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<SEC-DOCUMENT>0000898432-07-000037.txt : 20070108
<SEC-HEADER>0000898432-07-000037.hdr.sgml : 20070108
<ACCEPTANCE-DATETIME>20070105212903
ACCESSION NUMBER:		0000898432-07-000037
CONFORMED SUBMISSION TYPE:	N-14 8C
PUBLIC DOCUMENT COUNT:		28
REFERENCES 429:			811-05908
FILED AS OF DATE:		20070108
DATE AS OF CHANGE:		20070105

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HANCOCK JOHN PATRIOT PREMIUM DIVIDEND FUND II
		CENTRAL INDEX KEY:			0000855886
		IRS NUMBER:				043097281
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		N-14 8C
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-139837
		FILM NUMBER:		07515868

	BUSINESS ADDRESS:	
		STREET 1:		C/O JOHN HANCOCK FUNDS
		STREET 2:		601 CONGRESS STREET
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02210
		BUSINESS PHONE:		617-663-3000

	MAIL ADDRESS:	
		STREET 1:		C/O JOHN HANCOCK FUNDS
		STREET 2:		601 CONGRESS STREET
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02210

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PATRIOT PREMIUM DIVIDEND FUND II
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-14 8C
<SEQUENCE>1
<FILENAME>formn14.htm
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<DIV style="width:624px"><P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center>As filed with the U.S. Securities and Exchange Commission on January 8, 2007</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; padding-left:400px">File Nos. 333-</P>
<P style="margin:0px; padding-left:453.333px">811-05908</P>
<P style="margin:0px" align=right><BR></P>
<P style="margin:0px" align=center>SECURITIES AND EXCHANGE COMMISSION</P>
<P style="margin:0px" align=center>WASHINGTON, D.C. 20549</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>FORM N-14</B></P>
<P style="margin:0px" align=center>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]</P>
<P style="margin:0px" align=center>Pre-Effective Amendment No. &nbsp;&nbsp;&nbsp;[ &nbsp;&nbsp;]</P>
<P style="margin:0px" align=center>Post-Effective Amendment No. &nbsp;[ &nbsp;&nbsp;]</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II</B></P>
<P style="margin:0px" align=center>(Exact Name of Registrant as Specified in Charter)</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>601 Congress Street</B></P>
<P style="margin:0px" align=center><B>Boston, Massachusetts 02110</B></P>
<P style="margin:0px" align=center>&nbsp;(Address of Principal Executive Offices)</P>
<P style="margin:0px" align=center><B>(617) 663-4324</B></P>
<P style="margin:0px" align=center>(Registrant&#146;s Area Code and Telephone Number)</P>
<P style="margin:0px" align=center><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=260></TD><TD width=286.667></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=260><P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>Alfred E. Ouellette</B></P>
<P style="margin:0px" align=center><B>601 Congress Street</B></P>
<P style="margin:0px" align=center><B>Boston, Massachusetts 02110</B></P>
<P style="margin:0px; padding-left:40px; padding-right:72px" align=center>&nbsp;(Name and Address of Agent for Service)</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=286.667><P style="margin:0px" align=center>With copies to:</P>
<P style="margin:0px" align=center><B>Mark P. Goshko, Esq.</B></P>
<P style="margin:0px" align=center><B>Kirkpatrick &amp; Lockhart Preston Gates Ellis LLP</B></P>
<P style="margin:0px" align=center><B>One Lincoln Street</B></P>
<P style="margin:0px" align=center><B>Boston, Massachusetts 02111</B></P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>AS SOON AS PRACTICABLE AFTER THE EFFECTIVE DATE OF THIS REGISTRATION STATEMENT</B></P>
<P style="margin:0px" align=center>(Approximate Date of Proposed Public Offering)</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>CALCULATION OF REGISTRATION FEE UNDER THE SECURITIES ACT OF 1933</B></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=127.667></TD><TD width=127.667></TD><TD width=127.667></TD><TD width=127.667></TD><TD width=127.733></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=127.667><P style="margin:0px" align=center><B>Title of Securities Being Registered</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=127.667><P style="margin:0px" align=center><B>Amount Being Registered (1)</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=127.667><P style="margin:0px" align=center><B>Proposed Maximum Offering Price Per Unit(1)</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=127.667><P style="margin:0px" align=center><B>Proposed Maximum Aggregate Offering Price</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=127.733><P style="margin:0px" align=center><BR>
<B>Amount of Registration Fee</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=127.667><P style="margin:0px" align=center>Common Stock</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=127.667><P style="margin:0px" align=center>87,412</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=127.667><P style="margin:0px" align=center>$11.44</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=127.667><P style="margin:0px" align=center>1,000,000</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=127.733><P style="margin:0px" align=center>$107.00</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=127.667><P style="margin:0px" align=center>Dutch Auction Rate Transferable Securities Preferred Shares</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=127.667><P style="margin:0px" align=center>1,000,000</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=127.667><P style="margin:0px" align=center>$100,000</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=127.667><P style="margin:0px" align=center>1,000,000</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=127.733><P style="margin:0px" align=center>$107.00</P>
</TD></TR>
</TABLE>
<P style="margin:0px">&nbsp;(1) Estimated solely for the purposes of calculating the filing fee.</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:26.667px; padding-left:24px">THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT &nbsp;SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH &nbsp;SECTION 8(a) OF THE SECURITIES ACT OF 1933 OR UNTIL THE &nbsp;REGISTRATION STATEMENT SHALL &nbsp;BECOME EFFECTIVE ON SUCH DATE AS THE SECURITIES AND EXCHANGE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(a), MAY DETERMINE.</P>
<P style="margin-top:0px; margin-bottom:13.333px"><BR>
<BR></P>
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<P style="margin-top:0px; margin-bottom:13.333px"><BR></P>
<P style="margin:0px" align=center><B>JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II (the &#147;</B><FONT FACE="Times New Roman Bold"><B>REGISTRANT</B></FONT><B>&#148;)</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>CONTENTS OF REGISTRATION STATEMENT</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px">This Registration Statement contains the following papers and documents:</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:24px">Cover Sheet</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:24px">Contents of Registration Statement</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:24px; text-indent:24px">Question and Answers to Shareholders of John Hancock Patriot Premium Dividend Fund I, John Hancock Patriot Premium Dividend Fund II, John Hancock Patriot Select Dividend Trust, John Hancock Patriot Global Dividend Fund, and John Hancock Patriot Preferred Dividend Fund </P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:24px; text-indent:24px">Notice of Annual Meeting to Shareholders of John Hancock Patriot Premium Dividend Fund I, John Hancock Patriot Premium Dividend Fund II, John Hancock Patriot Select Dividend Trust, John Hancock Patriot Global Dividend Fund, and John Hancock Patriot Preferred Dividend Fund </P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:24px; text-indent:24px">Part A &#150; Joint Proxy Statement/Prospectus of John Hancock Patriot Premium Dividend Fund I, John Hancock Patriot Premium Dividend Fund II, John Hancock Patriot Select Dividend Trust, John Hancock Patriot Global Dividend Fund, and John Hancock Patriot Preferred Dividend Fund </P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:24px; text-indent:24px">Part B - Statement of Additional Information of John Hancock Patriot Premium Dividend Fund I, John Hancock Patriot Premium Dividend Fund II, &nbsp;John Hancock Patriot Select Dividend Trust, John Hancock Patriot Global Dividend Fund, and John Hancock Patriot Preferred Dividend Fund </P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:24px; text-indent:24px">Part C - Other Information</P>
<P style="margin:0px; padding-left:24px; text-indent:24px">Signature Page</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; padding-left:24px; text-indent:24px">Exhibits</P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:26.667px" align=justify>.</P>
<P style="margin-top:0px; margin-bottom:26.667px" align=center><BR>
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<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">[JOHN HANCOCK LOGO]</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Dear Shareholder:</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">I want to share with you the details of an important proxy that is enclosed and requires your action. It is being sent to you because you own one or more of the following funds:</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:96px; font-size:14.667px"><FONT FACE="Times New Roman">John Hancock Patriot Premium Dividend Fund I (NYSE: PDF)</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:96px; font-size:14.667px"><FONT FACE="Times New Roman">John Hancock Patriot Select Dividend Trust (NYSE: DIV)</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:96px; font-size:14.667px"><FONT FACE="Times New Roman">John Hancock Patriot Global Dividend Fund (NYSE: PGD)</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:96px; font-size:14.667px"><FONT FACE="Times New Roman">John Hancock Patriot Preferred Dividend Fund (NYSE: PPF)</FONT></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Your Board of Trustees approved the reorganization of the four Patriot closed-end funds listed above, on</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">December 5, 2006. The funds will be reorganized into a fifth closed-end fund: <B>John Hancock Patriot Premium Dividend Fund II </B>(NYSE: PDT).</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">There are three key benefits of the reorganization that I would like you to know about.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:96px; font-size:14.667px"><FONT FACE="Times New Roman">Shareholders will potentially benefit from Patriot Premium Dividend Fund II&#146;s reduced annual operating expenses. In addition, certain fixed administrative costs will be spread across the combined fund&#146;s larger asset base, and this is designed to increase the Fund&#146;s overall efficiency.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:96px; font-size:14.667px"><FONT FACE="Times New Roman">The Patriot Premium Dividend Fund II has a history of providing solid, long-term performance. It seeks high level of current income and modest growth of capital by investing in a diversified portfolio of dividend paying stocks. In addition, the Fund pursues the same or similar investment objective and has similar investment policies as the four funds above.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:96px; font-size:14.667px"><FONT FACE="Times New Roman">The same seasoned and skilled management team that guides your current fund will guide the Patriot Premium Dividend Fund II. Gregory Phelps has 26 years of experience and Mark Maloney has worked in the industry for 31 years. Both have long and accomplished tenures at John Hancock Funds.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Following the reorganizations, the substantially larger Patriot Premium Dividend Fund II is designed to provide an additional benefit: enhanced market liquidity. This may help reduce the extent of trading discounts that occur in a smaller trading market.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>What Happens Next?</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">It is expected that each fund&#146;s reorganization will qualify as a tax-free reorganization for federal income tax purposes. &nbsp;Subject to certain limitations, the funds will bear the reorganization costs. As part of the reorganization, holders of common shares will be issued new common shares of Patriot Premium Dividend Fund II. Please note that the total net asset value of these new shares will equal the net asset value of your shares prior to the reorganization, although the number of shares may be different. If you are a holder of preferred shares of a fund, you will receive newly-issued preferred shares of Patriot Premium Dividend Fund II, the aggregate liquidation preference of which will equal the aggregate liquidation preference of the preferred shares you held immediately prior to the reorganization.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">If shareholders approve the reorganizations, and certain conditions are met, the reorganizations are expected to occur in the Spring of 2007.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Your Vote Matters</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">You will be asked to approve these changes and your vote matters. No matter how large or small your Fund holdings, your vote is extremely important. Please review the enclosed proxy materials and submit your vote promptly to help us avoid the need for additional mailings. For your convenience, you may vote one of three ways: via telephone by calling 1-866-540-5760; via mail by returning the enclosed voting card; or via the Internet by visiting <U>http://www.proxyvoting.com/</U> (ticker symbol of the fund) and selecting the shareholder entryway.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">I am confident that the proposed change will help us better serve you and all of the funds&#146; shareholders. If you have questions, please call a John Hancock service representative at (800) 843-0090 between 8:30 A.M and 7:00 P.M. Eastern Time. I thank you your for prompt vote on this matter.</P>
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<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Sincerely</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">/s/ Keith F. Hartstein</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Keith F. Hartstein</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">President and Chief Executive Officer</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=justify>John Hancock Funds, LLC, 601 Congress Street, Boston, MA 02210, Member NASD &#149; John Hancock Advisers, LLC &#149; John Hancock Signature Services, Inc.</P>
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<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>&#150; [FEBRUARY [ &nbsp;]] 2007 &#150;</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>IMPORTANT NOTICE</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>TO SHAREHOLDERS OF</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND I</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>JOHN HANCOCK PATRIOT SELECT DIVIDEND TRUST</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>JOHN HANCOCK PATRIOT GLOBAL DIVIDEND FUND</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>JOHN HANCOCK PATRIOT PREFERRED DIVIDEND FUND AND</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>JOHN HANCOCK PATRIOT</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>PREMIUM DIVIDEND FUND II</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>(each, a &#147;Fund&#148;)</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>QUESTIONS &amp; ANSWERS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Although we recommend that you read the complete Joint Proxy Statement/ Prospectus, we have provided for your convenience a brief overview of the issues to be voted on.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>APPROVAL OF REORGANIZATIONS OF THE ACQUIRED FUNDS AND ISSUANCE OF ADDITIONAL COMMON AND PREFERRED SHARES</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Q: &nbsp;WHAT IS BEING PROPOSED AT THE SHAREHOLDER MEETING?</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>A:</B> &nbsp;<I>Shareholders of John Hancock Patriot Premium Dividend Fund I, John Hancock Patriot Select Dividend Trust, John Hancock Patriot Global Dividend Fund and John Hancock Patriot Preferred Dividend Fund</I>: &nbsp;You are being asked to vote on a reorganization (each a &#147;Reorganization&#148; and collectively the &#147;Reorganizations&#148;) of your Fund (each such Fund being referred to herein as an &#147;Acquired Fund&#148; and together as the &#147;Acquired Funds&#148;) into John Hancock Patriot Premium Dividend Fund II (the &#147;Acquiring Fund&#148;), a closed-end fund that pursues the same or a substantially similar investment objective, has similar investment policies and is managed by the same investment advisory personnel as the Acquired Funds.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><I>Common Shareholders of John Hancock Patriot Premium Dividend Fund II</I>: &nbsp;You are being asked to vote on the issuance of additional common shares of the Acquiring Fund in connection with the Reorganizations.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><I>Holders of Preferred Shares of John Hancock Patriot Premium Dividend Fund II: &nbsp;</I>You are being asked to vote on the issuance of additional series of preferred shares of the Acquiring Fund in connection with the Reorganizations.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Q: &nbsp;WHY IS EACH REORGANIZATION BEING RECOMMENDED?<BR>
A:</B> &nbsp;The Board of Trustees of each Fund has determined that each Reorganization will benefit common shareholders of the respective Acquired Fund and the Acquiring Fund. &nbsp;The Acquired Funds and the Acquiring Fund are similar. &nbsp;Each Fund (other than the John Hancock Patriot Preferred Dividend Fund) seeks to provide a high level of current income, consistent with modest growth of capital for holders of its common shares. &nbsp;John Hancock Patriot Preferred Dividend Fund seeks to provide a high level of current income, consistent with preservation of capital. &nbsp;Each Fund is managed by the same investment advisory personnel. &nbsp;After the Reorganizations, it is anticipated that common shareholders of each Fund will experience a reduced annual operating expense ratio, as certain fixed administrative costs will be spread across the combined fund&#146;s larger asset base. &nbsp;It is not anticipated that the Reorganizations will directly benefit preferred shareholders of the Funds;
however,






the Reorganizations will not adversely affect preferred shareholders and none of the expenses of the Reorganizations will be borne by preferred shareholders of the Acquiring Fund. &nbsp;The Joint Proxy Statement/Prospectus contains further details on the additional reasons that the Reorganizations are being recommended by the Board of Trustees of each Fund.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><BR>
<B>Q: &nbsp;HOW WILL THE REORGANIZATIONS AFFECT ME?<BR>
A:</B> &nbsp;Assuming shareholders approve the Reorganizations of the Acquired Funds and shareholders of the Acquiring Fund approve the issuance of additional common shares and preferred shares of the Acquiring Fund, the assets and liabilities of the Acquired Funds will be combined with those of the Acquiring Fund and the Acquired Funds will dissolve.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><I>Shareholders of the Acquired Funds</I>: &nbsp;You will become a shareholder of the Acquiring Fund. &nbsp;If you are a holder of common shares of an Acquired Fund, you will receive newly-issued common shares of the Acquiring Fund, the aggregate net asset value of which will equal the aggregate net asset value of the common shares you held immediately prior to the Reorganization, less the costs of the Reorganization (though you may receive cash for fractional shares). &nbsp;Of course, the Acquiring Fund Common Shares received by common shareholders of an Acquired Fund may trade on the New York Stock Exchange (&#147;NYSE&#148;) at a discount from net asset value, which might be greater or less than the trading discount of common shares of an Acquired Fund at the time of the relevant closing of the Reorganization. &nbsp;If you are a holder of preferred shares of an Acquired Fund, you will receive newly-issued
preferred






