The investment seeks to obtain as high a level of current income exempt from federal and California state individual income taxes as is consistent, in the view of the fund’s investment advisor, with preservation of capital; to reduce expected changes in its share price compared to longer intermediate and long-term bond portfolios is the secondary objective. The fund pursues its primary goal by investing principally in a laddered maturity portfolio of municipal obligations issued by the State of California and its agencies, and by California local governments and their agencies.