N-2
N-2 | 12 Months Ended |
Feb. 29, 2024 | |
Cover [Abstract] | |
Entity Central Index Key | 0000895531 |
Amendment Flag | false |
Document Type | N-CSR |
Entity Registrant Name | Invesco California Value Municipal Income Trust |
General Description of Registrant [Abstract] | |
Investment Objectives and Practices [Text Block] | Recent Changes The following information is a summary of certain changes made during the Trust’s most recent fiscal year. This information may not reflect all of the changes that have occurred since you purchased the Trust. Changes to Portfolio Managers Effective June 30, 2023, Jim Phillips no longer serves as a portfolio manager of the Trust. Except as noted above, during the Trust’s most recent fiscal year, there were no other changes to the portfolio management of the Trust. Note: Subsequent to the end of the Trust’s most recent fiscal year, effective March 18, 2024, Michael Camarella, Scott Cottier and Mark DeMitry no longer serve as portfolio managers of the Trust. Effective April 1, 2024, Joshua Cooney and Elizabeth S. Mossow, CFA, became portfolio managers of the Trust. Mr. Cooney has been associated with Invesco and/or its affiliates since 1999. Ms. Mossow has been associated with Invesco and/or its affiliates since 2019. From 2007 to 2019, Ms. Mossow was associated with OppenheimerFunds, a global asset management firm. Changes to Investment Policies During the Trust’s most recently completed fiscal year, on September 20, 2023, the Board approved the removal of the Trust’s investment policy that restricts the Trust from purchasing securities that are in default or rated in categories lower than B- by S&P Global Ratings (“S&P”) or B3 by Moody’s Investors Service, Inc. (“Moody’s”) or unrated securities of comparable quality. The Trust may invest, under normal market conditions, up to 20% of its respective net assets in municipal securities rated below investment grade or that are unrated but determined by Invesco Advisers to be of comparable quality at the time of purchase. As a result of the investment policy change, the Trust may invest in securities that are in default or rated in categories lower than B- by S&P or B3 by Moody’s or unrated securities of comparable quality as part of the foregoing 20% limitation on below investment grade securities. As a result of the investment policy change, the Trust is more susceptible to high yield debt/below-investment grade risk, and the following risk was added as a principal risk of the Trust. Defaulted Securities Risk Except as noted above, during the Trust’s most recent fiscal year, there were no material changes in the Trust’s investment objectives or policies that have not been approved by shareholders or in the principal risk factors associated with investment in the Trust. Investment Objective The investment objective of Invesco California Value Municipal Income Trust (the “Trust”) is to seek to provide common shareholders with a high level of current income exempt from federal and California income taxes, consistent with preservation of capital. The investment objective is fundamental and may not be changed without approval of a majority of the Trust’s outstanding voting securities, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”). Investment Policies of the Trust Under normal market conditions, at least 80% of the Trust’s net assets will be invested in municipal securities. Under normal market conditions, at least 80% of the Trust’s net assets will be invested in securities the income of which is exempt from California income taxes. The policies stated in the foregoing sentences are fundamental and may not be changed without approval of a majority of the Trust’s outstanding voting securities, as defined in the 1940 Act. Under normal market conditions, the Trust’s investment adviser, Invesco Advisers, Inc. (the “Adviser”), seeks to achieve the Trust’s investment objective by investing at least 80% of the Trust’s net assets in investment grade municipal securities. Investment grade securities are: (i) securities rated BBB- or higher by S&P Global Ratings (“S&P”) or Baa3 or higher by Moody’s Investors Service, Inc. (“Moody’s”) or an equivalent rating by another nationally recognized statistical rating organization (“NRSRO”), (ii) securities with comparable short-term NRSRO ratings, or (iii) unrated municipal securities determined by the Adviser to be of comparable quality, each at the time of purchase. Under normal market conditions, the Trust may invest up to 20% of its net assets in municipal securities rated below investment grade or that are unrated but determined by the Adviser to be of comparable quality at the time of purchase. Lower-grade securities are commonly referred to as junk bonds, and involve greater risks than investments in higher-grade securities. The Trust may invest in securities that are in default or rated in categories lower than B-by S&P or B3 by Moody’s or unrated securities of comparable quality as part of the foregoing 20% limitation on below investment grade securities. † The foregoing percentage and rating limitations apply at the time of acquisition of a security based on the last previous determination of the Trust’s net asset value. Any