Additional Performance Information

Fund performance includes reinvestment of all distributions.

Important Objectives, Strategy and Risk Information

The fund seeks a high level of current income that is exempt from California state and federal income tax.

Regardless of market conditions, fund managers use a risk-focused management style and seek to preserve principal. They don’t seek additional yield if doing so would, in their opinion, put investor capital at risk. Unlike some competitors, managers don’t try to predict the direction of interest rates.

Bond investments are subject to interest-rate, credit, liquidity and market risks to varying degrees. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Investments in lower-quality ("junk bonds") and non-rated securities present greater risk of loss than investments in higher-quality securities. Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest. The market for municipal bonds may be less liquid than for taxable bonds and there may be less information available on the financial condition of issuers of municipal securities than for public corporations. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. Although the fund seeks income that is exempt from California and federal income taxes, a portion of the fund’s distributions may be subject to federal, state and local taxes, including the alternative minimum tax. Please read the prospectus for details.

Important Information and Definitions

©2020 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. The Morningstar Rating™ for funds, or ’star rating’, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-,five-,and 10 year (if applicable) Morningstar Rating metrics. The weights are 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

Morningstar Risk is based on the calculation of the difference between the Morningstar Return (adjusted for loads and excess over the risk-free rate) and the Morningstar Risk-Adjusted Return (adjusted for loads, excess over risk-free rate and risk). The calculation results in a rating system such that for each time period (3-, 5-, 10-years), the top 10% are given a risk score of 5 or High, next 22.5% of 4 or Above Average, next 35% of 3 or Average, next 22.5% of 2 or Below Average and the bottom 10% of 1 or Low.
Source: Morningstar, Inc. Beta is a historical measure of a fund’s sensitivity to the movements of the fund’s benchmark index. A fund with a beta greater than 1 is more volatile than the benchmark. A fund with a beta less than 1 is less volatile.
Source: Morningstar, Inc. R-squared (R2) is a historical measure that indicates how closely a fund’s past fluctuations have correlated with those of the fund’s benchmark. An R2 of 100% means that all movements of a fund are explained by benchmark movements. Both beta and R2 are based on a 3-year period relative to the index.
Source: Morningstar, Inc. Standard deviation is a 3-year statistical measure of the volatility of a fund’s returns. Generally, the greater the standard deviation, the greater the fund’s volatility.
Source: Morningstar, Inc. Turnover rate is the rate of trading activity in a fund’s portfolio of investments, equal to the lesser of purchases or sales, for a year, divided by average total assets for that year.
Effective maturity is the weighted average of the bonds held by the fund taking into consideration any available maturity shortening features. Modified duration to worst is the approximate percentage change in a bond’s price for a 100 basis points change in yield. A bond’s duration is computed using the bond’s nearest call date or maturity, whichever comes first.