485BPOS 1 filing1118.htm PRIMARY DOCUMENT  

As filed with the Securities and Exchange Commission on July 27, 2017

File Nos.

002-99112

811-04356

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

 

FORM N-1A

 

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

 

Pre-Effective Amendment No.

 

Post-Effective Amendment No. 48

[X]

 

and/or

 

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940

 

Amendment No. 48

[X]

 

 

FRANKLIN CALIFORNIA TAX-FREE TRUST

(Exact Name of Registrant as Specified in Charter)

 

ONE FRANKLIN PARKWAY, SAN MATEO, CALIFORNIA 94403-1906

 (Address of Principal Executive Offices)  (Zip Code)

 

Registrant's Telephone Number, Including Area Code (650) 312-2000

 

Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906

 (Name and Address of Agent for Service of Process)

 

 

Approximate Date of Proposed Public Offering:

 

It is proposed that this filing will become effective (check appropriate box)

 

[ ]

immediately upon filing pursuant to paragraph (b)

[X]

on August 1, 2017 pursuant to paragraph (b)

[ ]

60 days after filing pursuant to paragraph (a)(1)

[ ]

on (date) pursuant to paragraph (a)(1)

[ ]

75 days after filing pursuant to paragraph (a)(2)

[ ]

on (date) pursuant to paragraph (a)(2) of Rule 485

 

If appropriate, check the following box:

 

[ ]

This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

     

 

 

This Post-Effective Amendment (Amendment) to the Registrant’s registration statement on Form N-1A (Amendment) is being filed pursuant to 485(a)(b) under the Securities Act of 1933 (1933 Act) and the Investment Company Act of 1940 to amend and supplement Post-Effective Amendment No. 46/46 to the Registrant's registration statement on Form N-1A (PEA 46/46) filed on October 31, 2016 (Accession No. 0001379491-16-006691) as it relates only to the prospectuses (Part A) and statements of additional information (SAI) (Part B) of the Franklin California Intermediate-Term Tax-Free Income Fund and Franklin California Ultra-Short Tax-Free Income Fund, each a series of Registrant (Funds).  The prospectuses and SAIs of the Funds, as filed in PEA 46/46, are incorporated into this Amendment by reference. This Amendment is being filed to register an additional class of shares for the Funds under the 1933 Act. This Amendment does not otherwise delete, amend or supersede any other information relating to any other series of the Registrant.


 

 

CAT P1 08/17

SUPPLEMENT DATED AUGUST 1, 2017

TO THE PROSPECTUS DATED NOVEMBER 1, 2016 OF

Franklin CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND

(a series of Franklin California Tax-Free Trust)

The prospectus is amended as follows:

I. The Franklin California Intermediate-Term Tax-Free Income Fund (the “Fund”) will begin offering Class R6 shares on or about August 1, 2017.  Therefore, on or about August 1, 2017, the Fund will offer four classes of shares, Class A, Class C, Class R6 and Advisor Class shares.

II. The Fund’s classes on the cover of the prospectus are replaced with the following:

Class A

Class C

Class R6

Advisor Class

FKCIX

FCCIX

Pending

FRCZX

III. The following replaces the second paragraph in the “Fund Summary – Fees and Expenses of the Fund” section of the prospectus on page 2:

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 and Advisor Class shares.

IV. The following charts are added  to the “Shareholder Fees” table, “Annual Fund Operating Expenses” table and “Example” table, respectively, in the “Fund Summary – Fees and Expenses of the Fund” section of the prospectus on page 2:

Shareholder Fees

(fees paid directly from your investment)

 

Class R61

Maximum Sales Charge (Load) Imposed on Purchases (as percentage of offering price)

None

Maximum Deferred Sales Charge (Load) (as percentage of the lower of original purchase price or sale proceeds)

None

1. The Fund began offering Class R6 shares on August 1, 2017.

 

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment)

   

Class R6

Management fees 

0.47%

Distribution and service (12b-1) fees 

None

Other expenses1 

0.03%

Total annual Fund operating expenses 

0.50%

1. The Fund began offering Class R6 shares on August 1, 2017.  Other expenses for Class R6 are based on estimated amounts for the current fiscal year.

 

1 Year

3 Years

5 Years

10 Years

Class R6

$51

$160

$280

$628

V. The following is added below the “Fund Summary – Performance – Average Annual Total Returns” table on page 8:

Performance information for Class R6 shares is not shown because it had not commenced operations as of the date of this prospectus.

VI. The “Fund Summary – Purchase and Sale of Fund Shares” section on page 8 is replaced with the following:

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 and C, the minimum initial purchase for most accounts is $1,000 (or $50 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.

1


 

VII. The following is added to the financial highlights charts in the “Fund Details - Financial Highlights” section beginning on page 20:

 

 

Six Months Ended

 

 

December 31, 2016

 

 

(unaudited)

Class A

 

 

Per share operating performance

 

 

(for a share outstanding throughout the

 

 

period)

 

 

Net asset value, beginning of period.

$

12.50

Income from investment operationsa:

 

 

Net investment incomeb

 

0.16

Net realized and unrealized gains (losses)

 

(0.66)

Total from investment operations

 

(0.50)

Less distributions from net investment income.

 

(0.16)

Net asset value, end of period

$

11.84

Total returnc

 

(4.04

)%

Ratios to average net assetsd

 

 

 

Expenses

 

0.61

%

Net investment income

 

2.60

%

Supplemental data

 

 

 

Net assets, end of period (000’s)

$

945,237

 

Portfolio turnover rate

 

13.73

%

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and
repurchases of the Fund’s shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
bBased on average daily shares outstanding.
cTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.
dRatios are annualized for periods less than one year.

 

 

Six Months Ended

 

 

 

December 31, 2016

 

 

 

(unaudited)

 

Class C

 

 

 

Per share operating performance

 

 

 

(for a share outstanding throughout the

 

 

 

period)

 

 

 

Net asset value, beginning of period.

$

12.55

 

Income from investment operationsa:

 

 

 

Net investment incomeb

 

0.13

 

Net realized and unrealized gains (losses)

 

(0.68

)

Total from investment operations

 

(0.55

)

Less distributions from net investment income.

 

(0.12

)

Net asset value, end of period

$

11.88

 

Total returnc

 

(4.37

)%

Ratios to average net assetsd

 

 

 

Expenses

 

1.16

%

Net investment income

 

2.05

%

Supplemental data

 

 

 

Net assets, end of period (000’s)

$

269,842

 

Portfolio turnover rate

 

13.73

%

2


 

 aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and
repurchases of the Fund’s shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
bBased on average daily shares outstanding.
cTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.
dRatios are annualized for periods less than one year.

 

 

Six Months Ended

 

 

 

December 31, 2016

 

 

 

(unaudited)

 

Advisor Class

 

 

 

Per share operating performance

 

 

 

(for a share outstanding throughout the

 

 

 

period)

 

 

 

Net asset value, beginning of period.