 shares of the Acquiring Fund, the aggregate liquidation preference of which will equal the aggregate liquidation preference of the preferred shares you held immediately prior to the Reorganization. &nbsp;The auction dates, rate period and dividend payment dates of the Dutch Auction Rate Transferable Securities preferred shares of the Acquiring Fund (&#147;Acquiring Fund DARTS&#148;) received in the Reorganization will be the same as that of the preferred shares held immediately prior to the Reorganization. &nbsp;The closings of the Reorganizations are conditioned upon the Acquiring Fund DARTS receiving a rating of &#147;AA&#148; from Standard &amp; Poor&#146;s Rating Group and &#147;aa2&#148; from Moody&#146;s Investors Service, Inc.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><I>Shareholders of the Acquiring Fund</I>: &nbsp;You will remain a shareholder of the Acquiring Fund.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><BR>
<B>Q: &nbsp;WILL I HAVE TO PAY ANY SALES LOAD, COMMISSION OR OTHER SIMILAR FEE IN CONNECTION WITH THE REORGANIZATIONS?<BR>
A:</B> &nbsp;You will pay no sales loads or commissions in connection with the Reorganizations. &nbsp;However, if the Reorganizations are completed, the costs associated with the Reorganizations will be borne by common shareholders of the Acquired Funds and the Acquiring Fund in proportion to and up to the amount of their first year&#146;s projected annual expense savings as a result of the Reorganizations. &nbsp;John Hancock Advisers, LLC, the adviser to each of the Funds, will bear the balance of the Reorganization costs.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><BR>
<B>Q: &nbsp;WILL I HAVE TO PAY ANY FEDERAL TAXES AS A RESULT OF THE REORGANIZATIONS?<BR>
A:</B> &nbsp;Each of the Reorganizations is intended to qualify as a &#147;reorganization&#148; within the meaning of Section 368(a)(1) of the Internal Revenue Code of 1986, as amended. &nbsp;If the Reorganizations so qualify, in general, shareholders of the Acquired Funds will recognize no gain or loss upon the receipt solely of shares of the Acquiring Fund in connection with the Reorganizations. &nbsp;Additionally, the Acquired Funds will recognize no gain or loss as a result of the transfer of all of their assets and liabilities in exchange for the shares of the Acquiring Fund or as a result of their dissolution. &nbsp;Neither the Acquiring Fund nor its shareholders will recognize any gain or loss in connection with the Reorganizations.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Q: &nbsp;WHAT HAPPENS IF SHAREHOLDERS OF ONE ACQUIRED FUND DO NOT APPROVE ITS REORGANIZATION BUT SHAREHOLDERS OF ANOTHER ACQUIRED FUND DO APPROVE ITS REORGANIZATION?<BR>
A:</B> &nbsp;An unfavorable vote on a proposed Reorganization by the shareholders of one Acquired Fund will not affect the implementation of a Reorganization by another Acquired Fund, if such Reorganization is approved by the shareholders of such Acquired Fund and the issuance of additional common shares and preferred shares is approved by the shareholders of the Acquiring Fund.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><BR>
<B>Q: &nbsp;WHY IS THE VOTE OF SHAREHOLDERS OF THE ACQUIRING FUND BEING SOLICITED?<BR>
A:</B> &nbsp;Although the Acquiring Fund will continue its legal existence and operations after the Reorganizations, the rules of the NYSE (on which the Acquiring Fund&#146;s common shares are listed) require the Acquiring Fund&#146;s common shareholders to approve the issuance of additional common shares in connection with the Reorganizations. &nbsp;In addition, the By-Laws of the Acquiring Fund require the affirmative vote of the holders of the outstanding preferred shares to issue any additional series of preferred shares.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">If the issuance of additional common shares or preferred shares of the Acquiring Fund is not approved, none of the Reorganizations will occur.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Q: &nbsp;HOW DOES THE BOARD OF TRUSTEES OF MY FUND SUGGEST THAT I VOTE?<BR>
A:</B> &nbsp;After careful consideration, the Board of Trustees of your Fund recommends that you vote &#147;FOR&#148; the item proposed for your Fund.<BR>
</P>
<P></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>ELECTION OF TRUSTEES</B></P>

<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Q: &nbsp;WHY AM I BEING ASKED TO VOTE FOR BOARD MEMBERS?</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>A:</B> &nbsp;The rules of the NYSE require all registered companies to hold an annual shareholder meeting and elect board members. &nbsp;The shareholders of each Fund are being asked to elect Trustees on the Board of Trustees to serve until their respective successors are duly elected and qualified. &nbsp;Each Board of Trustees is divided into three staggered term classes containing three Trustees. &nbsp;The term of one class expires each year and no term continues for more than three years after the applicable election.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>GENERAL</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>Q: &nbsp;HOW DO I VOTE MY PROXY?<BR>
A:</B> &nbsp;You may vote one of three ways: via telephone by calling the phone number on your proxy card, via mail by returning the enclosed voting card or via the Internet by visiting <FONT COLOR=#0000FF><U>www.jhfunds.com</U></FONT> and selecting the shareholder entryway.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Q: &nbsp;WHO DO I CONTACT FOR FURTHER INFORMATION?<BR>
A:</B> &nbsp;You can contact your financial adviser for further information. &nbsp;You may also contact a John Hancock Funds Customer Service Representative at (800) 843-0090 between 8:30 a.m. and 7:00 p.m. Eastern Time.</P>
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<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND I</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>JOHN HANCOCK PATRIOT SELECT DIVIDEND TRUST</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>JOHN HANCOCK PATRIOT GLOBAL DIVIDEND FUND</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>JOHN HANCOCK PATRIOT PREFERRED DIVIDEND FUND</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>(each, a &#147;Fund&#148;)</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>NOTICE OF ANNUAL MEETING OF SHAREHOLDERS <BR>
TO BE HELD [APRIL [ &nbsp;]], 2007</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">This is the formal agenda for your Fund&#146;s shareholder meeting. &nbsp;It tells you what matters will be voted on and the time and place of the meeting in case you want to attend in person.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">To the shareholders of each Fund:</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">A joint shareholder meeting for your Fund(s) will be held at 601 Congress Street, Boston, Massachusetts, on [April [ &nbsp;]], 2007, at 9:00 a.m., Eastern Time, to consider the following:</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:24px; text-indent:-24px; font-size:14.667px">1.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:24px; font-size:14.667px">For common shareholders of John Hancock Patriot Premium Dividend Fund II (the &#147;Acquiring Fund&#148;), a proposal to approve the issuance of additional common shares of the Acquiring Fund in connection with each Agreement and Plan of Reorganization. &nbsp;<B>The Board of Trustees of the Acquiring Fund recommends that you vote FOR this proposal</B>.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:24px; text-indent:-24px; font-size:14.667px">2.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:24px; font-size:14.667px">For holders of Dutch Auction Rate Transferable Securities preferred shares (&#147;DARTS&#148;), Series A and DARTS, Series B, of the Acquiring Fund, a proposal to approve the issuance of additional series of DARTS in connection with each Agreement and Plan of Reorganization. &nbsp;<B>The Board of Trustees of the Acquiring Fund recommends that you vote FOR this proposal.</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:24px; text-indent:-24px; font-size:14.667px">3.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:24px; font-size:14.667px">For shareholders of John Hancock Patriot Premium Dividend Fund I (&#147;Premium Dividend Fund I&#148;), a proposal to approve an Agreement and Plan of Reorganization between Premium Dividend Fund I and the Acquiring Fund, the termination of Premium Dividend Fund I&#146;s registration under the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;), and the dissolution of Premium Dividend Fund I under applicable state law. &nbsp;Under this Agreement, the Acquiring Fund will acquire substantially all of the assets and assume substantially all of the liabilities of Premium Dividend Fund I in exchange for an equal aggregate value of newly-issued common shares of beneficial interest of the Acquiring Fund, with no par value (&#147;Acquiring Fund Common Shares&#148;), and newly-issued DARTS with no par value and a liquidation preference of $100,000 per share (&#147;Acquiring Fund
DARTS&#148;






). &nbsp;Your Fund will distribute Acquiring Fund Common Shares to common shareholders of your Fund and Acquiring Fund DARTS to DARTS shareholders of your Fund and will then terminate its registration under the 1940 Act and dissolve under applicable state law. &nbsp;The aggregate net asset value of Acquiring Fund Common Shares received will equal the aggregate net asset value of your common shares held immediately prior to the Reorganization, less the costs of the Reorganization (though common shareholders may receive cash for their fractional shares). &nbsp;The aggregate liquidation preference of Acquiring Fund DARTS received in the Reorganization will equal the aggregate liquidation preference of DARTS of your Fund held immediately prior to the Reorganization. &nbsp;The auction dates, rate period and dividend payment dates of the Acquiring Fund DARTS received in the Reorganization will be the same as that of the preferred shares held immediately prior to the Reorganization. &nbsp;The Acquiring Fund
DARTS a






re expected to receive a rating of &#147;AA&#148; from Standard &amp; Poor&#146;s Rating Group and &#147;aa2&#148; from Moody&#146;s Investors Service, Inc. &nbsp;The Acquiring Fund will continue to operate after the Reorganizations as a registered closed-end investment company with the investment objective and policies described in this Joint Proxy Statement/Prospectus. &nbsp;<B>The Board of Trustees of Premium Dividend Fund I recommends that you vote FOR this proposal.</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:24px; text-indent:-24px; font-size:14.667px">4.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:24px; font-size:14.667px">For shareholders of John Hancock Patriot Select Dividend Trust (&#147;Select Dividend Trust&#148;), a proposal to approve an Agreement and Plan of Reorganization between Select Dividend Trust and the Acquiring Fund, the termination of Select Dividend Trust&#146;s registration under the 1940 Act and the dissolution of Select Dividend Trust under applicable state law. &nbsp;Under this Agreement, the Acquiring Fund will acquire substantially all of the assets and assume substantially all of the liabilities of Select Dividend Trust in exchange for an equal aggregate value of newly-issued Acquiring Fund Common Shares and newly-issued Acquiring Fund DARTS. &nbsp;Your Fund will distribute Acquiring Fund Common Shares to common shareholders of your Fund and Acquiring Fund DARTS to holders of Auction Market Preferred Shares (&#147;AMPS&#148;) of your Fund and will then terminate its registration under
the 19






40 Act and dissolve under applicable state law. &nbsp;The aggregate net asset value of Acquiring Fund Common Shares received will equal the aggregate net asset value of your common shares held immediately prior to the Reorganization, less the costs of the Reorganization (though common shareholders may receive cash for their fractional shares). &nbsp;The aggregate liquidation preference of Acquiring Fund DARTS received in the Reorganization will equal the aggregate liquidation preference of AMPS of your Fund held immediately prior the Reorganization. &nbsp;The auction dates, rate period and dividend payment dates of the Acquiring Fund DARTS received in the Reorganization will be the same as that of the preferred shares held immediately prior to the Reorganization. &nbsp;In addition, the ratings expected to be received by the Acquiring Fund DARTS are the same as the ratings received by the DARTS of your Fund. &nbsp;The Acquiring Fund will continue to operate after the Reorganizations as a registered
closed-end






 investment company with the investment objective and policies described in this Joint Proxy Statement/Prospectus. &nbsp;<B>The Board of Trustees of Select Dividend Trust recommends that you vote FOR this proposal.</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:24px; text-indent:-24px; font-size:14.667px">5.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:24px; font-size:14.667px">For shareholders of John Hancock Patriot Global Dividend Fund (&#147;Global Dividend Fund&#148;), a proposal to approve an Agreement and Plan of Reorganization between Global Dividend Fund and the Acquiring Fund, the termination of Global Dividend Fund&#146;s registration under the 1940 Act and the dissolution of Global Dividend Fund under applicable state law. &nbsp;Under this Agreement, the Acquiring Fund will acquire substantially all of the assets and assume substantially all of the liabilities of Global Dividend Fund in exchange for an equal aggregate value of newly-issued Acquiring Fund Common Shares and newly-issued Acquiring Fund DARTS. &nbsp;Your Fund will distribute Acquiring Fund Common Shares to common shareholders of your Fund and Acquiring Fund DARTS to holders of DARTS of your Fund and will then terminate its registration under the 1940 Act and dissolve under applicable state
law. &nb






sp;The aggregate net asset value of Acquiring Fund Common Shares received will equal the aggregate net asset value of your common shares held immediately prior to the Reorganization, less the costs of the Reorganization (though common shareholders may receive cash for their fractional shares). &nbsp;The aggregate liquidation preference of Acquiring Fund DARTS received in the Reorganization will equal the aggregate liquidation preference of DARTS of your Fund held immediately prior to the Reorganization. &nbsp;The auction dates, rate period and dividend payment dates of the Acquiring Fund DARTS received in the Reorganization will be the same as that of the preferred shares held immediately prior to the Reorganization. &nbsp;In addition, the ratings expected to be received by the Acquiring Fund DARTS are the same as the ratings received by the DARTS of your Fund. &nbsp;The Acquiring Fund will continue to operate after the Reorganizations as a registered closed-end investment company with the investment
objecti






ve and policies described in this Joint Proxy Statement/Prospectus. &nbsp;<B>The Board of Trustees of Global Dividend Fund recommends that you vote FOR this proposal.</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:24px; text-indent:-24px; font-size:14.667px">6.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:24px; font-size:14.667px">For shareholders of the John Hancock Patriot Preferred Dividend Fund (&#147;Preferred Dividend Fund&#148;), a proposal to approve an Agreement and Plan of Reorganization between Preferred Dividend Fund and the Acquiring Fund, the termination of Preferred Dividend Fund&#146;s registration under the 1940 Act and the dissolution of Preferred Dividend Fund under applicable state law. &nbsp;Under this Agreement, the Acquiring Fund will acquire substantially all of the assets and assume substantially all of the liabilities of Preferred Dividend Fund in exchange for an equal aggregate value of newly-issued Acquiring Fund Common Shares and newly-issued Acquiring Fund DARTS. &nbsp;Your Fund will distribute Acquiring Fund Common Shares to common shareholders of your Fund and Acquiring Fund DARTS to holders of Auction Rate Preferred Shares (&#147;ARPS&#148;) of your Fund and will then terminate its
registratio






n under the 1940 Act and dissolve under applicable state law. &nbsp;The aggregate net asset value of Acquiring Fund Common Shares received will equal the aggregate net asset value of your common shares held immediately prior to the Reorganization, less the costs of the Reorganization (though common shareholders may receive cash for their fractional shares). &nbsp;The aggregate liquidation preference of Acquiring Fund DARTS received in the Reorganization will equal the aggregate liquidation preference of ARPS of your Fund held immediately prior to the Reorganization. &nbsp;The auction dates, rate period and dividend payment dates of the Acquiring Fund DARTS received in the Reorganization will be the same as that of the preferred shares held immediately prior to the Reorganization. &nbsp;The Acquiring Fund DARTS are expected to receive a rating of &#147;AA&#148; from Standard &amp; Poor&#146;s Rating Group and &#147;aa2&#148; from Moody&#146;s Investors Service, Inc. &nbsp;The Acquiring Fund will
continue to o






