Fund Description

The fund invests at least 80% of its net assets in instruments that pay income exempt from California state personal income tax, which may include certain securities of issuers located outside California. Except in extraordinary circumstances, at least 80% of net assets are in debt instruments paying interest exempt from regular federal income tax; AMT obligations are excluded from this test, though shareholders subject to AMT may owe federal tax on part of dividends. It primarily buys investment grade debt, with up to 15% in below-investment grade, and may use structured securities and derivatives for hedging or non-hedging. Management uses a relative value approach, may trade actively, and targets a 10-30 year dollar-weighted average maturity.