$

12.53

 

Income from investment operationsa:

 

 

 

Net investment incomeb

 

0.17

 

Net realized and unrealized gains (losses)

 

(0.67

)

Total from investment operations

 

(0.50

)

Less distributions from net investment income.

 

(0.16

)

Net asset value, end of period

$

11.87

 

Total returnd

 

(3.98

)%

Ratios to average net assetse

 

 

 

Expenses

 

0.51

%

Net investment income

 

2.70

%

Supplemental data

 

 

 

Net assets, end of period (000’s)

$

554,430

 

Portfolio turnover rate

 

13.73

%

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and
repurchases of the Fund’s shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
bBased on average daily shares outstanding.
dRatios are annualized for periods less than one year.

VIII. The first table of the “Your Account – Choosing a Share Class” section on page 28 is replaced with the following:

Class A 

Class C 

Class R6

Advisor Class 

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 0.75% on purchases of $1 million 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

Higher annual expenses than Class A due to higher distribution fees 

 

 

3


 

The Fund began offering Class R6 shares on August 1, 2017.

IX. The following is added to the “Your Account – Choosing a Share Class” section beginning on page 28:

Qualified Investors - Class R6

Class R6 shares are available to the following investors:

  • Employer Sponsored Retirement Plans where plan level or omnibus accounts are held on the books of Franklin Templeton Investor Services.
  • Endowments; foundations; local, city and state governmental institutions; corporations; non-profit organizations that are organized as corporations; and insurance companies, (collectively “institutional investors”) when purchasing directly from a Fund. The minimum initial investment for institutional investors is $1,000,000 per Fund.
  • Unaffiliated U.S. registered mutual funds, including those that operate as "fund of funds."
  • Other Franklin Templeton funds and funds for which Franklin Templeton investment managers provide advisory or subadvisory services.

·        Intermediaries that execute an addendum to their selling agreement acknowledging that they are acting exclusively as agents of their clients in transacting in Class R6 shares.

  • Advisory Fee Programs.  A registered broker-dealer, investment advisor, trust company, bank, or other financial intermediary (referred to as a “Sponsor”) that has an agreement with Distributors authorizing the sale of Fund shares and that acquires shares of the Fund for its clients in connection with a comprehensive fee or other advisory fee arrangement for which the client pays the Sponsor a fee for investment advisory services. No minimum initial investment.

X. The following is added to “Your Account – Exchanging Shares – Exchange Privilege” section on page 44:

Class R6

You can exchange your Class R6 shares for Class R6 shares of other Franklin Templeton funds. You also may exchange your Class R6 shares for Advisor Class shares of a fund that does not currently offer Class R6 shares.

XI. The following replaces “Your Account – Account Policies – Dealer Compensation – Other dealer and financial intermediary compensation” section beginning on page 53:

Purchases of Certain Share Classes through Financial Intermediaries (Class R6 and Advisor Class) There are no associated sales charges or Rule 12b-1 distribution and service fees for the purchase of Class R6 and Advisor Class shares.  However, pursuant to SEC guidance, certain financial intermediaries acting as agents on behalf of their customers may directly impose on shareholders sales charges or transaction fees determined by the financial intermediary related to the purchase of these shares.  These charges and fees are not disclosed in this prospectus.  You should consult with your financial advisor or visit your financial intermediary’s website for more information.

The Fund’s service providers also may pay financial intermediaries for marketing support and other related services as disclosed below for Advisor Class shares, but not for Class R6 shares.  These payments may create a conflict of interest by influencing the financial intermediary and your salesperson to recommend one share class over another. There is some uncertainty concerning whether marketing support or other similar payments may be made or received in connection with Advisor Class shares where a financial intermediary has imposed its own sales charges or transaction fees.  Based on future regulatory developments, such payments may be terminated.

Other financial intermediary compensation. Except with respect to Class R6 shares, Distributors may make marketing support payments (a portion of which may be reimbursable under the terms of the Fund’s Rule 12b1 distribution plans) to certain dealers and other financial intermediaries, such as banks, insurance companies, or plan administrators, in connection with their efforts to educate financial advisors or provide other services which may facilitate, directly or indirectly, investment in Franklin Templeton mutual funds.  In the case of any one intermediary, marketing support payments will generally not exceed 0.05% of the total assets of Franklin Templeton mutual funds attributable to that intermediary, on an annual basis. For an intermediary exceeding $15 billion in total assets of Franklin Templeton mutual funds, Distributors may agree to make annual marketing support payments exceeding 0.05% of such assets.  For an intermediary exceeding $50 billion in total assets of Franklin Templeton mutual funds, Distributors may agree to make annual marketing support payments up to a limit of 0.06% of such assets. Marketing support payments made to organizations located outside the U.S., with respect to investments in the Fund by non-U.S. persons, may exceed this limitation. Any assets held on behalf of Employer Sponsored Retirement Plans for which payment is made to a financial intermediary pursuant to the following paragraph will be excluded from the calculation of marketing support payments pursuant to this paragraph.

4


 

Except with respect to Class R6 shares, Distributors and/or its affiliates may also make payments (a portion of which may be reimbursable under the terms of the Fund’s Rule 12b1 distribution plans) to certain financial intermediaries in connection with their activities that are intended to assist in the sale of shares of Franklin Templeton mutual funds, directly or indirectly, to certain Employer Sponsored Retirement Plans. In the case of any one financial intermediary, such payments will not exceed 0.10% of the total assets of Franklin Templeton mutual funds held, directly or indirectly, by such Employer Sponsored Retirement Plans, on an annual basis.

A number of factors will be considered in determining these payments, including the qualifying financial intermediary’s sales, assets and redemption rates, the nature and quality of any servicing provided by the financial intermediary, and the quality of the financial intermediary’s relationship with Distributors. Distributors will, on an annual basis, determine the advisability of continuing these payments. These payments may be in addition to any shareholder servicing fees paid by the Fund’s transfer agent from payments it receives under its agreement with the Fund.

To the extent permitted by SEC and Financial Industry Regulatory Authority rules and other applicable laws and regulations, Distributors may, in addition to marketing support payments, pay or allow other promotional incentives or payments to financial intermediaries, such as payments related to transaction support, various financial intermediary-sponsored events intended to educate financial advisers and their clients about the Franklin Templeton mutual funds, and data analytics and support.

Sales of Fund shares, as well as shares of other mutual funds in Franklin Templeton Investments, is not considered a factor in the selection of financial intermediaries to execute the Fund’s portfolio transactions. Accordingly, the allocation of portfolio transactions for execution by financial intermediaries that sell Fund shares is not considered marketing support payments to such financial intermediaries.

