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 its net assets, plus any borrowings for investment purposes, in securities whose income is exempt from federal income tax. It expects to maintain a dollar-weighted average maturity of 1 to 2 years, with no limits on the maturities of individual holdings. The fund typically invests at least 75% of assets in municipal bonds in one of the top three credit rating categories, or unrated securities judged comparable, and may invest up to 20% in medium-quality and 5% in lower-rated issues.