Fund Description

The fund seeks to preserve capital while producing current income exempt from federal and Kansas state income taxes by investing predominantly in bonds issued by Kansas municipalities, and may also invest in U.S. government obligations and securities issued by U.S. territories or possessions. It invests primarily in general obligation and revenue municipal bonds with maturities up to 20 years, purchased investment grade or, if unrated, deemed comparable by the adviser, and maintains a dollar-weighted average maturity between 3 and 15 years. At least 80% of net assets (plus borrowings) are in federally tax-exempt and Kansas tax-exempt municipal bonds, and at least 80% in securities not subject to AMT. If a holding falls below investment grade, it is placed on a credit watch list and generally sold within 90 days. Buy and sell decisions consider duration, rating, coupon, sector/industry, and credit analysis.