Fund Description

The fund was incepted in March 1992 and is managed by Massachusetts Financial Services Company. The fund's investment objective is to provide as high a level of current income exempt from federal income taxes as is considered consistent with prudent investing while seeking protection of shareholders' capital. The fund invests, under normal market conditions, at least 80% of its net assets in securities and other investments with ''limited'' maturities, the interest on which is exempt from federal income tax. To meet this 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. The fund seeks to invest in municipal securities whose income is exempt from federal income taxes. However, the interest income on certain of these municipal securities may be subject to an alternative minimum tax. Under normal market conditions, substantially all of the fund's assets are invested in municipal securities rated, or issued by issuers who have securities that are rated, in one of the top four credit ratings by credit rating agencies. The fund may also invest in tax-exempt securities that are not rated but which, in the opinion of the fund, are of at least comparable quality to the four highest credit ratings. The fund may also invest in speculative securities. Under normal market conditions, the fund's dollar weighted average maturity will not exceed 5 years and substantially all of the securities held by the fund will have remaining maturities of 10 years or less. The fund offers dividends monthly and capital gains annually.