perate after the Reorganizations as a registered closed-end investment company with the investment objective and policies described in this Joint Proxy Statement/Prospectus. &nbsp;<B>The Board of Trustees of Preferred Dividend Fund recommends that you vote FOR this proposal.</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:24px; text-indent:-24px; font-size:14.667px">7.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:24px; font-size:14.667px">For shareholders of each Fund to elect Trustees to serve until their respective successors are duly elected and qualified. Common shareholders of each Fund may elect two Trustees and preferred shareholders of each Fund may elect one Trustee. &nbsp;<B>The Board of Trustees of each Fund recommends that you vote FOR this proposal.</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:24px; text-indent:-24px; font-size:14.667px">8.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:24px; font-size:14.667px">Any other business that may properly come before the meeting.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Shareholders of record as of the close of business on [February 12], 2007, are entitled to vote at the meeting or any adjournment thereof.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B><I>Whether or not you expect to attend the meeting, please complete and return the enclosed proxy card. &nbsp;If shareholders do not return their proxies in sufficient numbers, it may result in additional shareholder solicitation.</I></B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:44px; padding-left:384px; font-size:14.667px">By order of the Board of Trustees,</P>
<P style="line-height:17.333px; margin:0px; padding-left:384px; font-size:14.667px">Thomas M. Kinzler</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:384px; font-size:14.667px">Secretary</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">[ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], 2007</P>
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<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>PROXY STATEMENT of</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>John Hancock Patriot Premium Dividend Fund II</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>(&#147;Premium Dividend Fund II&#148; or the &#147;Acquiring Fund&#148;)</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>PROXY STATEMENT of</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>John Hancock Patriot Premium Dividend Fund I (&#147;Premium Dividend Fund I&#148;)</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>John Hancock Patriot Select Dividend Trust (&#147;Select Dividend Trust&#148;)</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>John Hancock Patriot Global Dividend Fund (&#147;Global Dividend Fund&#148;)</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>John Hancock Patriot Preferred Dividend Fund (&#147;Preferred Dividend Fund&#148;)</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>(each, an &#147;Acquired Fund&#148;)</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>PROSPECTUS for</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Common Shares,</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Dutch Auction Rate Transferable Securities preferred shares (&#147;DARTS&#148;), Series C; DARTS, Series D; DARTS,&nbsp;Series E; and DARTS, Series F</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>of Premium Dividend Fund II</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; font-size:14.667px"><B>*</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; text-indent:48px; font-size:14.667px"><B>*</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; text-indent:96px; font-size:14.667px"><B>*</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>ELECTION OF TRUSTEES of</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>the Acquiring Fund and the Acquired Funds (each, a &#147;Fund&#148;)</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The address of each of the Funds is 601 Congress Street, Boston, Massachusetts 02210 and the telephone number of each of the Funds is (800) 843-0090.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center>* &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;* &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;* &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;* &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;* &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">This Joint Proxy Statement and Prospectus contains the information shareholders should know before voting on the proposed reorganization (the &#147;Reorganization&#148;). &nbsp;Please read it carefully and retain it for future reference.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=150.133></TD><TD width=266.933></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=150.133><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=266.933><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Shareholders Entitled to Vote</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=150.133><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Proposal 1(a)</B></P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=266.933><P style="line-height:17.333px; margin:0px; font-size:14.667px">Premium Dividend Fund II common</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Shareholders</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=150.133><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Proposal 1(b)</B></P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=266.933><P style="line-height:17.333px; margin:0px; font-size:14.667px">Holders of DARTS, Series A and </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Series B of Premium Dividend Fund II</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=150.133><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Proposal 2</B></P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=266.933><P style="line-height:17.333px; margin:0px; font-size:14.667px">Acquired Fund shareholders</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=150.133><P style="line-height:17.333px; margin:0px; font-size:14.667px">
<B>Proposal 3</B></P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=266.933><P style="line-height:17.333px; margin:0px; font-size:14.667px">
Shareholders of each Fund</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>How the Reorganization Will Work</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#161;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">Each Acquired Fund will transfer all of its assets to the Acquiring Fund. &nbsp;The Acquiring Fund will assume each Acquired Fund&#146;s liabilities.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#161;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">The Acquiring Fund will issue newly-issued common shares of beneficial interest of the Acquiring Fund, with no par value (&#147;Acquiring Fund Common Shares&#148;), in an amount equal to the value of each Acquired Fund&#146;s net assets attributable to its common shares. &nbsp;These shares will be distributed to each Acquired Fund&#146;s common shareholders in proportion to their holdings immediately prior to the Reorganization, less the costs of the Reorganization (though common shareholders may receive cash for their fractional shares).</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#161;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">The Acquiring Fund will issue an additional series of preferred shares (&#147;Acquiring Fund DARTS, Series C&#148;) with no par value and a liquidation preference of $100,000 per share to Premium Dividend Fund I. &nbsp;The additional series of preferred shares is expected to be designated as &#147;Series C,&#148; but will be designated in the order that such series is issued by the Acquiring Fund. The aggregate liquidation preference of Acquiring Fund DARTS, Series C received in the Reorganization will equal the aggregate liquidation preference of DARTS, Series A of Premium Dividend Fund I held immediately prior to the Reorganization. &nbsp;The Acquiring Fund DARTS, Series C will be distributed to Premium Dividend Fund I&#146;s holders of DARTS, Series A in proportion to their holdings immediately prior to the Reorganization. &nbsp;The auction dates, rate period
and dividend payment dates of the Acquiring Fund DARTS received in the Reorganization will be the same as that of the preferred shares held immediately prior to the Reorganization.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#161;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">The Acquiring Fund will issue an additional series of preferred shares (&#147;Acquiring Fund DARTS, Series D&#148;) with no par value and a liquidation preference of $100,000 per share to Select Dividend Trust. &nbsp;The additional series of preferred shares is expected to be designated as &#147;Series D,&#148; but will be designated in the order that such series is issued by the Acquiring Fund. The aggregate liquidation preference of Acquiring Fund DARTS, Series D received in the Reorganization will equal the aggregate liquidation preference of Auction Market Preferred Shares Series A of Select Dividend Trust held immediately prior to the Reorganization. &nbsp;The Acquiring Fund DARTS, Series D will be distributed to holders of Auction Market Preferred Shares (&#147;AMPS&#148;), Series A of Select Dividend Trust in proportion to their holdings immediately prior
to the Reorganization. &nbsp;The auction dates, rate period and dividend payment dates of the Acquiring Fund DARTS received in the Reorganization will be the same as that of the preferred shares held immediately prior to the Reorganization.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#161;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">The Acquiring Fund will issue an additional series of preferred shares (&#147;Acquiring Fund DARTS, Series E&#148;) with no par value and a liquidation preference of $100,000 per share to Preferred Dividend Fund. &nbsp;The additional series of preferred shares is expected to be designated as &#147;Series E,&#148; but will be designated in the order that such series is issued by the Acquiring Fund. &nbsp;The aggregate liquidation preference of Acquiring Fund DARTS, Series E received in the Reorganization will equal the aggregate liquidation preference of Auction Rate Preferred Shares of Preferred Dividend Fund held immediately prior to the Reorganization. &nbsp;The Acquiring Fund DARTS, Series E will be distributed to holders of Auction Rate Preferred Shares (&#147;ARPS&#148;) of Preferred Dividend Fund in proportion to their holdings immediately prior to the
Reorganization. &nbsp;The auction dates, rate period and dividend payment dates of the Acquiring Fund DARTS received in the Reorganization will be the same as that of the preferred shares held immediately prior to the Reorganization.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#161;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">The
      Acquiring Fund will issue an additional series of preferred shares
(&#147;Acquiring Fund DARTS, Series F&#148;) with no par value and a liquidation
preference of $100,000 per share to Global Dividend Fund. &nbsp;The additional
series of preferred shares is expected to be designated as &#147;Series F,&#148;
but will be designated in the order that such series is issued by the Acquiring
Fund. &nbsp;The aggregate liquidation preference of Acquiring Fund DARTS, Series
F received in the Reorganization will equal the aggregate liquidation preference
of DARTS of Global Dividend Fund held immediately prior to the Reorganization.
&nbsp;The Acquiring Fund DARTS, Series F will be distributed to holders of DARTS
of Global Dividend Fund in proportion to their holdings immediately prior to the
Reorganization. &nbsp;The auction dates, rate period and dividend payment dates
of the Acquiring Fund DARTS received in the Reorganization will be the same as
that of the preferred shares held immediately prior to the
Reorganization.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#161;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">The Acquiring Fund&#146;s Declaration of Trust and By-Laws will be amended upon approval of the issuance of additional series of preferred shares to reflect such series that are created.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#161;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">Each Acquired Fund will be terminated and Acquired Fund shareholders will become shareholders of the Acquiring Fund.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#161;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">The Reorganization of each Fund is conditioned upon the approval of its shareholders. &nbsp;However, the Reorganization of a specific Acquired Fund will proceed even if one or more of the other Reorganizations are not approved provided that such Reorganization is approved by the Acquired Fund&#146;s shareholders and the issuance of additional common shares and preferred shares is approved by the shareholders of the Acquiring Fund. &nbsp;In the event the Acquiring Fund common shareholders or preferred shareholders do not approve the issuance of additional common shares or additional series of DARTS of the Acquiring Fund, then all of the Funds will continue to exist and the respective Board of Trustees of each Fund (each a &#147;Board&#148;) will consider what additional action, if any, to take.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#161;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">Each Reorganization is intended to result in no income, gain or loss for federal income tax purposes to the Acquiring Fund, the Acquired Fund or the shareholders of the Acquired Fund.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>Rationale for the Reorganization</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The Board of your Fund believes that reorganizing your Fund into Premium Dividend Fund II, a fund with similar investment policies, and having a combined portfolio with greater assets offer you potential benefits. &nbsp;These potential benefits and considerations include:</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">Following the Reorganizations, the substantially larger trading market in common shares of the Acquiring Fund, as compared to that of each Acquired Fund prior to the Reorganizations, may provide for enhanced market liquidity which may reduce the extent of trading discounts that would be experienced in a substantially smaller trading market under otherwise similar circumstances. &nbsp;Trading discounts can result from many different factors and there is no assurance that a larger trading market for common shares will have the effect of reducing trading discounts.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">
     The Reorganization would permit each Acquired Fund&#146;s shareholders to
pursue similar investment goals in a larger fund. &nbsp;Each Acquired Fund
(other than Preferred Dividend Fund) focuses on dividend-paying preferred and
common stocks and, in the case of Preferred Dividend Fund, preferred stocks.
&nbsp;The greater asset size of the combined fund may allow it, relative to each
Acquired Fund, to obtain better net prices on securities trades and achieve
greater diversification of portfolio holdings.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">
     Select Dividend Trust, Global Dividend Fund and Preferred Dividend Fund
will benefit from a reduction in their administration fee (i.e., from 0.15% to
0.10%). &nbsp;Premium Dividend Fund I&#146;s administration fee will remain the
same at 0.10%. &nbsp;As a result of the Reorganization, shareholders of the
Acquired Funds will experience a reduction in the total amount of fees, as a
percentage of average net assets, that they indirectly pay. &nbsp;Shareholders
of each Acquired Fund other than Select Dividend Trust will also experience
lower combined total expenses and dividend payments on preferred shares as a
result of the Reorganizations. &nbsp;Shareholders of Select Dividend Trust will
experience somewhat higher combined total expenses and dividend payments on
preferred shares as a result of a higher dividend rate on preferred shares borne
by common shareholders. This higher historical dividend rate reflects the more
recent dividend reset by the Acquiring Fund, which reflects recent increases in
short-term interest rates.</FONT>

</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">The annual effective rate of the combined fund&#146;s management fee is expected to be slightly lower than the management fee rate of Select Dividend Trust, Global Dividend Fund and Preferred Dividend Fund and, for Premium Dividend Fund I, the management fee rate is expected to slightly increase.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">The Acquiring Fund has performed better than the other Funds for one-, three- and ten-year periods. &nbsp;While past performance cannot predict future results, the Trustees believe there are no reasons why the Acquiring Fund will not continue to generate strong returns.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">A combined fund offers economies of scale that may lead to lower per share expenses. &nbsp;Each Fund incurs NYSE listing fees, printing fees, costs for legal, auditing, custodial and administrative services, and miscellaneous fees. &nbsp;Many of these expenses are duplicative and there may be an opportunity to reduce each Acquired Fund&#146;s expense ratio over time because of the economies of scale if the Funds are combined.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">On the closing date of the Reorganization with respect to each Acquired Fund, the Reorganization will result in the exchange of shares between the Acquiring Fund and each Acquired Fund which will be based on their relative NAVs (i.e., the Acquired Funds will get their NAV&#146;s worth of the Acquiring Fund&#146;s common shares). &nbsp;However, the Acquiring Fund Common Shares received in the Reorganizations may trade at a market discount from NAV following the Reorganizations so that an Acquired Fund common shareholder is not able to sell these shares for the NAV received.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Therefore, the Board of your Fund recommends that you vote FOR the Reorganization of your Fund into Premium Dividend Fund II. &nbsp;For further information, please see the individual description of the proposal affecting your Fund contained in the Joint Proxy Statement/Prospectus.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>Who Bears the Expenses Associated with the Reorganizations</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">If the Reorganizations are completed, the costs associated with the Reorganizations will be borne by common shareholders of the Acquired Funds and the Acquiring Fund in proportion to and up to the amount of their first year&#146;s projected annual expense savings as a result of the Reorganizations. &nbsp;John Hancock Advisers, LLC, the adviser to each of the Funds (the &#147;Adviser&#148;), will bear the balance of the direct costs of the Reorganizations. &nbsp;In the event a Reorganization is not completed, the costs associated with such Reorganization will be borne by the Acquiring Fund and the remaining Acquired Funds whose shareholders have approved their respective Reorganizations.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>Who is Eligible to Vote</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Shareholders of record on [February 12], 2007, are entitled to attend and vote at the meeting or any adjourned meeting. &nbsp;Each share is entitled to one vote. &nbsp;Shares represented by properly executed proxies, unless revoked before or at the meeting, will be voted according to shareholders&#146; instructions. &nbsp;If you sign a proxy but do not fill in a vote, your shares will be voted for all proposals including those relating to the Reorganization. &nbsp;If any other business comes before the meeting, your shares will be voted at the discretion of the persons named as proxies.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>Shares of the Acquiring Fund are not deposits or obligations of, or guaranteed or endorsed by, any bank or other depository institution. &nbsp;These shares are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>Shares of the Acquiring Fund have not been approved or disapproved by the Securities and Exchange Commission (the &#147;SEC&#148;). &nbsp;The SEC has not passed upon the accuracy or adequacy of this prospectus. &nbsp;Any representation to the contrary is a criminal offense.</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The common shares of the Acquiring Fund are listed on the New York Stock Exchange (&#147;NYSE&#148;) under the ticker symbol &#147;PDT&#148; and will continue to be so listed subsequent to the Reorganizations. &nbsp;The common shares of Premium Dividend Fund I, Select Dividend Trust, Global Dividend Fund and Preferred Dividend Fund are listed on the NYSE under the ticker symbols &#147;PDF,&#148; &#147;DIV,&#148; &nbsp;&#147;PGD&#148; and &#147;PPF,&#148; respectively. &nbsp;This Reorganization is conditioned upon the Acquiring Fund DARTS receiving a rating of &#147;AA&#148; from Standard &amp; Poor&#146;s Rating Group (&#147;S&amp;P&#148;) and &#147;aa2&#148; from Moody&#146;s Investors Service, Inc. (&#147;Moody&#146;s&#148;) (each, a &#147;Rating Agency&#148;). &nbsp;Reports, proxy statements and other information concerning the Funds may be inspected at the offices of the NYSE, 20 Broad Street, New York, New York 10005.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">&nbsp;</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Where to Get More Information</B></P>
<P style="margin:0px"></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=319.2></TD><TD width=319.2></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=319.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Premium Dividend Fund II&#146;s annual report to</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">shareholders dated October 31, 2006</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=319.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">In the same envelope as this Joint Proxy </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Statement/Prospectus. &nbsp;This report will be </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">incorporated by reference into (and therefore </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">legally part of) this Joint Proxy Statement and </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Prospectus by pre-effective amendment.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=319.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Premium Dividend Fund I&#146;s annual report to </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">shareholders dated September 30, 2006</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Select Dividend Trust&#146;s annual report to </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">shareholders dated June 30, 2006</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Global Dividend Fund&#146;s annual report to </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">shareholders dated July 31, 2006</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Preferred Dividend Fund&#146;s annual report to </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">shareholders dated May 31, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=319.2 rowspan=2><P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
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<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">On file with the SEC or available at no charge </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">by calling our toll free number: 1-800-843-</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">0090. &nbsp;These documents will be incorporated </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">by reference into (and therefore legally part of) </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">this Joint Proxy Statement/Prospectus by pre-</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">effective amendment.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=319.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">A Statement of Additional Information dated </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">[February [ &nbsp;]], 2007, which relates to this Joint </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Proxy Statement/Prospectus and the </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Reorganizations, and contains additional </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">information about the Acquired Funds and the </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Acquiring Fund</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=319.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">To ask questions about this Joint Proxy </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Statement/Prospectus</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=319.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Call our toll-free telephone number: 1-800-843-0090.</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center>The date of this Joint Proxy Statement/Prospectus is [February [ &nbsp;]], 2007.</P>
<P style="margin:0px" align=center><BR>
<BR></P>
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<P style="margin:0px; page-break-before:always"><BR></P>
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<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>TABLE OF CONTENTS</B></P>
<P style="line-height:17.333px; margin:0px; padding-right:36px; font-size:14.667px" align=right><B><U>Page</U></B></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; padding-right:28.8px; text-indent:-48px"><B>INTRODUCTION</B></P>
<P style="margin:0px; padding-left:48px; padding-right:28.8px; text-indent:568.667px">1</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; padding-right:28.8px; text-indent:-48px"><B>SUMMARY</B></P>
<P style="margin:0px; padding-left:48px; padding-right:28.8px; text-indent:568.667px">1</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; padding-right:28.8px; text-indent:-48px"><B>RISK FACTORS AND SPECIAL CONSIDERATIONS</B></P>
<P style="margin:0px; padding-left:48px; padding-right:28.8px; text-indent:568.667px">6</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; padding-right:28.8px; text-indent:-48px"><B>PROPOSAL 1(a): &nbsp;ISSUANCE OF ADDITIONAL ACQUIRING FUND COMMON SHARES</B></P>
<P style="margin:0px; padding-left:48px; padding-right:28.8px; text-indent:562px">13</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; padding-right:28.8px; text-indent:-48px"><B>PROPOSAL 1(b): &nbsp;ISSUANCE OF ADDITIONAL ACQUIRING FUND DARTS</B></P>
<P style="margin:0px; padding-left:48px; padding-right:28.8px; text-indent:562px">14</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; padding-right:28.8px; text-indent:-48px"><B>PROPOSAL 2: &nbsp;REORGANIZATIONS OF THE ACQUIRED FUNDS</B></P>
<P style="margin:0px; padding-left:48px; padding-right:28.8px; text-indent:562px">15</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Comparison of the Funds: Investment Objectives and Policies</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">17</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Comparison of Premium Dividend Fund I to Premium Dividend Fund II</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">17</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Comparison of Select Dividend Trust to Premium Dividend Fund II</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">22</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Comparison of Global Dividend Fund to Premium Dividend Fund II</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">26</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Comparison of Preferred Dividend Fund to Premium Dividend Fund II</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">35</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Fee, Expense and Distributions on Preferred Shares Table for Common Shareholders of the Funds</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">42</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Additional Information About Common Shares of the Funds</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">45</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">General</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">45</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Outstanding Securities</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">45</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Purchase and Sale</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">46</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Common Share Price Data</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">46</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Share Repurchases</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">48</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Dividends and Distributions</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">49</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Dividend Reinvestment Plan</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">50</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Additional Information About Preferred Shares of the Funds</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">52</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">General</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">52</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Series</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">52</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Outstanding Securities</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">52</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Purchase and Sale</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">53</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Broker-Dealers</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">53</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Dividends and Distributions</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">54</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Dividend Rates</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">56</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Ratings</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">56</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Redemptions</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">57</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Liquidation Rights</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">58</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Additional Information</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">58</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">U.S. Federal Income Tax Matters</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">58</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Governing Law</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">64</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Certain Provisions of the Declarations of Trust</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">65</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Conversion to Open-End Funds</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">66</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Voting Rights</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">66</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Past Performance of Each Fund</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">68</P>