subsequent change in any rating by a rating service or change in percentages resulting from market fluctuations or other changes in the Trust’s total assets will not require elimination of any security from the Trust’s portfolio. The Trust may invest all or a substantial portion of its total assets in California municipal securities that may subject certain investors to the federal alternative minimum tax and, therefore, a substantial portion of the income produced by the Trust may be taxable for such investors under the federal alternative minimum tax. Accordingly, the Trust may not be a suitable investment for investors who are already subject to the federal alternative minimum tax or could become subject to the federal alternative minimum tax as a result of an investment in the Trust. The Adviser buys and sells securities for the Trust with a view towards seeking a high level of current income exempt from federal and California income taxes, subject to reasonable credit risk. As a result, the Trust will not necessarily invest in the highest yielding municipal securities permitted by its investment policies if the Adviser determines that market risks or credit risks associated with such investments would subject the Trust’s portfolio to undue risk. The potential realization of capital gains or losses resulting from possible changes in interest rates will not be a major consideration and frequency of portfolio turnover generally will not be a limiting factor if the Adviser considers it advantageous to purchase or sell securities. The Trust may invest more than 25% of its total assets in a segment of the municipal securities market with similar characteristics if the Adviser determines that the yields available from obligations in a particular segment justify the additional risks of a larger investment in such segment. The Trust may not, however, invest more than 25% of its total assets in municipal securities issued for non-governmental entities that are in the same industry, such as many private activity bonds or industrial development revenue bonds. The Adviser actively manages the Trust’s portfolio and adjusts the average maturity of portfolio investments based upon its expectations regarding the direction of interest rates and other economic factors. The Adviser seeks to identify those securities that it believes entail reasonable credit risk considered in relation to the Trust’s investment policies. In selecting securities for investment, the Adviser uses its extensive research capabilities to assess potential investments and considers a number of factors, including general market and economic conditions and interest rate, credit and prepayment risks. Each security considered for investment is subjected to an in-depth credit analysis to evaluate the level of risk it presents. Finally, the Adviser employs leverage in an effort to enhance the Trust’s income and total return. Decisions to purchase or sell securities are determined by the relative value considerations of the portfolio managers that factor in economic and credit-related fundamentals, market supply and demand, market dislocations and situation-specific opportunities. The purchase or sale of securities may be related to a decision to alter the Trust’s macro risk exposure (such as duration, yield curve positioning and sector exposure), a need to limit or reduce the Trust’s exposure to a particular security or issuer, degradation of an issuer’s credit quality, or general liquidity needs of the Trust. The potential for realization of capital gains or losses resulting from possible changes in interest rates will not be a major consideration and frequency of portfolio turnover generally will not be a limiting factor if the Adviser considers it advantageous to purchase or sell securities. Municipal Securities interest on which, in the opinion of bond counsel or other counsel to the issuers of such securities, is, at the time of issuance, exempt from federal income tax. California municipal securities are municipal obligations, the interest on which, in the opinion of bond counsel to the issuer, is exempt from federal and California income taxes. The Adviser does not conduct its own analysis of the tax status of the interest paid by municipal securities held by the Trust, but will rely on the opinion of counsel to the issuer of each such instrument. The yields of municipal securities depend on, among other things, general money market conditions, general conditions of the municipal securities market, size of a particular offering, the maturity of the obligation and rating of the issue. There is no limitation as to the maturity of the municipal securities in which the Trust may invest. The ratings of S&P and Moody’s represent their opinions of the quality of the municipal securities they undertake to rate. These ratings are general and are not absolute standards of quality. Consequently, municipal securities with the same maturity, coupon and rating may have different yields while municipal securities of the same maturity and coupon with different ratings may have the same yield. The Adviser may adjust the average maturity of the Trust’s portfolio from time to time depending on its assessment of the