Investment objective & strategy
As of Dec. 22, 2025 · prospectusObjective. The fund seeks the highest level of income exempt from federal income taxes consistent with moderate price fluctuation.
Strategy. The fund normally invests 80% of its net assets, plus any borrowings for investment purposes, in investment-grade municipal securities or derivatives that are linked to or provides investment exposure to the municipal market. Investment grade means securities that are rated in one of the four highest rating categories assigned by a credit rating agency or, if unrated, deemed by the adviser to be of comparable quality. Any derivatives that provide exposure to the investment focus suggested by the funds name, or to one or more market risk factors associated with the investment focus suggested by the funds name, are counted (as applicable) toward compliance with the funds 80% investment policy. Under normal conditions, the funds weighted average effective maturity will … The fund normally invests 80% of its net assets, plus any borrowings for investment purposes, in investment-grade municipal securities or derivatives that are linked to or provides investment exposure to the municipal market. Investment grade means securities that are rated in one of the four highest rating categories assigned by a credit rating agency or, if unrated, deemed by the adviser to be of comparable quality. Any derivatives that provide exposure to the investment focus suggested by the funds name, or to one or more market risk factors associated with the investment focus suggested by the funds name, are counted (as applicable) toward compliance with the funds 80% investment policy. Under normal conditions, the funds weighted average effective maturity will be four to twelve years. There are no maturity limitations on individual securities. Under normal circumstances, the fund invests 80% of its assets in tax-exempt securities. However, a significant portion of the funds income could be derived from securities subject to the alternative minimum tax. The fund may also invest in the securities of issuers whose revenues are generated from similar types of projects or operate in similar business sectors, including healthcare, transportation, utilities, or private activity bonds. The fund may have significant exposure to specific states under some circumstances. The fund may invest in below investment-grade instruments, such holdings are commonly referred to as junk. 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.
Top holdings
As of Jan. 31, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| WISCONSIN ST WIS 05/36 FIXED 5 | — | $1.76M | 1.47% |
| MUNIBOND | — | $1.53M | 1.28% |
| State of Colorado, Series 2022 | COSCTF | $1.42M | 1.19% |
| CLIFTON TX HGR EDU FIN CORP ED CLIEDU 02/31 FIXED 5 | — | $1.38M | 1.16% |
| RESTRUCTURED-SER A1 | PRC | $1.28M | 1.07% |
| NEW YORK ST DORM AUTH ST PERSO REGD B/E 5.00000000 | — | $1.18M | 0.99% |
| ANNE ARUNDEL CNTY MD AAR 10/37 FIXED 5 | — | $1.17M | 0.98% |
| NY TRANSITIONAL FIN-D | NYCGEN | $1.16M | 0.97% |
| WASHINGTON ST WAS 07/38 FIXED 5 | — | $1.15M | 0.96% |
| GREAT LAKES WTR-A | — | $1.13M | 0.95% |
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 Summit Municipal Intermediate Fund · PRSMX, PAIFX, PRTMX | 15% | 0.29% |
| T. Rowe Price Tax-Free Short-Intermediate Fund, Inc. · PRFSX, PATIX, TTSIX | 10% | 0.24% |
| T. Rowe Price Short Municipal Income ETF · TMNS | 8% | 0.18% |
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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