<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Financial Highlights</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">68</P>








<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Proposal to Approve the Agreement and Plan of Reorganization</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">73</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Description of the Reorganizations</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">73</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Reasons for the Proposed Reorganizations</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">74</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Comparative Fees and Expense Ratios</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">75</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Comparative Performance</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">75</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Board&#146;s Evaluation and Recommendation</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">76</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Further Information on the Reorganizations</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">76</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Tax Status of the Reorganizations</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">76</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Additional Terms of the Agreement and Plan of Reorganization</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">77</P>

<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Undistributed Income in Advance of Reorganizations</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">78</P>



<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Capitalization</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">78</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Management of the Funds</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">79</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Trustees and Officers</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">79</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">The Adviser, Subadviser and Administrator</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">79</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Compensation and Expenses</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">80</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Duration and Termination; Non-Exclusive Services</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">81</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Portfolio Management</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">81</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Portfolio Transactions with Affiliates</P>
<P style="margin:0px; padding-left:144px; padding-right:28.8px; text-indent:466.667px">81</P>

<P style="margin-top:0px; margin-bottom:-16px; padding-left:144px; padding-right:28.8px; text-indent:-48px">Other Service Providers</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">82</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; padding-right:28.8px; text-indent:-48px"><B>PROPOSAL 3: &nbsp;ELECTION OF TRUSTEES</B></P>
<P style="margin:0px; padding-left:48px; padding-right:28.8px; text-indent:562px"><B>83</B></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Information Concerning Trustees</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">83</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Executive Officers</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">85</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Trustee Ownership</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">88</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Compliance with Section 16(a) Reporting Requirements</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">89</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Remuneration of Trustees and Officers</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">89</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Material Relationships of the Independent Trustees</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">89</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Additional Information</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">90</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Legal Proceedings</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">90</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; padding-right:28.8px; text-indent:-48px"><B>VOTING INFORMATION AND REQUIRED VOTE</B></P>
<P style="margin:0px; padding-left:48px; padding-right:28.8px; text-indent:562px"><B>91</B></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; padding-right:28.8px; text-indent:-48px"><B>INFORMATION CONCERNING THE MEETING</B></P>
<P style="margin:0px; padding-left:48px; padding-right:28.8px; text-indent:562px"><B>92</B></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Expenses and Methods of Solicitation</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">92</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Revoking Proxies</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">92</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Outstanding Shares and Quorum</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">92</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Other Business</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">93</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Adjournments</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">93</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Telephone Voting</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">93</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Internet Voting</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">94</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:96px; padding-right:28.8px; text-indent:-48px">Shareholders&#146; Proposals</P>
<P style="margin:0px; padding-left:96px; padding-right:28.8px; text-indent:514.667px">94</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; padding-right:28.8px; text-indent:-48px"><B>OWNERSHIP OF SHARES OF THE FUNDS</B></P>
<P style="margin:0px; padding-left:48px; padding-right:28.8px; text-indent:562px"><B>94</B></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; padding-right:28.8px; text-indent:-48px"><B>EXPERTS</B></P>
<P style="margin:0px; padding-left:48px; padding-right:28.8px; text-indent:562px"><B>95</B></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; padding-right:28.8px; text-indent:-48px"><B>AVAILABLE INFORMATION</B></P>
<P style="margin:0px; padding-left:48px; padding-right:28.8px; text-indent:562px"><B>96</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px">EXHIBIT A &#150; Form of Agreement and Plan of Reorganization</P>
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<P style="line-height:17.333px; margin-top:0px; margin-bottom:29.333px; font-size:14.667px" align=center><B>INTRODUCTION</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">This Joint Proxy Statement/Prospectus is being used by each Fund&#146;s Board to solicit proxies to be voted at the annual meeting of each Acquired Fund&#146;s shareholders and the Acquiring Fund&#146;s shareholders. &nbsp;This meeting will be held at 601 Congress Street, Boston, Massachusetts, on [April [ &nbsp;]], 2007, at 9:00 a.m., Eastern Time. &nbsp;At the meeting, the Acquired Funds will consider proposals to approve Agreements and Plans of Reorganization providing for the Reorganization of the Acquired Funds into the Acquiring Fund and Acquiring Fund shareholders will consider proposals to approve the issuance of additional common shares and DARTS of the Acquiring Fund. &nbsp;In addition, all shareholders will consider a proposal to elect Trustees to each Fund&#146;s Board of Trustees. &nbsp;This Joint Proxy Statement/Prospectus is being mailed to your Fund&#146;s shareholders on or about [February
26], 2007.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">For each proposal, this Joint Proxy Statement/Prospectus includes information that is specific to that proposal. &nbsp;A comparison summary is provided with respect to each proposal related to the Reorganization. &nbsp;You should read carefully the sections of the proxy statement related specifically to your Fund(s), the information relevant to all proposals, as well as Exhibit A and the enclosed materials, because they contain details that are not in the summary.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>Who is Eligible to Vote?</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Fund shareholders of record on [February 12], 2007, are entitled to attend and vote at the meeting or any adjourned meeting. &nbsp;Each share is entitled to one vote. &nbsp;Shares represented by properly executed proxies, unless revoked before or at the meeting, will be voted according to shareholders&#146; instructions. &nbsp;If you sign a proxy but do not fill in a vote, your shares will be voted for all proposals including those relating to the Reorganization. &nbsp;If any other business comes before the meeting, your shares will be voted at the discretion of the persons named as proxies.</P>
<A NAME="_Toc155621860"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>SUMMARY</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The following is a summary of certain information contained elsewhere in this Joint Proxy Statement/Prospectus and is qualified in its entirety by reference to the more complete information contained in this Joint Proxy Statement/Prospectus and in the Statement of Additional Information. &nbsp;Shareholders should read the entire Joint Proxy Statement/Prospectus carefully.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>PROPOSAL 1(a): &nbsp;ISSUANCE OF ADDITIONAL ACQUIRING FUND COMMON SHARES</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">In connection with each proposed Reorganization described under &#147;Proposal 2: Reorganization of the Acquired Funds,&#148; the Acquiring Fund will issue additional Acquiring Fund Common Shares and list such shares on the NYSE. &nbsp;The Acquiring Fund will acquire substantially all of the assets and assume substantially all of the liabilities of each Acquired Fund in exchange for newly-issued Acquiring Fund Common Shares and newly-issued Acquiring Fund DARTS. &nbsp;The Reorganizations will result in no reduction of the net asset value (&#147;NAV&#148;) of the Acquiring Fund Common Shares. &nbsp;No gain or loss will be recognized by the Acquiring Fund or its shareholders in connection with the Reorganization. &nbsp;The Acquiring Fund&#146;s Board, based upon its evaluation of all relevant information, anticipates that each Reorganization will benefit holders of Acquiring Fund Common Shares. &nbsp;In
particular, the






Acquiring Fund&#146;s Board believes, based on data presented by the Adviser, that the Acquiring Fund will experience a reduced annual operating expense ratio as a result of the Reorganizations.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The Acquiring Fund&#146;s Board requests that common shareholders of the Acquiring Fund approve the issuance of additional Acquiring Fund Common Shares at the annual meeting to be held on [April [ &nbsp;]], 2007. &nbsp;Shareholder approval of the issuance of additional Acquiring Fund Common Shares requires the affirmative vote of a majority of the votes cast on the proposal, provided that total votes cast on the proposal represent over 50% in interest of all securities entitled to vote on the matter. &nbsp;Subject to the requisite approval of the shareholders of each Fund with regard to the Reorganizations, it is expected that the closing date of each Acquired Fund will be on the relevant dividend payment date immediately following the shareholders&#146; meeting. &nbsp;The closing date of each proposed Reorganization will differ and the additional Acquiring Fund Common Shares will be issued on different closing
dates.






</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>The Acquiring Fund&#146;s Board recommends that you vote FOR the issuance of additional Acquiring Fund Common Shares in connection with the Reorganizations.</B></P>
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<BR></P>
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<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>PROPOSAL 1(b): &nbsp;ISSUANCE OF ADDITIONAL ACQUIRING FUND DARTS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">In connection with each proposed Reorganization described under &#147;Proposal 2: Reorganization of the Acquired Funds,&#148; the Acquiring Fund will issue additional series of Acquiring Fund DARTS. &nbsp;The Acquiring Fund will acquire substantially all of the assets and assume substantially all of the liabilities of each Acquired Fund in exchange for newly-issued Acquiring Fund Common Shares and newly-issued Acquiring Fund DARTS. &nbsp;It is not anticipated that the Reorganizations will directly benefit holders of DARTS of the Acquiring Fund; however, the Reorganizations will not adversely affect preferred shareholders and none of the expenses of the Reorganizations will be borne by preferred shareholders of the Acquiring Fund. &nbsp;In addition, no gain or loss will be recognized by the Acquiring Fund or its shareholders in connection with the Reorganization. &nbsp;The Acquiring Fund DARTS will rank PARI
PASSU with






 the liquidation preference of the preferred shares of the Acquired Funds.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The Acquiring Fund&#146;s Board requests that holders of DARTS, Series A and DARTS, Series B of the Acquiring Fund approve the issuance of additional series of Acquiring Fund DARTS at the annual meeting to be held on [April [ &nbsp;]], 2007. &nbsp;Shareholder approval of the issuance of additional series of Acquiring Fund DARTS requires the affirmative vote of at least a majority of the shares of the DARTS then outstanding, voting separately as a class. &nbsp;Subject to the requisite approval of the shareholders of each Fund with regard to the Reorganizations, it is expected that the closing date of each Acquired Fund will be on the relevant dividend payment date immediately following the shareholders&#146; meeting. &nbsp;The closing date of each proposed Reorganization will differ, and the additional Acquiring Fund DARTS will be issued on different closing dates. &nbsp;Upon approval of the issuance of
additional seri






es of preferred shares, the Acquiring Fund&#146;s Declaration of Trust and By-Laws will be amended to reflect such series that are created.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>The Acquiring Fund&#146;s Board recommends that you vote FOR the issuance of additional Acquiring Fund DARTS in connection with the Reorganizations.</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>PROPOSAL 2: &nbsp;REORGANIZATIONS OF THE ACQUIRED FUNDS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">

<B>The Proposed Reorganizations</B>. &nbsp;The Board of each Fund, including the
Trustees who are not &#147;interested persons&#148; of each Fund (as defined in
the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;), has
unanimously approved each Agreement and Plan of Reorganization. &nbsp;If: (i)
the shareholders of an Acquired Fund approve their Agreement and Plan of
Reorganization; (ii) the common shareholders of the Acquiring Fund approve the
issuance of Acquiring Fund Common Shares (see Proposal 1(a): &nbsp;Issuance of
Additional Acquiring Fund Common Shares); and (iii) the holders of DARTS, Series
A and DARTS, Series B approve the issuance of Acquiring Fund DARTS (see Proposal
1(b): Issuance of Additional Acquiring Fund DARTS), then Acquiring Fund Common
Shares and Acquiring Fund DARTS will be issued to the common shareholders and
preferred shareholders of each Acquired Fund, respectively, in exchange for
substantially all of the assets of the Acquired Fund and the assumption of
substantially all of the liabilities of the Acquired Fund. &nbsp;Each Acquired
Fund will then terminate its registration under the 1940 Act and dissolve under
applicable state law. &nbsp;The aggregate NAV of Acquiring Fund Common Shares
received in the Reorganization will equal the aggregate NAV of Acquired Fund
common held immediately prior to the Reorganization, less the costs of the
Reorganization (though common shareholders may receive cash for their fractional
shares). &nbsp;The aggregate liquidation preference of Acquiring Fund DARTS
received in the Reorganization will equal the aggregate liquidation preference
of Acquired Fund preferred shares held immediately prior to the Reorganization.
&nbsp;The auction dates, rate period and dividend payment dates of the Acquiring
Fund DARTS received in the Reorganization will be the same as that of the
preferred shares held immediately prior to the Reorganization. &nbsp;The ratings
expected to be received by the Acquiring Fund DARTS are &#147;AA&#148; from
S&amp;P and &#147;aa2&#148; from Moody&#146;s.</P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>Summary of Fund Comparisons</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><I>Preferred Shares Designations</I>. &nbsp;The preferred shares of the Acquiring Fund, Premium Dividend Fund I and Global Dividend Fund are designated as &#147;Dutch Auction Rate Transferable Securities&#148; (&#147;DARTS&#148;); the preferred shares of Select Dividend Trust are designated as &#147;Auction Market Preferred Shares&#148; (&#147;AMPS&#148;); and the preferred shares of Preferred Dividend Fund are designated as &#147;Auction Rate Preferred Shares&#148; (&#147;ARPS&#148;). &nbsp;Although the preferred shares of Select Dividend Trust and Preferred Dividend Fund differ in name from those of the other Funds, most material aspects of the securities are the same. Only the Acquiring Fund offers two share classes, Series A and Series B. &nbsp;Although each preferred share class is treated individually for the purpose of assessing shareholder rights and dividends, they enjoy the same shareholder rights and
divide






nd related provisions.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><I>Investment Objectives And Policies</I>. &nbsp;Each Fund is registered as a diversified, closed-end management investment company under the 1940 Act. &nbsp;The investment objective of each Fund is similar. &nbsp;The Acquiring Fund, Premium Dividend Fund I, Select Dividend Trust and Global Dividend Fund each seeks to provide common shareholders with a high level of current income which, in the case of Premium Dividend Fund I, qualifies for the dividends received deduction then allowed to corporations under Section 243(a)(1) of the Internal Revenue Code of 1986, as amended (the &#147;Code&#148;) (the &#147;Dividends Received Deduction&#148;), consistent with modest growth of capital. &nbsp;Preferred Dividend Fund seeks to provide common shareholders with a high level of current income, consistent with preservation of capital. &nbsp;Each Fund invests at least 80% of its assets in dividend-paying securities
(dividend-pa






