Franklin Federal Intermediate-Term Tax-Free Income Fund
Actively managed U.S. bond fund
As of its 2026 Q2 report, Franklin Federal Intermediate-Term Tax-Free Income Fund held 579 positions with $2.01B in net assets. Its ten largest holdings made up 11.0% of the fund. The FKITX share class costs 0.56% a year. Over the 12 months to May 2026, FKITX returned 6.7%, with dividends reinvested. In 2026 Q2 it added 22 new positions and exited 17.
To provide investors with as high a level of income exempt from federal income taxes as is consistent with prudent investment management and the preservation of shareholders capital.
The fund invests at least 80% of its assets in municipal securities whose interest is exempt from federal income taxes, selecting securities rated in the top four categories by nationally recognized rating services and maintaining a dollar-weighted average maturity of six to 12 years. Up to 35% of assets may be allocated to municipal securities issued by U.S. territories. Because the fund may hold significant positions in municipal securities financing similar types of projects based on economic conditions, concentration risk in particular project types can arise.
What you own
| Company | Weight | Value | Shares |
|---|---|---|---|
Patriots Energy Group Financing Agency 5.25% floating · due 2054-10-01 | 1.46% | $29.47M | — |
Public Finance Authority 5.38% · due 2036-12-01 | 1.22% | $24.63M | — |
Public Finance Authority 4.50% · due 2031-12-01 | 1.21% | $24.45M | — |
Philadelphia Authority for Industrial Development | 1.18% | $23.84M | — |
Tennergy Corp. 5.50% floating · due 2053-10-01 | 1.16% | $23.27M | — |
Texas Transportation Finance Corp. 5.50% · due 2055-10-01 | 1.11% | $22.37M | — |
Texas Municipal Gas Acquisition & Supply Corp. IV 5.50% floating · due 2054-01-01 | 1.02% | $20.61M | — |
Maricopa County Industrial Development Authority 7.38% · due 2029-10-01 | 0.96% | $19.41M | — |
New Jersey Economic Development Authority 5.00% · due 2039-11-01 | 0.86% | $17.30M | — |
San Francisco City & County Airport Comm-San Francisco International Airport 5.00% · due 2033-05-01 | 0.83% | $16.64M | — |
The 200 largest of 579 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 | 97.61% |
| Cash & short-term | 1.68% |
| Other | 0.26% |
How it has done
FKITX share class · total returns with dividends reinvested
Volatility over the last 12 months: 3.47%. 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 |
|---|---|---|---|---|---|
| 0.56% | +6.68% | +13.36% | +6.23% | -4.17% | |
| 1.11% | +6.07% | +11.46% | +3.33% | -4.20% | |
| 0.46% | +6.77% | +13.66% | +6.75% | -4.13% | |
| 0.40% | +6.83% | +13.85% | +6.96% | -4.12% | |
| 0.71% | +6.51% | +12.84% | +5.34% | -4.11% |
These classes hold the same portfolio, so the 3.63pp spread over 5 years is the cost difference between them — roughly 0.73pp a year — not a difference in what they own.
Fees & fund details
Franklin Federal Intermediate-Term 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
- Investment grade
- Rate sensitivity
- Intermediate duration
- Expense ratio, by class
- 0.40% – 1.11%· FKITX 0.56%
- Portfolio turnover
- 27.20% a year · as of 2026 Q2
Net is what a holder pays after the adviser's contractual waiver; gross is before it. A waiver can expire.
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.
22 new· the largest 6
17 exited· the largest 8
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 | 83.7% |
| Floating rate | 14.8% |
| Zero-coupon or unclassified | 1.5% |
Share of the fund's debt value in each maturity band, shortest first.
| <1y | 0.4% |
| 1-3y | 3.3% |
| 3-5y | 6.1% |
| 5-10y | 27.3% |
| 10y+ | 62.9% |
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 | 50% |
| Credit spreads | 50% |
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 | +4.92 yr |
| High yield | +0.82 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 | 0.06 yr | 1% |
| 5 yr | 0.63 yr | 11% |
| 10 yr | 3.00 yr | 52% |
| 30 yr | 2.12 yr | 36% |
| 3 mo | 0.00 yr | 0% |
| 1 yr | 0.06 yr | 1% |
| 5 yr | 0.63 yr | 11% |
| 10 yr | 2.97 yr | 52% |
| 30 yr | 2.08 yr | 36% |
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 | $120 | $0 |
| 1 yr | +0.06 | +0.04 | +0.02 | $8.5k | $3.3k |
| 5 yr | +0.63 | +0.50 | +0.13 | $101.4k | $26.0k |
| 10 yr | +3.00 | +2.50 | +0.47 | $504.0k | $93.9k |
| 30 yr | +2.12 | +1.87 | +0.21 | $377.1k | $42.5k |
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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