Advisor Website Home | Contact Us | Site Map | Help | Career Opportunities

Detailed Fund Information

The Tax-Exempt Fund of Virginia® (tax-exempt bond fund)

Class A shares

Select a fund and share class

How do the share classes differ?

Daily Prices

Updated April 24, 2014, 3:15PM Pacific time

Net Asset Value (NAV) $16.76
NAV Change $0.00
Maximum Offering Price (MOP) $17.41

(All prices are subject to revision.)

Historical Prices & Distributions

Choose a date

Ticker Symbols & Fund Numbers

Fund Number 25
Ticker/Quotron Symbol TFVAX
CUSIP Number 02630C 20 6

Fund Description

Fund Objective The fund's primary investment objective is to provide a high level of current income exempt from regular federal and Virginia state income taxes. Its secondary objective is preservation of capital.
Distinguishing Characteristics Provides Virginia and District of Columbia residents with tax-exempt income through investments that provide funding for important public services and projects.
Types of Investments Primarily invests in investment-grade securities (BBB and higher, or unrated, but determined by the fund’s investment adviser to be of equivalent quality), and to a lesser extent in lower quality securities, issued by the Commonwealth of Virginia (and its political subdivisions, municipalities and public authorities) that are exempt from both federal and Virginia income taxes. Up to 20% of assets may be invested in bonds subject to the alternative minimum tax.
Maturity Typically, the fund will be invested in intermediate- to long-term securities.
Portfolio Restrictions No more than 10% of assets may be invested in securities rated below investment-grade (BB/Ba and below), or unrated, but determined by the fund’s investment adviser to be of equivalent quality.

Fund Facts

Minimum Initial Investment $1,000
Shareholder Accounts (aggregated for all share classes; updated monthly) 7,190
Regular Dividends Paid Monthly
Capital Gains Paid
Fund Inception August 14, 1986
Fiscal Year-End July

The months indicated for dividends and capital gains paid represent the anticipated current year ex-dividend date schedule for all share classes.

Returns & Expenses

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Results shown at net asset value have all distributions reinvested. If a sales charge had been deducted, the results would have been lower. Share price and return will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Returns with sales charge for Class A shares reflect payment of the 3.75% maximum sales charge at the beginning of the stated periods. The maximum sales charge was 4.75% prior to January 10, 2000. Definitions and other important legal information about these prices and returns are shown below.

Rates of Return*

  Average Annual Total Returns
1 yr 3 yrs 5 yrs 10 yrs Fund Lifetime
March 31, 2014 (most recent month-end)
NAV -0.51% 4.85% 4.89% 3.46% 5.31%
With sales charge -4.22% 3.52% 4.08% 3.07% 5.16%
March 31, 2014 (most recent quarter-end)
NAV -0.51% 4.85% 4.89% 3.46% 5.31%
With sales charge -4.22% 3.52% 4.08% 3.07% 5.16%

Interactive Results Graphs

Expense Ratios

The Tax-Exempt Fund of Virginia 0.65%
Lipper Virginia Municipal Debt Funds Average 0.79%

12-Month Distribution Rates

As of March 31, 2014 (updated monthly)

NAV 3.13%
With sales charge 3.01%

Annualized 30-Day SEC Yield

As of March 31, 2014 (updated monthly)

With sales charge 2.06%

Holdings

Portfolio Summary

% of net assets as of March 31, 2014 (updated quarterly)

Cash & equivalents 6.9%
Municipal Securities 93.1%

Quality Summary

% of net assets as of March 31, 2014 (updated quarterly)

AAA/Aaa 20.9%
AA/Aa 41.7%
A 12.1%
BBB/Baa 8.3%
BB/Ba 1.1%
B 0.8%
CCC & Below 0.0%
Unrated 8.2%
Cash & equivalents 6.9%

as of March 31, 2014 (updated quarterly)

Average Life (years) 5.8
Average Duration (years) 6.2

Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor’s, Moody’s and/or Fitch, as an indication of an issuer’s creditworthiness. If agency ratings differ, the security will be considered to have received the highest of those ratings, consistent with the fund’s investment policies. Securities in the Unrated category have not been rated by a rating agency; however, the investment adviser performs its own credit analysis and assigns comparable ratings that are used for compliance with fund investment policies.

Portfolio Holdings

(updated quarterly, upon availability)

Asset Mix

as of March 31, 2014 (updated monthly)

U.S. Bonds 93.1%
Cash & Equivalents 6.9%

Assets and Portfolio Turnover (for fiscal years)

Fiscal Year Fund Assets (millions) Portfolio Turnover
2013 $482 15%
2012 $503.9 9%
2011 $429.9 10%
2010 $483.3 12%
2009 $426.8 10%

Assets shown are for combined share classes.

Portfolio Managers

Number of years with American Funds or affiliates
Brenda S. Ellerin 22
Chad M. Rach 9

(as of the prospectus dated October 1, 2013)

The portfolio managers shown are reflected in the fund’s most recent prospectus.

Important Legal Information

The Tax-Exempt Fund of Virginia is qualified for sale in Maryland, Virginia, Delaware, Florida and the District of Columbia only. The fund is more susceptible to factors adversely affecting issuers of its state's tax-exempt securities than a more widely diversified municipal bond fund.

Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. Income may be subject to state or local income taxes and/or the federal alternative minimum tax. Certain other income, as well as capital gain distributions, may be taxable.

The return of principal in bond funds is not guaranteed. Bond funds have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the fund.

* Investment results assume all distributions are reinvested and reflect applicable fees and expenses.

  When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Read details about how waivers and/or reimbursements affect the results for each fund.

Source for Lipper expense ratio comparison: Lipper, based on front-end load funds, excluding funds of funds, for the most recent fiscal year-ends available as of March 31, 2014. The fund’s expense ratio is as of the fund’s prospectus. The expense ratios do not reflect sales charges.

The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities, while the distribution rate reflects the fund's past dividends paid to shareholders. Accordingly, the fund's SEC yield and distribution rate may differ.


Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing. CollegeAmerica is distributed by American Funds Distributors® and sold through unaffiliated intermediaries.