Fund Description

The fund was incepted in July 1991 and is managed by Thornburg Investment Management. The fund's primary goal is to obtain as high a level of current income exempt from federal individual income tax as is consistent with the preservation of capital. The secondary goal of the fund is to reduce expected changes in its share price compared to long-term bond portfolios. The fund pursues its primary goal by investing principally in a laddered maturity portfolio of municipal obligations issued by states and state agencies, local governments and their agencies, and by certain United States territories and possessions. The fund invests 100% of its assets in municipal obligations. The fund may invest up to 20% of its assets in taxable securities which would produce income not exempt from federal income tax. The fund declares dividends daily and pays it monthly. Capital gains are distributed annually.