You can find further details in the SAI about the payments made by Distributors and the services provided by your financial advisor. Your financial advisor may charge you additional fees or commissions other than those disclosed in this prospectus. You should ask your financial advisor for information about any payments it receives from Distributors and any services it provides, as well as about fees and/or commissions it charges.

Please keep this supplement with your prospectus for future reference.

5

925 P1 08/17

SUPPLEMENT DATED AUGUST 1, 2017

TO THE PROSPECTUS DATED NOVEMBER 1, 2016 OF

Franklin CALIFORNIA ULTRA-SHORT TAX-FREE INCOME FUND

(a series of Franklin California Tax-Free Trust)

The prospectus is amended as follows:

I. The Franklin California Ultra-Short Tax-Free Income Fund (the “Fund”) will begin offering Class R6 shares on or about August 1, 2017.  Therefore, on or about August 1, 2017, the Fund will offer three classes of shares, Class A1, Class R6 and Advisor Class shares.

II. The Fund’s classes on the cover of the prospectus are replaced with the following:

Class A1

Class R6

Advisor Class

FCUAX

Pending

FCUZX

III. The following is added as the second paragraph in the “Fund Summary – Fees and Expenses of the Fund” section on page 2:

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 and Advisor Class shares.

IV. The following charts are added to the “Shareholder Fees” table, “Annual Fund Operating Expenses” table and “Example” table, respectively, in the “Fund Summary – Fees and Expenses of the Fund” section of the prospectus beginning on page 2:

Shareholder Fees

(fees paid directly from your investment)

 

Class R61

Maximum Sales Charge (Load) Imposed on Purchases (as percentage of offering price)

None

1. The Fund began offering Class R6 shares on August 1, 2017.

Annual Fund Operating Expenses

(expenses that you pay each year as a percentage of the value of your investment)

   

Class R6

Management fees 

0.63%

Distribution and service (12b-1) fees 

None

Other expenses1,2 

0.19%

Total annual Fund operating expenses 

0.82%

Fee waiver and/or expense reimbursement3 

-0.52%

Total annual Fund operating expenses after fee waiver and/or expense reimbursement2, 3

0.30%

1. The Fund began offering Class R6 shares on August 1, 2017. Other expenses for Class R6 are based on estimated amounts for the current fiscal year.

2. Other expenses are based on annualized amounts for the current fiscal year. Consequently, total annual Fund operating expenses differ from the ratio of expenses to average net assets shown in the Financial Highlights.

3. Management has contractually agreed to waive or assume certain expenses so that total annual Fund operating expenses (excluding certain non-routine expenses) for each Class of the Fund do not exceed (and could be less than) 0.37% for the next 12-month period. Contractual fee waiver and/or expense reimbursement agreements may not be changed or terminated during the time periods set forth above. Although it is not currently anticipated, the board of trustees of the Franklin California Tax-Free Trust has the ability to terminate any fee waivers and expense reimbursement agreements at any time.

 

1


 

 

1 Year

3 Years

5 Years

10 Years

Class R6

$31

$210

$404

$965

V.  The following charts are replaced in the “Fund Summary – Performance – Average Annual Total Returns” on page 8:

Annual Total Returns

 

 

Best Quarter: 

Q3'07 

0.78% 

Worst Quarter: 

Q4'14 

0.00% 

As of June 30, 2017, the Fund's year-to-date return was 0.41%. 

Average Annual Total Returns

For the periods ended December 31, 2016

   

1 Year 

5 Years 

10 Years 

Franklin California Ultra-Short Tax-Free Income Fund - Class A1   

 

 

 

         Return Before Taxes 

0.16% 

0.03% 

0.46% 

         Return After Taxes on Distributions 

0.16% 

0.03% 

0.46% 

         Return After Taxes on Distributions and Sale of Fund Shares 

0.16% 

0.03% 

0.46% 

Franklin California Ultra-Short Tax-Free Income Fund - Advisor Class   

0.06% 

0.01% 

0.45% 

Bloomberg Barclays 1-Year CA Municipal Bond Index (index reflects no deduction for fees, expenses or taxes) 

1.96% 

0.97% 

1.98% 

 

VI. The following is added below the “Fund Summary – Performance – Average Annual Total Returns” table on page 8:

Performance information for Class R6 shares is not shown because it had not commenced operations as of the date of this prospectus.

VII. The “Fund Summary – Purchase and Sale of Fund Shares” section on page 9 is replaced with the following:

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. Class A1 is only available for purchase by former shareholders of the Predecessor Fund who (i) received Class A1 shares in connection with its Reorganization into the Fund, (ii) continue to remain shareholders of the Fund and, (iii) are either (a) clients of discretionary investment allocation programs where such programs had investments in the Predecessor Fund immediately prior to the Reorganization, or (b) employer sponsored retirement plans or benefit plans and their participants where the Predecessor Fund was available to participants immediately prior to the Reorganization. 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.

2


 

VIII. The following is added to the financial highlights charts in the “Fund Details - Financial Highlights” section on page 26:

 

 

Six Months Ended

December 31, 2016

(unaudited)

 

Class A1

 

 

 

Per share operating performance

 

 

 

(for a share outstanding throughout the

 

 

 

period)

 

 

 

Net asset value, beginning of period.

$

10.01

 

Income from investment operationsa:

 

 

 

Net investment income

 

0.013

 

Net realized and unrealized gains (losses)

 

(0.010

)

Total from investment operations

 

0.003

 

Less distributions from net investment income.

 

(0.013

)

Net asset value, end of period

$

10.00

 

Total returnb

 

0.03

%

Ratios to average net assetsc

 

 

 

Expenses before waiver and payments by

 

 

 

affiliates

 

0.92

%

Expenses net of waiver and payments by

 

 

 

affiliates

 

0.32

%

Net investment income

 

0.26

%

Supplemental data

 

 

 

Net assets, end of period (000’s)

$

48,429

 

Portfolio turnover rate

 

—%

 

 aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and
repurchases of the Fund’s shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
bTotal return does not reflect sales commissions or contingent deferred sales charges, if applicable, and is not annualized for periods less than one year.
c Ratios are annualized for periods  less than one year.


 

 

 

Six Months Ended

December 31, 2016

(unaudited)

Advisor Class

 

 

Per share operating performance

 

 

(for a share outstanding throughout the period)

 

 

Net asset value, beginning of period.

$

10.00

Income from investment operationsa:

 

 

Net investment income

 

0.013

Net realized and unrealized gains (losses)

 

(0.010)

Total from investment operations

 

0.003

Less distributions from net investment income.

 

(0.013)

Net asset value, end of period

$

9.99

Total returnb

 

0.03

%

Ratios to average net assetsc

 

 

 

Expenses before waiver and payments by affiliates

 

0.92

%

Expenses net of waiver and payments by affiliates.

 

0.32

%

Net investment income

 

0.26

%

Supplemental data

 

 

Net assets, end of period (000’s)

$

10,305

Portfolio turnover rate

 

—%

3


 

 aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and
repurchases of the Fund’s shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.
bTotal return is not annualized for periods  less than one year.
c Ratios are annualized for periods less than one year.

