.500% | Over $100 million, up to and including $250 million |
|
|
0.450% | Over $250 million, up to and including $7.5 billion |
|
|
0.440% | Over $7.5 billion, up to and including $10 billion |
|
|
0.430% | Over $10 billion, up to and including $12.5 billion |
|
|
0.420% | Over $12.5 billion, up to and including $15 billion |
|
|
0.400% | Over $15 billion, up to and including $17.5 billion |
|
|
0.380% | Over $17.5 billion, up to and including $20 billion |
|
|
0.360% | In excess of $20 billion |
|
|
b. Administrative Fees
Under an agreement with Advisers, FT Services provides administrative services to the Funds. The fee is paid by Advisers based on each of the Funds' average daily net assets, and is not an additional expense of the Funds.
c. Distribution Fees
The Board has adopted distribution plans for each share class, with the exception of Class R6 and Advisor Class shares, pursuant to Rule 12b-1 under the 1940 Act. Under the Fund's Class A reimbursement distribution plan, the Fund reimburses Distributors for costs incurred in connection with the servicing, sale and distribution of the Fund's shares up to the maximum annual plan rate. Under the Class A reimbursement distribution plan, costs exceeding the maximum for the current plan year cannot be reimbursed in subsequent periods. In addition, under the Fund's Class C and R compensation distribution plans, the Fund pays Distributors for costs incurred in connection with the servicing, sale and distribution of the Fund's shares up to the maximum annual plan rate for each class. The plan year, for purposes of monitoring compliance with the maximum annual plan rates, is February 1 through January 31.
The maximum annual plan rates, based on the average daily net assets, for each class, are as follows:
Class A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 0.25% |
Class C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 0.65% |
franklintempleton.com | Annual Report | 16 |
F R A N K L IN TAX - FREE TRUS T
NOTE S TO FINANCIA L STATEMEN T S
Franklin Municipal Green Bond Fund (continued)
3. Transactions with Affiliates (continued)
d. Transfer Agent Fees
The Fund pays transfer agent fees to Investor Services for its performance of shareholder servicing obligations. The fees are based on an annualized asset based fee of 0.02% plus a transaction based fee. In addition, the Fund reimburses Investor Services for out of pocket expenses incurred and, except for Class R6, reimburses shareholder servicing fees paid to third parties. These fees are allocated daily based upon their relative proportion of such classes' aggregate net assets. Class R6 pays Investor Services transfer agent fees specific to that class.
For the year ended February 29, 2020, the Fund paid transfer agent fees of $448, which were retained by Investor Services.
e. Waiver and Expense Reimbursements
Advisers has contractually agreed in advance to waive or limit its fees and to assume as its own expense certain expenses otherwise payable by the Fund so that the expenses (excluding distribution fees, acquired fund fees and expenses, and certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations, and liquidations) of the Fund does not exceed 0.46%, based on the average net assets of each class until September 30, 2020. Total expenses waived or paid are not subject to recapture subsequent to the Fund's fiscal year end.
f. Other Affiliated Transactions
At February 29, 2020, Franklin Resources Inc. owned 100% of the Fund's outstanding shares. Investment activities of this investment company could have a material impact on the Fund.
g. Interfund Transactions
The Fund engaged in purchases and sales of investments with funds or other accounts that have common investment managers (or affiliated investment managers), directors, trustees or officers. During the year ended February 29, 2020, these purchase and sale transactions aggregated $600,000 and $0, respectively.
4. Expense Offset Arrangement
The Fund has entered into an arrangement with its custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Fund's custodian expenses. During the year ended February 29, 2020, there were no credits earned.
5. Income Taxes
The tax character of distributions paid during the year ended February 29, 2020 was as follows:
2020
Distributions paid from tax exempt income. . . . . . . . . . . . . . . . . . . . . . . . . . . $16,619
|
|
|
|
17 | Annual Report | franklintempleton.com |
FRANKL IN TAX-FREE TRUST
NOTE S TO FINANCIA L STAT EMEN TS
Franklin Municipal Green Bond Fund (continued)
At February 29, 2020, the cost of investments, net unrealized appreciation (depreciation) and undistributed tax exempt income for income tax purposes were as follows:
Cost of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . | $4,862,882 | |
|
|
|
Unrealized appreciation . . . . . . . . . . . . . . . . . . . . . . . . | $ | 174,930 |
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|
Net unrealized appreciation (depreciation) . . . . . . . . . . . | $ | 174,930 |
Distributable earnings: |
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|
| |
Undistributed tax exempt income. . . . . . . . . . . . . . . . . . | $ | 7,004 |
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|
Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatment of offering costs.
