Investment objective & strategy
As of Sept. 30, 2025 · prospectusObjective. The funds investment objective is to provide you with current income exempt from regular federal income tax, consistent with the maturity and quality standards described in this prospectus, and to preserve capital.
Strategy. Under normal circumstances, the fund will invest at least 80% of its assets in, or derive at least 80% of its income from, securities that are exempt from regular federal income tax and that do not subject you to federal alternative minimum tax. The fund may also invest up to 20% of its assets in private activity bonds whose interest is generally subject to the federal alternative minimum tax. The fund invests primarily in debt securities rated AA- or better or Aa3 or better by Nationally Recognized Statistical Rating Organizations designated by the funds investment adviser, or unrated but determined by the funds investment adviser to be of equivalent quality. The fund may also invest in debt securities rated A- … Under normal circumstances, the fund will invest at least 80% of its assets in, or derive at least 80% of its income from, securities that are exempt from regular federal income tax and that do not subject you to federal alternative minimum tax. The fund may also invest up to 20% of its assets in private activity bonds whose interest is generally subject to the federal alternative minimum tax. The fund invests primarily in debt securities rated AA- or better or Aa3 or better by Nationally Recognized Statistical Rating Organizations designated by the funds investment adviser, or unrated but determined by the funds investment adviser to be of equivalent quality. The fund may also invest in debt securities rated A- or better or A3 or better by Nationally Recognized Statistical Rating Organizations designated by the funds investment adviser, or unrated but determined by the funds investment adviser to be of equivalent quality. The funds aggregate portfolio will have a dollar-weighted average effective maturity no greater than three years. The investment adviser uses a system of multiple portfolio managers in managing the funds assets. Under this approach, the portfolio of the fund is divided into segments managed by individual managers. The fund relies on the professional judgment of its investment adviser to make decisions about the funds portfolio investments. The basic investment philosophy of the investment adviser is to seek to invest in attractively priced securities that, in its opinion, represent good, long-term investment opportunities. Securities may be sold when the investment adviser believes that they no longer represent relatively attractive investment opportunities.
Top holdings
As of Jan. 31, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| UTILITY-TE-2 | — | $22.29M | 0.97% |
| UNIV OF MICHIGAN MI REGD V/R B/E 2.40000000 | — | $18.60M | 0.81% |
| PEFA INC VAR | PEFUTL | $18.56M | 0.81% |
| WASTE MANAGEMENT INC (MPT) 4.6% 10-01-46 | — | $17.59M | 0.77% |
| CA STWD CMNTYS DEV-A | — | $16.69M | 0.73% |
| MS BUS FIN-VAR-J-CHEV | — | $15.30M | 0.67% |
| TRIBOROUGH NY BRIDGE & TUNNEL AUTH REVENUES | — | $14.80M | 0.65% |
| MUNIBOND | — | $13.65M | 0.60% |
| ARIZONA ST INDL DEV AUTH MF HS REGD V/R B/E 5.00000000 | — | $12.68M | 0.55% |
| WASTE MANAGEMENT INC (MPT) 4.25% 06-01-48 | — | $11.47M | 0.50% |
Portfolio moves
Oct 31, 2025 → Jan 31, 2026How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.
Similar funds
Funds whose portfolios most overlap this one, by weight| Fund | Overlap | Net exp. |
|---|---|---|
| Limited Term Tax Exempt Bond Fund of America · LTEBX, LTXCX, LTXFX, LTEFX, FLTEX, TLTTX | 33% | 0.26% |
| Capital Group Short Duration Municipal Income ETF · CGSM | 26% | 0.25% |
| Capital Group Municipal Income ETF · CGMU | 12% | 0.27% |
Advisers
| Firm | Role |
|---|---|
| Capital Research and Management Company | Adviser |
Footnotes
- Expense ratio as of September 30, 2025, from the fund's prospectus.
- Net assets and holdings count as of January 31, 2026, from the fund's N-PORT filing.
- Total return for calendar year 2025, before tax and after fund expenses. Computed by compounding the twelve monthly total returns the fund reported in its SEC N-PORT filings for 2025 (the latest prospectus does not yet chart this year).
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