Fund Description

The fund invests at least 80% of net assets (plus borrowings for investment purposes) in municipal obligations exempt from regular federal income tax and specified state taxes, and may invest without limit in obligations subject to the federal alternative minimum tax. At least 75% of net assets normally are in investment-grade municipal obligations; the balance may include below-investment-grade and comparable unrated issues, with no more than 10% rated below B. Under normal market conditions, the fund invests at least 65% of its total assets in obligations issued by its state or its political subdivisions, agencies, authorities and instrumentalities, and may invest up to 35% in certain U.S. territories if consistent with state tax requirements. Up to 20% may be in other debt, and derivatives may be used for hedging, total return, or as a substitute for securities transactions.