Fund Description

Incepted in September 2001, the fund is managed by J.P. Morgan Investment Management, Inc. The fund seeks to provide high after-tax total return for California residents consistent with moderate risk of capital. The fund invests primarily in California municipal securities that it believes have the potential to provide high current income which are free from federal and state personal income taxes for California residents. The fund may invest to a limited extent in securities of other states or territories. To the extent that the fund invests in municipal securities of other states, the income from such securities would be free from federal personal income taxes for California residents but would be subject to California state personal income taxes. For non-California residents, the income from California municipal securities is free from federal personal income taxes only. The fund may also invest in taxable securities. The fund's securities may be of any maturity, but under normal market conditions the fund's duration will generally range between three and seven years, similar to that of the Lehman Brothers California Competitive Intermediate Bond Index (1-17) (also known as the Lehman 1-17 Year California Municipal Bond Index) (currently 5.42 years). At least 90% of total assets must be invested in securities that, at the time of purchase, are rated investment-grade. The fund may also invest in unrated securities of comparable quality. No more than 10% of total assets may be invested in securities rated B or BB. There could be times when there are not enough municipal securities available to meet the fund's needs. The fund declares dividends daily and pays them monthly. The fund makes net capital gains distributions, if any, once a year.