relative yields available on securities of different maturities and its expectations of future changes in interest rates. The principal types of municipal debt securities purchased by the Trust are revenue obligations and general obligations. Revenue obligations are usually payable only from the revenues derived from a particular facility or class of facilities or, in some cases, from the proceeds of a special excise tax or other specific revenue source, but not from the general taxing power. Revenue obligations may include industrial development, pollution control, public utility, housing, and health care issues. General obligation securities are secured by the issuer’s pledge of its faith, credit and taxing power for the payment of principal and interest. Within these principal classifications of municipal securities, there are a variety of types of municipal securities, including but not limited to: ∎ ∎ ∎ ∎ municipality has no obligation to make lease or installment purchase payments in future years unless money is appropriated for such purpose on a yearly basis. ∎ ∎ ∎ ∎ ∎ Derivatives Inverse Floating Rate Interests Risk When-Issued and Delayed-Delivery Transactions Restricted Securities Rule 144A Securities and Other Exempt Securities. Preferred Shares Zero Coupon/Pay-in-Kind Securities Temporary Defensive Strategy |
Risk Factors [Table Text Block] | Principal Risks of Investing in the Trust As with any fund investment, loss of money is a risk of investing. The risks associated with an investment in the Trust can increase during times of significant market volatility. The principal risks of investing in the Trust are: Market Risk asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held by the Trust will rise in value. Market Disruption Risks Related to Armed Conflict. Debt Securities Risk Municipal Securities Risk generally not backed by the taxing power of the issuing municipality but rather the revenue from the particular project or entity for which the bonds were issued. If the Internal Revenue Service determines that an issuer of a municipal security has not complied with applicable tax requirements, interest from the security could be treated as taxable, which could result in a decline in the security’s value. In addition, there could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state tax status of municipal securities. California and U.S. Territories Municipal Securities Risk Changing Fixed Income Market Conditions Risk. Interest Rate Risk or Market Discount from Net Asset Value Risk. their value. Because the market price of the Trust’s common shares is determined by factors such as relative market supply and demand, general market and economic circumstances, and other factors beyond the control of the Trust, the Trust cannot predict whether its shares of common stock will trade at, below or above net asset value. This characteristic is a risk separate and distinct from the risk that the Trust’s net asset value could decrease as a result of investment activities. Common shareholders bear a risk of loss to the extent that the price at which they sell their shares is lower than at the time of purchase. High Yield Debt Securities (Junk Bond/Below-Investment Grade) Risk Medium- and Lower-Grade Municipal Securities Risk Unrated Securities Risk Adviser will normally take into consideration a number of factors such as, if applicable, the financial resources of the issuer, the underlying source of funds for debt service on a security, the issuer’s sensitivity to economic conditions and trends, any operating history of the facility financed by the obligation, the degree of community support for the financed facility, the capabilities of the issuer’s management, and regulatory factors affecting the issuer or the particular facility. A reduction in the rating of a security after the Trust buys it will not require the Trust to dispose of the security. However, the Adviser will evaluate such downgraded securities to determine whether to keep them in the Trust’s portfolio. Defaulted Securities Risk Credit Risk Income Risk Call Risk Municipal Issuer Focus Risk more susceptible to similar social, economic, political or regulatory occurrences, making the Trust more susceptible to experience a drop in its share price than if the Trust had been more diversified across issuers that did not have similar characteristics. From time to time, the Trust’s investments may include securities that alone or together with securities held by other funds or accounts managed by the Adviser, represents a major portion or all of an issue of municipal securities. Because there may be relatively few potential purchasers for such investments and, in some cases, there may be contractual restrictions on resales, the Trust may find it more difficult to sell such securities at a desirable time or price. Insurance Risk Alternative Minimum Tax Risk Taxability Risk The value of the Trust’s investments and its net asset value may be adversely affected by changes in tax rates and policies. Because interest income from municipal securities is normally not subject to regular federal or state income taxation, the attractiveness of municipal securities in relation to other investment alternatives