Fund Description

The fund invests primarily in long-term investment-grade securities issued by the state of California, its political subdivisions and instrumentalities, and other government entities, with interest excludable from gross income for federal income tax and California state income tax purposes. Under normal market conditions, at least 80% of net assets are in these California tax-exempt securities, a policy changeable only by shareholder vote. Effective duration is not restricted but generally is expected to be within three years of the benchmark. The fund also seeks for at least 80% of annual net investment income dividends to be tax-exempt and excluded from AMT calculations, also changeable only by shareholder vote.