6. Investment Transactions
Purchases and sales of investments (excluding short term securities) for the year ended February 29, 2020, aggregated $4,177,614 and $0, respectively.
7. Concentration of Risk
The Fund invests a large percentage of its total assets in obligations of issuers within its respective state and U.S. territories. Such concentration may subject the Fund to risks associated with industrial or regional matters, and economic, political or legal developments occurring within those states and U.S. territories. Investing in Puerto Rico securities may expose the Fund to heightened risks due to recent adverse economic and market changes, credit downgrades and ongoing restructuring discussions. In addition, investments in these securities are sensitive to interest rate changes and credit risk of the issuer and may subject the Fund to increased market volatility. The market for these investments may be limited, which may make them difficult to buy or sell.
8. Credit Facility
The Fund, together with other U.S. registered and foreign investment funds (collectively, Borrowers), managed by Franklin Templeton, are borrowers in a joint syndicated senior unsecured credit facility totaling $2 billion (Global Credit Facility) which matures on February 5, 2021. This Global Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests. The Fund began participating in the Global Credit Facility on February 7, 2020.
Under the terms of the Global Credit Facility, the Fund shall, in addition to interest charged on any borrowings made by the Funds and other costs incurred by the Fund, pay their share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon their relative share of the aggregate net assets of all of the Borrowers, including an annual commitment fee of 0.15% based upon the unused portion of the Global Credit Facility. These fees are reflected in other expenses in the Statements of Operations. During the year ended February 29, 2020, the Fund did not use the Global Credit Facility.
franklintempleton.com | Annual Report | 18 |
F R A N K L IN TAX - FREE TRUS T
NOTE S TO FINANCIA L STATEMEN T S
Franklin Municipal Green Bond Fund (continued)
9. Fair Value Measurements
The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund's own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund's financial instruments and are summarized in the following fair value hierarchy:
•Level 1 – quoted prices in active markets for identical financial instruments
•Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)
•Level 3 – significant unobservable inputs (including the Fund's own assumptions in determining the fair value of financial instruments)
The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.
At February 29, 2020, all of the Fund's investments in financial instruments carried at fair value were valued using Level 2 inputs. For detailed categories, see the accompanying Statement of Investments.
10. Subsequent Events
The Fund has evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure, except for the following:
Subsequent to February 29, 2020, there has been a global outbreak of a novel coronavirus disease (COVID-19), which the World Health Organization has declared a pandemic. Unexpected events like COVID-19 can cause adverse effects on many companies, sectors, nations, regions and the market in general, in ways that cannot be foreseen. The effects of this pandemic may materially impact the value and performance of the Fund, its ability to buy and sell fund investments at appropriate valuations and its ability to achieve its investment objectives.
Abbreviations
Selected Portfolio
BART Bay Area Rapid Transit
FHA | Federal Housing Authority/Agency |
FNMA Federal National Mortgage Association | |
GO | General Obligation |
HFA | Housing Finance Authority/Agency |
HFAR Housing Finance Authority Revenue | |
LOC | Letter of Credit |
MF | Multi-Family |
MTA | Metropolitan Transit Authority |
SPA | Standby Purchase Agreement |
USD | Unified/Union School District |
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19 | Annual Report | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Franklin Tax-Free Trust and Shareholders of Franklin Municipal Green Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the statement of investments, of Franklin Municipal Green Bond Fund (the "Fund") as of February 29, 2020, and the related statement of operations and changes in net assets, including the related notes, and the financial highlights for the period October 1, 2019 (commencement of operations) through February 29, 2020 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of February 29, 2020, and the results of its operations, changes in its net assets, and the financial highlights for the period October 1, 2019 (commencement of operations) through February 29, 2020 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of February 29, 2020 by correspon- dence with the custodian. We believe that our audit provides a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
San Francisco, California
April 16, 2020
We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.