is affected by changes in federal and state income tax rates or changes in the tax-exempt status of interest income from municipal securities. Any proposed or actual changes in such rates or exempt status, therefore, can significantly affect the demand for and supply, liquidity and marketability of municipal securities. This could in turn affect the Trust’s net asset value and ability to acquire and dispose of municipal securities at desirable yield and price levels. Inverse Floating Rate Interests Risk Liquidity Risk. investment is privately placed and not traded in any public market or is otherwise restricted from trading. Certain restricted securities require special registration and pose valuation difficulties. Liquid securities can become illiquid during periods of market stress. Restricted Securities Risk Rule 144A Securities and Other Exempt Securities Risk Risks of Tobacco Related Bonds Investing Certain of the municipalities in which the Trust invests, including Puerto Rico, currently experience significant financial difficulties, which may include default, insolvency or bankruptcy. As a result, securities issued by certain of these municipalities are currently considered below-investment-grade securities. A credit rating downgrade relating to, default by, or insolvency or bankruptcy of, one or several municipal security issuers of a state, territory, commonwealth or possession in which the Trust invests could affect the payment of principal and interest, the market values and marketability of many or all municipal obligations of such state, territory, commonwealth or possession. In the past several years, securities issued by Puerto Rico and its agencies and instrumentalities have been subject to multiple credit downgrades as a result of Puerto Rico’s ongoing fiscal challenges, growing debt obligations and uncertainty about its ability to make full repayment on these obligations, and certain issuers of Puerto Rican municipal securities have filed for bankruptcy and/or failed to make payments on obligations that have come due. Such developments could adversely impact the Trust’s performance and the Trust may pay expenses to preserve its claims related to its Puerto Rican holdings. The outcome of the debt restructuring of certain Puerto Rican issuers in which the Trust invests, both within and outside bankruptcy proceedings is uncertain, and could adversely affect the Trust Risks of Land-Secured or “Dirt” Bonds Preferred Shares Risk regarding the risks of VMTP Shares, see “Notes to Financial Statements.” When-Issued, Delayed Delivery and Forward Commitment Risks Zero Coupon or Pay-In-Kind Securities Risk coupon Derivatives Risk volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Trust may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Trust may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Trust’s ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions. Variable-Rate Demand Notes Risk Repurchase Agreement Risk Financial Markets Regulatory Risk Management Risk |
Market Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Market Risk asset classes may decline in value. When markets perform well, there can be no assurance that specific investments held by the Trust will rise in value. |
Market Disruption Risks Related to Armed Conflict [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Market Disruption Risks Related to Armed Conflict. |
Debt Securities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Debt Securities Risk |
Municipal Securities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Municipal Securities Risk generally not backed by the taxing power of the issuing municipality but rather the revenue from the particular project or entity for which the bonds were issued. If the Internal Revenue Service determines that an issuer of a municipal security has not complied with applicable tax requirements, interest from the security could be treated as taxable, which could result in a decline in the security’s value. In addition, there could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state tax status of municipal securities. |
California and U S Territories Municipal Securities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | California and U.S. Territories Municipal Securities Risk |
Changing Fixed Income Market Conditions Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Changing Fixed Income Market Conditions Risk. |
Market Discount from Net Asset Value Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Market Discount from Net Asset Value Risk. their value. Because the market price of the Trust’s common shares is determined by factors such as relative market supply and demand, general market and economic circumstances, and other factors beyond the control of the Trust, the Trust cannot predict whether its shares of common stock will trade at, below or above net asset value. This characteristic is a risk separate and distinct from the risk that the Trust’s net asset value could decrease as a result of investment activities. Common shareholders bear a risk of loss to the extent that the price at which they sell their shares is lower than at the time of purchase. |
