Franklin California Tax-Free Income Fund
Actively managed U.S. bond fund
As of its 2026 Q2 report, Franklin California Tax-Free Income Fund held 1,129 positions with $13.15B in net assets. Its ten largest holdings made up 14.4% of the fund. The FKTFX share class costs 0.61% a year. Over the 12 months to May 2026, FKTFX returned 7.2%, with dividends reinvested. In 2026 Q2 it added 28 new positions and exited 10.
To provide investors with as high a level of income exempt from federal income taxes, including alternative minimum tax, and exempt from California personal income taxes for California residents as is consistent with prudent investment management and the preservation of shareholders capital.
The fund invests at least 80% of assets in investment-grade municipal securities whose interest is exempt from federal income tax and California state income tax, selecting securities rated in the top four categories by recognized rating services and emphasizing credit quality and long-term income. Up to 20% of assets may be held in securities subject to federal alternative minimum tax or other federal or state income taxes, and up to 35% may be invested in municipal securities issued by U.S. territories. Because the fund's holdings depend on the manager's selection of individual securities based on credit profile, risk, pricing, and other factors rather than tracking an index, portfolio composition will vary with those judgments.
What you own
| Company | Weight | Value | Shares |
|---|---|---|---|
California Health Facilities Financing Authority 4.00% · due 2044-11-01 | 2.93% | $385.42M | — |
San Joaquin Hills Transportation Corridor Agency 6.00% · due 2043-01-15 | 1.56% | $204.72M | — |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue 5.00% · due 2058-07-01 | 1.39% | $182.09M | — |
San Joaquin Hills Transportation Corridor Agency 6.00% · due 2045-01-15 | 1.38% | $182.05M | — |
San Joaquin Hills Transportation Corridor Agency 6.00% · due 2046-01-15 | 1.38% | $182.04M | — |
San Joaquin Hills Transportation Corridor Agency 4.00% · due 2050-01-15 | 1.37% | $179.68M | — |
San Joaquin Hills Transportation Corridor Agency 5.95% · due 2040-01-15 | 1.36% | $179.33M | — |
San Joaquin Hills Transportation Corridor Agency 5.90% · due 2038-01-15 | 1.02% | $133.72M | — |
California Community Choice Financing Authority 5.25% floating · due 2054-01-01 | 0.99% | $130.19M | — |
San Joaquin Hills Transportation Corridor Agency 4.00% · due 2044-01-15 | 0.97% | $128.06M | — |
The 200 largest of 1,129 holdings, with the share counts as filed, open with a free account.
What the fund is made of
Percentages are of fund net assets. Rounding, liabilities and short positions can make totals differ from 100%.
| Bonds | 99.12% |
| Cash & short-term | 0.77% |
| Securitized | 0.01% |
How it has done
FKTFX share class · total returns with dividends reinvested
Volatility over the last 12 months: 4.44%. Past returns are a record, not a forecast.
The 5 share classes hold the same portfolio
| Share class | Expense ratio | 1 year | 3 years | 5 years | Worst fall |
|---|---|---|---|---|---|
| 0.61% | +7.19% | +12.06% | +3.07% | -5.74% | |
| 1.17% | +6.47% | +10.09% | +0.26% | -5.89% | |
| 0.52% | +7.31% | +12.41% | +3.72% | -5.87% | |
| 0.48% | +7.35% | +12.53% | +3.76% | -5.72% | |
| 0.77% | +7.02% | +11.53% | +2.28% | -5.92% |
These classes hold the same portfolio, so the 3.50pp spread over 5 years is the cost difference between them — roughly 0.70pp a year — not a difference in what they own.
Fees & fund details
Franklin California Tax-Free Income 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
- Mixed credit
- Rate sensitivity
- Long duration
- Expense ratio, by class
- 0.48% – 1.17%· FKTFX 0.61%
- Portfolio turnover
- 11.93% a year · as of 2026 Q2
Turnover is how much of the portfolio was replaced in a year.
Classified from what the fund holds, not from its name · 2026 Q2. The summary is a paraphrase of the prospectus; the objective is verbatim.
What changed this quarter
Positions that entered or left the fund since its previous filing. Positions that were only resized are not listed.
28 new· the largest 7
10 exited· the largest 6
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 | 81.8% |
| Zero-coupon or unclassified | 11.6% |
| Floating rate | 6.6% |
Share of the fund's debt value in each maturity band, shortest first.
| <1y | 1.1% |
| 1-3y | 3.1% |
| 3-5y | 1.4% |
| 5-10y | 8.1% |
| 10y+ | 86.4% |
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.
| Investment grade | +5.41 yr |
| High yield | +1.72 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 | 0.20 yr | 3% |
| 10 yr | 3.09 yr | 42% |
| 30 yr | 3.95 yr | 54% |
| 3 mo | 0.00 yr | 0% |
| 1 yr | 0.05 yr | 1% |
| 5 yr | 0.20 yr | 3% |
| 10 yr | 3.03 yr | 42% |
| 30 yr | 3.86 yr | 54% |
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 | $3.1k | $15 |
| 1 yr | +0.05 | +0.04 | +0.00 | $56.9k | $3.9k |
| 5 yr | +0.20 | +0.19 | +0.01 | $249.1k | $15.2k |
| 10 yr | +3.09 | +2.55 | +0.48 | $3.35m | $629.6k |
| 30 yr | +3.95 | +2.62 | +1.23 | $3.45m | $1.62m |
Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.
Understand how this fund fits with the rest.
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