The investment seeks current income that is substantially exempt from federal income tax; total return with relatively low volatility of principal is a secondary consideration. The fund primarily invests at least 80% of assets in bonds and debentures, the interest on which is exempt from regular federal income and alternative minimum taxes. It may invest up to 20% of assets in U.S. dollar-denominated debt obligations of foreign corporations and governments, and 15% of assets in illiquid securities. The average maturity of the investment is more than three years but less than ten years.