franklintempleton.com | Annual Report | 20 |
F R A N K L IN TAX - FREE TRUS T
Tax Information (unaudited)
Franklin Municipal Green Bond Fund
Under Section 852(b)(5)(A) of the Internal Revenue Code, the Fund hereby reports 100% of the distributions paid from net investment income as exempt-interest dividends for the fiscal year ended February 29, 2020. A portion of the Fund's exempt-interest dividends may be subject to the federal alternative minimum tax. By mid-February 2021, shareholders will be notified of amounts for use in preparing their 2020 income tax returns.
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21 | Annual Report | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
Board Members and Officers
The name, year of birth and address of the officers and board members, as well as their affiliations, positions held with the Trust, principal occupations during at least the past five years and number of U.S. registered portfolios overseen in the Franklin Templeton fund complex, are shown below. Generally, each board member serves until that person's successor is elected and qualified.
Independent Board Members
|
|
| Number of Portfolios in |
|
Name, Year of Birth |
| Length of | Fund Complex Overseen | Other Directorships Held |
and Address | Position | Time Served | by Board Member* | During at Least the Past 5 Years |
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|
|
|
Harris J. Ashton (1932) | Trustee | Since 1984 | 131 | Bar-S Foods (meat packing company) |
One Franklin Parkway |
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| (1981-2010). |
San Mateo, CA 94403-1906 |
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|
|
Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Director, RBC Holdings, Inc. (bank holding company) (until 2002); and President, Chief Executive Officer and Chairman of the Board, General Host Corporation (nursery and craft centers) (until 1998).
Terrence J. Checki (1945) | Trustee | Since 2017 | 110 | Hess Corporation (exploration of oil |
One Franklin Parkway |
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| and gas) (2014-present). |
San Mateo, CA 94403-1906 |
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|
|
Principal Occupation During at Least the Past 5 Years:
Member of the Council on Foreign Relations (1996-present); Member of the National Committee on U.S.-China Relations (1999-present); member of the Board of Trustees of the Economic Club of New York (2013-present); member of the Board of Trustees of the Foreign Policy Association (2005-present) and member of various other boards of trustees and advisory boards; and formerly, Executive Vice President of the Federal Reserve Bank of New York and Head of its Emerging Markets and Internal Affairs Group and Member of Management Committee (1995-2014); and Visiting Fellow at the Council on Foreign Relations (2014).
Mary C. Choksi (1950) | Trustee | Since 2014 | 131 | Avis Budget Group Inc. (car rental) |
One Franklin Parkway |
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| (2007-present), Omnicom Group Inc. |
San Mateo, CA 94403-1906 |
|
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| (advertising and marketing |
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| communications services) |
(2011-present) and White Mountains Insurance Group, Ltd. (holding company) (2017-present).
Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Founder and Senior Advisor, Strategic Investment Group (investment management group) (2015-2017); Founding Partner and Senior Managing Director, Strategic Investment Group (1987–2015); Founding Partner and Managing Director, Emerging Markets Management LLC (investment management firm) (1987-2011); and Loan Officer/Senior Loan Officer/Senior Pension Investment Officer, World Bank Group (international financial institution) (1977-1987).
Edith E. Holiday (1952) | Lead | Trustee since 1998 131 | Hess Corporation (exploration of oil |
One Franklin Parkway | Independent | Lead | and gas) (1993-present), Canadian |
San Mateo, CA 94403-1906 | Trustee | Independent | National Railway (railroad) |
|
| Trustee since | (2001-present), White Mountains |
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| March 2019 | Insurance Group, Ltd. (holding |
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| company) (2004-present), Santander |
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| Consumer USA Holdings, Inc. |
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| (consumer finance) (2016-present), |
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| RTI International Metals, Inc. |
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| (manufacture and distribution of |
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| titanium) (1999-2015) and H.J. Heinz |
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|
| Company (processed foods and allied |
|
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| products) (1994-2013). |
Principal Occupation During at Least the Past 5 Years:
Director or Trustee of various companies and trusts; and formerly, Assistant to the President of the United States and Secretary of the Cabinet (1990-1993); General Counsel to the United States Treasury Department (1989-1990); and Counselor to the Secretary and Assistant Secretary for Public Affairs and Public Liaison–United States Treasury Department (1988-1989).
