United States
Our Latest Thinking
Explore our latest insights and commentaries on the municipal bond space
COVID-19 Disrupts Municipalities–Will Taxing Millionaires Accelerate Outmigration?
Jennifer Johnston, Director of Research, Muni Bonds, and Ben Barber, Director, Muni Bonds, evaluate the impact of COVID-19 on the largest state budgets, and what it means for municipalities in the year ahead. Read the full topic paper.
Our Approach
Active Research Matters
An active, research-driven approach is critical given the vast size, nuance and complexity of the municipal market. Our deep team of research analysts conducts comprehensive analysis of every opportunity across all sectors in the municipal bond universe, covering the quality spectrum in both primary and secondary markets.
Seek Relative Value Opportunities
We seek to identify and capture attractive relative value opportunities by carefully analyzing and managing yield curve positioning, credit spreads and coupon and call structures to help deliver tax-efficient portfolios, while aiming to provide attractive risk-adjusted returns.
Emphasis on Risk Management
Our team places a premium on risk management which is incorporated fully within our deep credit research process, portfolio construction process and with an independent risk management team, enabling us to better understand, quantify and optimize where we allocate risk across our portfolios.
Experience and Expertise
With more than 40 years of municipal bond investing experience and a seasoned team of over 30 investment professionals, we have one of the largest and most tenured teams in the industry.
Insights
Our Offering
Franklin Templeton is one of the largest municipal managers in the nation.
Over 30 tax-free strategies cover all geographies and the full credit quality spectrum and are available through mutual funds, ETFs and SMAs.
State Specific Muni Strategies
STATE
Federal Muni Strategies
- For investors subject to the alternative minimum tax, a small portion of fund dividends may be taxable. Distributions of capital gains are generally taxable.
- Source: Bloomberg. (Bloomberg Barclays Municipal Index, Bloomberg Barclays US Treasury Index, Bloomberg Barclays US Aggregate Index, Bloomberg Barclays US MBS Index, Bloomberg Barclays US Corporate Index). Indexes are unmanaged, and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges. See franklintempleton.com/datasources for additional data provider information. The yield to worst (YTW) is the lowest potential yield that can be received on a bond without the issuer actually defaulting. The tax-equivalent yield is used by investors to compare taxable and tax-exempt securities after accounting for federal taxes (excluding AMT). For this comparison, we used the tax rate of 40.80%.
- Source: Moody’s Corporation. Most recent annual data available.
- Municipal Bonds are represented by Bloomberg Barclays Municipal Bond Index, US Stocks are represented by S&P 500 Index, Commodities are represented by Bloomberg Commodity Index, US Corporate Bonds are represented by Bloomberg Barclay US Corporate Bond Index, US Treasuries are represented by Bloomberg Barclays US Treasury Index, US Bonds represented by the Bloomberg Barclays US Aggregate Bond Index.
Important Legal Information
This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice. The views expressed are those of the investment manager and the comments, opinions and analyses may change without notice. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market.
Data from third party sources may have been used in the preparation of this material and Franklin Templeton (“FT”) has not independently verified, validated or audited such data. FT accepts no liability whatsoever for any loss arising from use of this information and reliance upon the comments, opinions and analyses in the material is at the sole discretion of the user.
Your clients should carefully consider a fund’s investment goals, risks, charges and expenses before investing. They should read the summary prospectus and/or prospectus carefully before they invest or send money. To obtain a prospectus, which contains this and other information, please visit franklintempleton.com or call Franklin Templeton at (800) DIAL BEN/342-5236.
Franklin Separately Managed Accounts is a division of Franklin Templeton Portfolio Advisors, Inc., a subsidiary of Franklin Resources, Inc., a global investment management organization operating as Franklin Templeton.
What Are the Risks?
All investments involve risks, including possible loss of principal. Because municipal bonds are sensitive to interest rate movements, a municipal bond 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 a municipal bond 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. A municipal bond fund typically invests 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.
You need Adobe Acrobat Reader to view and print PDF documents. Download a free version from Adobe's website.
Franklin Templeton Distributors, Inc.
