Fund Description

The fund invests primarily in longer-term municipal securities and generally seeks higher-yielding municipal bonds, including those rated below investment grade (BB and lower, or equivalent) by a credit rating agency or by T. Rowe Price. Normally, at least 80% of its income is exempt from federal income taxes, with derivatives counted toward compliance when they provide relevant exposure. It may invest significantly in sectors with special risks such as health care, transportation, utilities, or private activity bonds. Management emphasizes fundamental credit research, diversification, and risk management, including duration management.