The investment seeks high current income exempt from federal and California state individual income taxes consistent with preservation of capital. The fund normally invests at least 80% of assets in municipal obligations originating in California which are exempt from California and regular federal income taxes, and normally invests 100% in municipal obligations originating in California or issued by United States territories and possessions. It may invest up to 20% of assets in taxable securities which would produce income not exempt from federal or California income tax.