franklintempleton.com | Annual Report | 22 |
F R A N K L IN TAX - FREE TRUS T
Independent Board Members (continued)
|
|
| Number of Portfolios in |
|
Name, Year of Birth |
| Length of | Fund Complex Overseen | Other Directorships Held |
and Address | Position | Time Served | by Board Member* | During at Least the Past 5 Years |
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|
J. Michael Luttig (1954) | Trustee | Since 2009 | 131 | Boeing Capital Corporation (aircraft |
One Franklin Parkway |
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| financing) (2006-2010). |
San Mateo, CA 94403-1906 |
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Principal Occupation During at Least the Past 5 Years:
Private investor; and formerly, Counselor and Senior Advisor to the Chairman, CEO, and Board of Directors, of The Boeing Company (aerospace company), and member of the Executive Council (May 2019-January 1, 2020); Executive Vice President, General Counsel and member of the Executive Council, The Boeing Company (2006-2019); and Federal Appeals Court Judge, United States Court of Appeals for the Fourth Circuit (1991-2006).
Larry D. Thompson (1945) | Trustee | Since 2007 | 131 | The Southern Company (energy |
One Franklin Parkway |
|
|
| company) (2014-present; previously |
San Mateo, CA 94403-1906 |
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| 2010-2012), Graham Holdings |
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|
| Company (education and media |
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|
|
| organization) (2011-present) and |
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|
| Cbeyond, Inc. (business |
|
|
|
| communications provider) |
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| (2010-2012). |
Principal Occupation During at Least the Past 5 Years:
Director of various companies; Counsel, Finch McCranie, LLP (law firm) (2015-present); Independent Compliance Monitor and Auditor, Volkswagen AG (manufacturer of automobiles and commercial vehicles) (2017-present); John A. Sibley Professor of Corporate and Business Law, University of Georgia School of Law (2015-present; previously 2011-2012); and formerly, Executive Vice President - Government Affairs, General Counsel and Corporate Secretary, PepsiCo, Inc. (consumer products) (2012-2014); Senior Vice President - Government Affairs, General Counsel and Secretary, PepsiCo, Inc. (2004-2011); Senior Fellow of The Brookings Institution (2003-2004); Visiting Professor, University of Georgia School of Law (2004); and Deputy Attorney General, U.S. Department of Justice (2001-2003).
Interested Board Members and Officers
|
|
| Number of Portfolios in |
|
Name, Year of Birth |
| Length of | Fund Complex Overseen | Other Directorships Held |
and Address | Position | Time Served | by Board Member* | During at Least the Past 5 Years |
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|
**Gregory E. Johnson (1961) | Trustee | Since 2007 | 142 | None |
One Franklin Parkway |
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San Mateo, CA 94403-1906 |
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Principal Occupation During at Least the Past 5 Years:
Executive Chairman, Chairman of the Board and Director, Franklin Resources, Inc.; officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 39 of the investment companies in Franklin Templeton; Vice Chairman, Investment Company Institute; and formerly, Chief Executive Officer (2013-2020) and President (1994-2015), Franklin Resources, Inc.
**Rupert H. Johnson, Jr. (1940) | Chairman of | Since 2013 | 131 | None |
One Franklin Parkway | the Board and |
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San Mateo, CA 94403-1906 | Trustee |
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Principal Occupation During at Least the Past 5 Years:
Director (Vice Chairman), Franklin Resources, Inc.; Director, Franklin Advisers, Inc.; and officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of 37 of the investment companies in Franklin Templeton.
Sheila Amoroso (1959) | Vice President Since 1999 | Not Applicable | Not Applicable |
One Franklin Parkway |
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|
San Mateo, CA 94403-1906 |
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Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Advisers, Inc.; and officer of seven of the investment companies in Franklin Templeton.
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23 | Annual Report | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
Interested Board Members and Officers (continued)
|
|
| Number of Portfolios in |
|
Name, Year of Birth |
| Length of | Fund Complex Overseen | Other Directorships Held |
and Address | Position | Time Served | by Board Member* | During at Least the Past 5 Years |
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Alison E. Baur (1964) | Vice President | Since 2012 | Not Applicable | Not Applicable |
One Franklin Parkway |
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|
San Mateo, CA 94403-1906 |
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Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton.