ying preferred stocks, in the case of Preferred Dividend Fund) and emphasizes investments in securities of companies in the utilities industries, although the minimum percentage of assets dedicated to these types of investments may differ. &nbsp;The quality of ratings of each Fund&#146;s portfolio investments stipulates that preferred stocks and debt obligations in which the Fund will invest will be investment grade at least &#147;BBB&#148; by S&amp;P or &#147;Baa&#148; by Moody&#146;s at the time of investment or will be preferred stocks of issuers of investment grade senior debt, some of which may have speculative characteristics, or, if not rated, will be of comparable quality as determined by the Adviser. &nbsp;Each Fund will invest in common stocks of issuers whose senior debt is rated investment grade or, in the case of issuers that have no rated senior debt outstanding, whose senior debt is considered by the Adviser to be of comparable quality.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Although the investment objective of each Fund is similar, their investment policies and risks are different, particularly with respect to the Global Dividend Fund and Preferred Dividend Fund. &nbsp;Under normal market conditions, Global Dividend Fund invests at least 65% of its total assets in securities of issuers located in three or more countries, including the United States, with no more than 25% of the Fund&#146;s total assets in securities of issuers located in any single country other than the United States. &nbsp;Although the Acquiring Fund is not restricted from investing in foreign securities, the Acquiring Fund will likely not concentrate its investments in foreign issuers. &nbsp;In addition, whereas the Acquiring Fund invests at least 80% of its net assets in dividend paying preferred and common stocks, Preferred Dividend Fund invests at least 80% of its assets in dividend paying preferred
securities. &nb






sp;Finally, whereas the Acquiring Fund, Premium Dividend Fund I and Select Dividend Fund normally invest more than 65% of their total assets in securities of companies in the utilities industry, Global Dividend Fund invests at least 25% of its total assets in such securities and also invests a portion of its assets (although less than 25% of its total assets) in securities issued by companies in the banking industry. &nbsp;Preferred Dividend Fund emphasizes investments in preferred stocks issued by corporations in the financial services and utilities sectors, as well as other regulated industries, but does not invest more than 25% of the value of its total assets in the securities of issuers primarily engaged in these or any other industries.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each of the Acquiring Fund, Premium Dividend Fund I and Select Dividend Trust operates so that dividends paid qualify in their entirety for the Dividends Received Deduction and each Fund does not intend to realize any net capital gains, but there can be no assurance that this result will be achieved. &nbsp;Preferred Dividend Fund is managed with a view to maximizing the portion of the Fund&#146;s distributions to holders of the preferred shares that, under normal market conditions, qualify for the Dividends Received Deduction. &nbsp;Under normal market conditions, Global Dividend Fund anticipates that at least 50% of the dividends paid to holders of the preferred shares as a class qualify for the Dividends Received Deduction. &nbsp;The Funds are managed by the same investment advisory personnel.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><I>Purchase and Sale</I>. &nbsp;Purchase and sale procedures for the common shares and preferred shares of each Fund are identical. &nbsp;Investors typically purchase and sell common shares of the Funds through a registered broker-dealer on the NYSE, or may purchase or sell common shares through privately negotiated transactions with existing shareholders. &nbsp;Each Fund&#146;s series of preferred shares are purchased and sold at separate auctions conducted on a regular basis (unless a Fund elects, subject to certain conditions, to declare a special dividend period). &nbsp;Unless otherwise permitted by the Funds, existing and potential holders of preferred shares only may participate in auctions through their broker-dealers. &nbsp;Broker-dealers may maintain a secondary trading market in the preferred shares outside of auctions; however, historically they have not done so and are not expected to do so in the
future.






&nbsp;The broker-dealers have no obligation to make a secondary market in the preferred shares outside of the auction and there can be no assurance that a secondary market for the preferred shares will develop or, if it does develop, that it will provide holders with liquidity of investment.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><I>Redemption Procedures</I>. &nbsp;Redemption procedures for the Acquired Funds and Acquiring Fund are also similar. &nbsp;The common shares of each Fund have no redemption rights. &nbsp;However, the Board of each Fund may consider open market share repurchases of, or tendering for, common shares to seek to reduce or eliminate any discount in the market place of the common shares from the NAV thereof. &nbsp;Each Fund&#146;s ability to repurchase, or tender for, its common shares may be limited by the 1940 Act asset coverage requirements and by any Rating Agency rating the preferred shares.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Provided certain conditions are met, the preferred shares are redeemable at the option of each Fund, as a whole or in part, on any dividend payment date with respect to Global Dividend Fund, Select Dividend Trust and Preferred Dividend Fund, and on the second business day preceding any dividend payment date with respect to the Acquiring Fund and Premium Dividend Fund I, at a price equal to $100,000 per share plus, in each case, accumulated and unpaid dividends (including additional dividends, if any) to the redemption date. &nbsp;The ARPS of Preferred Dividend Fund may not be optionally redeemed in part if, after such partial redemption, fewer than 30 ARPS remain outstanding. &nbsp;The DARTS of Global Dividend Fund may not be optionally redeemed in part if, after such partial redemption fewer than 30 DARTS remain outstanding. &nbsp;No other Funds have any provision for the minimum number of preferred shares
outstandin






g to allow the Fund to optionally redeem its shares. &nbsp;Each Fund (other than Preferred Dividend Fund) provides that optional redemptions may occur with not fewer than 30 nor more than 45 days&#146; notice. &nbsp;Preferred Dividend Fund provides that optional redemptions may occur with no fewer than 25 nor more than 30 days&#146; notice.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The preferred shares are subject to mandatory redemption if either the 1940 Act asset coverage requirements or the asset coverage requirements that may be imposed by a Rating Agency in connection with any rating of the preferred shares are not met as of an applicable cure date, in part to the extent necessary to restore such asset coverage or, if such asset coverage cannot be so restored, as a whole. &nbsp;In each case, the redemption price will be $100,000 per share plus accumulated and unpaid dividends (including additional dividends, if any) to the redemption date.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><I>Dividends Received Deduction</I>. &nbsp;Under current law, dividends paid by a Fund will be taxable as ordinary income and will be eligible for the Dividends Received Deduction to the extent that they are designated by a Fund as qualifying for such deduction. &nbsp;Each of Premium Dividend Fund I, Premium Dividend Fund II and Select Dividend Trust intends to operate so that dividends paid will qualify in their entirety for the Dividends Received Deduction and each Fund does not intend to realize any net capital gains, but there can be no assurance that this result will be achieved. &nbsp;Preferred Dividend Fund will be managed with a view to maximizing the portion of the Fund&#146;s distributions to holders of the preferred shares that, under normal market conditions, will qualify for the Dividends Received Deduction. &nbsp;Under normal market conditions, Global Dividend Fund anticipates that at least 50% of
the di






vidends paid to holders of the preferred shares as a class will &nbsp;qualify for the Dividends Received Deduction.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Under Rev. Rul. 89-81, 1989-1 C.B. 226, distributions on the preferred shares and the common shares are required to consist proportionately of each type of income with particular tax characteristics earned by a Fund. &nbsp;Thus, if for a given taxable year, a particular percentage of the total net income of a Fund qualifies for the Dividends Received Deduction, then a uniform percentage of the distributions on the preferred shares and on the common shares of each Fund other than Premium Dividends Fund I will qualify for such deductions. &nbsp;As a Fund established prior to the issuance of Rev. Rul 89-81, Premium Dividends Fund I is not subject to the proportionality requirement of the ruling. &nbsp;Instead, in the case of Premium Dividend Fund I, if the dividends received by the Fund that qualify for the Dividends Received Deduction (&#147;qualified dividends&#148;) are less than its net income, exclusive of
net capit






al gains, then the Fund will allocate the qualified dividends first to the preferred shares and then to the common shares, <I>provided </I>that Premium Dividend Fund I receives an opinion of counsel that such a preferential allocation is permitted under applicable law. &nbsp;If such an opinion is not received by Premium Dividend Fund I, then the Fund will allocate the qualifying dividends ratably among the common shares and the preferred shares, most likely ratably in proportion to the dividends paid on shares of each. &nbsp;In the event that qualified dividends are allocated ratably between the preferred shares and the common shares of a Fund, some portion of the dividends payable on the preferred shares might not qualify for the Dividends Received Deduction. &nbsp;In such event, the Fund would pay additional dividends to maintain the Net After-Tax Return of holders of preferred shares. &nbsp;Payment of any such additional dividends on the preferred shares will reduce the amount available for payment
of div






idends on the common shares.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>Background And Reasons For The Proposed Reorganizations.</B> &nbsp;The Reorganizations seek to combine five similar Funds to achieve certain economies of scale and other operational efficiencies. &nbsp;The proposed Reorganizations will combine the assets of these similar Funds by reorganizing the Acquired Funds into the Acquiring Fund. &nbsp;The Board of each Acquired Fund, based upon its evaluation of all relevant information, anticipates that the common shareholders of each Acquired Fund will benefit from their Fund&#146;s respective Reorganization. &nbsp;The Board of the Acquiring Fund, based upon its evaluation of all relevant information, anticipates that each Reorganization will benefit holders of Acquiring Fund Common Shares. &nbsp;Each Board believes, based on data presented by the Adviser, that common shareholders of each Fund will experience a reduced annual operating expense ratio as a result of t





heir Fund&#146;s respective Reorganization. &nbsp;The combined fund resulting from the Reorganizations will have a larger asset base than any of the Funds has currently; certain fixed administrative costs, such as costs of printing shareholder reports, legal expenses, audit fees, mailing costs and other expenses, will be spread across this larger asset base, thereby lowering the expense ratio for common shareholders of the combined fund.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>Further Information Regarding The Reorganizations.</B> &nbsp;Each Acquired Fund&#146;s Board has determined that each Reorganization is in the best interests of common shareholders of the respective Acquired Fund and that the interests of such shareholders will not be diluted as a result of their Fund&#146;s Reorganization. &nbsp;Similarly, the Acquiring Fund&#146;s Board has determined that each Reorganization is in the best interests of common shareholders of the Acquiring Fund and that the interests of such shareholders will not be diluted as a result of any Reorganization. &nbsp;It is not anticipated that the Reorganizations will directly benefit preferred shareholders of any of the Funds; however, the Reorganizations will not materially adversely affect preferred shareholders of any of the Funds and none of the expenses of the Reorganizations will be borne by preferred shareholders of the
Acquiring Fund






.. &nbsp;As a result of the Reorganizations, however, shareholders of each Fund will hold a reduced percentage of ownership in the larger combined fund than they did in any of the separate Funds.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Reorganization is intended to qualify as a &#147;reorganization&#148; within the meaning of Section 368(a)(1) of the Code. &nbsp;If the Reorganizations so qualify, in general, shareholders of the Acquired Funds will recognize no gain or loss upon the receipt of shares of the Acquiring Fund in connection with the Reorganizations. &nbsp;Additionally, the Acquired Funds will recognize no gain or loss as a result of the transfer of all their assets and liabilities in exchange for shares of the Acquiring Fund or as a result of their dissolution. &nbsp;Neither the Acquiring Fund nor its shareholders will recognize any gain or loss in connection with the Reorganizations.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The Board of each Acquired Fund requests that shareholders of each Acquired Fund approve their Fund&#146;s proposed Reorganization at the meeting to be held on [April [ &nbsp;]], 2007. &nbsp;Shareholder approval of each Reorganization requires, with respect to each Acquired Fund, the vote of the holders of at least a majority of the preferred shares then outstanding and the holders of at least a majority of the common shares then outstanding, each voting as a separate class. &nbsp;Subject to the requisite approval of the shareholders of each Fund with regard to the Reorganizations, it is expected that the closing date of each Acquired Fund will be on the relevant dividend payment date immediately following the shareholders&#146; meeting. &nbsp;The closing date of each proposed Reorganization will differ and the additional Acquiring Fund Common Shares and Acquiring Fund DARTS will be issued on different closing
dates.<






/P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>The Board of each Acquired Fund recommends that you vote FOR your Fund&#146;s proposed Reorganization.</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>PROPOSAL 3: &nbsp;ELECTION OF TRUSTEES</B></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Each Fund&#146;s Board of Trustees consists of nine members. &nbsp;Holders of each Fund&#146;s common shares are entitled to elect seven Trustees and holders of each Fund&#146;s preferred shares are entitled to elect two Trustees. &nbsp;Each Board of Trustees is divided into three staggered term classes containing three Trustees. &nbsp;The term of one class expires each year and no term continues for more than three years after the applicable election. &nbsp;Each class of Trustees will stand for election at the conclusion of its respective three-year term.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">For each Fund, Messrs. Pruchansky and Boyle are the current nominees for election by the common shareholders and Ms. McGill Peterson is the current nominee for election by the preferred shareholders. &nbsp;As of the date of this proxy, each nominee for election currently serves as Trustee of each Fund.</P>
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<A NAME="_Toc155621861"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>RISK FACTORS AND SPECIAL CONSIDERATIONS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Because each Fund, under normal market conditions, invests a substantial amount of its assets in dividend-paying securities, any risks inherent in such investments are equally applicable to each Fund and will apply to the Acquiring Fund after the Reorganizations. &nbsp;Risks that are unique to a particular Fund are indicated as such below. &nbsp;The Reorganizations themselves are not expected to adversely affect the right of shareholders of any of the Funds or to create additional risks.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>MARKET DISCOUNT RISK</B></P>
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<P style="line-height:17.333px; margin:0px; font-size:14.667px">Shares of closed-end funds frequently trade at prices lower than their NAV. &nbsp;This is commonly referred to as &#147;trading at a discount.&#148; &nbsp;This characteristic of shares of closed-end funds is a risk separate and distinct from the risk that a Fund&#146;s NAV may decrease. &nbsp;Investors who sell their shares within a relatively short period after completion of the public offering are likely to be exposed to this risk. &nbsp;Accordingly, each Fund is designed primarily for long-term investors and should not be considered a vehicle for trading purposes.</P>
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<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>EQUITY RISK</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">A principal risk of investing in each Fund is equity risk. Equity risk is the risk that the value of securities held by a Fund will fluctuate or fall due to general market or economic conditions, perceptions regarding the industries in which the issuers of securities held by a Fund participate, and the particular circumstances and performance of particular companies whose securities the Fund holds. &nbsp;Although common stocks have historically generated higher average returns than fixed-income securities over the long term, common stocks also have experienced significantly more volatility in returns. An adverse event, such as an unfavorable earnings report, may depress the value of equity securities of an issuer held by the Fund; the price of common stock of an issuer may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of
the commo






