Investment objective & strategy
As of Dec. 22, 2025 · prospectusObjective. The fund seeks a high level of income exempt from federal income taxes.
Strategy. The fund normally invests at least 80% of its total assets in investment-grade municipal securities, which are securities rated in one of the four highest rating categories by at least one credit rating agency or, if unrated, deemed by the adviser to be of comparable quality. The fund may invest up to 20% of its total assets in below investment-grade bonds, known as junk bonds, including those with the lowest credit ratings. While the fund may buy securities of any maturity, most of its investments are expected to be in long-term municipal securities (securities with maturities of more than 10 years). Normally, at least 80% of the funds income will be exempt from federal income taxes. However, a significant portion … The fund normally invests at least 80% of its total assets in investment-grade municipal securities, which are securities rated in one of the four highest rating categories by at least one credit rating agency or, if unrated, deemed by the adviser to be of comparable quality. The fund may invest up to 20% of its total assets in below investment-grade bonds, known as junk bonds, including those with the lowest credit ratings. While the fund may buy securities of any maturity, most of its investments are expected to be in long-term municipal securities (securities with maturities of more than 10 years). Normally, at least 80% of the funds income will be exempt from federal income taxes. However, a significant portion of the funds income could be derived from securities subject to the alternative minimum tax. Investment decisions generally reflect the portfolio managers outlook for interest rates and the economy, as well as the prices, yields, and credit quality of various securities in which the fund may invest. From time to time, the fund may invest a significant portion of its assets in sectors with special risks, such as health care, transportation, utilities, or private activity bonds.
Top holdings
As of Jan. 31, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| PUERTO RICO SALES TAX FING COR REGD OID B/E 4.75000000 | PRCGEN | $25.24M | 0.90% |
| Tarrant County Cultural Education Facilities Finance Corp., Methodist Hospitals of Dallas Project, Series 2008-A | — | $23.90M | 0.85% |
| San Francisco (City & County of), CA Airport Commission (San Francisco International Airport), Series 2019 A, RB | — | $21.68M | 0.78% |
| MAIN STR NAT GA 5% 5/1/2055 MT | MAIUTL | $20.80M | 0.74% |
| Puerto Rico, General Obligation Bonds, Clawback Highway Transportation Authority Claims Taxable Series 2022 | PRC | $19.54M | 0.70% |
| New York City Transitional Finance Authority, Series A-1 | — | $19.22M | 0.69% |
| TX TXSUTL 01/01/2055 | TXSUTL | $16.18M | 0.58% |
| JEA WTR & SWR REV-A | — | $15.91M | 0.57% |
| OK TURNPIKE AUTH | OKSTRN | $15.66M | 0.56% |
| TX TTFTRN 5.5 10/01/2055 | TTFTRN | $15.48M | 0.55% |
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. |
|---|---|---|
| T. Rowe Price Tax-Free Income Fund, Inc. · PRTAX, PATAX, TFILX | 30% | 0.35% |
| T. Rowe Price Tax-Free High Yield Fund · PRFHX, PATFX, PTYIX | 21% | 0.50% |
| Bridge Builder Municipal High-Income Bond Fund · BBMHX | 18% | 0.16% |
Advisers
| Firm | Role |
|---|---|
| T. Rowe Price Associates, Inc. | Adviser |
Footnotes
- Expense ratio as of December 22, 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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