Fund Evaluator:

Franklin Templeton SMACS: Series H Adv Overview

Franklin Templeton SMACS: Series H Adv (FQTHX) is an actively managed Taxable Bond Miscellaneous Fixed Income fund. Franklin Templeton Investments launched the fund in 2019.

The investment seeks to provide investors with a high current yield exempt from federal income taxes; the secondary goal is capital appreciation to the extent possible and consistent with the fund's principal investment goal. Under normal market conditions, the fund invests substantially all of its net assets in securities whose interest is free from federal income taxes, including the federal alternative minimum tax. It does not necessarily focus its investments in a particular state or territory and will not invest more than 30% of its total assets in municipal securities of any one state or territory. The fund is non-diversified.

About Franklin Templeton SMACS: Series H Adv (FQTHX)

There are 4 members of the management team with an average tenure of 6.58 years: Daniel Workman (2019), Ben Barber (2020), Francisco Rivera (2019), James Conn (2020). Management tenure is more important for actively managed funds than passive index funds.

The fund has 1 primary benchmark: Bloomberg Municipal TR USD index with a weighting of 100%. Franklin Templeton SMACS: Series H Adv has 270 securities in its portfolio. The top 10 holdings constitute 27.9% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Franklin Templeton SMACS: Series H Adv is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Franklin Templeton SMACS: Series H Adv has 5.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 100.7% (95.3% domestic bond, 5.4% foreign bond and 0.0% convertible bond). Franklin Templeton SMACS: Series H Adv has -0.7% of the portfolio in cash.

Assets Under Management

The fund has $51 million in total assets, which is below the $716 million average for the Miscellaneous Fixed Income category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

FQTHX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Franklin Templeton SMACS: Series H Adv expense ratio is low compared to funds in the Miscellaneous Fixed Income category. Franklin Templeton SMACS: Series H Adv has an expense ratio of 0.00%, which is 100% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Franklin Templeton SMACS: Series H Adv has a portfolio turnover rate of 7%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 109% for the Miscellaneous Fixed Income category.

Recently, in the month of August 2026, Franklin Templeton SMACS: Series H Adv returned -0.5%, which earned it a grade of F, as the Miscellaneous Fixed Income category had an average return of 0.5%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Franklin Templeton SMACS: Series H Adv has a trailing yield of 5.21%, which is below the 5.72% category average. The fund normally distributes its income monthly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Franklin Templeton SMACS: Series H Adv Grades

Year to date, the fund has returned 1.8%, 0.3 percentage points worse than the category, which translates into a grade of C. The fund has returned 7.7% over the past year (grade of A), 6.1% over the past three years (grade of C) and 1.5% per year over the past five years (grade of B).

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