Breda M. Beckerle (1958) | Interim Chief | Since January | Not Applicable | Not Applicable |
280 Park Avenue | Compliance | 2020 |
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New York, NY 10017 | Officer |
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Principal Occupation During at Least the Past 5 Years:
Chief Compliance Officer, Fiduciary Investment Management International, Inc., Franklin Advisers, Inc., Franklin Advisory Services, LLC, Franklin Mutual Advisers, LLC, Franklin Templeton Institutional, LLC; and officer of 41 of the investment companies in Franklin Templeton.
Sonal Desai, Ph.D. (1963) | President and Since 2018 | Not Applicable | Not Applicable |
One Franklin Parkway | Chief Executive |
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|
San Mateo, CA 94403-1906 | Officer – |
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| Investment |
|
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| Management |
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Principal Occupation During at Least the Past 5 Years:
Director and Executive Vice President, Franklin Advisers, Inc.; Executive Vice President, Franklin Templeton Institutional, LLC; and officer of 17 of the investment companies in Franklin Templeton.
Gaston Gardey (1967) | Treasurer, Chief Since 2009 | Not Applicable | Not Applicable |
One Franklin Parkway | Financial |
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San Mateo, CA 94403-1906 | Officer, and |
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| Chief |
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| Accounting |
|
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| Officer |
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Principal Occupation During at Least the Past 5 Years:
Treasurer, U.S. Fund Administration & Reporting and officer of 24 of the investment companies in Franklin Templeton.
Steven J. Gray (1955) | Vice President | Vice President | Not Applicable | Not Applicable |
One Franklin Parkway | and Co- | since 2009 and |
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San Mateo, CA 94403-1906 | Secretary | Co-Secretary |
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| since |
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| 2019 |
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Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 41 of the investment companies in Franklin Templeton.
Matthew T. Hinkle (1971) | Chief Executive Since 2017 | Not Applicable | Not Applicable |
One Franklin Parkway | Officer – |
|
|
San Mateo, CA 94403-1906 | Finance and |
|
|
| Administration |
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|
Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 41 of the investment companies in Franklin Templeton; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).
franklintempleton.com | Annual Report | 24 |
F R A N K L IN TAX - FREE TRUS T
Interested Board Members and Officers (continued)
|
|
| Number of Portfolios in |
|
Name, Year of Birth |
| Length of | Fund Complex Overseen | Other Directorships Held |
and Address | Position | Time Served | by Board Member* | During at Least the Past 5 Years |
|
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|
|
Robert Lim (1948) | Vice President | Since 2016 | Not Applicable | Not Applicable |
One Franklin Parkway | – AML |
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|
|
San Mateo, CA 94403-1906 | Compliance |
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|
|
Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 41 of the investment companies in Franklin Templeton.
|
|
| Not Applicable |
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|
| Not Applicable |
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Navid J. Tofigh (1972) | Vice President | Since 2015 | Not Applicable | Not Applicable |
One Franklin Parkway |
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|
|
San Mateo, CA 94403-1906 |
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|
|
Principal Occupation During at Least the Past 5 Years: |
|
| ||
Associate General Counsel and officer of 41 of the investment companies in Franklin Templeton. |
| |||
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|
Craig S. Tyle (1960) | Vice President | Since 2005 | Not Applicable | Not Applicable |
One Franklin Parkway |
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|
San Mateo, CA 94403-1906 |
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|
Principal Occupation During at Least the Past 5 Years:
General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton.
Thomas Walsh (1961) | Vice President Since 1999 | Not Applicable | Not Applicable |
One Franklin Parkway |
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|
|
San Mateo, CA 94403-1906 |
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|
|
Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Advisers, Inc.; and officer of seven of the investment companies in Franklin Templeton.
Lori A. Weber (1964) | Vice President | Vice President | Not Applicable | Not Applicable |
300 S.E. 2nd Street | and Co- | since 2011 and |
|
|
Fort Lauderdale, FL 33301-1923 | Secretary | Co-Secretary |
|
|
|
| since |
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|
|
| 2019 |
|
|
Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 41 of the investment companies in Franklin Templeton.
