American Funds®



Purchase Restrictions: Tax-exempt funds should generally not serve as investments for tax-deferred retirement plans and accounts.


Investing close to home. Seeks to provide tax-exempt income from investments in municipal bonds.
Price at NAV $16.98
as of 02/27/2015 (updated daily)
Fund Assets (millions) $472.9 Portfolio Managers 2 Expense Ratio 0.67% Prospectus (PDF)

Asset Mix

U.S. Equities0%
Non-U.S. Equities0%
U.S. Bonds95.0%
Non-U.S. Bonds0%
Cash & Equivalents5.0%

As of 1/31/2015 (updated monthly).
For Class A Shares, this chart tracks a hypothetical investment with dividends reinvested through 12/31/2014.
Barclays Virginia Municipal Index

Fund Statistics

5.3 years
Average Life
5.4 years
Average Duration
Average Yield
to Maturity
Average Coupon
% of net assets as of 12/31/2014 (updated quarterly).

Morningstar Style BoxTM— Fixed-Income

Medium Quality
Moderate Interest-Rate Sensitivity
Morningstar data as of 12/31/14 updated quarterly.


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.
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

Fund Inception 08/14/1986
Fund Assets (millions)
As of 1/31/2015 (updated monthly).
Holdings are as of 7/31/2014 (updated as of most recent fiscal year-end).
Shareholder Accounts
Shareholder accounts are as of 1/31/2015 (updated monthly).
Regular Dividends Paid Monthly
Minimum Initial Investment $1,000
Capital Gains Paid --
Portfolio Turnover (2014) 12%
Fiscal Year-End Jul
Prospectus Date 10/01/2014
CUSIP 02630C 20 6
Fund Number 25


Returns at NAV | With Sales Charge
Barclays Virginia Municipal Index

Volatility & Return



For Class A Shares, this chart tracks the 10-year standard deviation and 10-year annualized return of the fixed income funds
Barclays Virginia Municipal Index
Other AF Funds
Standard Deviation as of 01/31/2015 (updated monthly). Annualized return as of 01/31/2015 (updated monthly).


12-month Annualized
Distribution Rates
30-day SEC Yield
Fund at NAV 3.12% N/A
Fund at MOP 3.00% 1.45%
As of 01/31/2015 (updated monthly).

Portfolio Management

Years of Experience with Fund
Years of Experience with Capital Group
Years of Experience with Investment Industry
Brenda S. Ellerin 25 23 21
Chad M. Rach 21 10 2
A boldface number indicates that years of experience with Capital Group is equal to years of experience with investment industry.

Ratings & Risk

Overall Morningstar RatingTM
Funds rated (195)
3-yr. Morningstar RatingTM
(195 funds rated)
5-yr. Morningstar RatingTM
(189 funds rated)
10-yr. Morningstar RatingTM
(173 funds rated)
Overall Morningstar Risk Above Average
Category Muni Single State Interm
Ratings are based on risk-adjusted returns as of 1/31/2015 (updated monthly).

Risk Measures

For the 10 Years ending 1/31/15 (updated monthly). R-squared, Beta and Capture Ratio calculated using the Barclays Municipal TR USD.

Standard Deviation 4.11
Sharpe Ratio 0.56
R-squared 97
Beta 0.93
Capture Ratio (Downside/Upside) 100/88
CCC & Below
Cash & equivalents
% of net assets as of 12/31/2014 (updated quarterly).


0-4.9 Years
5-9.9 Years
10-19.9 Years
20-29.9 Years
30+ Years
% of net assets as of 12/31/2014 (updated quarterly).


Bonds Breakdown

Bond Details

Total bond holdings
General obligation bonds 3.2%

% of net assets as of 12/31/2014 (updated quarterly).

Top Fixed-Income Issuers

Inova Health Systems
Metropolitan Washington Airports Authority
Sentara Healthcare
Virginia Resources Authority, Water & Sewer
Virginia Public School Authority
Virginia Public Building Authority
Virginia Port Authority
Upper Occoquan Sewage Authority
Virginia Resources Authority
Metropolitan Washington DC Dulles Toll Road

% of net assets as of 12/31/2014 (updated quarterly).