High Yield Debt Securities Junk BondBelowInvestment Grade Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | High Yield Debt Securities (Junk Bond/Below-Investment Grade) Risk |
Medium and Lower Grade Municipal Securities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Medium- and Lower-Grade Municipal Securities Risk |
Unrated Securities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Unrated Securities Risk Adviser will normally take into consideration a number of factors such as, if applicable, the financial resources of the issuer, the underlying source of funds for debt service on a security, the issuer’s sensitivity to economic conditions and trends, any operating history of the facility financed by the obligation, the degree of community support for the financed facility, the capabilities of the issuer’s management, and regulatory factors affecting the issuer or the particular facility. A reduction in the rating of a security after the Trust buys it will not require the Trust to dispose of the security. However, the Adviser will evaluate such downgraded securities to determine whether to keep them in the Trust’s portfolio. |
Defaulted Securities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Defaulted Securities Risk |
Credit Risks [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Credit Risk |
Income Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Income Risk |
Call Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Call Risk |
Municipal Issuer Focus Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Municipal Issuer Focus Risk more susceptible to similar social, economic, political or regulatory occurrences, making the Trust more susceptible to experience a drop in its share price than if the Trust had been more diversified across issuers that did not have similar characteristics. From time to time, the Trust’s investments may include securities that alone or together with securities held by other funds or accounts managed by the Adviser, represents a major portion or all of an issue of municipal securities. Because there may be relatively few potential purchasers for such investments and, in some cases, there may be contractual restrictions on resales, the Trust may find it more difficult to sell such securities at a desirable time or price. |
Insurance Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Insurance Risk |
Alternative Minimum Tax Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Alternative Minimum Tax Risk |
Taxability Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Taxability Risk The value of the Trust’s investments and its net asset value may be adversely affected by changes in tax rates and policies. Because interest income from municipal securities is normally not subject to regular federal or state income taxation, the attractiveness of municipal securities in relation to other investment alternatives is affected by changes in federal and state income tax rates or changes in the tax-exempt status of interest income from municipal securities. Any proposed or actual changes in such rates or exempt status, therefore, can significantly affect the demand for and supply, liquidity and marketability of municipal securities. This could in turn affect the Trust’s net asset value and ability to acquire and dispose of municipal securities at desirable yield and price levels. |
Inverse Floating Rate Interests Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Inverse Floating Rate Interests Risk |
Liquidity Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Liquidity Risk. investment is privately placed and not traded in any public market or is otherwise restricted from trading. Certain restricted securities require special registration and pose valuation difficulties. Liquid securities can become illiquid during periods of market stress. |
Restricted Securities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Restricted Securities Risk |
Rule 144A Securities and Other Exempt Securities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Rule 144A Securities and Other Exempt Securities Risk |
Risks of Tobacco Related Bonds [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Risks of Tobacco Related Bonds |
Investing in US Territories Commonwealths and Possessions Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Investing Certain of the municipalities in which the Trust invests, including Puerto Rico, currently experience significant financial difficulties, which may include default, insolvency or bankruptcy. As a result, securities issued by certain of these municipalities are currently considered below-investment-grade securities. A credit rating downgrade relating to, default by, or insolvency or bankruptcy of, one or several municipal security issuers of a state, territory, commonwealth or possession in which the Trust invests could affect the payment of principal and interest, the market values and marketability of many or all municipal obligations of such state, territory, commonwealth or possession. In the past several years, securities issued by Puerto Rico and its agencies and instrumentalities have been subject to multiple credit downgrades as a result of Puerto Rico’s ongoing fiscal challenges, growing debt obligations and uncertainty about its ability to make full repayment on these obligations, and certain issuers of Puerto Rican municipal securities have filed for bankruptcy and/or failed to make payments on obligations that have come due. Such developments could adversely impact the Trust’s performance and the Trust may pay expenses to preserve its claims related to its Puerto Rican holdings. The outcome of the debt restructuring of certain Puerto Rican issuers in which the Trust invests, both within and outside bankruptcy proceedings is uncertain, and could adversely affect the Trust |
