Description

The fund's main goal is to generate substantial current income that is exempt from regular federal income taxes, with capital appreciation serving as a secondary objective. Typically, under normal conditions, at least 80% of its total assets, which includes any borrowed funds used for investment, are allocated to municipal bonds that provide interest income free from federal personal income tax. A considerable portion of its holdings are in longer-term, lower-quality municipal bonds, and the fund may also strategically use inverse floaters to achieve investment leverage.