IX. The following is added to the “Your Account – Choosing a Share Class” section beginning on page 29:

Qualified Investors - Class R6

Class R6 shares are available to the following investors:

  • Employer Sponsored Retirement Plans where plan level or omnibus accounts are held on the books of Franklin Templeton Investor Services.
  • Endowments; foundations; local, city and state governmental institutions; corporations; non-profit organizations that are organized as corporations; and insurance companies, (collectively “institutional investors”) when purchasing directly from a Fund. The minimum initial investment for institutional investors is $1,000,000 per Fund.
  • Unaffiliated U.S. registered mutual funds, including those that operate as "fund of funds."
  • Other Franklin Templeton funds and funds for which Franklin Templeton investment managers provide advisory or subadvisory services.

·        Intermediaries that execute an addendum to their selling agreement acknowledging that they are acting exclusively as agents of their clients in transacting in Class R6 shares.

  • Advisory Fee Programs.  A registered broker-dealer, investment advisor, trust company, bank, or other financial intermediary (referred to as a “Sponsor”) that has an agreement with Distributors authorizing the sale of Fund shares and that acquires shares of the Fund for its clients in connection with a comprehensive fee or other advisory fee arrangement for which the client pays the Sponsor a fee for investment advisory services. No minimum initial investment.

X. The following is added to “Your Account – Exchanging Shares – Exchange Privilege” section on page 40:

Class R6

You can exchange your Class R6 shares for Class R6 shares of other Franklin Templeton funds. You also may exchange your Class R6 shares for Advisor Class shares of a fund that does not currently offer Class R6 shares.

XI. The following replaces “Your Account – Account Policies – Dealer Compensation – Other dealer and financial intermediary compensation” section beginning on page 47:

Purchases of Certain Share Classes through Financial Intermediaries (Class R6 and Advisor Class) There are no associated sales charges or Rule 12b-1 distribution and service fees for the purchase of Class R6 and Advisor Class shares.  However, pursuant to SEC guidance, certain financial intermediaries acting as agents on behalf of their customers may directly impose on shareholders sales charges or transaction fees determined by the financial intermediary related to the purchase of these shares.  These charges and fees are not disclosed in this prospectus.  You should consult with your financial advisor or visit your financial intermediary’s website for more information.

The Fund’s service providers also may pay financial intermediaries for marketing support and other related services as disclosed below for Advisor Class shares, but not for Class R6 shares.  These payments may create a conflict of interest by influencing the financial intermediary and your salesperson to recommend one share class over another. There is some uncertainty concerning whether marketing support or other similar payments may be made or received in connection with Advisor Class shares where a financial intermediary has imposed its own sales charges or transaction fees.  Based on future regulatory developments, such payments may be terminated.

Other financial intermediary compensation. Except with respect to Class R6 shares, Distributors may make marketing support payments (a portion of which may be reimbursable under the terms of the Fund’s Rule 12b1 distribution plans) to certain dealers and other financial intermediaries, such as banks, insurance companies, or plan administrators, in connection with their efforts to educate financial advisors or provide other services which may facilitate, directly or indirectly, investment in Franklin Templeton mutual funds.  In the case of any one intermediary, marketing support payments will generally not exceed 0.05% of the total assets of Franklin Templeton mutual funds attributable to that intermediary, on an annual basis. For an intermediary exceeding $15 billion in total assets of Franklin Templeton mutual funds, Distributors may agree to make annual marketing support payments exceeding 0.05% of such assets.  For an intermediary exceeding $50 billion in total assets of Franklin Templeton mutual funds, Distributors may agree to make annual marketing support payments up to a limit of 0.06% of such assets. Marketing support payments made to organizations located outside the U.S., with respect to investments in the Fund by non-U.S. persons, may exceed this limitation. Any assets held on behalf of Employer Sponsored Retirement Plans for which payment is made to a financial intermediary pursuant to the following paragraph will be excluded from the calculation of marketing support payments pursuant to this paragraph.

4


 

Except with respect to Class R6 shares, Distributors and/or its affiliates may also make payments (a portion of which may be reimbursable under the terms of the Fund’s Rule 12b1 distribution plans) to certain financial intermediaries in connection with their activities that are intended to assist in the sale of shares of Franklin Templeton mutual funds, directly or indirectly, to certain Employer Sponsored Retirement Plans. In the case of any one financial intermediary, such payments will not exceed 0.10% of the total assets of Franklin Templeton mutual funds held, directly or indirectly, by such Employer Sponsored Retirement Plans, on an annual basis.

A number of factors will be considered in determining these payments, including the qualifying financial intermediary’s sales, assets and redemption rates, the nature and quality of any servicing provided by the financial intermediary, and the quality of the financial intermediary’s relationship with Distributors. Distributors will, on an annual basis, determine the advisability of continuing these payments. These payments may be in addition to any shareholder servicing fees paid by the Fund’s transfer agent from payments it receives under its agreement with the Fund.

To the extent permitted by SEC and Financial Industry Regulatory Authority rules and other applicable laws and regulations, Distributors may, in addition to marketing support payments, pay or allow other promotional incentives or payments to financial intermediaries, such as payments related to transaction support, various financial intermediary-sponsored events intended to educate financial advisers and their clients about the Franklin Templeton mutual funds, and data analytics and support.

Sales of Fund shares, as well as shares of other mutual funds in Franklin Templeton Investments, is not considered a factor in the selection of financial intermediaries to execute the Fund’s portfolio transactions. Accordingly, the allocation of portfolio transactions for execution by financial intermediaries that sell Fund shares is not considered marketing support payments to such financial intermediaries.

You can find further details in the SAI about the payments made by Distributors and the services provided by your financial advisor. Your financial advisor may charge you additional fees or commissions other than those disclosed in this prospectus. You should ask your financial advisor for information about any payments it receives from Distributors and any services it provides, as well as about fees and/or commissions it charges.

Please keep this supplement with your prospectus for future reference.

5

CAT SA1 08/17

SUPPLEMENT DATED AUGUST 1, 2017

TO THE STATEMENT OF ADDITIONAL INFORMATION

DATED NOVEMBER 1, 2016

OF

Franklin CALIFORNIA INTERMEDIATE-TERM TAX-FREE INCOME FUND

(a series of Franklin California Tax-Free Trust)

 

The statement of additional information (SAI) is amended as follows:

I.          The Franklin California Intermediate-Term Tax-Free Income Fund (the “Fund”) will begin offering Class R6 shares on or about August 1, 2017.  Therefore, on or about August 1, 2017, the Fund will offer four classes of shares, Class A, Class C, Class R6 and Advisor Class shares.

