Fund Description

The fund was incepted in December 1985 and is managed by Boston Management and Research. The main objective of the fund is to provide current income exempt from regular federal income tax and California state personal income taxes. The fund pursues its objective by investing in California Municipals portfolio. The fund may also invest in lower rated obligations. The fund normally acquires municipal obligations with maturities of ten years or more. The portfolio manager purchases and sells securities to maintain a competitive yield and to enhance return based upon the relative value of the securities in the marketplace. The portfolio managers may also trade securities to minimize taxable capital gains to shareholders. Dividends are declared daily and paid monthly. Capital gains, if any, are distributed annually in December.