Fund Description

The fund was incepted in February 1987 and is managed by Thornburg Investment Management. The fund's primary goal is to obtain as high a level of current income exempt from federal and California state individual income taxes as is consistent with the preservation of capital. The secondary goal of the fund is to reduce expected changes in its share price compared to longer intermediate and long-term bond portfolios. The fund pursues its primary goal by investing principally in a laddered maturity portfolio of municipal obligations issued by the State of California and its agencies, and by California local governments and their agencies. The fund invests at least 80% of its assets in municipal obligations originating in California, which are exempt from California and regular federal income taxes. The fund may invest up to 20% of its assets in taxable securities, which would produce income not exempt from federal or California income tax. The fund declares dividends daily and pays it monthly. Capital gains are distributed annually.