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25 | Annual Report | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T
*We base the number of portfolios on each separate series of the U.S. registered investment companies within the Franklin Templeton Investments fund complex. These portfolios have a common investment manager or affiliated investment managers.
**Gregory E. Johnson is considered to be an interested person of the Fund under the federal securities laws due to his position as an officer and director of Franklin Resources, Inc. (Resources), which is the parent company of the Fund's investment manager and distributor. Rupert H. Johnson, Jr. is considered to be an interested person of the Fund under the federal securities laws due to his position as an officer and director and major shareholder of Resources.
Note 1: Rupert H. Johnson, Jr. is the uncle of Gregory E. Johnson. Note 2: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.
The Sarbanes-Oxley Act of 2002 and Rules adopted by the Securities and Exchange Commission require the Fund to disclose whether the Fund's Audit Committee includes at least one member who is an audit committee financial expert within the meaning of such Act and Rules. The Fund's Board has determined that there is at least one such financial expert on the Audit Committee and has designated Mary C. Choksi as its audit committee financial expert. The Board believes that Ms.
Choksi qualifies as such an expert in view of her extensive business background and experience. She currently serves as a director of Avis Budget Group, Inc. (2007-present) and formerly, Founder and Senior Advisor, Strategic Investment Group (1987 to 2017). Ms. Choksi has been a Member of the Fund's Audit Committee since 2014. As a result of such background and experience, the Board believes that Ms. Choksi has acquired an understanding of generally accepted accounting principles and financial statements, the general application of such principles in connection with the accounting estimates, accruals and reserves, and analyzing and evaluating financial statements that present a breadth and level of complexity of accounting issues generally comparable to those of the Fund, as well as an understanding of internal controls and procedures for financial reporting and an understanding of audit committee functions. Ms. Choksi is an independent Board member as that term is defined under the relevant Securities and Exchange Commission Rules and Releases.
The Statement of Additional Information (SAI) includes additional information about the board members and is available, without charge, upon request. Shareholders may call (800) DIAL BEN/342-5236 to request the SAI.
franklintempleton.com | Annual Report | 26 |
F R A N K L IN TAX - FREE TRUS T
FRANKLIN MUNICIPAL GREEN BON D FUN D
Shareholder Information
Board Review of Investment Management Agreements
FRANKLIN TAX-FREE TRUST
Franklin Municipal Green Bond Fund
(the "Fund")
At an in-person meeting held on July 17, 2019 (Meeting), the Board of Trustees (Board) of Franklin Tax-Free Trust (Trust), including a majority of the trustees who are not "interested persons" as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved an investment management agreement between Franklin Advisers, Inc. (Manager) and the Trust, on behalf of the Fund (Management Agreement) for an initial two-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the Management Agreement.
In considering the approval of the Management Agreement, the Board reviewed and considered information provided by the Manager in connection with the Meeting and throughout the year at meetings of the Board and its committees. The Board reviewed and considered all of the factors it deemed relevant in approving the Management Agreement, including, but not limited to: (1) the nature, extent and quality of the services to be provided by the Manager; (ii) the costs of the services to be provided by the Manager; and (iii) the extent to which economies of scale may be realized as the Fund grows. The Board also reviewed and considered the form of Management Agreement and the terms of the Management Agreement which were discussed at the Meeting, noting that the form of Management Agreement was substantially the same as the standard forms of investment management agreement (that include administration services) for the other funds in the Franklin Templeton family of funds, including the other series of the Trust. The Board noted that management proposed to delay offering the Fund to the public for sale and anticipated that Franklin Resources, Inc. (FRI) or its affiliate would make the initial investment in the Fund and be the Fund's sole shareholder.
In approving the Management Agreement, the Board, including a majority of the Independent Trustees, determined that the terms of the proposed Management Agreement are fair and reasonable and that the approval of such Management Agreement is in the best interests of the Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board's determination.
