Industry description
The investment seeks to receive income from municipal bonds and to distribute that income to its investors as tax-free dividends; the secondary objective is to distribute dividends that are intended to be exempt from Virginia (and local) tax as well as federal tax.
The fund invests at least 80% of its net assets (including borrowings for investment purposes) in municipal bonds that are exempt from federal and state income tax for residents of Virginia. It only invests in investment grade bonds. Under normal market conditions, the fund will have an average duration range of 3 to 10 years, although it is expected to center around 3 to 7 years.