Fund Description

The fund, under normal market conditions, invests at least 80% of net assets (including borrowings for investment purposes) in securities and other investments whose interest is exempt from federal income tax and Arkansas personal income tax, if any; interest may be subject to the federal alternative minimum tax. It normally invests primarily in municipal instruments, with a significant percentage in Arkansas municipal instruments, and may also hold taxable instruments, including municipal instruments of other states. The fund may concentrate in a single issuer or a small number of issuers, and may invest 25% or more in municipal instruments financing similar projects such as education, healthcare, housing, utilities, or water and sewers. It primarily invests in investment grade debt but may invest in below investment grade. Derivatives may be used for any purpose, primarily to adjust market or interest-rate exposure or as alternatives to direct investments, using an active bottom-up approach supported by fundamental analysis, quantitative screening tools, and consideration of top-down factors.