GOF P4 03/21
[Franklin Templeton Logo]
SUPPLEMENT DATED MARCH 8, 2021
TO THE CURRENTLY EFFECTIVE PROSPECTUSES
OF EACH FUND LISTED BELOW
|
Franklin California Tax-Free Income Fund Franklin California Tax-Free Trust Franklin California Intermediate-Term Tax-Free Income Fund Franklin Federal Tax-Free Income Fund Franklin Municipal Securities Trust Franklin California High Yield Municipal Fund Franklin Tennessee Municipal Bond Fund Franklin New York Tax-Free Income Fund Franklin New York Tax-Free Trust Franklin New York Intermediate-Term Tax-Free Income Fund Franklin Tax-Free Trust Franklin Federal Intermediate-Term Tax-Free Income Fund Franklin Federal Limited-Term Tax-Free Income Fund Franklin High Yield Tax-Free Income Fund Franklin Massachusetts Tax-Free Income Fund Franklin New Jersey Tax-Free Income Fund |
Franklin Tax-Free Trust Franklin Alabama Tax-Free Income Fund Franklin Florida Tax-Free Income Fund Franklin Georgia Tax-Free Income Fund Franklin Kentucky Tax-Free Income Fund Franklin Louisiana Tax-Free Income Fund Franklin Maryland Tax-Free Income Fund Franklin Missouri Tax-Free Income Fund Franklin Municipal Green Bond Fund Franklin North Carolina Tax-Free Income Fund Franklin Virginia Tax-Free Income Fund Franklin Arizona Tax-Free Income Fund Franklin Colorado Tax-Free Income Fund Franklin Connecticut Tax-Free Income Fund Franklin Michigan Tax-Free Income Fund Franklin Minnesota Tax-Free Income Fund Franklin Ohio Tax-Free Income Fund Franklin Oregon Tax-Free Income Fund Franklin Pennsylvania Tax-Free Income Fund
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The prospectus is amended as follows:
I. The footnote under the “Shareholder Fees” tables in the “Fund Summary – Fees and Expenses of the Fund” section of the prospectus is replaced with the following:
There is a 1% contingent deferred sales charge that applies to investments of $250,000 or more (see "Investments of $250,000 or More" under "Choosing a Share Class") and purchases by certain retirement plans without an initial sales charge on shares sold within 18 months of purchase.
II. For all Funds except Franklin California Intermediate-Term Tax-Free Income Fund, Franklin New York Intermediate-Term Tax-Free Income Fund, Franklin Federal Intermediate-Term Tax-Free Income Fund and Franklin Federal Limited-Term Tax-Free Income Fund, the first chart under the “Your Account – Choosing a Share Class” section of the prospectus is replaced with the following:
|
Class A |
Class A1 |
Class C |
Class R6 |
Advisor Class |
|
Initial sales charge of 3.75% or less |
Initial sales charge of 3.75% or less |
No initial sales charge |
See “Qualified Investors - Class R6” below |
See “Qualified Investors - Advisor Class” below |
|
Deferred sales charge of 1% on purchases of $250,000 or more sold within 18 months |
Deferred sales charge of 1% on purchases of $250,000 or more sold within 18 months |
Deferred sales charge of 1% on shares you sell within 12 months |
|
|
|
Lower annual expenses than Class C due to lower distribution fees |
Lower annual expenses than Class C due to lower distribution fees |
Higher annual expenses than Class A due to higher distribution fees. Automatic conversion to Class A shares after approximately ten years, reducing future annual expenses. |
|
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III. For Franklin California Intermediate-Term Tax-Free Income Fund, Franklin New York Intermediate-Term Tax-Free Income Fund, Franklin Federal Intermediate-Term Tax-Free Income Fund and Franklin Federal Limited-Term Tax-Free Income Fund, the first chart under the “Your Account – Choosing a Share Class” section of the prospectus is replaced with the following:
|
Class A |
Class A1 |
Class C |
Class R6 |
Advisor Class |
|
Initial sales charge of 2.25% or less |
Initial sales charge of 2.25% or less |
No initial sales charge |
See “Qualified Investors - Class R6” below |
See “Qualified Investors - Advisor Class” below |
|
Deferred sales charge of 1% on purchases of $250,000 or more sold within 18 months |
Deferred sales charge of 1% on purchases of $250,000 or more sold within 18 months |
Deferred sales charge of 1% on shares you sell within 12 months |
|
|
|
