Limited Term Tax-Exempt Bond Fund of America — Class A is a municipal bond mutual fund designed to deliver a high level of current income that is exempt from regular federal income tax while emphasizing capital preservation. The strategy focuses on investment‑grade municipal securities, typically spanning the short to intermediate part of the maturity spectrum, with an effective duration around the shorter end to moderate interest-rate sensitivity. It invests broadly across revenue bonds and general obligation bonds, with a notable allocation to revenue-backed issuers, and maintains a diversified portfolio across hundreds of issuers to reduce single-issuer risk. The fund distributes income monthly and targets quality standards consistent with A-rated or equivalent municipal debt, seeking to balance stability and tax-efficient income. Established in 1993 and managed by Capital Group’s fixed‑income team, it employs research-driven security selection and active duration management to navigate municipal yield curves and credit cycles. This fund serves investors looking for federally tax‑exempt income and lower volatility than longer-duration municipal strategies, playing a role as a core short‑to‑intermediate municipal allocation within diversified fixed-income portfolios.
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