n stocks held by a Fund. &nbsp;In addition, common stock of an issuer in a Fund&#146;s portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition. &nbsp;Common stocks in which a Fund will invest may be structurally subordinated to preferred stocks, bonds and other debt instruments in a company&#146;s capital structure, in terms of priority to corporate income, and therefore may be subject to greater dividend risk than preferred stocks or debt instruments of such issuers. &nbsp;Finally, common stock prices may be sensitive to rising interest rates as the costs of capital rise and borrowing costs increase.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>INTEREST RATE RISK</B></P>
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<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Interest rate risk is the risk that fixed income securities such as preferred securities and debt securities will decline in value because of changes in market interest rates. &nbsp;When market interest rates rise, the market value of such securities generally will fall. &nbsp;Each Fund&#146;s investment in preferred securities means that the NAV and market price of the common shares will tend to decline if market interest rates rise. &nbsp;Interest rates are currently low relative to historical levels.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">During periods of declining interest rates, an issuer may exercise its option to redeem preferred securities or prepay principal of debt securities earlier than scheduled, forcing a Fund to reinvest in lower yielding securities. &nbsp;This is known as call or prepayment risk. &nbsp;During periods of rising interest rates, the average life of certain types of securities may be extended because of slower than expected principal payments. &nbsp;This may lock in a below market interest rate, increase the security&#146;s duration and reduce the value of the security. &nbsp;This is known as extension risk.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>CREDIT RISK</B></P>
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<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Credit risk is the risk that preferred securities or debt securities in a Fund&#146;s portfolio will decline in price or fail to make dividend payments when due because the issuer of the security experiences a decline in its financial status. &nbsp;The weighted average credit rating of each Fund&#146;s portfolio of preferred securities and other fixed income securities will be at least investment grade. &nbsp;The ratings of Moody&#146;s and S&amp;P represent their opinions as to the quality of those securities that they rate; ratings are relative and subjective and are not absolute standards of quality.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>SPECIAL RISKS RELATED TO PREFERRED SECURITIES</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">There are special risks associated with each Fund&#146;s investments in preferred securities:</P>
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<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman"><I>Limited Voting Rights</I></FONT>. &nbsp;Generally, holders of preferred securities (such as each Fund) have no voting rights with respect to the issuing company unless preferred dividends have been in arrears for a specified number of periods, at which time the preferred security holders may elect a number of directors to the issuer&#146;s board. &nbsp;Generally, once the issuer pays all the arrearages, the preferred security holders no longer have voting rights.</P>
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<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman"><I>Special Redemption Rights</I></FONT>. &nbsp;In certain circumstances, an issuer of preferred securities may redeem the securities prior to a specified date. &nbsp;For instance, for certain types of preferred securities, a redemption may be triggered by a change in federal income tax or securities laws. &nbsp;As with call provisions, a special redemption by the issuer may negatively impact the return of the security held by a Fund.</P>
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<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman"><I>Deferral</I></FONT>. &nbsp;Preferred securities may include provisions that permit the issuer, at its discretion, to defer distributions for a stated period without any adverse consequences to the issuer. &nbsp;If a Fund owns a preferred security that is deferring its distributions, the Fund may be required to report income for federal income tax purposes although it has not yet received such income in cash. </P>
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<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman"><I>Subordination</I></FONT>. &nbsp;Preferred securities are subordinated to bonds and other debt instruments in a company&#146;s capital structure in terms of priority to corporate income and liquidation payments and therefore will be subject to greater credit risk than those debt instruments.</P>
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<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman"><I>Liquidity</I></FONT>. &nbsp;Preferred securities may be substantially less liquid than many other securities, such as common stocks or U.S. government securities.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>SECTOR RISK</B></P>
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<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Under normal market conditions, each of Premium Dividend Fund II, Select Dividend Trust and Premium Dividend Fund I invests more than 65% of its total assets in securities of companies in the utilities industries. &nbsp;Global Dividend Fund will concentrate its investments in securities of domestic and foreign companies in the utilities industry by investing at least 25% of its total assets in such securities. &nbsp;Except for the foregoing, none of the Funds will invest more than 25% of its total assets in issuers engaged in any one industry and Premium Dividend Fund I will not invest more than 20% of its total assets in securities of companies in any one industry.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Global Dividend Fund will also invest a portion of its assets (although less than 25% of its total assets) in securities issued by companies in the banking industry. &nbsp;Preferred Dividend Fund emphasizes investments in preferred stocks issued by corporations in the financial services and utilities sectors, as well as other regulated industries. &nbsp;Preferred Dividend Fund&#146;s investments in each of these industries will be less than 25% of its total assets.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>Utilities Sector. &nbsp;</B>The utilities industries in which the Funds may invest include companies engaged in:</P>
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<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">the generation, transmission, sale or distribution of electric energy</FONT></P>
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<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">the distribution, purification and treatment of water</FONT></P>
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<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">the provision of sewage management, treatment or other sanitary services</FONT></P>
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<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">the production, transmission or distribution of natural gas</FONT></P>
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<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">the provision of pollution control or abatement services</FONT></P>
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<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">telecommunications, including telephone, telegraph, satellite, microwave and other communications media (but not companies engaged primarily in the public broadcasting industry)</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund&#146;s emphasis on securities of utilities issuers makes it more susceptible to adverse conditions affecting such industries than a fund that does not have its assets invested to a similar degree in such issuers. &nbsp;Issuers in the utilities sector are subject to a variety of factors that may adversely affect their business or operations, including:</P>
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<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">high interest costs in connection with capital construction programs</FONT></P>
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<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">governmental regulation of rates charged to customers</FONT></P>
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<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">costs associated with environmental and other regulations</FONT></P>
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<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">the effects of economic slowdowns and surplus capacity</FONT></P>
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<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">increased competition from other providers of utility services</FONT></P>
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<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">uncertainties concerning the availability of fuel at reasonable prices</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">the effects of energy conservation policies</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">inexperience with and potential losses resulting from a developing deregulatory environment, including losses and regulatory issues in connection with energy trading</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Issuers in the utilities sector may also be subject to regulation by various governmental authorities and may be affected by the imposition of special tariffs and changes in tax laws, regulatory policies and accounting standards. &nbsp;Generally, prices charged by utilities are also regulated in the United States with the intention of protecting the public while ensuring that the rate of return earned by such companies is sufficient to allow them to attract capital in order to grow and continue to provide appropriate services. &nbsp;There can be no assurance that such pricing policies or rates of return will continue in the future. &nbsp;The nature of regulation of industries in the utilities sector is evolving. &nbsp;Changes in regulation increasingly allow participants in the utilities sector to provide services and products outside their traditional geographic areas and lines of business, creating new areas
of comp






etition within such industries. &nbsp;The emergence of competition may result in certain companies being forced to defend their core businesses which may cause such companies to be less profitable.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>Financial Services Sector. &nbsp;</B>Under normal market conditions, Global Dividend Fund invests a portion (although less than 25%) of its total assets in securities issued by domestic and foreign companies engaged in the banking industry, including bank holding companies. &nbsp;The financial services sector in which Preferred Dividend Fund invests includes bank holding companies, banks, securities brokers and dealers, and life, property, casualty and multi-line insurance companies. &nbsp;Due to Global Dividend Fund and Preferred Dividend Fund&#146;s investments in these industries, these Funds will have exposure to the risk factors which are characteristic of such investments. &nbsp;In particular, the value of an investment return on their shares may be affected by economic or regulatory developments in or related to the banking industry. &nbsp;Sustained increases in interest rates can adversely affect the
availa






bility and cost of funds for lending activities of banks and a deterioration in general economic conditions could increase the exposure of banks to credit losses. &nbsp;The banking industry is also subject to the effects of concentration of loan portfolios in particular businesses such as real estate, energy, agriculture or high technology-related companies, national and local regulation, and competition within such industry. &nbsp;In addition, Global Dividend Fund&#146;s and Preferred Dividend Fund&#146;s investments in commercial banks located in several foreign countries are subject to additional risks due to the combination in such banks of commercial banking and diversified securities activities.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The competitive position of insurance companies is increasingly affected by their securities and claims paying ratings. &nbsp;Such ratings can be affected not only by factors affecting particular issuers and the industry in general, but also regional and national economic factors. &nbsp;It is also possible that the federal government will mandate significant changes in the country&#146;s health insurance industry. &nbsp;The impact of a deteriorating economy or industry upon institutions depends, in part, on the size of the institutions, the extent to which they are involved in the type of lending or market affected, the duration of the softening in the affected area and the managerial and capital resources of the institutions. &nbsp;In addition, insurance companies are subject to catastrophic losses and changes in morbidity and loss reserves due to adverse loss development and legal and regulatory changes.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>CONVERTIBLE SECURITIES</B></P>
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<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The preferred securities in which a Fund invests may be convertible into the issuer&#146;s or a related party&#146;s common shares. &nbsp;Convertible securities generally offer lower dividend yields or interest rates than non-convertible securities of similar quality. &nbsp;As with all fixed income securities, the market values of convertible securities tend to decline as interest rates increase and, conversely, to increase as interest rates decline. &nbsp;However, when the market price of the common stock underlying a convertible security exceeds the conversion price, the convertible security tends to reflect the market price of the underlying common stock. &nbsp;As the market price of the underlying common stock declines, the convertible security tends to trade increasingly on a yield basis and thus may not decline in price to the same extent as the underlying common stock.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>ILLIQUID SECURITIES</B></P>
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<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund may invest a portion of its assets in illiquid securities (20% of net assets in the case of Premium Dividend Fund I, Premium Dividend Fund II and Select Dividend Trust; 20% of total assets in the case of Global Dividend Fund; and 5% of total assets in the case of Preferred Dividend Fund). &nbsp;Illiquid securities may be difficult to dispose of at a fair price at the times when the managers believe it is desirable to do so. &nbsp;The market price of illiquid securities generally is more volatile than that of more liquid securities, which may adversely affect the price that the Fund pays for or recovers upon the sale of illiquid securities. &nbsp;Illiquid securities are also more difficult to value and the managers&#146; judgment may play a greater role in the valuation process. &nbsp;Investment of a Fund&#146;s assets in illiquid securities may restrict a Fund&#146;s ability to take advantage of
market oppor






tunities. &nbsp;The risks associated with illiquid securities may be particularly acute in situations in which a Fund&#146;s operations require cash and could result in the Fund borrowing to meet its short-term needs or incurring losses on the sale of illiquid securities.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>FOREIGN SECURITIES</B></P>
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<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund may invest in securities of non-U.S. issuers. &nbsp;No Fund, other than Global Dividend Fund, will invest in Russian securities of any type. &nbsp;Global Dividend Fund may invest in Russian securities with restrictions. &nbsp;Global Dividend Fund and Preferred Dividend Fund will invest only in U.S. dollar denominated securities. &nbsp;A Fund&#146;s investments in non-U.S. issuers may involve unique risks compared to investing in securities of U.S. issuers. &nbsp;These risks are more pronounced to the extent that a Fund invests a significant portion of its non-U.S. investments in one region or in the securities of emerging market issuers. &nbsp;These risks may include:</P>
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<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">less information about non-U.S. issuers or markets may be available due to less rigorous disclosure, accounting standards or regulatory practices</FONT></P>
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<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">many non-U.S. markets are smaller, less liquid and more volatile. &nbsp;In a changing market, the managers may not be able to sell a Fund&#146;s portfolio securities at times, in amounts and at prices they consider reasonable</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">currency exchange rates or controls may adversely affect the value of the Fund&#146;s investments</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">the economies of non-U.S. countries may grow at slower rates than expected or may experience a downturn or recession</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">economic, political and social developments may adversely affect the securities markets</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">withholdings and other non-U.S. taxes may decrease a Fund&#146;s return</FONT></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>RISKS OF OPTIONS, FUTURES AND SWAP STRATEGIES</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The effective use of options, futures and swap strategies depends, among other things, on a Fund&#146;s ability to terminate options, futures or swap positions at times when the managers deem it desirable to do so. &nbsp;Although a Fund will not enter into an option, futures or swap position unless the managers believe that a liquid market exists for such option, futures or swap contracts, there can be no assurance that the Fund will be able to effect closing transactions at any particular time or at an acceptable price. &nbsp;Each Fund generally expects that to the extent that it engages in options and futures transactions, such transactions will be conducted on recognized securities exchanges. &nbsp;In certain instances, however, a Fund may purchase and sell options in the over-the-counter market. &nbsp;The staff of the SEC considers certain over-the-counter options to be illiquid. &nbsp;A Fund&#146;s ability
to ter






minate option positions established in the over-the-counter market may be more limited than in the case of exchange-traded options and may also involve the risk that securities dealers participating in such transactions fail to meet their obligations to the Fund. &nbsp;The use of options, futures and swap contracts involves the risk of imperfect correlation between movements in options and futures prices and movements in the price of securities which are the subject of the hedge. &nbsp;The successful use of these strategies also depends on the ability of the managers to forecast correctly interest rate movements and general stock market price movements. &nbsp;This risk increases as the composition of a Fund&#146;s portfolio diverges from the composition of the relevant option or futures contract. &nbsp;A Fund&#146;s transactions in options and futures contracts may result in the Fund&#146;s realizing net short-term and long-term capital gains which, if distributed, may result in the payment of
additional div






idends on the preferred shares. &nbsp;Options and futures transactions are subject to special provisions of the Code that, among other things, may defer the use of certain losses of a Fund and affect the holding period of the securities held by the Fund and the character of the gains or losses realized by the Fund. &nbsp;These provisions may also require a Fund to mark-to-market some of the positions in its portfolio (<I>i.e.</I>, treat them as if they were closed out), which may cause a Fund to recognize income without receiving cash with which to make distributions in amounts necessary to satisfy the 90% distribution requirement and the distribution requirements for avoiding income and excise taxes. &nbsp;Each Fund will monitor its transactions and may make certain tax elections in order to mitigate the effect of these rules and prevent disqualification of the Fund as a regulated investment company. &nbsp;Revenue derived from futures and options transactions will not qualify for the Dividends
Received Dedu






ction when distributed to the holders of the common shares and the preferred shares. &nbsp;Consequently, revenue derived from such transactions could cause a Fund to become liable to pay additional dividends on the preferred shares.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>ANTI-TAKEOVER PROVISIONS</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund&#146;s Agreement and Declaration of Trust and By-Laws include provisions that could limit the ability of other entities or persons to acquire control of the Fund or to change the composition of its Board. &nbsp;Such provisions could limit the ability of holders of common shares to sell their shares at a premium over prevailing market prices by discouraging a third-party from seeking to obtain control of the Fund. &nbsp;These provisions include staggered terms of office for the Trustees, advance notice requirements for shareholder proposals and super-majority voting requirements for open-ending the Fund or a merger, liquidation, asset sales and similar transactions.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>MARKET DISRUPTION AND GEOPOLITICAL RISK</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The war with, and the continuing occupation of, Iraq may have a substantial impact on the U.S. and world economies and securities markets. &nbsp;The nature, scope and duration of such impact cannot be predicted with any certainty. &nbsp;Terrorist attacks on the World Trade Center and the Pentagon on September 11, 2001, closed some of the U.S. securities markets for a four-day period. &nbsp;Similar events and market disruptions may occur in the future. &nbsp;Geopolitical risks have contributed, and may contribute in the future, to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets generally. &nbsp;Those events could also have an acute effect on individual issuers or related groups of issuers.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>LEVERAGE RISK</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund uses financial leverage on an ongoing basis for investment purposes. &nbsp;Leverage risk includes the risk associated with the issuance of preferred shares to leverage the common shares. &nbsp;If the dividend rate on the preferred shares exceeds the net rate of return on the Fund&#146;s portfolio, the leverage will result in a lower NAV than if the Fund were not leveraged and the Fund&#146;s ability to pay dividends and meet its asset coverage requirements on the preferred shares would be reduced. &nbsp;Similarly, any decline in the NAV of the Fund&#146;s investments could result in the Fund being in danger of failing to meet its asset coverage requirements or of losing its rating on the preferred shares or, in an extreme case, a Fund&#146;s current investment income might not be sufficient to meet the dividend requirements on the preferred shares. &nbsp;To counteract such an event, the Fund might
need to li






quidate investments in order to fund a redemption of some or all of the preferred shares.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund&#146;s leveraged capital structure creates special risks not associated with unleveraged funds having similar investment objectives and policies. &nbsp;These include the possibility of higher volatility of the NAV of the Fund and the preferred shares&#146; asset coverage.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">While a Fund may from time to time consider reducing leverage in response to actual or anticipated changes in interest rates in an effort to mitigate the increased volatility of current income and NAV associated with leverage, there can be no assurance that the Fund will actually reduce leverage in the future or that any reduction, if undertaken, will be effective. &nbsp;Changes in the future direction of interest rates are very difficult to predict accurately. &nbsp;If a Fund were to reduce leverage based on a prediction about future changes to interest rates and that prediction turned out to be incorrect, the reduction in leverage would likely operate to reduce the Fund&#146;s NAV relative to the circumstance where the Fund had not reduced leverage. &nbsp;A Fund may decide that this risk outweighs the likelihood of achieving the desired reduction to volatility in income and NAV if the prediction were to turn
out to






be correct and determine not to reduce leverage as described above.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Because the fees paid to the Adviser are calculated on the basis of each Fund&#146;s managed assets (which equals the aggregate NAV of the common shares plus the liquidation preference of the preferred shares), the fees are higher when leverage is utilized, giving the Adviser an incentive to utilize leverage.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>SPECIAL RISKS RELATED TO PREFERRED SHARES</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>The Primary Risks</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">If an auction fails, you may not be able to sell some or all of your preferred shares and a Fund is not obligated to redeem your preferred shares if the auction fails.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">Because of the nature of the market for preferred shares, you may receive less than the price you paid for your shares if you sell them outside the auction, especially when market interest rates are rising.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">A Rating Agency could downgrade the rating assigned to the preferred shares, which could affect liquidity.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">The Fund may be forced to redeem preferred shares to meet regulatory or Rating Agency requirements or may voluntarily redeem the preferred shares in certain circumstances.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">In certain circumstances, a Fund may not earn sufficient income from its investments to pay dividends on the preferred shares.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">If interest rates rise, the value of a Fund&#146;s investment portfolio generally will decline, reducing the asset coverage for the preferred shares.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B><I>Interest Rate Risk</I>.</B> &nbsp;The preferred shares pay dividends based on short-term interest rates. &nbsp;Each Fund invests a substantial amount of the proceeds from the issuance of the preferred shares in preferred stocks and other preferred securities, which bear intermediate to longer-term dividend or interest rates. &nbsp;The yields on preferred stocks and other preferred securities are typically, although not always, higher than shorter-term interest rates. &nbsp;Shorter-term interest rates may rise so that the amount of dividends to be paid to holders of preferred shares exceeds the income from the preferred shares and other preferred securities and other investments purchased by a Fund with the proceeds from the sale of the preferred shares. &nbsp;Because income from a Fund&#146;s entire investment portfolio (not just the portion of the portfolio purchased with the proceeds of the preferred
shares of