Lower annual expenses than Class C due to lower distribution fees |
Lower annual expenses than Class C due to lower distribution fees |
Higher annual expenses than Class A due to higher distribution fees. Automatic conversion to Class A shares after approximately ten years, reducing future annual expenses. |
|
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IV. For all Funds except Franklin California Intermediate-Term Tax-Free Income Fund, Franklin New York Intermediate-Term Tax-Free Income Fund, Franklin Federal Intermediate-Term Tax-Free Income Fund and Franklin Federal Limited-Term Tax-Free Income Fund, the chart under “Your Account – Choosing a Share Class – Sales Chares – Class A & A1” section of the prospectus is replaced with the following:
|
When you invest this amount |
The sales charge makes up this % of the offering price |
Which equals this % of your net investment |
|
Under $100,000 |
3.75 |
3.90 |
|
$100,000 but under $250,000 |
3.25 |
3.36 |
|
$250,000 or more |
0.00 |
0.00 |
V. For Franklin California Intermediate-Term Tax-Free Income Fund, Franklin New York Intermediate-Term Tax-Free Income Fund, Franklin Federal Intermediate-Term Tax-Free Income Fund and Franklin Federal Limited-Term Tax-Free Income Fund, the chart under “Your Account – Choosing a Share Class – Sales Chares – Class A & A1” section of the prospectus is replaced with the following
|
When you invest this amount |
The sales charge makes up this % of the offering price |
Which equals this % of your net investment |
|
Under $100,000 |
2.25 |
2.30 |
|
$100,000 but under $250,000 |
1.75 |
1.78 |
|
$250,000 or more |
0.00 |
0.00 |
VI The following replaces the “Your Account – Choosing a Shares Class – Sales Charges – Class A & A1 – Investments of $500,000 or More” section:
Investments of $250,000 or More
If you invest $250,000 or more, either as a lump sum or through our cumulative quantity discount or letter of intent programs, you can buy Class A & A1 shares without an initial sales charge. However, there is a 1% CDSC on any shares you sell within 18 months of purchase. The way we calculate the CDSC is the same for each class (please see “Contingent Deferred Sales Charge (CDSC) - Class A, A1 & C”).
VII. The following replaces the second sentence under the “Your Account – Choosing a Share Class – Sales Charges – Class C” section of the prospectus:
We place any investment of $250,000 or more in Class A shares, since Class A’s annual expenses are lower.
VIII. The following replaces the “Your Account – Investor Services – Franklin Templeton VIP Services®” section of the prospectus:
Franklin Templeton VIP Services® You may be eligible for Franklin Templeton VIP Services® if you are currently eligible for the $250,000 sales charge breakpoint for Franklin Templeton fixed income funds based solely on shares registered directly with the Franklin Templeton funds’ transfer agent and excluding shares held indirectly through brokerage accounts. Franklin Templeton VIP Services® shareholders enjoy enhanced service and transaction capabilities. Please contact Shareholder Services at (800) 632‑2301 for additional information on this program.
IX. For all Funds except Franklin California Intermediate-Term Tax-Free Income Fund, Franklin New York Intermediate-Term Tax-Free Income Fund, Franklin Federal Intermediate-Term Tax-Free Income Fund and Franklin Federal Limited-Term Tax-Free Income Fund, the chart under the “Account Policies – Dealer Compensation – Class A, A1 & C”” section of the prospectus is replaced with the following:
|
|
Class A |
Class A1 |
Class C |
|
Commission (%) |
— |
— |
1.001 |
|
Under $100,000 |
3.50 |
3.50 |
|
|
$100,000 but under $250,000 |
3.00 |
3.00 |
|
|
$250,000 or more |
Up to 1.00 |
Up to 1.00 |
|
|
12b-1 fee to dealer |
0.252 |
0.102 |
0.653 |
1. Commission includes advance of the first year's 0.15% 12b-1 service fee. Distributors may pay a prepaid commission.
2. For purchases at NAV where Distributors paid a prepaid commission, dealers may start to receive the 12b-1 fee in the 13th month after purchase. For purchases at NAV where Distributors did not pay a prepaid commission, dealers may start to receive the 12b-1 fee at the time of purchase.
