Fund Description

Incepted in February 2001, the fund is managed by J.P. Morgan Fleming Asset Management (USA). The fund seeks to provide monthly dividends that are excluded from gross income for federal income tax purposes and are exempt from New York State and New York City personal income taxes. The fund also seeks to protect the value of the investor's investment. As a fundamental policy, the fund normally invests at least 80% of its assets in New York municipal obligations whose interest payments are excluded from gross income for federal income tax purposes and exempt from New York State and New York City income taxes, and are not subject to the federal alternative minimum tax on individuals. The fund may invest in municipal obligations issued by the State of New York, its political subdivisions, as well as Puerto Rico, other U.S. territories and their political subdivisions. The fund invests in securities that are rated as investment grade. It may also invest in unrated securities of comparable quality. The fund may also invest in derivatives, inverse floaters and interest rate capitalizations, zero coupon securities and forward commitments. These instruments may be used to increase the fund's income or gain. Derivatives, which are financial instruments whose value is based on another security, index or exchange rate, might also be used to hedge various market risks. Under normal market conditions, the fund reserves the right to invest up to 20% of its assets in securities that pay interest subject to federal income tax, the federal alternative minimum tax on individuals or New York State and New York City personal income taxes. To temporarily defend the value of its assets during unusual market conditions, the fund may exceed this limit. The fund may invest in money market funds so that it can easily convert investments into cash without losing a significant amount of money in the process. There may be times when there are not enough securities available to meet the fund's needs. On these occasions, the fund may invest in repurchase. The fund declares dividends daily and pays them monthly. The fund makes net capital gains distributions, if any, once a year.