Franklin Federal Intermediate-Term Tax-Free Income Fund

Franklin Tax Free Trust · 5 share classes

Actively managed U.S. bond fund
One fund, 5 share classes:FKITXFCITXFITZXFITQXFKQTX
$2.01B NAV
579 positions · as of 2026-05-31 · filed 2026-07-27

Fund classification

Classified from what the fund holds · as of 2026 Q2

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

Fund profile

As filed in the prospectus · 2026 Q2

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.

Strategy · summarised

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.

Expenses
0.40% 1.11%across 5 share classes
Share classGrossNet
FKITX0.68%0.56%
FCITX1.23%1.11%
FITZX0.58%0.46%
FITQX0.51%0.40%
FKQTX0.83%0.71%

Net is what a holder pays after the adviser's contractual waiver; gross is before it. A waiver can expire.

Portfolio turnover 27.20% · as of 2026 Q2

Allocation

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

99.55%
of net assets
Bonds97.61%
Cash & short-term1.68%
Other0.26%

Latest quarter

What changed since the fund's previous filing

2026Q2 vs 2026Q1: 22 new17 exited

Largest new: Minnesota Municipal Gas Agency, San Francisco City & County Airport Comm-San Francisco International Airport, New Hampshire Business Finance Authority ×3, State of Illinois, Redevelopment Authority of the City of Philadelphia, State of California

Largest exited: University of California, Tarrant Regional Water District, State of Washington, City of New York NY, Ohio Housing Finance Agency, University of Connecticut, Michigan Finance Authority, City of Rochester MN

Return profile

Chart:

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

Share class1-year3-year5-yearVolWorst fall
+6.19%+11.97%+6.08%3.51%-4.17%
+5.59%+10.10%+3.18%3.56%-4.20%
+6.28%+12.28%+6.59%3.55%-4.13%
+6.35%+12.46%+6.80%3.50%-4.12%
+5.93%+11.36%+5.19%3.58%-4.11%

These classes hold the same portfolio, so the 3.62pp spread over 5 years is the cost difference between them — roughly 0.72pp 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
4.72%
Avg maturity
14.60 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.

15%
floating
Fixed rate83.7%
Floating rate14.8%
Zero-coupon or unclassified1.5%
Maturity ladder

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

<1y10y+
<1y0.4%
1-3y3.3%
3-5y6.1%
5-10y27.3%
10y+62.9%
Flagged holdings
Defaulted: none reported
In arrears: 0.32% · $6.22M · 2 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
5.81 yr
approx. move per 100bp
Credit-spread duration
5.74 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.

≈ -11.5%
of value
Interest rates50%
Credit spreads50%

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.

+5.74
yrs total
Investment grade+4.92 yr
High yield+0.82 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 rate5.81 yr total
3 mo30 yr
3 mo0.00 yr0%
1 yr0.06 yr1%
5 yr0.63 yr11%
10 yr3.00 yr52%
30 yr2.12 yr36%
Credit spread5.74 yr total
3 mo30 yr
3 mo0.00 yr0%
1 yr0.06 yr1%
5 yr0.63 yr11%
10 yr2.97 yr52%
30 yr2.08 yr36%

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$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.

Holdings

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

Issuer%NAVValue
Patriots Energy Group Financing Agency5.25% floating · due 2054-10-011.46%$29.47M
Public Finance Authority5.38% · due 2036-12-011.22%$24.63M
Public Finance Authority4.50% · due 2031-12-011.21%$24.45M
Philadelphia Authority for Industrial Development1.18%$23.84M
Tennergy Corp.5.50% floating · due 2053-10-011.16%$23.27M
Texas Transportation Finance Corp.5.50% · due 2055-10-011.11%$22.37M
Texas Municipal Gas Acquisition & Supply Corp. IV5.50% floating · due 2054-01-011.02%$20.61M
Maricopa County Industrial Development Authority7.38% · due 2029-10-010.96%$19.41M
New Jersey Economic Development Authority5.00% · due 2039-11-010.86%$17.30M
San Francisco City & County Airport Comm-San Francisco International Airport5.00% · due 2033-05-010.83%$16.64M
Showing 10 of 579Sign in to see more

Top 10 positions are 11.03% of net assets, top 25 21.71%, across 247 issuers.

See more of this fund's book

More positions with filed share counts, and the quarter-over-quarter change list rather than the largest few — free with an account, no card required.

Sign in free