3. Dealers may be eligible to receive up to 0.15% at the time of purchase and may be eligible to receive 0.65% starting in the 13th month. During the first 12 months, the full 12b-1 fee will be paid to Distributors to partially offset the commission and the prepaid service fee paid at the time of purchase. For purchases at NAV where Distributors did not pay a prepaid commission, dealers may start to receive the 12b-1 fee at the time of purchase. After approximately 10 years, Class C shares convert to Class A shares and dealers may then be eligible to receive the 12b-1 fee applicable to Class A.
X. For Franklin California Intermediate-Term Tax-Free Income Fund, Franklin New York Intermediate-Term Tax-Free Income Fund and Franklin Federal Intermediate-Term Tax-Free Income Fund, the chart under the “Account Policies – Dealer Compensation – Class A, A1 & C”” section of the prospectus is replaced with the following:
|
|
Class A |
Class A1 |
Class C |
|
Commission (%) |
— |
— |
1.001 |
|
Under $100,000 |
2.00 |
2.00 |
|
|
$100,000 but under $250,000 |
1.75 |
1.75 |
|
|
$250,000 or more |
Up to 1.00 |
Up to 1.00 |
|
|
12b-1 fee to dealer |
0.252 |
0.102 |
0.653 |
1. Commission includes advance of the first year's 0.15% 12b-1 service fee. Distributors may pay a prepaid commission.
2. For purchases at NAV where Distributors paid a prepaid commission, dealers may start to receive the 12b-1 fee in the 13th month after purchase. For purchases at NAV where Distributors did not pay a prepaid commission, dealers may start to receive the 12b-1 fee at the time of purchase.
3. Dealers may be eligible to receive up to 0.15% at the time of purchase and may be eligible to receive 0.65% starting in the 13th month. During the first 12 months, the full 12b-1 fee will be paid to Distributors to partially offset the commission and the prepaid service fee paid at the time of purchase. For purchases at NAV where Distributors did not pay a prepaid commission, dealers may start to receive the 12b-1 fee at the time of purchase. After approximately 10 years, Class C shares convert to Class A shares and dealers may then be eligible to receive the 12b-1 fee applicable to Class A.
XI. For Franklin Federal Limited-Term Tax-Free Income Fund, the chart under the “Account Policies – Dealer Compensation – Class A, A1 & C”” section of the prospectus is replaced with the following:
|
|
Class A |
Class A1 |
|
Commission (%) |
— |
— |
|
Under $100,000 |
2.00 |
2.00 |
|
$100,000 but under $250,000 |
1.75 |
1.75 |
|
$250,000 or more |
Up to 1.00 |
Up to 1.00 |
|
12b-1 fee to dealer |
0.252 |
0.152 |
1. Commission includes advance of the first year's 0.15% 12b-1 service fee. Distributors may pay a prepaid commission.
2. For purchases at NAV where Distributors paid a prepaid commission, dealers may start to receive the 12b-1 fee in the 13th month after purchase. For purchases at NAV where Distributors did not pay a prepaid commission, dealers may start to receive the 12b-1 fee at the time of purchase.
Please keep this supplement with your prospectus for future reference.
