The fund normally invests 80% of its net assets, plus any borrowings for investment purposes, in investment-grade municipal securities or derivatives that are linked to or provides investment exposure to the municipal market. Investment grade means securities that are rated in one of the four highest rating categories assigned by a credit rating agency or, if unrated, deemed by the adviser to be of comparable quality. Any derivatives that provide exposure to the investment focus suggested by the fund’s name, or to one or more market risk factors associated with the investment focus suggested by the fund’s name, are counted (as applicable) toward compliance with the fund’s 80% investment policy.

Under normal conditions, the fund’s weighted average effective maturity will be four to twelve years. There are no maturity limitations on individual securities.

Under normal circumstances, the fund invests 80% of its assets in tax-exempt securities. However, a significant portion of the fund’s income could be derived from securities subject to the alternative minimum tax. The fund may also invest in the securities of issuers whose revenues are generated from similar types of projects or operate in similar business sectors, including healthcare, transportation, utilities, or private activity bonds. The fund may have significant exposure to specific states under some circumstances. The fund may invest in below investment-grade instruments, such holdings are commonly referred to as “junk.”

Investment decisions generally reflect the portfolio manager’s outlook for interest rates and the economy, as well as the prices, yields, and credit quality of various securities in which the fund may invest.