Franklin California High Yield Municipal Fund
Franklin Municipal Securities Trust · 5 share classes
Fund classification
Classified from what the fund holds · as of 2026 Q2
Franklin California High Yield Municipal Fund is an actively managed U.S. bond fund.
- Asset class
- Bonds
- Region
- United States
- Management
- Actively managed
- Fund type
- Open-end fund
- Credit quality
- High yield
- Rate sensitivity
- Long duration
Fund profile
As filed in the prospectus · 2026 Q2
To provide investors with a high level of income exempt from federal and California personal income taxes. Its secondary goal is capital appreciation to the extent possible and consistent with its principal investment goal.
The fund invests at least 80% of its net assets in municipal securities exempt from federal and California personal income taxes, selecting securities based on credit profile, risk, pricing, and duration management to balance income and return across any rating category and maturity. Up to 20% may be held in taxable securities, and up to 35% in U.S. territory municipals. Because security selection depends on the manager's assessment of risk and return rather than a fixed benchmark, portfolio composition will vary with market conditions and the manager's views.
| Share class | Expense ratio |
|---|---|
| FCAMX | 0.66% |
| FCAHX | 1.20% |
| FVCAX | 0.56% |
| FCAQX | 0.51% |
| FCQAX | 0.81% |
Portfolio turnover 13.89% · as of 2026 Q2
Allocation
Asset groups · long / short shown separately, never netted · 2026 Q2
| Bonds | 98.69% |
| Securitized | 0.59% |
| Cash & short-term | 0.22% |
Latest quarter
What changed since the fund's previous filing
Largest new: Long Beach Unified School District, State of California, Burbank-Glendale-Pasadena Airport Authority Brick Campaign, Fullerton Joint Union High School District, California Municipal Finance Authority, California Statewide Communities Development Authority, San Francisco City & County Airport Comm-San Francisco International Airport, California Community Housing Agency
Largest exited: Irvine Ranch Water District, California Municipal Finance Authority, Tobacco Securitization Authority of Southern California, California Statewide Communities Development Authority ×2, City of Rancho Cordova CA ×2
Return profile
Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026
| Share class | 1-year | 3-year | 5-year | Vol | Worst fall |
|---|---|---|---|---|---|
| +6.31% | +12.58% | +3.17% | 4.49% | -6.51% | |
| +5.57% | +10.52% | +0.15% | 4.47% | -6.69% | |
| +6.40% | +12.88% | +3.58% | 4.45% | -6.47% | |
| +6.45% | +13.01% | +3.79% | 4.45% | -6.45% | |
| +6.03% | +11.93% | +2.20% | 4.49% | -6.53% |
These classes hold the same portfolio, so the 3.64pp spread over 5 years is the cost difference between them — roughly 0.73pp a year — not a difference in what they own.
May 2026 has been filed since the trailing figures were struck, so it is not in the table above or the curve — every figure here shares one cut-off, which is what makes them comparable with other funds.
Debt profile
What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-05-31
Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.
| Fixed rate | 83.3% |
| Zero-coupon or unclassified | 11.1% |
| Floating rate | 5.6% |
Share of the fund's debt value in each maturity band, shortest first.
| <1y | 0.7% |
| 1-3y | 2.9% |
| 3-5y | 1.1% |
| 5-10y | 5.5% |
| 10y+ | 89.7% |
These three overlap — one holding can be in arrears and paying in kind at once — so they are shown separately and never summed.
Risk profile
Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2
Most of this fund’s sensitivity is to interest rates, with credit spreads carrying nearly as much.
Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.
| Interest rates | 51% |
| Credit spreads | 49% |
Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.
Share of the fund's spread duration carried by each credit tier.
| High yield | +3.86 yr |
| Investment grade | +3.72 yr |
Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.
| 3 mo | 0.00 yr | 0% |
| 1 yr | 0.05 yr | 1% |
| 5 yr | 0.16 yr | 2% |
| 10 yr | 2.57 yr | 33% |
| 30 yr | 5.04 yr | 64% |
| 3 mo | 0.00 yr | 0% |
| 1 yr | 0.04 yr | 1% |
| 5 yr | 0.16 yr | 2% |
| 10 yr | 2.49 yr | 33% |
| 30 yr | 4.89 yr | 64% |
The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.
Show the numbers
| Tenor | Rate yrs | IG yrs | HY yrs | IG $/bp | HY $/bp |
|---|---|---|---|---|---|
| 3 mo | +0.00 | +0.00 | +0.00 | $7 | $11 |
| 1 yr | +0.05 | +0.01 | +0.03 | $4.6k | $9.7k |
| 5 yr | +0.16 | +0.12 | +0.04 | $39.9k | $12.1k |
| 10 yr | +2.57 | +1.38 | +1.11 | $454.1k | $364.7k |
| 30 yr | +5.04 | +2.21 | +2.68 | $724.8k | $880.6k |
Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.
Holdings
By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page
| Ticker | Issuer | %NAV | Value | Shares |
|---|---|---|---|---|
| — | San Joaquin Hills Transportation Corridor Agency0.00% · due 2032-01-15 | 1.27% | $41.84M | — |
| — | Grand Canyon University5.13% · due 2028-10-01 | 1.24% | $40.76M | — |
| — | M-S-R Energy Authority6.50% · due 2039-11-01 | 1.21% | $39.83M | — |
| — | Foothill-Eastern Transportation Corridor Agency0.00% · due 2042-01-15 | 1.21% | $39.74M | — |
| — | California Statewide Communities Development Authority5.25% · due 2056-12-01 | 1.09% | $35.76M | — |
| — | San Francisco City & County Airport Comm-San Francisco International Airport5.00% · due 2050-05-01 | 1.06% | $34.76M | — |
| — | Los Angeles Housing Authority6.00% · due 2062-12-01 | 0.98% | $32.19M | — |
| — | CMFA Special Finance Agency4.50% · due 2051-08-01 | 0.86% | $28.13M | — |
| — | Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue4.78% · due 2058-07-01 | 0.84% | $27.57M | — |
| — | San Diego Unified School District0.00% · due 2047-07-01 | 0.79% | $26.00M | — |
Top 10 positions are 10.55% of net assets, top 25 20.19%, across 180 issuers.
See more of this fund's book
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