GOF SA6 03/21
[Franklin Templeton Logo]
SUPPLEMENT DATED MARCH 8, 2021
TO THE CURRENTLY EFFECTIVE
STATEMENTS OF ADDITIONAL INFORMATION
OF EACH FUND LISTED BELOW
|
Franklin California Tax-Free Income Fund Franklin California Tax-Free Trust Franklin California Intermediate-Term Tax-Free Income Fund Franklin Federal Tax-Free Income Fund Franklin Municipal Securities Trust Franklin California High Yield Municipal Fund Franklin Tennessee Municipal Bond Fund Franklin New York Tax-Free Income Fund Franklin New York Tax-Free Trust Franklin New York Intermediate-Term Tax-Free Income Fund Franklin Tax-Free Trust Franklin Federal Intermediate-Term Tax-Free Income Fund Franklin Federal Limited-Term Tax-Free Income Fund Franklin High Yield Tax-Free Income Fund Franklin Massachusetts Tax-Free Income Fund Franklin New Jersey Tax-Free Income Fund |
Franklin Tax-Free Trust Franklin Alabama Tax-Free Income Fund Franklin Florida Tax-Free Income Fund Franklin Georgia Tax-Free Income Fund Franklin Kentucky Tax-Free Income Fund Franklin Louisiana Tax-Free Income Fund Franklin Maryland Tax-Free Income Fund Franklin Missouri Tax-Free Income Fund Franklin Municipal Green Bond Fund Franklin North Carolina Tax-Free Income Fund Franklin Virginia Tax-Free Income Fund Franklin Arizona Tax-Free Income Fund Franklin Colorado Tax-Free Income Fund Franklin Connecticut Tax-Free Income Fund Franklin Michigan Tax-Free Income Fund Franklin Minnesota Tax-Free Income Fund Franklin Ohio Tax-Free Income Fund Franklin Oregon Tax-Free Income Fund Franklin Pennsylvania Tax-Free Income Fund
|
The statements of additional information (SAI) are amended as follows:
I. The chart under “Buying and Selling Shares – Initial sales charges – Financial intermediary compensation” is replaced with the following:
|
Amount of Investment |
For Funds with an initial sales charge of 3.75% (%) |
For Funds with an initial sales charge of 2.25% (%) |
|
Under $100,000 |
3.50 |
2.00 |
|
$100,000 but under $250,000 |
3.00 |
1.75 |
|
$250,000 or more |
1.00 |
1.00 |
II. The first paragraph under “Buying and Selling Shares – Contingent deferred sales charge (CDSC) – Class A, A1 & C” is replaced with the following:
If you invest any amount in Class C shares or $250,000 or more in Class A or A1 shares either as a lump sum or through our cumulative quantity discount or letter of intent programs, a CDSC may apply on any Class A or A1 shares you sell within 18 months and any Class C shares you sell within 12 months of purchase. The CDSC is 1% of the value of the shares sold or the net asset value at the time of purchase, whichever is less, for Class A, A1 and Class C shares.
Please keep this supplement with your SAI for future reference.
Investment Goal
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.
Fees and Expenses of the Fund
These tables describe the fees and expenses that you may pay if you buy and hold shares of the Fund.
Please note that the tables and examples below do not reflect any transaction fees that may be charged by financial intermediaries, or commissions that a shareholder may be required to pay directly to its financial intermediary when buying or selling Class R6 or Advisor Class shares.
Shareholder Fees (fees paid directly from your investment)
| Class A | Class A1 | Class C | Class R6 | Advisor Class | |
| Maximum Sales Charge (Load) Imposed on Purchases (as percentage of offering price) | |||||
| Maximum Deferred Sales Charge (Load) (as percentage of the lower of original purchase price or sale proceeds) |
1. There is a 1% contingent deferred sales charge that applies to investments of $250,000 or more (see "Investments of $250,000 or More" under "Choosing a Share Class") and purchases by certain retirement plans without an initial sales charge on shares sold within 18 months of purchase.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
| Class A | Class A1 | Class C | Class R6 | Advisor Class | |
| Management fees | |||||
| Distribution and service (12b-1) fees | |||||
| Other expenses | |||||
| Total annual Fund operating expenses |
Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of the period. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
| 1 Year | 3 Years | 5 Years | 10 Years | |
| Class A | $ |
$ |
$ |
$ |
| Class A1 | $ |
$ |
$ |
$ |
| Class C | $ |
$ |
$ |
$ |
| Class R6 | $ |
$ |
$ |
$ |
| Advisor Class | $ |
$ |
$ |
$ |
| Class C | $ |
$ |
$ |
$ |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held
in a taxable account. These costs, which are not reflected in annual Fund operating expenses or in the Example, affect the
Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was
Principal Investment Strategies
The Fund only buys municipal securities rated, at the time of purchase, in one of the top four ratings categories by one or more U.S. nationally recognized rating services (or unrated or short-term rated securities of comparable credit quality).
