Speak directly to your reader

Before

Dividends paid to shareholders from interest earned by the Fund from tax-exempt municipal obligations and from exempt interest dividends received by the Fund from other tax-exempt securities are not includible in a shareholder’s gross income for federal income tax purposes. Distributions of net interest income derived from other sources, if any, and of net short-term capital gains realized by the Fund will be taxable to shareholders as ordinary income. Net long-term capital gain distributions, if any, will be taxable to shareholders as long-term capital gain regardless of how long the shares of the Fund have been held.

Before, with commentary

Dividends paid to shareholders from interest earned by the Fund from tax-exempt municipal obligations and from exempt interest dividends received by the Fund from other tax-exempt securities are not includible in a shareholder’s gross income for federal income tax purposes. Distributions of net interest income derived from other sources, if any, and of net short-term capital gains realized by the Fund will be taxable to shareholders as ordinary income. Net long-term capital gain distributions, if any, will be taxable to shareholders as long-term capital gain regardless of how long the shares of the Fund have been held. [This disclosure would be more effective if the fund spoke to its shareholders rather than about its shareholders.]

After

Your federal income tax treatment will vary depending on the type of distribution you receive from the Fund.

1. Not subject to tax. Generally, your dividends will not be subject to federal income tax if they come from interest the Fund earns from tax-exempt securities like municipal bonds.

2. Ordinary income. If the Fund distributes net interest income derived from sources other than tax-exempt securities, or distributes short-term capital gains, those amounts will be taxable to you as ordinary income.

3. Long-term capital gains. Net long-term capital gain distributions, if any, will be taxable to you as long-term capital gain, regardless of how long you have owned your Fund shares.