fering) is available to pay dividends on the preferred shares, however, dividend rates on the preferred shares would need to exceed the rate of return on a Fund&#146;s investment portfolio by a wide margin before the Fund&#146;s ability to pay dividends on the preferred shares would be jeopardized. &nbsp;If intermediate to longer-term interest rates rise, this could negatively impact the value of a Fund&#146;s investment portfolio, reducing the amount of assets serving as asset coverage for the preferred shares.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B><I>Auction Risk</I>.</B> &nbsp;The dividend rate for the preferred shares normally is set through an auction process. &nbsp;In the auction, holders of preferred shares may indicate the dividend rate at which they would be willing to hold or sell their preferred shares or purchase additional preferred shares. &nbsp;The auction also provides liquidity for the sale of preferred shares. &nbsp;You may not be able to sell your preferred shares at an auction if the auction fails. &nbsp;Also, if you place hold orders (orders to retain shares) at an auction only at a specified dividend rate and that rate exceeds the rate set at the auction, you will not retain your preferred shares. &nbsp;Additionally, if you buy preferred shares or elect to retain preferred shares without specifying a dividend rate below which you would not wish to buy or continue to hold those preferred shares, you could receive a lower rate of
return on






your shares than the market rate. &nbsp;Finally, the dividend period for the preferred shares may be changed by a Fund, subject to certain conditions with notice to the holders of the preferred shares, which could also affect the liquidity of your investment.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B><I>Secondary Market Risk</I>. </B>&nbsp;If you try to sell your preferred shares between auctions, you may not be able to sell any or all of your preferred shares, or you may not be able to sell them for $100,000 per share or $100,000 per share plus accumulated dividends. &nbsp;You may transfer preferred shares outside of auctions only to or through a broker-dealer that has entered into an agreement with the relevant auction agent or other person as a Fund permits.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B><I>Ratings and Asset Coverage Risk</I>.</B> &nbsp;The preferred shares of Premium Dividend Fund II, Select Dividend Trust and Global Dividend Fund have each been rated &#147;AA&#148; by S&amp;P and &#147;aa2&#148; by Moody&#146;s. &nbsp;The preferred shares of Premium Dividend Fund I and Preferred Dividend Fund have been rated &#147;AA&#148; by S&amp;P and &#147;aa&#148; by Moody&#146;s, respectively. &nbsp;Such ratings do not eliminate or necessarily mitigate the risks of investing in preferred shares. &nbsp;Moody&#146;s or S&amp;P could downgrade its rating of the preferred shares or withdraw its rating at any time, which may make the preferred shares less liquid at an auction or in the secondary market. &nbsp;If a Fund fails to satisfy its asset coverage ratios, it will be required to redeem a sufficient number of preferred shares in order to return to compliance with the asset coverage ratios. &nbsp;A
Fund may






voluntarily redeem preferred shares under certain circumstances in order to meet asset coverage tests.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B><I>Restrictions on Dividends and Other Distributions</I>.</B> &nbsp;Restrictions imposed on the declaration and payment of dividends or other distributions to the holders of each Fund&#146;s common shares and the preferred shares, both by the 1940 Act and by requirements imposed by Rating Agencies, might impair a Fund&#146;s ability to comply with minimum distribution requirements that it must satisfy to maintain its qualification as a regulated investment company for federal income tax purposes.</P>
<A NAME="_Toc155621862"></A><P style="margin:0px" align=center><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>PROPOSAL 1(a): &nbsp;ISSUANCE OF ADDITIONAL ACQUIRING FUND COMMON SHARES</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">In connection with each proposed Reorganization, the Acquiring Fund will issue additional Acquiring Fund Common Shares and list such shares on the NYSE. &nbsp;The Acquiring Fund will acquire substantially all of the assets and assume substantially all of the liabilities of each Acquired Fund in exchange for newly-issued Acquiring Fund Common Shares and newly-issued Acquiring Fund DARTS. &nbsp;Each Acquired Fund will distribute Acquiring Fund Common Shares to its common shareholders and Acquiring Fund DARTS to its preferred shareholders and will then terminate its registration under the 1940 Act and dissolve under applicable state law. &nbsp;The Acquiring Fund&#146;s Board, based upon its evaluation of all relevant information, anticipates that each Reorganization will benefit holders of Acquiring Fund Common Shares.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The aggregate NAV of Acquiring Fund Common Shares received in each Reorganization will equal the aggregate NAV of the Acquired Fund&#146;s common shares held immediately prior to the Reorganization, less the costs of the Reorganization (though common shareholders may receive cash for their fractional shares). &nbsp;The aggregate liquidation preference of Acquiring Fund DARTS received in the Reorganization will equal the aggregate liquidation preference of the Acquired Fund&#146;s preferred shares held immediately prior to the Reorganization. &nbsp;The Reorganization will result in no dilution of NAV of the Acquiring Fund Common Shares, other than to reflect the costs of each Reorganization. &nbsp;No gain or loss will be recognized by the Acquiring Fund or its shareholders in connection with each Reorganization. &nbsp;The Acquiring Fund will continue to operate as a registered closed-end investment company with
the inv






estment objective and policies described in this Joint Proxy Statement/Prospectus.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">In connection with the Reorganizations and as contemplated by each Agreement and Plan of Reorganization, the Acquiring Fund will issue additional Acquiring Fund Common Shares and list such shares on the NYSE. &nbsp;While applicable state and federal law does not require the shareholders of the Acquiring Fund to approve the Reorganizations, applicable NYSE rules require the common shareholders of the Acquiring Fund to approve the issuance of additional Acquiring Fund Common Shares to be issued in connection with the Reorganizations.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Shareholder approval of the issuance of additional Acquiring Fund Common Shares requires the affirmative vote of a majority of the votes cast on the proposal, provided that the total votes cast on the proposal represent over 50% in interest of all securities entitled to vote on the matter. &nbsp;Subject to the requisite approval of the shareholders of each Fund with regard to the Reorganizations, it is expected that the closing date of each Acquired Fund will be on the relevant dividend payment date immediately following the shareholders&#146; meeting. &nbsp;The closing date of each proposed Reorganization will differ and the additional Acquiring Fund Common Shares will be issued on different closing dates. &nbsp;For more information regarding voting requirements, see the section entitled &#147;Voting Information and Required Vote.&#148;</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>The Acquiring Fund Board recommends that you vote FOR the issuance of additional Acquiring Fund Common Shares in connection with the Reorganizations.</B></P>
<P style="margin:0px"><BR></P>
<A NAME="_Toc155621863"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>PROPOSAL 1(b): &nbsp;ISSUANCE OF ADDITIONAL ACQUIRING FUND DARTS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">In connection with each proposed Reorganization, the Acquiring Fund will issue additional series of Acquiring Fund DARTS. &nbsp;The Acquiring Fund will acquire substantially all of the assets and assume substantially all of the liabilities of each Acquired Fund in exchange for newly-issued Acquiring Fund Common Shares and newly-issued Acquiring Fund DARTS. &nbsp;Each Acquired Fund will distribute Acquiring Fund Common Shares to its common shareholders and Acquiring Fund DARTS to its preferred shareholders, and will then terminate its registration under the 1940 Act and dissolve under applicable state law. &nbsp;It is not anticipated that the Reorganizations will directly benefit holders of DARTS of the Acquiring Fund; however, the Reorganizations will not adversely affect preferred shareholders and none of the expenses of the Reorganizations will be borne by preferred shareholders of the Acquiring Fund.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The aggregate liquidation preference of Acquiring Fund DARTS received in the Reorganization will equal the aggregate liquidation preference of the Acquired Fund&#146;s preferred shares held immediately prior to the Reorganization. &nbsp;No gain or loss will be recognized by the Acquiring Fund or its shareholders in connection with a Reorganization. &nbsp;The Acquiring Fund will continue to operate as a registered closed-end investment company with the investment objective and policies described in this Joint Proxy Statement/Prospectus.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">In connection with the Reorganizations and as contemplated by each Agreement and Plan of Reorganization, the Acquiring Fund will issue four additional series of DARTS. &nbsp;The Acquiring Fund&#146;s By-Laws require that holders of the DARTS of the Acquiring Fund approve the issuance of any additional series of DARTS to be issued in connection with the Reorganizations. &nbsp;Upon approval of the issuance of additional series of preferred shares, the Acquiring Fund&#146;s Declaration of Trust and By-Laws will be amended to reflect such series that are created.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Shareholder approval of the issuance of additional series of Acquiring Fund DARTS requires the affirmative vote of the holders of at least a majority of the shares of the DARTS then outstanding, voting separately as a class. &nbsp;Subject to the requisite approval of the shareholders of each Fund with regard to the Reorganizations, it is expected that the closing date of each Acquired Fund will be on the relevant dividend payment date immediately following the shareholders&#146; meeting. &nbsp;The closing date of each proposed Reorganization will differ, and the additional Acquiring Fund DARTS will be issued on different closing dates. &nbsp;For more information regarding voting requirements, see the section entitled &#147;Voting Information and Required Vote.&#148;</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>The Acquiring Fund Board recommends that you vote FOR the issuance of additional Acquiring Fund DARTS in connection with the Reorganizations.</B></P>
<P style="margin:0px" align=center><BR></P>
<A NAME="_Toc155621864"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>PROPOSAL 2: &nbsp;REORGANIZATIONS OF THE ACQUIRED FUNDS</B></P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">
The Reorganizations seek to combine five similar Funds to achieve certain
economies of scale and other operational efficiencies. &nbsp;Each Fund is
registered as a diversified, closed-end management investment company under the
1940 Act. &nbsp;The preferred shares of the Acquiring Fund, Premium Dividend
Fund I and Global Dividend Fund are designated as &#147;DARTS&#148;; the
preferred shares of Select Dividend Trust are designated as &#147;AMPS&#148;;
and the preferred shares of Preferred Dividend Fund are designated as
&#147;ARPS.&#148; &nbsp;Although the preferred shares of Select Dividend Trust
and Preferred Dividend Fund differ in name from those of the other Funds, most
material aspects of the securities are the same. Only the Acquiring Fund offers
two share classes, Series A and Series B. &nbsp;Although each preferred share
class is treated individually for the purpose of assessing shareholder rights
and dividends, they enjoy the same shareholder rights and dividend related
provisions.</P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">
The Acquiring Fund, Premium Dividend Fund I, Select Dividend Trust and Global
Dividend Fund each seeks to provide common shareholders with a high level of
current income (which qualifies for the Dividends Received Deduction in the case
of Premium Dividend Fund I), consistent with modest growth of capital.
&nbsp;Preferred Dividend Fund seeks to provide common shareholders with a high
level of current income, consistent with preservation of capital. &nbsp;Each
Fund invests at least 80% of its assets in dividend-paying securities
(dividend-paying preferred stocks, in the case of Preferred Dividend Fund) and
emphasizes investments in securities of companies in the utilities industries.
&nbsp;The quality of ratings of each Fund&#146;s portfolio investments
stipulates that preferred stocks and debt obligations in which the Fund will
invest will be investment grade (at least &#147;BBB&#148; by S&amp;P or
&#147;Baa&#148; by Moody&#146;s) at the time of investment or will be preferred
stocks of issuers of investment grade senior debt, some of which may have
speculative characteristics, or, if not rated, will be of comparable quality as
determined by the Adviser. &nbsp;Each Fund will invest in common stocks of
issuers whose senior debt is rated investment grade or, in the case of issuers
that have no rated senior debt outstanding, whose senior debt is considered by
the Adviser to be of comparable quality. &nbsp;The Funds are managed by the same
investment advisory personnel.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">
Although the investment objective of each Fund is similar, their investment
policies and risks are different, particularly with respect to the Global
Dividend Fund and Preferred Dividend Fund. &nbsp;Under normal market conditions,
Global Dividend Fund invests at least 65% of its total assets in securities of
issuers located in three or more countries, including the United States, with no
more than 25% of the Fund&#146;s total assets in securities of issuers located
in any single country other than the United States. &nbsp;Although the Acquiring
Fund is not restricted from investing in foreign securities, the Acquiring Fund
will likely not concentrate its investments in foreign issuers. &nbsp;In
addition, whereas the Acquiring Fund invests at least 80% of its net assets in
dividend paying preferred and common stocks, Preferred Dividend Fund invests at
least 80% of its assets in dividend paying preferred securities. &nbsp;Finally,
whereas the Acquiring Fund, Premium Dividend Fund I and Select Dividend Fund
normally invest more than 65% of their total assets in securities of companies
in the utilities industry, Global Dividend Fund invests at least 25% of its
total assets in such securities and also invests a portion of its assets
(although less than 25% of its total assets) in securities issued by companies
in the banking industry. &nbsp;Preferred Dividend Fund emphasizes investments in
preferred stocks issued by corporations in the financial services and utilities
sectors, as well as other regulated industries, but does not invest more than
25% of the value of its total assets in the securities of issuers primarily
engaged in these or any other industries.</P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">In each Reorganization, the Acquiring Fund will acquire substantially all of the assets and assume substantially all of the liabilities of the Acquired Fund in exchange for an equal aggregate value of Acquiring Fund Common Shares and Acquiring Fund DARTS. &nbsp;The Acquired Fund will distribute Acquiring Fund Common Shares to common shareholders of the Acquired Fund and Acquiring Fund DARTS to preferred shareholders of the Acquired Fund and will then terminate its registration under the 1940 Act and dissolve under applicable state law. &nbsp;The aggregate NAV of Acquiring Fund Common Shares received in the Reorganization will equal the aggregate NAV of the Acquired Fund common shares held immediately prior to the Reorganization, less the costs of the Reorganization (though common shareholders may receive cash for their fractional shares). &nbsp;The aggregate liquidation preference of Acquiring Fund DARTS
received in t






