Franklin California Tax-Free Income Fund

Franklin California Tax Free Income Fund · Series S000006665 · 5 share classes

Bond fund · 99% debt· rate + credit risk filed
One fund, 5 share classes:FKTFXFRCTXFCAVXFKTQXFTFQX
$13.15B NAV
1,129 positions · as of 2026-05-31 · filed 2026-07-27
data updated 2026-09-08

Fund profile

As filed in the prospectus · 2026 Q2

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.

Strategy · summarised

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.

Expenses
0.48% 1.17%across 5 share classes
Share classExpense ratio
FKTFX0.61%
FRCTX1.17%
FCAVX0.52%
FKTQX0.48%
FTFQX0.77%

Portfolio turnover 11.93% · as of 2026 Q2

Allocation

Asset groups · long / short shown separately, never netted · 2026 Q2

99.89%
of net assets
Bonds99.12%
Cash & short-term0.77%
Securitized0.01%

Latest quarter

What changed since the fund's previous filing

2026Q2 vs 2026Q1: 28 new10 exited

Largest new: University of California ×2, California Housing Finance Agency, California Statewide Communities Development Authority, Cerritos Community College District, California Municipal Finance Authority, Southern California Public Power Authority, Fullerton Joint Union High School District

Largest exited: University of California ×2, State of California ×2, Eastern Municipal Water District, California Health Facilities Financing Authority, San Diego County Regional Transportation Commission, Tobacco Securitization Authority of Southern California

Return profile

Chart:

Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026

Share class1-year3-year5-yearVolWorst fall
+5.92%+10.73%+3.04%4.59%-5.74%
+5.36%+8.94%+0.38%4.56%-5.89%
+6.04%+11.07%+3.55%4.56%-5.87%
+6.08%+11.03%+3.73%4.59%-5.72%
+5.76%+10.21%+2.25%4.58%-5.92%

These classes hold the same portfolio, so the 3.35pp spread over 5 years is the cost difference between them — roughly 0.67pp a year — not a difference in what they own.

Cumulative return· Jun 2023 – Apr 2026

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

Avg coupon
4.34%
Avg maturity
19.12 yr
Coupon type

Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.

7%
floating
Fixed rate81.8%
Zero-coupon or unclassified11.6%
Floating rate6.6%
Maturity ladder

Share of the fund's debt value in each maturity band, shortest first.

<1y10y+
<1y1.1%
1-3y3.1%
3-5y1.4%
5-10y8.1%
10y+86.4%
Flagged holdings
Defaulted: 0.09% · $11.79M · 2 positions
In arrears: 0.11% · $14.38M · 1 positions
Paid in kind: none reported

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.

Interest-rate duration
7.29 yr
approx. move per 100bp
Credit-spread duration
7.13 yr
approx. move per 100bp
If rates and spreads both rise 100bp

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.

≈ -14.5%
of value
Interest rates51%
Credit spreads49%

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.

Credit risk by quality

Share of the fund's spread duration carried by each credit tier.

+7.13
yrs total
Investment grade+5.41 yr
High yield+1.72 yr
Where the risk sits on the curve

Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.

Interest rate7.29 yr total
3 mo30 yr
3 mo0.00 yr0%
1 yr0.05 yr1%
5 yr0.20 yr3%
10 yr3.09 yr42%
30 yr3.95 yr54%
Credit spread7.13 yr total
3 mo30 yr
3 mo0.00 yr0%
1 yr0.05 yr1%
5 yr0.20 yr3%
10 yr3.03 yr42%
30 yr3.86 yr54%

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
TenorRate yrsIG yrsHY yrsIG $/bpHY $/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.

Holdings

By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page

Issuer%NAVValue
California Health Facilities Financing Authority4.00% · due 2044-11-012.93%$385.42M
San Joaquin Hills Transportation Corridor Agency6.00% · due 2043-01-151.56%$204.72M
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue5.00% · due 2058-07-011.39%$182.09M
San Joaquin Hills Transportation Corridor Agency6.00% · due 2045-01-151.38%$182.05M
San Joaquin Hills Transportation Corridor Agency6.00% · due 2046-01-151.38%$182.04M
San Joaquin Hills Transportation Corridor Agency4.00% · due 2050-01-151.37%$179.68M
San Joaquin Hills Transportation Corridor Agency5.95% · due 2040-01-151.36%$179.33M
San Joaquin Hills Transportation Corridor Agency5.90% · due 2038-01-151.02%$133.72M
California Community Choice Financing Authority5.25% floating · due 2054-01-010.99%$130.19M
San Joaquin Hills Transportation Corridor Agency4.00% · due 2044-01-150.97%$128.06M
Showing 10 of 1,129Sign in to see more

Top 10 positions are 14.35% of net assets, top 25 25.25%, across 246 issuers.

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