Fund Description

The fund is actively managed and invests mainly in state and local municipal bonds. Under normal circumstances, it invests at least 80% of net assets, plus any borrowings for investment purposes, in securities whose income is exempt from federal income tax. It seeks to maintain a dollar-weighted average maturity of 2 to 6 years, with no limits on the maturities of individual holdings. Typically, at least 75% of assets are in municipal bonds rated in the top three credit categories or deemed comparable if unrated; up to 20% may be in medium-quality bonds and 5% in lower-rated securities.