Fund Description

The fund was incepted in October 1979 and is managed by Capital Research and Management Company. The fund's main objective is to provide a high level of current income exempt from federal taxes, consistent with the preservation of capital. The fund primarily invests in state, municipal and public authority bonds and notes. This fund normally invests at least 80% of its assets in tax-exempt securities, and at least 65% of assets in tax-exempt securities rated in the three highest categories at the time of purchase. The fund emphasizes quality-oriented municipal securities and has the flexibility to invest anywhere in the United States, providing the opportunity to spread risks and enhance returns over time. The fund is one of few general municipal bond funds that do not invest in bonds subject to the alternative minimum tax. The fund may also invest up to 35% of assets in lower rated securities. Dividends, if any, are declared daily and distributed monthly. Capital gains, if any, are usually distributed in November or December.