Fund Description

The fund was incepted in November 1987 and is managed by Dreyfus Corporation. The fund's main objective is to seek high a level of current income exempt from federal and New Jersey income taxes as is consistent with the preservation of capital. To pursue these goals, the fund normally invests substantially all of its assets in municipal bonds that provide income exempt from federal and New Jersey personal income taxes. The fund will invest at least 80% of its assets in investment grade municipal bonds or the unrated equivalent as determined by Dreyfus. The fund may invest up to 20% of its assets in municipal bonds rated below investment grade ('high yield' or 'junk' bonds) or the unrated equivalent as determined by Dreyfus. The dollar-weighted average maturity of the fund normally exceeds ten years. The portfolio manager buys and sells bonds based on several factors, including credit quality, financial outlook and yield potential. Dividends, if any, are distributed monthly. Capital gains, if any, are distributed annually.