Fund Description

The fund invests its assets so that, normally, distributions of annual interest income are exempt from federal regular income tax, except when investing for defensive purposes; interest may be subject to or a preference item for the federal AMT for individuals. It invests at least a majority of assets in long-term tax-exempt securities (generally maturities of 10 years or more) and medium-quality or noninvestment-grade tax-exempt securities, and may invest up to 100% in noninvestment-grade issues. Holdings may include various municipal structures and may use derivatives and hybrid instruments to adjust exposure, duration, or hedge. It seeks to distribute at least 80% federally tax-exempt income, a policy requiring shareholder approval to change.