Nature, Extent and Quality of Services
The Board reviewed and considered information regarding the nature, extent and quality of investment management services to be provided by the Manager and its affiliates to the Fund and its shareholders. This information included, among other things, management's explanation that the Fund will be attractive to investors seeking tax-free income and who have an interest in the growing municipal green bond universe; the Fund's proposed investment strategies and the ability of the Manager to implement such investment strategies; the qualifications, background and experience of the investment personnel that will be responsible for the day-to-day portfolio management of the Fund; the Manager's experience as the manager of other funds and accounts, including other series of the Trust and other funds in the Franklin Templeton family of funds; the Manager's strength and reputation within the industry; the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of the Manager; and the Manager's compliance capabilities, as demonstrated by, among other things, its policies and procedures reasonably designed to prevent violations of the Federal Securities Laws (as defined in Rule 38a-1 of the Investment Company Act of 1940). Following consideration of such information, the Board was satisfied with the nature, extent and quality of services to be provided by the Manager and its affiliates to the Fund and its shareholders.
Fund Performance
The Board noted that, as the Fund has not yet commenced investment operations, there was no investment performance for the Fund. The Board considered the proposed performance benchmark for the Fund and how such benchmark would be utilized to measure performance of the Manager.
Comparative Fees and Expenses
The Board reviewed and considered information regarding the Fund's proposed total expense ratio and its various components, including, as applicable, management fees; transfer agent expenses; underlying fund expenses; Rule 12b-1 and non-Rule 12b-1 service fees; and other
non-management fees. The Board considered the proposed total expense ratio and, separately, the proposed contractual management fee rate, without the effect of fee waivers, if any (Management Rate) of the Fund in comparison to the median expense ratio and median Management Rate, respectively, of other mutual funds deemed comparable to and with a similar expense structure proposed for the Fund (Expense Group) as selected by Broadridge Financial
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27 | Annual Report | franklintempleton.com |
F R A N K L IN TA X - FREE TRUS T FRANKLIN MUNICIPAL GREEN BOND FUN D SHAREHOLDE R INFORMATIO N
Solutions, Inc. (Broadridge), an independent organization. Broadridge fee and expense data is based upon information taken from each fund's most recent annual report (excluding the Fund), which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges, and the proposed total expense ratio was shown for Class A of the Fund and an actual total expense ratio was shown for Class A of each of the other funds in the Expense Group. The Board received a description of the methodology used by Broadridge to select the mutual funds included in the Expense Group.
The Expense Group for the Fund included the Fund and sixteen other general and insured municipal debt funds. The Board noted that the proposed Management Rate was above the median of its Expense Group. The Board further noted that the proposed total expense ratio was below the median of its Expense Group. The Board concluded that the Management Rate to be charged to the Fund is reasonable. In doing so, the Board noted that the Fund's proposed total expense ratio reflected a fee waiver from management.
Profitability
The Board then noted that the Manager (and its affiliates) could not report any financial results from their relationships with the Fund because the Fund has not yet commenced investment operations, and thus, the Board could not evaluate the Manager's (or its affiliates') profitability with respect to the Fund.
Economies of Scale
The Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as the Fund grows larger and whether the Fund's management fee structure reflects any economies of scale for the benefit of shareholders. In connection with this review, the Trustees noted that management anticipates that the parent of the Manager or an affiliate will be the sole shareholder of the Fund for a period of time after which the Manager will consider whether to offer the Fund for sale to the public. With respect to possible economies of scale in the future, the Board noted the existence of management fee breakpoints, which operate generally to share any
economies of scale with the Fund's shareholders by reducing the Fund's effective management fees as the Fund grows in size, though it is not anticipated that the Fund will generate significant, if any, profit for the Manager and/or its affiliates for some time.
Conclusion
Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board, including a majority of the Independent Trustees, approved the Management Agreement for the Fund for an initial two-year period.
Proxy Voting Policies and Procedures
The Fund's investment manager has established Proxy Voting Policies and Procedures (Policies) that the Fund uses to determine how to vote proxies relating to portfolio securities. Shareholders may view the Fund's complete Policies online at franklintempleton.com. Alternatively, shareholders may request copies of the Policies free of charge by calling the Proxy Group collect at (954) 527-7678 or by sending a written request to: Franklin Templeton Companies, LLC, 300 S.E. 2nd Street, Fort Lauderdale, FL 33301, Attention: Proxy Group. Copies of the Fund's proxy voting records are also made available online at franklintempleton.com and posted on the U.S. Securities and Exchange Commission's website at sec.gov and reflect the most recent 12-month period ended June 30.