II.         The Fund’s classes on the cover of the SAI are replaced with the following: 

 

Class A

Class C

Class R6

Advisor Class

Franklin California Intermediate-Term Tax-Free Income Fund

 

FKCIX

 

FCCIX

 

Pending

 

FRCZX

 

III.        The second paragraph on the cover of the SAI is revised as follows:

The audited financial statements and Report of Independent Registered Public Accounting Firm in the Fund’s Annual Report to shareholders, for the fiscal year ended June 30, 2016, are incorporated by reference (are legally a part of this SAI). The unaudited financial statements in the Fund's Semiannual Report to shareholders, for the period ended December 31, 2016, are also incorporated by reference (are legally a part of this SAI).

 

IV.        The third paragraph under “Management and Other Services - Shareholder servicing and transfer agent” section beginning on page 31 is replaced with the following

For all classes of shares of the Fund, except for Class R6 shares, Investor Services may also pay servicing fees, that will be reimbursed by the Fund, in varying amounts to certain financial institutions (to help offset their costs associated with client account maintenance support, statement preparation and transaction processing) that (i) maintain omnibus accounts with the Fund in the institution's name on behalf of numerous beneficial owners of Fund shares who are either direct clients of the institution or are participants in an IRS-recognized tax-deferred savings plan (including Employer Sponsored Retirement Plans and Section 529 Plans) for which the institution, or its affiliate, provides participant level recordkeeping services (called "Beneficial Owners"); or (ii) provide support for Fund shareholder accounts by sharing account data with Investor Services through the National Securities Clearing Corporation (NSCC) networking system. In addition to servicing fees received from the Fund, these financial institutions also may charge a fee for their services directly to their clients. Investor Services will also receive a fee from the Fund (other than for Class R6 shares) for services provided in support of Beneficial Owners and NSCC networking system accounts.

V.         The following is added under the “Organization, Voting Rights and Principal Holders” section on page 40:

Effective on August 1, 2017, the Fund also began offering Class R6 shares.  The full title of the Class R6 shares of the Fund is:

·        Franklin California Intermediate-Term Tax-Free Income Fund - Class R6

 

VI.        The following principal holders list is added under the “Organization, Voting Rights and Principal Holders” section on page 40:

As of July 3, 2017, the principal shareholders of the Fund, beneficial or of record, were:

 

Name and Address

Share Class

Percentage

(%)

Edward Jones & Co.*

12555 Manchester Road

St. Louis, MO 63131-3710

A

13.97

WFCS LLC*

2801 Market Street

St. Louis, MO 63103-2523

A

13.40

Merrill Lynch Pierce Fenner & Smith Inc.*

Attn:  Fund Administration

4800 Deer Lake Drive E

Jacksonville, FL 32246-6486

A

12.78

UBS WM USA*
1000 Harbor Boulevard
Weehawken, NJ 07086-6761

A

7.78

Morgan Stanley Smith Barney*

Attn:  Mutual Fund Operations

2 Harborside Financial Center Floor 3

Jersey City NJ 07311-1114

A

9.67

Pershing LLC*

1 Pershing Plaza

Jersey City, NJ 07399-0001

A

7.53

National Financial Services LLC*

Attn:  Mutual Fund Department 4th Floor

499 Washington Boulevard

Jersey City, NJ 07310-1995

A

6.55

WFCS LLC*

2801 Market Street

St. Louis, MO 63103-2523

C

19.74

Merrill Lynch Pierce Fenner & Smith Inc.*

Attn:  Fund Administration

4800 Deer Lake Drive E

Jacksonville, FL 32246-6486

C

18.88

Morgan Stanley Smith Barney*

Attn:  Mutual Fund Operations

2 Harborside Financial Center Floor 3

Jersey City NJ 07311-1114

C

13.81

Pershing LLC*

1 Pershing Plaza

Jersey City, NJ 07399-0001

C

7.44

UBS WM USA*
1000 Harbor Boulevard
Weehawken, NJ 07086-6761

C

7.93

JP Morgan Securities LLC*

4 Chase Metrotech Center

Brooklyn, NY 11245-0001

C

5.75

Merrill Lynch Pierce Fenner & Smith Inc.*

Attn:  Fund Administration
4800 Deer Lake Drive E

Jacksonville, FL 32246-6484

Advisor

17.83

WFCS LLC*

2801 Market Street

St. Louis, MO 63103-2523

Advisor

16.20

Morgan Stanley Smith Barney*

Attn:  Mutual Fund Operations

2 Harborside Financial Center Floor 3

Jersey City NJ 07311-1114

Advisor

12.54

National Financial Services LLC*

Attn:  Mutual Fund Department 4th Floor

499 Washington Boulevard

Jersey City, NJ 07310-1995

Advisor

8.26

Pershing LLC*

1 Pershing Plaza

Jersey City, NJ 07399-0001

Advisor

8.16

 

 

 

UBS WM USA*
1000 Harbor Boulevard
Weehawken, NJ 07086-6761

Advisor

7.32

American Enterprise Investment Service*
707 2nd Avenue South
Minneapolis, MN 55402-2405

Advisor

7.02

1


 

*      For the benefit of its customer(s).

 

VII.       The last paragraph under the “Organization, Voting Rights and Principal Holders” section on page 40 is replaced with the following:

As of July 3, 2017, the officers and board members, as a group, owned of record and beneficially less than 1% of the outstanding shares of each class of the Fund.  The board members may own shares in other funds in Franklin Templeton Investments.

VIII.      The first paragraph under the “Buying and Selling Shares - Initial sales charges” section on page 41 is replaced with the following:

The maximum initial sales charge for the Fund is 2.25% for Class A. There is no initial sales charge for Class C, Class R6 and Advisor Class.

IX.        The second paragraph under “The Underwriter” section on page 46 is replaced with the following:

Distributors does not receive compensation from the Fund for acting as underwriter of the Fund's Class R6 and Advisor Class shares.

 

Please keep this supplement with your Statement of Additional Information for future reference.

2

925 SA1 08/17

SUPPLEMENT DATED AUGUST 1, 2017

TO THE STATEMENT OF ADDITIONAL INFORMATION

DATED NOVEMBER 1, 2016

OF

Franklin CALIFORNIA ULTRA-SHORT TAX-FREE INCOME FUND

(a series of Franklin California Tax-Free Trust)

 

The statement of additional information (SAI) is amended as follows:

I.          The Franklin California Ultra-Short Tax-Free Income Fund (the “Fund”) will begin offering Class R6 shares on or about August 1, 2017.  Therefore, on or about August 1, 2017, the Fund will offer three classes of shares, Class A1, Class R6 and Advisor Class shares.

II.         The Fund’s classes on the cover of the SAI are replaced with the following: 

Class A1

Class R6

Advisor Class

FCUAX

Pending

FCUZX

III.        The second paragraph on the cover of the SAI is revised as follows:

The audited financial statements and Report of Independent Registered Public Accounting Firm in the Fund’s Annual Report to shareholders, for the fiscal year ended June 30, 2016, are incorporated by reference (are legally a part of this SAI). The unaudited financial statements in the Fund's Semiannual Report to shareholders, for the period ended December 31, 2016, are also incorporated by reference (are legally a part of this SAI).          

