CA Tax-Free Income Fund
The Fund’s investment objective is to seek high current tax-free income for California residents.
Fund at a Glance
This Fund seeks as high a level of income exempt from regular federal and California personal income taxes, as is consistent with prudent investment management and safety of capital. The Fund invests in intermediate and long-term municipal bonds.
- It is made up of municipal bonds issued by the State of California and various municipalities located within the state.
- Generally, the bonds will be rated in one of the four highest ratings (investment grade) by independent rating organizations such as Moody’s, Standard & Poor’s or Fitch.
- The Manager will seek to invest in municipal bonds that, in the judgement of the Manager, meet environmental, social and governance screens, so that the fund may be considered a green municipal bondfund. In evaluating environmental, social and governance considerations, the manager uses criteriaincluding, but not limited to, use of bond proceeds, expected environmental impact, source of revenuesfor repayment and reputation of issuer.
- Generally, the interest on the municipal bonds in the Fund is not subject to federal and State of California personal income taxes.
This Fund is intended primarily for residents of California. If you are looking for tax-free income and are comfortable with the moderate volatility of a long-term bond fund, this may be the right investment for you.
Fund information is not intended to represent future portfolio composition. Portfolio holdings are subject to change and should not be considered a recommendation to buy individual securities.
The Fund is subject to several risks, any of which could cause the Fund to lose money. These risks, which are described more fully in the prospectus, include interest rate risk, state-specific risk, income risk, call risk, credit risk, and bankruptcy risk.
*Morningstar Rating™ for Funds: For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Ratings metrics. Past results are not guarantee of results in future periods.
Morningstar's star rating is a tool that compares a fund's historical returns against that of other funds within a Morningstar Category. Funds receive ratings of 1 star (lowest) and 5 stars (highest). The ratings are determined by a complex calculation that measures a fund's historical results, downside risks and sales charges. Star ratings are not predictive, but only provide a snapshot of how a fund performed in the past. Moreover, a star rating can change at any time due to fluctuations in a fund's performance, changes in the performance of other funds within a Morningstar Category or if a fund moves from one Morningstar Category to another.
This Fact Sheet must be preceded or accompanied by the current prospectus of the Shelton Funds. Investors should consider a fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the fund. To obtain a prospectus, visit www.sheltoncap.com or call (800) 955-9988. A prospectus should be read carefully before investing. Shelton Funds are distributed by RFS Partners, a member of FINRA and affiliate of Shelton Capital Management. (01/2016)
Investments are not FDIC insured or bank guaranteed and may lose value.