Fund Description

The fund normally invests at least 80% of its net assets (plus borrowings) in bonds paying interest exempt from federal and Virginia state income taxes; derivatives providing related exposure may count toward this policy, and at least 80% of its income is expected to be tax-exempt at the federal and Virginia levels. It may buy any maturity but generally seeks longer-term, primarily investment-grade holdings, with up to 10% in below investment-grade bonds. It may invest significantly in sectors such as health care, transportation, and utilities, and in private activity and industrial revenue bonds, and may have 25% or more exposed to similar developments. It may invest in other federally tax-exempt municipals, potentially up to 10% of annual income, and is nondiversified.