Fund Description

The fund was incepted in January 1993 and is managed by T. Leavell & Associates, Inc. The fund seeks to provide current income exempt from federal income taxes and from the personal income taxes of Alabama and to preserve capital. The fund invests primarily (i.e. at least 80% of its net assets under normal circumstances) in municipal bonds and notes and other debt instruments, the interest on which is exempt from federal income taxes and from the personal income taxes of Alabama and not subject to the alternative minimum tax. The fund intends to declare dividends from net investment income on each business day and to pay such dividends monthly. Capital gains are distributed annually in December.