The investment seeks as high a level of income exempt from federal income taxes (including the alternative minimum tax), California personal income taxes, and consistent with prudent investment management and preservation of capital. The fund normally invests at least 80% of total assets in investment grade municipal securities whose interest is free from federal income taxes and California personal income taxes. It may invest up to 20% of total assets in securities that pay interest. The fund may invest up to 35% of total assets in municipal securities issued by U.S. territories. It also may invest in municipal lease obligations.
