Fund Description

The fund seeks to achieve its objective by investing in municipal securities to generate income exempt from U.S. federal income tax. It normally invests at least 80% of net assets (plus borrowings) in U.S. fixed income instruments whose interest is, in bond counsel's opinion at issuance, exempt from federal income tax, including state and local municipal bonds and tax-exempt structured notes with embedded derivatives. It may invest without limit in AMT-preference bonds, U.S. dollar securities, U.S. government securities, money market instruments, and private activity bonds, and may hold more than 25% in California and/or New York issuers. It may invest up to 80% in high yield securities and may use derivatives, securities lending, inverse floaters, and may seek to obtain market exposure by entering into a series of purchase and sale contracts or by using other techniques (such as buy backs or dollar rolls).