Citi California Tax Free Reserves

Investment Objective

The Fund seeks to provide shareholders with high levels of current income exempt from both federal and California personal income taxes, preservation of capital and liquidity.

Investment Strategy

The Fund invests primarily in high quality municipal obligations. These may include obligations issued by banks, insurance companies and other financial institutions. Municipal obligations are debt securities issued by states, cities and towns and other public entities or qualifying issuers. The interest paid on these debt securities is generally lower than the interest paid on taxable securities.

Under normal market conditions, the Fund invests at least 80% of its assets in municipal obligations and interests in municipal obligations that pay interest that is exempt from both federal and California personal income taxes. These may include obligations of Puerto Rico and other U.S. territories.

Subject to this 80% policy, the Fund may purchase municipal obligations whose interest is subject to California personal income taxes and/or the federal alternative minimum tax and other high quality securities that pay interest that is subject to state and federal income taxes.

The Fund may invest more than 25% of its assets in participation interests in municipal obligations that are issued by banks and/or backed by bank obligations.

Investment Risks

Although the Fund seeks to preserve the value of your investment at one dollar per share, it is possible to lose money by investing in the Fund, or the Fund could underperform other short-term debt instruments or money market funds if:

• interest rates rise sharply;
• an issuer or guarantor of securities held by the fund defaults or has its credit rating downgraded; or
• the manager's judgment about the value or credit quality of a particular security proves to be incorrect.

Investing in a non-diversified narrowly focused fund may entail greater risks than is normally associated with investing in a more widely diversified fund.

An investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

Investment Management

Managed By Western Asset

• Best known as an active fixed-income manager offering products spanning the yield curve and the globe.
• Founded in 1971, the Firm's philosophy centers upon a team approach that unites groups of specialists dedicated to different market sectors.