DFCA

DFCA provides current income by holding various municipal securities whose interest is exempt from federal and California state income tax. The portfolio is a collection of intermediate-term bearing municipals rated as investment grade, including revenue bonds, general obligation bonds, industrial development bonds, municipal lease obligations, commercial paper, municipal custody receipts, and variable rate demand obligations. Munis are issued often for public purposes, and in certain segments like health care, housing, education, utilities, and transportation, more than 25% of the portfolio may be comprised of such. Investments may also include municipal-based ETFs and money market funds, as well as derivatives such as futures and options contracts, interest rate swaps, and CDS to hedge interest rates. The fund attempts to maintain a dollar-weighted average duration that is no more than six months above but not one year below its benchmark's average duration.