Fund Description

The fund seeks a high level of current income exempt from federal regular income tax by investing so that normally distributions of annual interest income are federally tax-exempt, though it may hold securities whose interest may be subject to or a preference item for the federal alternative minimum income tax for individuals. It has no set duration parameters or maturity limits, and the adviser may adjust duration based on its interest rate outlook. It invests at least a majority of assets in investment-grade securities and may hold up to 49% below investment grade. It may invest in tax-exempt securities, such as general obligation bonds, special revenue bonds, private activity bonds, tax increment financing bonds, municipal leases, zero-coupon securities, inverse floaters, municipal mortgage-backed securities, planned amortization classes, variable rate demand instruments, municipal notes and municipal auction rate securities, plus derivatives and hybrid instruments, and normally seeks at least 80% federally tax-exempt distributed income.