Prices & Distributions


Pay Date
Income Dividend
Income Dividend
Cap. Gains
Cap. Gains
Reinvest NAV
Daily 01/30/15 02/02/15 $0.0445468 $0.00 $0.00 $0.00 $17.17
Daily 02/27/15 03/02/15 $0.0402156 $0.00 $0.00 $0.00 $16.98
2015 Year-to-Date:
Dividends Subtotal: $0.0847624
Cap Gains Subtotal: $0.00
Total Distributions: $0.0847624

Fees & Expenses


Annual Management Fees 0.34%
Other Expenses 0.08%
Service 12b-1 0.25%
As of each fund's most recent prospectus.

Expense Ratio

Fund 0.67%
Lipper Virginia Municipal Debt Funds Average 0.81%


Prospectuses & Reports for TFVAX

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. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely.

Returns shown at net asset value (NAV) have all distributions reinvested. If a sales charge had been deducted, the results would have been lower.

Returns with sales charge for Class A shares reflect payment of the 3.75% maximum sales charge.

View the funds' current expense ratios and month-end results.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

There may have been periods when the fund has lagged the index or indexes. Certain market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index.

Funds are actively managed, so holdings will change.

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. View results and yields without fee waiver and/or expense reimbursement.

  1. Barclays Municipal Virginia Index did not exist prior to June 30, 1993. Therefore, results are measured from June 30, 1993, and are based on the corresponding value of the hypothetical $10,000 investment in the fund on that date.
  2. Calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by American Funds.
  3. The months indicated for dividends and capital gains paid represent the anticipated current year ex-dividend date schedule for all share classes.
  4. Expense ratios are as of the most recent prospectus.
  5. 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 12/31/2014.
  6. Excludes certain securities in initial period of acquisition.
  7. Lipper ratings for Consistent Return reflect funds’ historical risk-adjusted returns at NAV, adjusted for volatility, relative to peers. Lipper ratings for Expense reflect funds’ expense minimization relative to peers with similar load structures. Lipper ratings for Preservation reflect funds’ historical loss avoidance relative to other funds within the same asset class. Preservation ratings are relative, rather than absolute, measures, and funds named Lipper Leaders for Preservation may still experience losses periodically; those losses may be larger for equity and mixed equity funds than for fixed income funds. Lipper ratings for Tax Efficiency reflect funds’ historical success in postponing taxable distributions relative to peers. Tax Efficiency offers no benefit to investors in tax-sheltered accounts such as 401(k) plans. Lipper ratings for Total Return reflect funds’ historical total return performance relative to peers. The Lipper ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Total Return, Consistent Return, Preservation, Tax Efficiency, and Expense metrics. The highest 20% of funds in each classification are named Lipper Leaders for Total Return, the next 20% receive a rating of 4, the middle 20% are rated 3, the next 20% are rated 2, and the lowest 20% are rated 1. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at Lipper Leader © 2015, Thomson Reuters, All Rights Reserved.
  8. 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 Rating is for Class A only; other classes may have different performance characteristics.
  9. 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.
  10. For bond funds, the maximum initial sales charge was 4.75% prior to 1/10/2000.
  11. Read more information about Morningstar Style Box methodology. The model for the fixed-income style box is based on the two pillars of fixed-income performance: interest-rate sensitivity and credit quality. The three interest sensitivity groups are limited, moderate and extensive and the three credit quality groups are high, medium and low. These groupings display a portfolio's effective duration and third party credit ratings to provide an overall representation of the fund's risk orientation given the sensitivity to interest rate and credit rating of bonds in the portfolio.
  12. The portfolio managers shown are as of the fund's most recent prospectus dated  10/01/2014.
  13. YTD (year-to-date return): the net change in the value of the fund's shares (in percentage terms) from January 1, 2014, to the current date shown above.
  14. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. 
  15. 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 SEC yield and distribution rate may differ.

©2015 Morningstar, Inc. All Rights Reserved. Some of the information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar, its content providers nor the American Funds are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Information is calculated by Morningstar. Due to differing calculation methods, the figures shown here may differ from those calculated by American Funds.

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds.

For more information about the risks associated with each fund, go to its detailed fund information page or read the prospectus.

This fund is qualified for sale in Maryland, Virginia, Delaware, Florida and the District of Columbia only. State-specific tax-exempt funds are more susceptible to factors adversely affecting issuers of their states' tax-exempt securities than more widely diversified municipal bond funds. Income from municipal bonds 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.

