Strategy
Investment Objective
The fund seeks to provide, consistent with prudent portfolio management, the highest level of income exempt from federal and Virginia state income taxes by investing primarily in investment-grade Virginia municipal bonds.
Benefits & Risks
- Offers Virginia investors double-tax-free income. Some income may be subject to state and local taxes, as well as the federal alternative minimum tax. Income earned by non-Virginia residents will be subject to applicable state and local taxes. Capital gains, if any, are generally taxable.
- Focuses on long-term securities that typically provide higher yields than less volatile, shorter-term bonds. Assets are concentrated primarily in investment-grade Virginia municipal bonds to help reduce credit risk.
- All investments are subject to market risk, including the possible loss of principal.
- Interest rates: A rise in interest rates typically causes the price of a fixed rate debt instrument to fall and its yield to rise. Conversely, a decline in interest rates typically causes the price of a fixed rate debt instrument to rise and the yield to fall.
- State-specific focus: Because the fund focuses its investments on securities issued by Virginia and its municipalities, it is more susceptible to unfavorable developments in Virginia than funds that invest in municipal securities of many states.
- Municipal securities: The fund may be highly impacted by events tied to the overall municipal securities markets, which can be very volatile and significantly affected by unfavorable legislative or political developments and adverse changes in the financial conditions of municipal securities issuers and the global, national, and/or local economies.
- See the prospectus for more detail on the fund's principal risks.
Investor Profile
- For Virginia taxpayers who, because of their tax bracket, can benefit from federal and Virginia state income taxes.
- Not appropriate for tax-deferred retirement plans, such as IRAs.
- Some income may be subject to the federal alternative minimum tax.
- Income earned by non-Virginia residents will be subject to applicable state and local taxes.
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'Fund Manager Tenure' refers to the number of years managing the fund. In the case of co-portfolio management, the longer tenure is displayed.
'Net Assets' figure applies to all share classes.
