Fund Description

The fund invests at least 80% of net assets, plus amounts borrowed for investment purposes, in tax-exempt bonds of any maturity. It primarily buys investment-grade bonds at purchase, but may invest up to 35% in non-investment-grade bonds rated BB or lower, comparable rated, or unrated equivalents, and may also hold other fixed income securities. The manager generally favors revenue bonds and bonds with call protection, and may use short-term trading to exploit municipal pricing imbalances. Income from AMT bonds may not be fully tax-free, and such bonds do not count toward the 80% policy. The fund may concentrate in a state or region, use derivatives, and employ tender option bond transactions, including leverage, contributing up to 15% of municipal holdings.