Terms and Definitions

Historical Long-Term Capital Gains: When a capital gain distribution is paid, the net asset value per share is reduced by the amount of the payment plus or minus any change in the value of the fund's holdings. Read our explanation of the effect of a capital gain on a fund's price for details. Two types of capital gains are realized by our funds — short-term and long-term. Net short-term capital gains are distributed to shareholders as income dividends and are taxed at ordinary income tax rates. Long-term capital gain distributions are taxed at a maximum 15% rate.

Bond Statistic Average Duration in Years: Expressed in years, average duration is a weighted average of the estimated price sensitivity of the bonds in the fund's portfolio to a given change in interest rates. With respect to individual bonds, for example, a duration of 4 years indicates that the price of a bond will rise/fall by approximately 4% if rates in general fall/rise by 1%. Typically, bonds with a longer duration pay higher interest but are more sensitive to interest rate changes.

Bond Statistic Average Life in Years: Expressed in years, average life is time weighting the expected principal payments, taking into consideration the impact of calls and prepayments. In general, it is a better measure than average maturity for bonds that have the ability to prepay principal before they reach maturity (e.g., mortgages, mortgage-backed securities and asset-backed securities). Data shown is a weighted average of the bonds held in the fund's portfolio.

Bond Statistic Average Coupon: The average coupon is the weighted average coupon rate of all the bonds in the fund.

Bond Statistic Average Yield to Maturity: A weighted average of all the fund's bond holding's yield to maturities. Yield to maturity is the return a bond earns if held to maturity, based on its price and coupon. Assumes that coupon payments can be reinvested at the yield to maturity.

Valuation : Price-to-book ratio compares a stock's market value to the value of total assets less total liabilities (book value). Adjusted for stock splits. Price-to-cash-flow (P/C) ratio is the average price to cash flow ratio of the individual stocks within a fund. Price-to-earnings (P/E) ratio takes the current price of a stock divided by its earnings per share. The ratio reflects the cost of a given stock per dollar of current annual earnings and is the most common measure of a stock's expense. The higher the P/E, the more investors are paying, and therefore the more earnings growth they are expecting.

Valuation Price-to-Cash Flow: Price-to-cash-flow (P/C) ratio is the average price to cash flow ratio of the individual stocks within a fund.

Valuation Price-to-Earnings Ratio: Price-to-earnings (P/E) ratio takes the current price of a stock divided by its earnings per share. The ratio reflects the cost of a given stock per dollar of current annual earnings and is the most common measure of a stock's expense. The higher the P/E, the more investors are paying, and therefore the more earnings growth they are expecting.

Morningstar rating : In an effort to classify funds by what they own, as well as by their prospectus objectives and styles, Morningstar developed Morningstar Categories. While the prospectus objective identifies a fund's investment goals based on the wording in the fund prospectus, the Morningstar Category identifies funds based on their actual investment styles as measured by their underlying portfolio holdings (portfolio and other statistics over the past three years).

Standard Deviation: Annualized standard deviation (based on monthly returns) is a common measure of absolute volatility that tells how returns over time have varied from the mean. A lower number signifies lower volatility.

Sharpe Ratio: Sharpe ratios use standard deviation and excess return to determine reward per unit of risk. The higher the number, the better the portfolio's historical risk-adjusted performance.

R-Squared: R-squared is a measure of the correlation between a particular fund's return and that of its benchmark index. A measure of 100 indicates that all of the fund's return can be explained by movements in its benchmark. Generally the higher the R-squared measure, the more reliable the beta measurement will be. Calculated by Morningstar.

Beta: Beta relatively measures a fund's sensitivity to market movements over a specified period of time. The beta of the market (represented by the benchmark index) is equal to 1; a beta higher than 1 implies that a fund's return was more volatile than the market. A beta lower than 1 suggests that the fund was less volatile than the market. Generally the higher the R-squared measure, the more reliable the beta measurement will be.

Capture Ratio Downside: Capture ratios reflect the annualized product of fund vs. index returns for all months in which the index had a positive return (upside capture) or negative return (downside capture).

Currency Weighting Short Breakdown: The fund's exposure to a specific currency before taking into consideration any forward currency contracts that may increase or decrease that currency's exposure.

Barclays Virginia Municipal: Barclays Virginia Municipal Index is a market-value-weighted index that includes only investment-grade tax-exempt bonds that are issued from Virginia.