Fund Description

The fund invests at least 80% of net assets plus borrowings in municipal securities whose interest is exempt from federal income tax at issuance; this fundamental policy requires shareholder approval to change and may be met through derivatives and similar instruments. It buys revenue and general obligation debt, including fixed and variable rate securities, municipal notes, variable rate demand notes, leases, custodial receipts, and participation certificates. Under normal market conditions, it invests primarily in municipal securities classified as revenue bonds. The adviser generally seeks to invest at least 75% in higher yielding medium- and lower-grade municipals, and it may invest up to 20% in taxable securities, including AMT-subject municipals, illiquid or restricted, zero-coupon or payment-in-kind, when-issued/delayed delivery, distressed/defaulted debt, TOB inverse floaters, futures and swaps, and may borrow up to one-third of total assets.