Investment objective & strategy
As of Sept. 30, 2025 · prospectusObjective. The funds investment objective is to provide you with a high level of current income exempt from federal income tax, consistent with the preservation of 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. The fund will not invest in private activity bonds whose interest is generally subject to the federal alternative minimum tax. The fund invests at least 65% 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 fund may also invest in debt securities rated BBB+ or below and Baa1 or below (including those rated BB+ or below and Ba1 or … 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. The fund will not invest in private activity bonds whose interest is generally subject to the federal alternative minimum tax. The fund invests at least 65% 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 fund may also invest in debt securities rated BBB+ or below and Baa1 or below (including those rated BB+ or below and Ba1 or below) 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 invest up to 10% of its assets in debt securities rated BB+ or below and Ba1 or below 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. Securities rated BB+ or below and Ba1 or below are sometimes referred to as junk bonds. 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 |
|---|---|---|---|
| WI TREASURY SEC. 0.000000% 02/19/2026 | B | $271.54M | 1.11% |
| Puerto Rico, General Obligation Bonds, Vintage CW NT Claims Taxable Series 2022 | PRC | $103.17M | 0.42% |
| Tender Option Bond Trust Receipts/Certificates | BBEUTL | $94.11M | 0.39% |
| BLACK BELT ENERGY GAS VAR | BBEUTL | $90.89M | 0.37% |
| GREAT LAKES WATER AUTHORITY SEWAGE DISPOSAL SYSTEM REVENUE AG FRN 07-01-32 | — | $81.67M | 0.34% |
| California Community Choice Financing Authority, Series F | CCEDEV | $75.83M | 0.31% |
| Puerto Rico, General Obligation Bonds, Clawback Highway Transportation Authority Claims Taxable Series 2022 | PRC | $72.10M | 0.30% |
| TX MUNI GAS ACQ VI | TGAUTL | $71.06M | 0.29% |
| BLACK BELT ENERGY GAS VAR | BBEUTL | $70.50M | 0.29% |
| Public Energy Authority of Kentucky, Gas Supply Revenue Bonds, Refunding Series 2024B | KYSPWR | $66.07M | 0.27% |
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. |
|---|---|---|
| American High-Income Municipal Bond Fund · AMHIX, AHICX, ABHFX, AHMFX, HIMFX, TAHHX | 25% | 0.32% |
| Capital Group Municipal High-Income ETF · CGHM | 21% | 0.34% |
| Capital Group Municipal Income ETF · CGMU | 18% | 0.27% |
Advisers
| Firm | Role |
|---|---|
| Capital Research and Management Company | Adviser |
Footnotes
- Expense ratio as of February 27, 2026, 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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