The Fund will seek to provide high current income which is exempt from regular Federal, New York State and New York City income tax. The Fund will invest at least 80% of its total assets in municipal bonds paying interest that is exempt from regular federal, New York State and New York City income tax. Normally the Fund will invest at least 75% of its net assets in investment grade municipal bonds or comparable quality unrated municipal bonds. The Fund may invest up to 25% of its net assets in municipal bonds rated below investment grade. The Fund has issued preferred shares representing 40% of the Funds capital immediately after the issuance. The trust may utilise certain derivatives for hedging purposes.