The Fund may invest in municipal securities issued by U.S. territories. The Fund does not necessarily focus its investments in a particular state or territory.
Although the investment manager will search for investments across a large number of municipal securities that finance different types of projects, from time to time, based on economic conditions, the Fund may have significant positions in municipal securities that finance similar types of projects.
The Fund may invest in insured municipal securities. Insured municipal securities are covered by insurance policies that guarantee the timely payment of principal and interest. The insurance premium costs, however, are typically reflected in a lower yield and/or higher price for the insured bond. It is important to note that insurance does not guarantee the market value of an insured security, or the Fund’s share price or distributions, and shares of the Fund are not insured.
The investment manager selects securities that it believes will provide the best balance between risk and return within the Fund’s range of allowable investments and typically uses a buy and hold strategy. This means it generally holds securities in the Fund’s portfolio for income purposes, rather than trading securities for capital gains, although the investment manager may sell a security at any time if it believes it could help the Fund meet its goal.
Principal Risks
You could lose money by investing in the Fund. Mutual fund shares are not deposits or obligations of, or guaranteed or endorsed by, any bank, and are not insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency of the U.S. government.
Interest Rate When interest rates rise, debt security prices generally fall. The opposite is also generally true: debt security prices rise when interest rates fall. Interest rate changes are influenced by a number of factors, including government policy, monetary policy, inflation expectations, perceptions of risk, and supply of and demand for bonds. In general, securities with longer maturities or durations are more sensitive to interest rate changes.
Market The market values of securities or other investments owned by the Fund will go up or down, sometimes rapidly or unpredictably. The market value of a security or other investment may be reduced by market activity or other results of supply and demand unrelated to the issuer. This is a basic risk associated with all investments. When there are more sellers than buyers, prices tend to fall. Likewise, when there are more buyers than sellers, prices tend to rise.
Credit An issuer of debt securities may fail to make interest payments or repay principal when due, in whole or in part. Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value.
A change in the credit rating of a municipal bond insurer that insures securities in the Fund’s portfolio may affect the value of the securities it insures, the Fund’s share price and Fund performance. The Fund might also be adversely impacted by the inability of an insurer to meet its insurance obligations.
Focus The Fund may invest more than 25% of its assets in municipal securities that finance similar types of projects, such as utilities, hospitals, higher education and transportation. A change that affects one project, such as proposed legislation on the financing of the project, a shortage of the materials needed for the project, or a declining need for the project, would likely affect all similar projects, thereby increasing market risk.
Tax-Exempt Securities Failure of a municipal security issuer to comply with applicable tax requirements may make income paid thereon taxable, resulting in a decline in the security’s value. In addition, there could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state tax status of municipal securities.
Income The Fund's distributions to shareholders may decline when prevailing interest rates fall, when the Fund experiences defaults on debt securities it holds, or when the Fund realizes a loss upon the sale of a debt security.
Prepayment Prepayment risk occurs when a debt security can be repaid in whole or in part prior to the security's maturity and the Fund must reinvest the proceeds it receives, during periods of declining interest rates, in securities that pay a lower rate of interest. Also, if a security has been purchased at a premium, the value of the premium would be lost in the event of prepayment. Prepayments generally increase when interest rates fall.
States The Fund’s portfolio is generally widely diversified among issuers of municipal securities. However, to the extent that the Fund has exposure from time to time to the municipal securities of a particular state, events in that state may affect the Fund’s investments and performance. These events may include economic or political policy changes, tax base erosion, unfunded pension and healthcare liabilities, constitutional limits on tax increases, budget deficits and other financial difficulties, and changes in the credit ratings assigned to municipal issuers of the state. The same is true of events in U.S. territories, to the extent that the Fund has exposure to any particular territory at any given time.
Bond Insurers Because of the consolidation among municipal bond insurers the Fund is subject to additional risks including the risk that credit risk may be concentrated among fewer insurers and the risk that events involving one or more municipal bond insurers could have a significant adverse effect on the value of the securities insured by an insurer and on the municipal markets as a whole.
