Fund Description

The fund was incepted in June 1985 and is managed by Massachusetts Financial Services Company. The investment objective of the fund is to provide current income exempt from federal income tax and California personal income tax. The fund invests, under normal market conditions, at least 80% of its net assets in securities and other investments, the interest on which is exempt from federal income tax and California personal income tax. To meet its policy, the fund may invest in municipal securities, which are bonds or other debt obligations of a U.S. state or political subdivision, such as a county, city, town, village, or authority. The fund may also invest in participation interests in municipal securities, which are interests in holdings of municipal obligations backed by a letter of credit or guarantee from the issuing bank. Although the fund seeks to invest in municipal securities whose income is exempt from federal income tax and state personal income tax the interest on certain of these municipal securities may be subject to alternative minimum tax. In pursuing its investment policies, the fund may invest in securities of issuers located outside of California. During periods when the fund is unable to invest as per its policy, the fund seeks to invest its assets in municipal securities that are exempt from federal income tax but are subject to personal income tax. The fund is a non-diversified mutual fund. The fund offers dividends monthly and capital gains annually.