 

IV.        The third paragraph under “Management and Other Services - Shareholder servicing and transfer agent” section beginning on page 31 is replaced with the following:

For all classes of shares of the Fund, except for Class R6 shares, Investor Services may also pay servicing fees, that will be reimbursed by the Fund, in varying amounts to certain financial institutions (to help offset their costs associated with client account maintenance support, statement preparation and transaction processing) that (i) maintain omnibus accounts with the Fund in the institution's name on behalf of numerous beneficial owners of Fund shares who are either direct clients of the institution or are participants in an IRS-recognized tax-deferred savings plan (including Employer Sponsored Retirement Plans and Section 529 Plans) for which the institution, or its affiliate, provides participant level recordkeeping services (called "Beneficial Owners"); or (ii) provide support for Fund shareholder accounts by sharing account data with Investor Services through the National Securities Clearing Corporation (NSCC) networking system. In addition to servicing fees received from the Fund, these financial institutions also may charge a fee for their services directly to their clients. Investor Services will also receive a fee from the Fund (other than for Class R6 shares) for services provided in support of Beneficial Owners and NSCC networking system accounts.

V.         The following is added under the “Organization, Voting Rights and Principal Holders” section on page 40:

Effective on August 1, 2017, the Fund also began offering Class R6 shares.  The full title of the Class R6 shares of the Fund is:

·        Franklin California Ultra-Short Tax-Free Income Fund - Class R6

 

VI.        The principal holders list for the Fund under the “Organization, Voting Rights and Principal Holders” section on page 40 is replaced with the following:

As of July 3, 2017, the principal shareholders of the Fund, beneficial or of record, were:

 

Name and Address

Share Class

Percentage

(%)

Morgan Stanley Smith Barney*

Attn:  Mutual Fund Operations

2 Harborside Financial Center Floor 3

Jersey City, NJ 07311

A

5.05

UBS WM USA*
1000 Harbor Boulevard
Weehawken, NJ 07086-6761

A

7.34

Rupert H. Johnson Jr. Trust
Rupert H. Johnson Jr. Trustee
1 Franklin Parkway
San Mateo, CA 94403-1906

Advisor

76.76

National Financial Services LLC*

Attn:  Mutual Fund Department 4th Floor

499 Washington Boulevard

Jersey City, NJ 07310-1995

Advisor

15.26

1


 

*      For the benefit of its customer(s).

 

Note: Rupert H. Johnson, Jr. who is an officer and/or trustee of the Trust, may be considered a beneficial holder of the Fund shares held by Franklin Advisers, Inc. (Advisers). Advisers is a California corporation and is wholly owned by Franklin Resources, Inc. (Resources). As a principal shareholder of Resources, he may be able to control the voting of Advisers’ shares of the Fund.

 

VII.       The last paragraph under the “Organization, Voting Rights and Principal Holders” section beginning on page 40 is replaced with the following:

As of July 3, 2017, the officers and board members, as a group, owned of record and beneficially less than 1% of the outstanding shares of each class of the Fund.  The board members may own shares in other funds in Franklin Templeton Investments.

VIII.      The first paragraph under the “Buying and Selling Shares - Initial sales charges” section on page 41 is replaced with the following:

There is no initial sales charge for Class A1, Class R6 and Advisor Class of the Fund.

IX.        The second paragraph under “The Underwriter” section on page 45 is replaced with the following:

Distributors does not receive compensation from the Fund for acting as underwriter of the Fund's Class R6 and Advisor Class shares.

 

Please keep this supplement with your Statement of Additional Information for future reference.

 

2

FRANKLIN CALIFORNIA TAX-FREE TRUST

FILE NOS. 002-99112 &

811-04356

 

PART C

OTHER INFORMATION

 

Item 28.    Exhibits

 

The following exhibits are incorporated by reference to the previously filed document indicated below, except as noted:

 

(a)

Agreement and Declaration of Trust

 

 

(i)

Agreement and Declaration of Trust of Franklin California Tax-Free Trust, a Delaware Statutory Trust, dated October 18, 2006

Filing: Post-Effective Amendment No. 28 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: October 26, 2007

 

 

 

 

(ii)

Certificate of Trust of Franklin California Tax-Free Trust, a Delaware Statutory Trust, dated October 18, 2006

Filing: Post-Effective Amendment No. 28 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: October 26, 2007

 

(b)

By-Laws

 

 

(i)

By-Laws of Franklin California Tax-Free Trust, a Delaware Statutory Trust, effective October 18, 2006

Filing: Post-Effective Amendment No. 28 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: October 26, 2007

 

(c)

Instruments Defining Rights of Security Holders

 

 

(i)

Agreement and Declaration of Trust

 

 

(a)

Article III, Shares

 

 

(b)

Article V, Shareholders’ Voting Powers and Meetings

 

 

(c)

Article VI, Net Asset Value, Distributions, Redemptions and Transfers

 

 

(d)

Articles VIII, Certain Transactions – Section 4

 

 

(e)

Articles X, Miscellaneous – Section 4

 

 

(ii)

By-Laws

 

 

(a)

Article II, Meetings of Shareholders

 

 

(b)

Article VI, Records and Reports – Section 1, 2 and 3

 

 

(c)

Article VII, General Matters: - Sections 3, 4,6 and 7

 

 

(d)

Articles VIII, Amendment – Section 1

 

 

(iii)

Part B: Statement of Additional Information Item 22

 

(d)

Investment Advisory Contracts

 

 

(i)

Investment Management Agreement between Registrant, on behalf of Franklin California Insured Tax-Free Income Fund, Franklin California Intermediate-Term Tax-Free Income Fund and Franklin California Tax-Exempt Money Fund, and Franklin Advisers, Inc. dated November 1, 2007

Filing: Post-Effective Amendment No. 29 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: October 27, 2008

 

 

(ii)

Addendum dated January 1, 2008 to the Investment Management Agreement between Registrant, on behalf of Franklin California Insured Tax-Free Income Fund, Franklin California Intermediate-Term Tax-Free Income Fund and Franklin California Tax-Exempt Money Fund, and Franklin Advisers, Inc. dated November 1, 2007

Filing: Post-Effective Amendment No. 29 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: October 27, 2008

 

 

 

 

(iii)

Investment Management Agreement between Registrant, on behalf of Franklin California Ultra-Short Tax-Free Income Fund, and Franklin Advisers, Inc. dated March 21, 2016

Filing: Post-Effective Amendment No. 46 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: October 26, 2016

 

(e)

Underwriting Contracts

 

 

(i)

