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 Fund.

The tax character of distributions paid during the years ended August 31, 2010 and

August 31, 2009 was as follows:

 Year Ended                             Year Ended

                           August 31, 2010        August 31, 2009

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Distributions paid from:

Ordinary income            $ 471,628                      $ 329,939

Long-term capital gain            —                                  1,721,575

 ---------------------------------------------------------------

Total                                                                             $471,628     $2,051,514