Fund Description

The fund was incepted in March 1978 and is managed by Boston Management and Research. The fund seeks current income exempt from regular federal income tax by avoiding obligations that pay interest subject to the federal alternative minimum tax. The fund primarily invests in investment grade municipal obligations (those rated BBB or Baa or higher), but also invests in lower rated obligations. The fund purchases derivative instruments (such as inverse floaters, futures contracts and options thereon, and interest rate swaps), bonds that do not make the regular payment of interest, bonds issued on a when-issued basis and municipal leases. The fund offers dividends monthly and capital gains once each year, usually in December.