FLMI Profile
The Franklin Dynamic Municipal Bond ETF is designed to provide investors with exposure to municipal securities while aiming to achieve federal income tax-free income, including from the federal alternative minimum tax. Under typical market conditions, the fund commits to investing at least 80% of its net assets in municipal bonds whose interest payments are exempt from federal income taxes. This focus on tax-free securities helps investors potentially enhance their after-tax returns, making it particularly attractive for those in higher tax brackets.
The fund’s investment strategy involves a dynamic approach to selecting municipal securities, which includes bonds issued by various state and local governments and their agencies. The objective is to identify high-quality bonds that provide a favorable risk-return profile while meeting the fund's tax-exempt criteria. The manager uses a comprehensive evaluation process, including credit analysis and market trends, to select bonds that are expected to contribute positively to the fund’s performance.
While the fund strives to maintain a portfolio of securities with tax-free income, it retains the flexibility to allocate up to 20% of its assets in securities that may be subject to the federal alternative minimum tax or, on rare occasions, other federal or state income taxes. This flexibility allows the fund to manage liquidity and take advantage of investment opportunities that might enhance overall returns, even if they involve some tax considerations.
Franklin Templeton, renowned for its expertise in fixed-income investing, manages the fund with a focus on delivering competitive performance while adhering to its tax-free income mandate. The Franklin Dynamic Municipal Bond ETF reflects the firm's commitment to leveraging its extensive research capabilities and market insights to construct a portfolio that aligns with both tax efficiency and investment objectives.
|
