Fund Description

The fund was incepted in December 1985 and is managed by Boston Management and Research. The objective of the fund is to seek current income exempt from regular federal income tax. The fund pursues its objective by investing in National Municipals portfolio. The fund primarily invests in investment grade municipal obligations and also in lower rated obligations. The fund may purchase derivative instruments (such as inverse floaters, futures contracts and options thereon, and interest rate swaps), bonds that do not make regular payments of interest, bonds issued on a when-issued basis and municipal leases. The fund currently invests its assets in the portfolio, a separate registered investment company with the same investment objective and policies as the fund. The fund offers dividends monthly. Capital gains are distributed annually in December.