Quarterly Statement of Investments
The Trust, on behalf of the Fund, files a complete statement of investments with the U.S. Securities and Exchange Commission for the first and third quarters for each fiscal year as an exhibit to its report on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the Commission's website at sec.gov. The filed form may also be viewed and copied at the Commission's Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling (800) SEC-0330.
franklintempleton.com | Annual Report | 28 |
Item 2. Code of Ethics.
(a)The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
(c)N/A
(d)N/A
(f)Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
Item 3. Audit Committee Financial Expert.
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
(2)The audit committee financial expert is Mary C. Choksi, and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
Item 4. Principal Accountant Fees and Services.
(a)Audit Fees
The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $833,662 for the fiscal year ended February 29, 2020 and $843,959 for the fiscal year ended February 28, 2019.
(b)Audit-Related Fees
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph
(a) of Item 4.
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.
(c)Tax Fees
There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.
The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning were $10,000 for the fiscal year ended February 29, 2020 and $15,000 for the fiscal year ended February 28, 2019. The services for which these fees were paid included professional fees in connection with tax treatment of equipment lease transactions, professional fees in connection with an Indonesia withholding tax refund claim and tax consulting services related to the operating agreement and term sheet for the launch of a new fund.
(d)All Other Fees
There were no fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant, other than the services reported in paragraphs (a)-(c) of Item 4 were $10,032 for the fiscal year ended February 29, 2020 and $9,865 for the fiscal year ended February 28, 2019. The services for which these fees were paid included review of materials provided to the fund Board in connection with the investment management contract renewal process.
The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under
common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $190,144 for the fiscal year ended February 29, 2020 and $16,500 for the fiscal year ended February 28, 2019. The services for which these fees were paid included professional fees in connection with determining the feasibility of a U.S. direct lending structure, valuation services related to a fair value engagement, for the issuance of an Auditor's Certificate for South Korean regulatory shareholders disclosures, benchmarking services in connection with the ICI TA Survey and assets under management certification.
(e)(1) The registrant's audit committee is directly responsible for approving the services to be provided by the auditors, including:
(i)pre-approval of all audit and audit related services;
(ii)pre-approval of all non-audit related services to be provided to the Fund by the auditors;
(iii)pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant's investment adviser or to any entity that controls, is controlled by or is under common control with the registrant's investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and
(iv)establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs
(ii)and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of
(ii)through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.
(e)(2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.
(f)No disclosures are required by this Item 4(f).
(g)The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $210,176 for the fiscal year ended February 29, 2020 and $41,365 for the fiscal year ended February 28, 2019.
(h)The registrant's audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence.
Item 5. Audit Committee of Listed Registrants. | N/A | |
Item 6. | Schedule of Investments. | N/A |
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed- | |
End Management Investment Companies. | N/A | |
Item 8. | Portfolio Managers of Closed-End Management Investment | |
Companies. | N/A | |
Item 9. | Purchases of Equity Securities by Closed-End Management | |
Investment Company and Affiliated Purchasers. | N/A |
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures.
(a)Evaluation of Disclosure Controls and Procedures. The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant's filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant's management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant's management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant's management, including the Registrant's principal executive officer and the Registrant's principal financial officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures. Based on such evaluation, the Registrant's principal executive officer and principal financial officer concluded that the Registrant's disclosure controls and procedures are effective.
(b)Changes in Internal Controls. There have been no changes in the Registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-end
Management Investment Company. | N/A |
Item 13. Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FRANKLIN TAX-FREE TRUST
By S\MATTHEW T. HINKLE_______________________
Matthew T. Hinkle
Chief Executive Officer – Finance and Administration
Date April 30, 2020
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By S\MATTHEW T. HINKLE_______________________
Matthew T. Hinkle
Chief Executive Officer – Finance and Administration
Date April 30, 2020
By S\GASTON GARDEY______________________
Gaston Gardey
Chief Financial Officer and Chief Accounting Officer
Date April 30, 2020