Fund Description

The fund was incepted in November 1988 and is managed by Smith Barney Fund Management. The objective of the fund is to pay its shareholders as high a level of income exempt from regular federal income taxes as is consistent with prudent investing. The fund invests at least 80% of its assets in 'municipal securities,' which are debt obligations issued by any of the 50 states and certain other municipal issuers and their political subdivisions, agencies and public authorities. Dividends are distributed monthly. The fund generally makes capital gain distributions, if any, once a year, typically in December.