Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Trust. The tax
character of distributions paid during the years ended June 30, 2008 and June
30, 2007 was as follows:


                                                Year Ended         Year Ended
                                                June 30, 2008      June 30, 2007
        -----------------------------------------------------------------------
        Distributions paid from:
        Ordinary income                         $2,596             $--
        Exempt-interest dividends               1,590,455          1,832,784
        Long-term capital gain                  1,298              --
        Total                                   $1,594,349         $1,832,784