Distribution Agreement between Registrant and Franklin/Templeton Distributors, Inc. dated January 1, 2011

Filing: Post-Effective Amendment No. 32 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: October 27, 2011

 

 

(ii)

Forms of Selling Agreements between Franklin/Templeton Distributors, Inc. and Securities Dealers dated May 1, 2010

Filing: Post-Effective Amendment No. 31 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: August 27, 2010

 

(f)

Bonus or Profit Sharing Contracts

 

 

Not Applicable

 

(g)

Custodian Agreements

 

 

(i)

Master Custody Agreement between Registrant and The Bank of New York Mellon dated February 16, 1996

Registrant: Franklin New York Tax-Free Trust

Filing: Post-Effective Amendment No. 13 to Registration Statement on Form N-1A

File No. 033-07785

Filing Date: March 1, 1996

 

 

(ii)

Amendment dated May 7, l997 to the Master Custody Agreement dated February 16, 1996 between Registrant and The Bank of New York Mellon

Filing: Post-Effective Amendment No. 15 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: October 30, 1997

 

 

(iii)

Amendment dated February 27, 1998, to Master Custody Agreement between Registrant and The Bank of New York Mellon dated February 16, 1996

Filing: Post-Effective Amendment No. 16 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: August 21, 1998

 

 

(iv)

Amendment dated January 27, 2017 to Exhibit A of the Master Custody Agreement between Registrant and The Bank of New York Mellon dated February 16, 1996

 

 

(v)

Terminal Link Agreement between Registrant and The Bank of New York Mellon dated February 16, 1996

Registrant: Franklin New York Tax-Free Trust

Filing: Post-Effective Amendment No. 13 to Registration Statement on Form N-1A

File No. 033-07785

Filing Date: March 1, 1996

 

 

(vi)

Amended dated January 27, 2017 to Exhibit A of the Terminal Link Agreement between the Registrant and the Bank of New York Mellon dated as of February 16, 1996

 

(h)

Other Material Contracts

 

 

(i)

Amended and Restated Subcontract for Fund Administrative Services between Franklin Advisers, Inc. and Franklin Templeton Services, LLC dated May 1, 2014

Filing: Post-Effective Amendment No. 38 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: October 24, 2014

 

 

 

 

(ii)

Form of Amended and Restated Transfer Agent and Shareholder Services Agreement between the Registrant and Franklin Templeton Investor Services, LLC dated August 1, 2017.

 

 

 

 

(iii)

Subcontract for Fund Administrative Services between Franklin Advisers, Inc. and Franklin Templeton Services, LLC, on behalf of Franklin California Ultra-Short Tax-Free Income Fund dated March 21, 2016

Filing: Post-Effective Amendment No. 46 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: October 26, 2016

 

(i)

Legal Opinion

 

 

(i)

Legal Opinion dated October 26, 2007

Filing: Post-Effective Amendment No. 28 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: October 26, 2007

 

 

 

 

(ii)

Opinion and Consent of Counsel dated October 23, 2015, on behalf of Franklin California Ultra-Short Tax-Free Income Fund

Filing: Post-Effective Amendment No. 42 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: October 29, 2015

 

(j)

Other Opinions

 

 

 

 

 

Not Applicable

 

(k)

Omitted Financial Statements

 

 

       Not Applicable

 

(l)

Initial Capital Agreements

 

 

(i)

Letter of Understanding dated April 12, 1995

Filing: Post-Effective Amendment No. 12 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: April 21, 1995

 

(m)

Rule 12b-1 Plan

 

 

(i)

Amended and Restated Class A Distribution Plan pursuant to Rule 12b-1 between Registrant, on behalf of the Franklin California Insured Tax-Free Income Fund, and Franklin/Templeton Distributors, Inc. dated February 1, 2009

Filing: Post-Effective Amendment No. 30 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: October 27, 2009

 

 

(ii)

Amended and Restated Class A Distribution Plan pursuant to Rule 12b-1 between Registrant, on behalf of Franklin California Intermediate-Term Tax-Free Income Fund, and Franklin/Templeton Distributors, Inc. dated February 1, 2009

Filing: Post-Effective Amendment No. 30 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: October 27, 2009

 

 

(iii)

Amended and Restated Class C Distribution Plan pursuant to Rule 12b-1 between Registrant, on behalf of the Franklin California Insured Tax-Free Income Fund and Franklin California Intermediate-Term Tax-Free Income Fund, and Franklin/Templeton Distributors, Inc. dated July 9, 2009

Filing: Post-Effective Amendment No. 34 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: October 29, 2013

 

(n)

Rule 18f-3 Plan

 

 

(i)

Form of Amended Multiple Class Plan on behalf of Franklin California Intermediate-Term Tax-Free Income Fund

 

 

 

(ii)

Form of Amended Multiple Class Plan on behalf of Franklin California Ultra-Short Tax-Free Income Fund

 

(p)

Code of Ethics

 

 

(i)

Code of Ethics dated May 1, 2013

Filing: Post-Effective Amendment No. 38 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: October 24, 2014

 

(q)

Power of Attorney

 

 

(i)

Power of Attorney dated June 13, 2013

Filing: Post-Effective Amendment No. 36 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: October 25, 2013

 

 

(ii)

 

 

 

 

 

(iii)

Power of Attorney dated October 1, 2014 – Mary C. Choksi

Filing: Post-Effective Amendment No. 38 to Registration Statement on Form N-1A

File No. 002-99112

Filing Date: October 24, 2014

 

Power of Attorney dated May 23, 2017 for Matthew T. Hinkle


 

 

Item 29.    Persons Controlled by or Under Common Control with Fund

 

None

 

Item 30.    Indemnification

 

The Agreement and Declaration of Trust (the "Declaration") provides that any person who is or was a Trustee, officer, employee or other agent, including the underwriter, of such Trust shall be liable to the Trust and its shareholders only for (1) any act or omission that constitutes a bad faith violation of the implied contractual covenant of good faith and fair dealing, or (2) the person's own willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such person (such conduct referred to herein as Disqualifying Conduct) and for nothing else. Except in these instances and to the fullest extent that limitations of liability of agents are permitted by the Delaware Statutory Trust Act (the "Delaware Act"), these Agents (as defined in the Declaration) shall not be responsible or liable for any act or omission of any other Agent of the Trust or any investment adviser or principal underwriter. Moreover, except and to the extent provided in these instances, none of these Agents, when acting in their respective capacity as such, shall be personally liable to any other person, other than such Trust or its shareholders, for any act, omission or obligation of the Trust or any trustee thereof.


