price and yield performance, before fees and expenses, of the S&P AMT-Free Municipal Series 2015 Index (the “Underlying Index”). The Underlying Index measures the performance of investment-grade U.S.municipal bonds maturing in 2015. As of October 8, 2009, there were 1,748 issues in the Underlying Index.
The Underlying Index includes municipal bonds from issuers that are primarily state or local governments or agencies (including the Commonwealth of Puerto Rico and U.S. territories such as the U.S. Virgin Islands and Guam) such that the interest on the bonds is exempt from U.S. federal income taxes and the federal alternative minimum tax (“AMT”) as determined by the Index Provider in accordance with its methodology. Each bond must have a rating of at least BBB- by Standard & Poor’s, Baa3 by Moody’s Investors Service, Inc., or BBB- by Fitch Inc. Each bond must have a minimum maturity par amount of $2 million to be eligible for inclusion. To remain in the Underlying Index, bonds must maintain a minimum par amount greater than or equal to $2 million as of each rebalancing date. All bonds in the Underlying Index will mature between June 1 and August 31 of the same year as noted in the name of the Underlying Index. When a bond matures in the Underlying Index, an amount representing its maturity value will be included in the Underlying Index throughout the remaining life of the Underlying Index, and any such amount will be assumed to earn a rate equal to the performance of the Standard & Poor’s Weekly High Grade Index, which consists of Moody’s Investment Grade-1 municipal tax-exempt notes that are not subject to AMT. By August 31, 2015, the Underlying Index is expected to consist entirely of cash carried in this manner. The Underlying Index is a market value weighted index, and the securities in the Underlying Index are updated after the close on the last business day of each month.
For the full original prospectus click: HERE
For the newest fund information click: HERE
Get 10 Trading Lessons FREE Click Here