The fund invests in California municipal and other debt securities. Under normal market conditions, the portfolio managers invest at least 80 percent of the funds net assets, plus borrowings for investment purposes, in municipal securities with interest payments exempt from federal and California income taxes. Some of these investments in municipal securities are not necessarily exempt from the federal alternative minimum tax. The fund principally invests in investment-grade debt securities but may invest in high-yield securities (junk bonds). A high-yield security is one that has been rated below investment-grade or determined by the investment advisor to be of similar quality, including bonds that are in technical or monetary default. Issuers of these securities often have short financial histories or have questionable credit or have had and may continue to have problems making interest and principal payments. The portfolio managers also may buy unrated securities if they determine such securities meet the investment objective of the fund. In evaluating the credit quality of issuers, the portfolio managers consider data from a variety of sources, including issuers offering documents, financial statements, and other available regulatory and financial information.