Distributions

Each Fund pays its shareholders dividends from any net investment income and distributes net capital gains that it has realized, if any, after offset by net capital loss carryovers. Income dividends and capital gain distributions, if any, are normally declared and paid annually. Your distributions will be reinvested in shares of the distributing Fund unless you instruct the Fund otherwise.

TAXES

Generally, you will be taxed when you sell or exchange shares of a Fund and when you receive distributions (whether reinvested in additional shares or taken in cash). Typically, your tax treatment will be as follows:

Transaction Tax Treatment:

Income dividend: Ordinary income or qualified dividend income

Net short term capital gain distribution: Ordinary income

Net long term capital gain distribution: Long term capital gain

Sale or exchange of shares held for more than one year: Long term capital gain or loss

Sale or exchange of shares held for one year or less: Gains that are not offset by capital losses are treated as ordinary income; net losses are subject to special rules