Tax Efficient 3 (TE3)

An actively managed fixed income strategy that invests in tax-exempt municipal bonds and short term tax exempt securities that meet the investment policy and tax requirements of participating portfolios, where safety and capital preservation is a priority and the generation of tax free income is required.

Tax-exempt municipal securities including municipal notes, bonds, commercial paper and municipal variable rate demand notes, short-term US Treasury securities, taxable and tax-exempt money market mutual funds.

The investment manager may purchase municipal securities that are subject to the Alternative Minimum Tax. Money market funds must be SEC registered, rated AAA or better and maintain an NAV of $1.00.

All other issue types outside of those stated above

Bank of America Merrill Lynch 1 – 10 Year AAA-A Municipal Securities Index