Note 1. Accounting Policies
Securities Valuation: Municipal securities (including commitments to purchase such securities on a 'when-issued'
basis) are valued on the basis of prices provided by a pricing service which uses information with respect to
transactions in bonds, quotations from bond dealers, market transactions in comparable securities and various
relationships between securities in determining values. If market quotations are not readily available from such
pricing service, a security is valued at its fair value as determined under procedures established by the Trustees.
Short-term securities which mature in more than 60 days are valued at current market quotations. Short-term
securities which mature in 60 days or less are valued at amortized cost.
Financial Futures Contracts: A financial futures contract is an agreement to purchase (long) or sell (short) an
agreed amount of debt securities at a set price for delivery on a future date. Upon entering into a financial futures
contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain
percentage of the contract amount. This amount is known as the 'initial margin'. Subsequent payments, known as
'variation margin', are made or received by the Fund each day, depending on the daily fluctuations in the value of
the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as
unrealized gain or loss. When the contract expires or is closed, the gain or loss is realized and is presented in the
statement of operations as net realized gain (loss) on financial futures contracts.
The Fund invests in financial futures contracts in order to hedge its existing portfolio securities, or securities the
Fund intends to purchase, against fluctuations in value caused by changes in prevailing interest rates. Should
interest rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures
contracts and may realize a los