 

 

The Trust shall indemnify, out of its property, to the fullest extent permitted under applicable law, any of the persons who was or is a party, or is threatened to be made a party to any Proceeding (as defined in the Declaration) because the person is or was an Agent of such Trust. These persons shall be indemnified against any Expenses (as defined in the Declaration), judgments, fines, settlements and other amounts actually and reasonably incurred in connection with the Proceeding if the person acted in good faith or, in the case of a criminal proceeding, had no reasonable cause to believe that the conduct was unlawful. The termination of any Proceeding by judgment, order, settlement, conviction or plea of nolo contendere or its equivalent shall not in itself create a presumption that the person did not act in good faith or that the person had reasonable cause to believe that the person's conduct was unlawful. There shall nonetheless be no indemnification for a person's own Disqualifying Conduct.

 

Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended, may be permitted to Trustees, officers and controlling persons of the Trust pursuant to the foregoing provisions, or otherwise, the Trust has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Trust of expenses incurred or paid by a Trustee, officer or controlling person of the Trust in the successful defense of any action, suit or proceeding) is asserted by such Trustee, officer or controlling person in connection with securities being registered, the Trust may be required, unless in the opinion of its counsel the matter has been settled by controlling precedent, to submit to a court or appropriate jurisdiction the question whether such indemnification is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

 

Item 31.    Business and Other Connections of the Investment Adviser

 

The officers and directors of Franklin Advisers, Inc. (Advisers), Registrant's investment manager, also serve as officers and/or trustees for (1) Advisers' corporate parent, Franklin Resources, Inc., and/or (2) other investment companies in Franklin Templeton Investments. For additional information please see Part B and Schedules A and D of Form ADV of Advisers (SEC File 801-26292), incorporated herein by reference, which sets forth the officers and directors of Advisers and information as to any business, profession, vocation or employment of a substantial nature engaged in by those officers and directors during the past two years.

 

Item 32.    Principal Underwriters

 

a)    Franklin/Templeton Distributors, Inc. (Distributors) also acts as principal underwriter of shares of:

 

Franklin Alternative Strategies Fund

Franklin California Tax-Free Income Fund

Franklin Custodian Funds

Franklin ETF Trust

Franklin Federal Tax-Free Income Fund


 

Franklin Fund Allocator Series

Franklin Global Trust

Franklin Gold and Precious Metals Fund

Franklin High Income Trust

Franklin Investors Securities Trust

Franklin Managed Trust

Franklin Municipal Securities Trust

Franklin Mutual Series Funds

Franklin New York Tax-Free Income Fund

Franklin New York Tax-Free Trust

Franklin Real Estate Securities Trust

Franklin Strategic Mortgage Portfolio

Franklin Strategic Series

Franklin Tax-Free Trust

Franklin Templeton ETF Trust

Franklin Templeton Global Trust

Franklin Templeton International Trust

Franklin Templeton Money Fund Trust

Franklin Templeton Variable Insurance Products Trust

Franklin U.S. Government Money Fund

Franklin Value Investors Trust

Institutional Fiduciary Trust

Templeton China World Fund

Templeton Developing Markets Trust

Templeton Funds

Templeton Global Investment Trust

Templeton Global Opportunities Trust

Templeton Global Smaller Companies Fund

Templeton Growth Fund, Inc.

Templeton Income Trust

Templeton Institutional Funds

 

(b) The information required with respect to each director and officer of Distributors is incorporated by reference to Part B of this Form N-1A and Schedule A of Form BD filed by Distributors with the Securities and Exchange Commission pursuant to the Securities Act of 1934 (SEC File No. 008-05889).

 

(c) Not Applicable. Registrant's principal underwriter is an affiliated person of an affiliated person of the Registrant.

 

Item 33.    Location of Accounts and Records

 

The accounts, books or other documents required to be maintained by Section 31(a) of the Investment Company Act of 1940 are kept by the Trust at One Franklin Parkway, San Mateo, CA 94403-1906 or its shareholder service agent, Franklin Templeton Investor Services, LLC, at 3344 Quality Drive, Rancho Cordova, CA 95670-7313.

 

Item 34.    Management Services

 

There are no management-related service contracts not discussed in Part A or Part B.

 

Item 35.    Undertakings

 

Not Applicable

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of San Mateo and the State of California, on the 25th day of July, 2017.

 

FRANKLIN CALIFORNIA TAX-FREE TRUST

(Registrant)

 

By:   /s/Karen L. Skidmore_

      Karen L. Skidmore

Vice President and Secretary

 

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities and on the dates indicated.

 

CHRISTOPHER J. MOLUMPHY*

Christopher J. Molumphy

Chief Executive Officer-Investment Management

Dated:  July 25, 2017

 

 

MATTHEW T. HINKLE*

Matthew T. Hinkle

Chief Executive Officer-Finance and Administration

Dated:  July 25, 2017

 

 

GASTON GARDEY*

Gaston Gardey

Chief Financial Officer and Chief Accounting Officer

Dated:  July 25, 2017

 

 

HARRIS J. ASHTON*

Harris J. Ashton

Trustee

Dated:  July 25, 2017

 

 

MARY C. CHOKSI*

Mary C. Choksi

Trustee

Dated:  July 25, 2017

 

 

EDITH E. HOLIDAY*

Edith E. Holiday

Trustee

Dated:  July 25, 2017

 

 

GREGORY E. JOHNSON*

Gregory E. Johnson

Trustee

Dated:  July 25, 2017

 

 

RUPERT H. JOHNSON, JR.*

Trustee

Rupert H. Johnson, Jr.

Dated:  July 25, 2017

 

 

J. MICHAEL LUTTIG*

J. Michael Luttig

Trustee

Dated:  July 25, 2017

 

 

LARRY D. THOMPSON*

Trustee

Larry D. Thompson

Dated:  July 25, 2017

 

 

JOHN B. WILSON*

John B. Wilson

Trustee

Dated:  July 25, 2017

 


 

 

*By /s/ Karen L. Skidmore__

Karen L. Skidmore, Attorney-in-Fact

(Pursuant to Power of Attorney previously filed of filed herewith)

 

 


 
 

FRANKLIN CALIFORNIA TAX-FREE TRUST

REGISTRATION STATEMENT

EXHIBITS INDEX

 

The following exhibits are attached:

 

 

EXHIBIT NO.

DESCRIPTION

 

 

 

 

EX-99.(g)(iv)

Amendment dated January 27, 2017 to Exhibit A of the Master Custody Agreement between Registrant and The Bank of New York Mellon dated February 16, 1996

 

 

EX-99.(g)(vi)

Amended dated January 27, 2017 to Exhibit A of the Terminal Link Agreement between the Registrant and the Bank of New York Mellon dated as of February 16, 1996

 

 

EX-99.(h)(ii)

Form of Amended and Restated Transfer Agent and Shareholder Service Agreement between the registrant and Franklin Templeton Investor Service, LLC dated August 1, 2017

 

 

EX-99.(n)(iii)

Form of Amended Multiple Class Plan on behalf of Franklin California Ultra-Short Tax-Free Income Fund

 

    EX-99.(g)(iii)         Power of Attorney dated May 23, 2017 for Matthew T. Hinkle