City National Rochdale Municipal High Income Fund (CNRMX)

Overview

The described entity is a fund that mainly focuses on investing in tax-exempt municipal bonds. It is dedicated to allocating at least 80% of its net assets, including any borrowings for investment purposes, into a diversified portfolio of these bonds. The attractiveness of municipal bonds largely stems from their tax-exempt status, meaning the interest income generated from these bonds is not included in the gross income for federal income tax purposes. However, it is important to note that a significant portion of this interest could be considered a Tax Preference Item, potentially impacting the federal alternative minimum tax calculations for investors.

Products and Services

• Tax-Exempt Municipal Bonds Investment

This service involves the strategic investment in municipal bonds that are exempt from federal income tax. By concentrating at least 80% of its net assets in such investments, the fund aims to provide income that does not contribute to the gross income of its investors for federal income tax purposes. These bonds are an attractive investment for those looking to receive tax-advantaged income, although investors should be aware of the potential implications regarding the alternative minimum tax.