Risks of Land Secured or Dirt Bonds [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Risks of Land-Secured or “Dirt” Bonds |
Preferred Shares Risks [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Preferred Shares Risk regarding the risks of VMTP Shares, see “Notes to Financial Statements.” |
When Issued Delayed Delivery and Forward Commitment Risks [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | When-Issued, Delayed Delivery and Forward Commitment Risks |
Zero Coupon or Pay In Kind Securities Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Zero Coupon or Pay-In-Kind Securities Risk coupon |
Derivatives Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Derivatives Risk volatile and increase the risk of loss. Derivative instruments may also be less liquid than more traditional investments and the Trust may be unable to sell or close out its derivative positions at a desirable time or price. This risk may be more acute under adverse market conditions, during which the Trust may be most in need of liquidating its derivative positions. Derivatives may also be harder to value, less tax efficient and subject to changing government regulation that could impact the Trust’s ability to use certain derivatives or their cost. Derivatives strategies may not always be successful. For example, derivatives used for hedging or to gain or limit exposure to a particular market segment may not provide the expected benefits, particularly during adverse market conditions. |
Variable Rate Demand Notes Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Variable-Rate Demand Notes Risk |
Repurchase Agreement Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Repurchase Agreement Risk |
Financial Markets Regulatory Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Financial Markets Regulatory Risk |
Management Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Management Risk |
Other Risks [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | K. Other Risks Increases in the federal funds and equivalent foreign rates or other changes to monetary policy or regulatory actions may expose fixed income markets to heightened volatility and reduced liquidity for certain fixed income investments, particularly those with longer maturities. It is difficult to predict the impact of interest rate changes on various markets. In addition, decreases in fixed income dealer market-making capacity may also potentially lead to heightened volatility and reduced liquidity in the fixed income markets. As a result, the value of the Trust’s investments and share price may decline. Changes in central bank policies could also result in higher than normal redemptions by shareholders, which could potentially increase the Trust’s portfolio turnover rate and transaction costs. Policy changes by the U.S. government or its regulatory agencies and political events within the U.S. and abroad may, among other things, affect investor and consumer confidence and increase volatility in the financial markets, perhaps suddenly and to a significant degree, which may adversely impact the Trust’s operations, universe of potential investment options, and return potential. The municipal issuers in which the Trust invests may be located in the same geographic area or may pay their interest obligations from revenue of similar projects, such as hospitals, airports, utility systems and housing finance agencies. This may make the Trust’s investments more susceptible to similar social, economic, political or regulatory occurrences, making the Trust more susceptible to experience a drop in its share price than if the Trust had been more diversified across issuers that did not have similar characteristics. The Trust may invest in lower-quality debt securities, i.e., “junk bonds”. Investments in lower-rated securities or unrated securities of comparable quality tend to be more sensitive to economic conditions than higher rated securities. Junk bonds involve a greater risk of default by the issuer because such securities are generally unsecured and are often subordinated to other creditors’ claims. Junk bonds are less liquid than investment grade debt securities and their prices tend to be more volatile. |
Interest Rate Risk [Member] | |
General Description of Registrant [Abstract] | |
Risk [Text Block] | Interest Rate Risk or |
Notes [Member] | |
General Description of Registrant [Abstract] | |
Investment Objectives and Practices [Text Block] | The Trust’s investment objective is to seek to provide common shareholders with a high level of current income exempt from federal and California income taxes, consistent with preservation of capital. |