Strategy And Objective

The City National Rochdale California Tax Exempt Bond Fund (the California Tax Exempt Bond Fund or the Fund) seeks to provide current income exempt from federal and California state income tax (as the primary component of a total return strategy) by investing primarily in California municipal bonds. The California Tax Exempt Bond Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in short to intermediate-term, high quality municipal bonds and notes, the interest from which is expected to be exempt from federal and California state personal income taxes. This policy may not be changed without shareholder approval. The municipal bond obligations in which the Fund invests consist of general obligation bonds, revenue bonds, notes and obligations issued by the State of California and its agencies and by various counties, cities and regional or special districts in California. The Fund may also invest in short-term tax exempt commercial paper, floating rate notes, variable rate demand notes, tender option bonds or shares of money market mutual funds the objectives of which are consistent with the Funds objectives (i.e., money market funds that invest primarily in securities the interest from which is expected to be exempt from federal and California state personal income taxes).