Liquidity From time to time, the trading market for a particular security or type of security or other investments in which the Fund invests may become less liquid or even illiquid. Reduced liquidity will have an adverse impact on the Fund’s ability to sell such securities or other investments when necessary to meet the Fund’s liquidity needs, which may arise or increase in response to a specific economic event or because the investment manager wishes to purchase particular investments or believes that a higher level of liquidity would be advantageous. Reduced liquidity will also generally lower the value of such securities or other investments. Market prices for such securities or other investments may be relatively volatile.
Management The Fund is subject to management risk because it is an actively managed investment portfolio. The Fund's investment manager applies investment techniques and risk analyses in making investment decisions for the Fund, but there can be no guarantee that these decisions will produce the desired results.
Performance
Class A Annual Total Returns
| - |
||
Average Annual Total Returns
(figures reflect sales charges)
For the periods ended December 31, 2019
| 1 Year | 5 Years | 10 Years | |
| Franklin Federal Tax-Free Income Fund - Class A | |||
| Franklin Federal Tax-Free Income Fund - Class A1 | |||
| Franklin Federal Tax-Free Income Fund - Class C | |||
| Franklin Federal Tax-Free Income Fund - Class R6 | |||
| Franklin Federal Tax-Free Income Fund - Advisor Class | |||
| Bloomberg Barclays Municipal Bond Index (index reflects no deduction for fees, expenses or taxes) |
1. Since inception August 1, 2017.
The figures in the average annual total returns table above reflect the Class A and Class A1 maximum front-end sales charge of 3.75%. Prior to March 1, 2019, Class A and A1 shares were subject to a maximum front-end sales charge of 4.25%. If the maximum front-end sales charge of 4.25% was reflected, performance for Class A and Class A1 in the average annual total returns table would be lower.
Historical performance for Class A shares in the bar chart and table above prior to their inception is based on the performance of Class A1 shares and has been adjusted to reflect differences in Rule 12b-1 fees between classes.
Historical performance for Advisor Class shares prior to their inception is based on the performance of Class A1 shares. Advisor Class performance has been adjusted to reflect differences in sales charges between classes.
The after-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns are shown only for Class A and after-tax returns for other classes will vary.
Investment Manager
Franklin Advisers, Inc. (Advisers)
Portfolio Managers
Ben Barber, CFA Portfolio Manager of Advisers and portfolio manager of the Fund since August 2020.
Carrie Higgins Vice President of Advisers and portfolio manager of the Fund since 2004.
Francisco Rivera Vice President of Advisers and portfolio manager of the Fund since 1996.
Daniel Workman, CFA Vice President of Advisers and portfolio manager of the Fund since 2018.
Effective November 2, 2020, the portfolio management team will be as follows:
Ben Barber, CFA Senior Vice President of Advisers and portfolio manager of the Fund since August 2020.
Daniel Workman, CFA Vice President of Advisers and portfolio manager of the Fund since 2018.
Francisco Rivera Vice President of Advisers and portfolio manager of the Fund since 1996.
James Conn, CFA Senior Vice President of Advisers and portfolio manager of the Fund since November 2020.
Purchase and Sale of Fund Shares
You may purchase or redeem shares of the Fund on any business day online through our website at franklintempleton.com, by mail (Franklin Templeton Investor Services, P.O. Box 997151, Sacramento, CA 95899-7151), or by telephone at (800) 632-2301. For Class A, A1 and C, the minimum initial purchase for most accounts is $1,000 (or $25 under an automatic investment plan). Class R6 and Advisor Class are only available to certain qualified investors and the minimum initial investment will vary depending on the type of qualified investor, as described under "Your Account — Choosing a Share Class — Qualified Investors — Class R6" and "— Advisor Class" in the Fund's prospectus. There is no minimum investment for subsequent purchases.
Taxes
The Fund's distributions are primarily exempt from regular federal income tax. A portion of these distributions, however, may be subject to federal alternative minimum tax and state and local taxes. The Fund may also make distributions that are taxable to you as ordinary income or capital gains.
Payments to Broker-Dealers and
Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your financial advisor or visit your financial intermediary's website for more information.