What are the tax implications of an investment in the Fund?
A. The 2003 tax bill extended the 15% maximum individual net long-term capital gains tax rate to dividends from the U.S. and from certain foreign corporations that are eligible for benefits under prescribed tax treaties with the United States– versus what used to be a maximum 38.6% tax rate. This means that the after-tax income you get from dividend yields may now be as valuable as your after-tax dollars from long-term capital gains. ² Foreign stocks are still subject to foreign dividend withholding tax. You and the Fund must meet certain holding-period and other requirements for distributions to be eligible for corporate dividends received deduction or for preferential individual tax rates that apply to qualified dividend income, as the case may be.