he Reorganization will equal the aggregate liquidation preference of each Acquired Fund preferred shares held immediately prior to the Reorganization. &nbsp;The auction dates, rate period and dividend payment dates of the Acquiring Fund DARTS received in the Reorganization will be the same as that of the preferred shares held immediately prior to the Reorganization. In addition, the ratings expected to be received by the Acquiring Fund DARTS are &#147;AA&#148; from S&amp;P and &#147;aa2&#148; from Moody&#146;s. &nbsp;The Acquiring Fund will continue to operate as a registered closed-end investment company with the investment objective and policies described in this Joint Proxy Statement/Prospectus.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Each Acquired Fund Board, based upon its evaluation of all relevant information, anticipates that the common shareholders of each Acquired Fund will benefit from their Fund&#146;s respective Reorganization. &nbsp;In particular, the Board of each Acquired Fund believes, based on data presented by the Adviser, that common shareholders of each Acquired Fund will experience a reduced annual operating expense ratio as a result of their Fund&#146;s respective Reorganization. &nbsp;The combined fund resulting from the Reorganizations will have a larger asset base than any of the Funds has currently; certain fixed administrative costs, such as costs of printing shareholders reports, legal expenses, audit fees, mailing costs and other expenses, will be spread across this larger asset base, thereby lowering the expense ratio for common shareholders of the combined fund.</P>
<P style="margin:0px"><BR></P>
<A NAME="_Toc155621865"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>COMPARISON OF THE FUNDS: INVESTMENT OBJECTIVES AND POLICIES</B></P>
<A NAME="_Toc155621866"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>COMPARISON OF PREMIUM DIVIDEND FUND I TO PREMIUM DIVIDEND FUND II</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=115.2></TD><TD width=268></TD><TD width=268.067></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=115.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=268><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Premium Dividend Fund I</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=268.067><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Premium Dividend Fund II</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Business</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=536.067 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Each Fund is a diversified closed-end management investment company organized as a </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Massachusetts business trust.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Net assets as </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">of September </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">30, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=268><P style="line-height:17.333px; margin:0px; font-size:14.667px">$219.5 million</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=268.067><P style="line-height:17.333px; margin:0px; font-size:14.667px">$287.1 million</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Listing </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">(common </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">shares)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=268><P style="line-height:17.333px; margin:0px; font-size:14.667px">NYSE under the ticker symbol &#147;PDF&#148;</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=268.067><P style="line-height:17.333px; margin:0px; font-size:14.667px">NYSE under the ticker symbol &#147;PDT&#148;</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Rating of </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">preferred </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">shares</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=268><P style="line-height:17.333px; margin:0px; font-size:14.667px">&#147;AA&#148; from S&amp;P</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=268.067><P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:24px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:24px; font-size:14.667px"><FONT FACE="Times New Roman">&#147;AA&#148; from S&amp;P</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:24px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:24px; font-size:14.667px"><FONT FACE="Times New Roman">&#147;aa2&#148; from Moody&#146;s</FONT></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Fiscal year </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">end date</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=268><P style="line-height:17.333px; margin:0px; font-size:14.667px">9/30</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=268.067><P style="line-height:17.333px; margin:0px; font-size:14.667px">10/31</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Investment </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">adviser, sub-</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">adviser and </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">portfolio </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">managers</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=536.067 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px"><I>Investment Adviser:</I></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">John Hancock Advisers, LLC</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><I>Investment Sub-Adviser:</I></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">MFC Global Investment Management (U.S.), LLC (&#147;MFC Global (U.S.)&#148;)</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><I>Portfolio managers:</I></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Gregory K. Phelps</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">- &nbsp;Joined MFC Global (U.S.) in 2005</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">- &nbsp;Joined Adviser in 1995</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">- &nbsp;Began business career in 1980</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Mark T. Maloney</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">- Joined MFC Global (U.S.) in 2005</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">- Joined Adviser in 1982</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">- Began business career in 1976</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><I>Managers share investment strategy and decisions.</I></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Investment </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">objective</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=268><P style="line-height:17.333px; margin:0px; font-size:14.667px">The Fund&#146;s investment objective is to </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">provide high current income qualifying for </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">the Dividends Received Deduction </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">consistent with modest growth of capital </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">for shareholders of its common stock. &nbsp;The </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">potential for modest capital appreciation </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">on the Fund&#146;s investments in common </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">stocks is a secondary consideration. &nbsp;This </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">objective is fundamental and may not be </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">changed without shareholder approval.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=268.067><P style="line-height:17.333px; margin:0px; font-size:14.667px">The Fund&#146;s investment objective is to </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">provide high current income, consistent </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">with modest growth of capital for holders </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">of its common shares. &nbsp;The potential for </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">modest capital appreciation on the Fund&#146;s </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">investments in common stocks is a </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">secondary consideration. &nbsp;The managers </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">intend to manage the Fund&#146;s portfolio to </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">maximize income qualifying for the </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Dividends Received Deduction. &nbsp;This </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">objective is not fundamental and may be </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">changed without shareholder approval.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Primary </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">investments</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=536.067 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">The Funds pursue their investment objective by investing in a diversified portfolio of </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">dividend-paying preferred and common stocks. &nbsp;Under normal circumstances, each Fund </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">invests at least 80% of its net assets in dividend-paying securities. &nbsp;The &#147;assets&#148; are </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">defined as net assets, including the liquidation preference amount of the DARTS, plus </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">borrowings for investment purposes. &nbsp;Each Fund normally invests more than 65% of its </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">total assets in securities of companies in the utilities industry.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Investment </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">strategy</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=536.067 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">The managers perform their own investment analysis when making investment decisions </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">for the Funds and do not rely solely on the ratings assigned to securities by the Rating </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Agencies. &nbsp;The managers&#146; analysis may include consideration of the issuer&#146;s experience </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">and managerial strength, changing financial condition, borrowing requirements or debt </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">maturity schedules, and its responsiveness to changes in business conditions and interest </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">or dividend rates. &nbsp;The managers also consider relative values based on anticipated cash </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">flow, interest or dividend coverage, asset coverage and earnings prospects.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">In selecting preferred stocks, the managers consider current effective yield, price </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">stability and the underlying fundamental characteristics of the issuer, with particular </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">emphasis on debt and dividend coverage and the potential for timely payment of </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">dividends. &nbsp;The managers select common stocks on the basis of their current dividend </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">rate and fundamental value. &nbsp;Each Fund focuses on common stocks of those issuers </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">which, in the opinion of the managers, have strong fundamental characteristics, large </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">market capitalizations, favorable credit quality and current dividend yields generally </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">higher than the currently available dividend yield quoted on the S&amp;P 500 Index. &nbsp;In </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">assessing the fundamental values of common stocks, the managers concentrate on the </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">relationship between the issuer&#146;s underlying earning power and the relevant price of the </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">issuer&#146;s stock. &nbsp;The potential for modest capital appreciation on a Fund&#146;s investments in </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">common stocks is a secondary consideration.</P>
<P style="margin:0px"><BR></P>




<P style="line-height:17.333px; margin:0px; font-size:14.667px">The managers attempt to reduce investment and market risk by allocating substantially </P>

<P style="line-height:17.333px; margin:0px; font-size:14.667px">all of a Fund&#146;s assets among the following three sectors:</P>
<P style="margin:0px"><BR></P>

<P style="line-height:17.333px; margin:0px; padding-left:39.6px; text-indent:-15.6px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT><FONT FACE="Times New Roman">
&nbsp;Common Stock Sector &#151; consisting of common stocks with current
dividend yields generally higher than the currently available dividend yield
quoted on the S&amp;P 500 Index.</FONT></P>
<P style="margin:0px"><BR></P>

<P style="line-height:17.333px; margin:0px; padding-left:39.6px; text-indent:-15.6px; font-family:Wingdings 2; font-size:14.667px">&#151;<FONT FACE="Times New Roman">
&nbsp;Preferred Stock Sector &#151; consisting of cumulative fixed-rate
preferred stocks, sinking fund preferred stocks, convertible preferred stocks
and adjustable rate preferred stocks which the managers believe have
above-average current effective dividend yields.</FONT></P>
<P style="margin:0px"><BR></P>

<P style="line-height:17.333px; margin:0px; padding-left:39.6px; text-indent:-15.6px; font-family:Wingdings 2; font-size:14.667px">&#151;<FONT FACE="Times New Roman">
&nbsp;Low Volatility Sector &#151; consisting predominantly of auction preferred
stocks and money market instruments, as well as certain dividend-paying
securities which, in the managers&#146; opinion, are currently exhibiting
greater price stability than the securities in the Common and Preferred Stock
Sectors.</FONT></P>
<P style="margin:0px"><BR></P>

<P style="line-height:17.333px; margin:0px; padding-left:39.6px; text-indent:-15.6px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Times New Roman">
&nbsp;&nbsp;&nbsp;The managers determine the assets allocated to each of the above sectors based
on its assessment of the maximum level of current income that can be achieved
consistent with each Fund&#146;s objective of modest growth of capital.
&nbsp;The managers rely in part on quantitative analytical techniques which
measure the relative risks and opportunities of each sector based on current and
historical market data, as well as on its own assessment of economic and market
conditions. &nbsp;Under normal conditions, at least 20% of Premium Dividend Fund
I&#146;s total assets are invested in each sector. <B>&nbsp;</B>During
periods of stock market weakness or uncertain market or economic conditions, as
determined by the managers, the Funds may substantially increase the portion of
their assets invested in the Low Volatility Sector. &nbsp;The managers
continually review each Fund&#146;s asset allocation and make adjustments as
they deem appropriate.</FONT></P>

</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Diversification</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=536.067 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Each Fund is diversified, which means that, with respect to 75% of its total assets, each Fund cannot invest (i) more than 5% of its total assets in securities of a single issuer or (ii) in securities representing more than 10% of the outstanding voting securities of an issuer.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Concentration</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=268><P style="line-height:17.333px; margin:0px; font-size:14.667px">Under normal conditions more than 65% of the Fund&#146;s total assets are invested in securities of companies in the utilities industry. &nbsp;No more than 20% of the Fund&#146;s total assets may be invested in securities of companies in any other one industry; provided that this limitation does not apply to obligations issued or guaranteed as to interest and principal by the U.S. Government or its agencies or instrumentalities or to repurchase agreements secured by such obligations. &nbsp;This policy is fundamental and may not be changed without shareholder approval.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=268.067><P style="line-height:17.333px; margin:0px; font-size:14.667px">The Fund normally invests more than 65% of its total assets in securities of companies in the utilities industry. &nbsp;No more than 25% of the Fund&#146;s total assets may be invested in securities of companies in any other one industry; provided that this limitation does not apply to obligations issued or guaranteed as to interest and principal by the U.S. Government or its agencies or instrumentalities or to repurchase agreements secured by such obligations or to bank money-market instruments.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Investment </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">companies</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=536.067 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Each Fund may invest up to 10% of the value of its total assets in dividend-paying securities of registered investment companies that invest primarily in investment grade securities. &nbsp;Neither Fund will acquire securities of any one investment company if, immediately thereafter, (i)&nbsp;the Fund would own in the aggregate more than 3% of such company&#146;s total outstanding voting securities or (ii)&nbsp;securities issued by such company would have an aggregate value in excess of 5% of the Fund&#146;s total assets. &nbsp;In addition, each Fund and all other investment companies having the same adviser will not acquire securities of any one investment company amounting in the aggregate to more than 10% of such company&#146;s total outstanding voting stock. &nbsp;The investment companies in which the Fund invests include
those open- and closed-end investment companies whose distributions qualify for
the Dividends Received Deduction. &nbsp;To the extent that investment advisory
and brokerage expenses of an investment company are reflected in the price of
its shares held in the Fund&#146;s portfolio, there may be a duplication of such
expenses.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Preferred stocks</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=536.067 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">The preferred stocks in which each Fund invests are rated investment-grade (at least &#147;BBB&#148; by S&amp;P or &#147;Baa&#148; by Moody&#146;s) at the time of investment or are preferred stocks of issuers of investment-grade senior debt, some of which may have speculative characteristics, or if not rated, are of comparable quality as determined by the managers.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Common stocks</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=536.067 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Each Fund invests in common stocks of issuers whose senior debt is rated investment grade or, in the case of issuers that have no rated senior debt outstanding, whose senior debt is considered by the managers to be of comparable quality.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Debt securities</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=536.067 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">The debt obligations in which each Fund invests are rated investment-grade (at least &#147;BBB&#148; by S&amp;P or &#147;Baa&#148; by Moody&#146;s) at the time of investment or, if not rated, are of comparable quality as determined by the managers.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Foreign </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">securities</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=536.067 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Neither Fund&#146;s prospectus references the ability to invest in foreign securities. &nbsp;Neither Fund may invest in Russian securities of any type.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Illiquid </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">securities</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=536.067 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Each Fund may invest up to 20% of its net assets in securities purchased in direct placements.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">When-issued </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">purchases</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=536.067 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Each Fund may make contracts to purchase securities on a &#147;when-issued&#148; basis, which means that delivery and payment for the securities take place at a future date beyond the customary settlement date. &nbsp;The payment obligation and the interest rate on the securities will be fixed at the time the Fund enters into the commitment, but interest will not accrue to the Fund until delivery of and payment for the securities. &nbsp;An amount of cash or short-term U.S. Government securities equal to the Fund&#146;s commitment would be deposited in a segregated account at the Fund&#146;s custodian bank to secure the Fund&#146;s obligation. &nbsp;Although the Fund would generally purchase securities on a when-issued or delayed delivery basis with the intention of actually acquiring the securities for its portfolio (or for
delivery






 pursuant to options contracts it has entered into) the Fund may dispose of a security prior to settlement if the managers deem it advisable.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Repurchase </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">agreements</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=536.067 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Each Fund may invest up to 5% of its net assets in repurchase agreements with broker-dealers, banks and other financial institutions provided that the Fund&#146;s custodian bank always has possession of securities serving as collateral whose market value at least equals the amount of the repurchase obligation. &nbsp;To minimize this risk of loss, each Fund may enter into repurchase agreements only with financial institutions considered by the managers to be creditworthy under guidelines adopted by the Fund&#146;s Board.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Reverse </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">repurchase </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">obligations</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=536.067 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Both Funds are currently prohibited by current Rating Agency Guidelines from entering into reverse repurchase agreements unless the relevant Rating Agency has advised the Fund in writing that any such action would not adversely affect the then-current rating of the preferred shares and that any such action will be in accordance with guidelines established by the relevant Rating Agency.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Securities loans</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=536.067 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Both Funds are currently prohibited by Rating Agency Guidelines from lending portfolio securities but, if permitted to do so in the future, they may seek to obtain additional income by making secured loans of their portfolio securities with a value of up to 33&#8531;% of each Fund&#8217;s total assets. &nbsp;Any securities loans are made pursuant to agreements requiring that the loans be continuously secured by collateral in cash or short-term debt obligations at least equal at all times to the market value of the loaned securities. &nbsp;Each Fund may pay reasonable finders&#8217;, administrative and custodial fees in connection with loans of its portfolio securities. &nbsp;Although voting rights or rights to consent accompanying loaned securities pass to the borrower, each Fund retains the right to call the loans at any
time on r






easonable notice and it will do so in order that the securities may be voted by the Fund with respect to matters materially affecting the Fund&#146;s investment. &nbsp;Each Fund may also call a loan in order to sell the securities involved. &nbsp;Loans of portfolio securities are made only to borrowers considered by the managers to be creditworthy under guidelines adopted by each Fund&#146;s Board.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Active trading</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=536.067 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">The managers make portfolio adjustments that reflect the Fund&#146;s investment strategy but do not trade securities for the Fund for the purpose of seeking short-term profits. &nbsp;However, if the Fund is required to sell assets to effect mandatory redemptions of the preferred shares or to repurchase common shares, the Fund&#146;s portfolio turnover may be higher than would otherwise be the case. &nbsp;Each Fund operates so that all of the dividends paid on the preferred shares are designated as qualifying for the Dividends Received Deduction and tax considerations relating to the maintenance of a Fund&#146;s status as a regulated investment company limit the Fund&#146;s portfolio turnover and the amount of short-term capital gains it may realize.</P>
<BR>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The portfolio turnover rate for Premium Dividend Fund I for the period ended September 30, 2006 was 30%. &nbsp;The portfolio turnover rate for Premium Dividend Fund II for the period ended October 31, 2006, was 24%. Each Fund&#146;s annual portfolio turnover rate generally will not exceed 200% (excluding turnover of securities having maturities of one year or less).</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Derivatives</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=268><P style="line-height:17.333px; margin:0px; font-size:14.667px">The Fund may at times seek to hedge against a decline in the value of securities included in the Fund&#146;s portfolio or an increase in the price of securities which it plans to purchase for the Fund through the writing an purchase of options and the purchase and sale of financial futures and related options on such futures contracts. &nbsp;In addition, the Fund may seek to increase the current return of the Fund&#146;s portfolio by writing covered call or secured put options. &nbsp;The Fund&#146;s ability to engage in options and futures transactions may be limited by the rating agency guidelines and by tax considerations. &nbsp;The Fund will not engage in options and futures transactions for leverage purposes.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=268.067><P style="line-height:17.333px; margin:0px; font-size:14.667px">The Fund is permitted to engage in options and futures transaction under its investment restrictions. &nbsp;The Fund may engage in such transactions to hedge against a decline in the value of securities included in the Fund&#146;s portfolio or in the price of securities which it plans to purchase for the Fund through the writing and purchase of options and the purchase and sale of financial contracts and related options on such futures contracts. &nbsp;In addition, the Fund may seek to increase the current return of the Fund&#146;s portfolio by writing covered call or secured put options. &nbsp;The Fund&#146;s ability to engage in options and futures transactions may be limited by the Rating Agency Guidelines. &nbsp;The Fund will not engage in options and futures transactions for leveraging purposes.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Short sales</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=536.067 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">The Rating Agency Guidelines provide that neither Fund may make short sales of securities unless the Rating Agency has advised the Fund in writing that any such action would not adversely affect its then current rating of the preferred shares of the Fund and that any such action is in accordance with guidelines established by the relevant Rating Agency.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Temporary </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">defensive </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">positions</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=268><P style="line-height:17.333px; margin:0px; font-size:14.667px">During periods of stock market weakness or uncertain market or economic conditions, as determined by the Adviser, the Fund may substantially increase its investments in the Low Volatility Sector &#151;&#150; consisting predominately of auction preferred stocks and money market instruments, as well as certain dividend paying securities which, in the Adviser&#146;s opinion, are currently exhibiting greater price stability than the securities in the Common and Preferred Stock Sectors.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=268.067><P style="line-height:17.333px; margin:0px; font-size:14.667px">There may be times when, in the managers&#146; judgment, conditions in the securities markets would make pursuing the Fund&#146;s investment strategy inconsistent with achieving the Fund&#146;s investment objective. &nbsp;At such times, the managers may employ alternative strategies primarily to seek to reduce fluctuations in the value of the Fund&#146;s assets. &nbsp;In implementing defensive strategies, depending on the circumstances, the Fund may invest any portion of its portfolio in U.S. Government securities, investment grade corporate debt securities, high quality, short-term money market instruments and in cash. &nbsp;Investment income received by a Fund with respect to these investments is not eligible for the Dividends Received Deduction when distributed to shareholders and may increase the amount of additional dividends
payable on






 the preferred shares. &nbsp;It is impossible to predict when, or for how long, the Fund may use these alternative strategies.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Borrowings</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=536.067 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Current Rating Agency Guidelines prohibit the Fund from borrowing money unless the relevant Rating Agency has advised the Fund in writing that any such action would not adversely affect the then-current rating of the DARTS and that any such action will be in accordance with guidelines established by the relevant Rating Agency.</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<A NAME="_Toc155621867"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>COMPARISON OF SELECT DIVIDEND TRUST TO PREMIUM DIVIDEND FUND II</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=111></TD><TD width=260.133></TD><TD width=260.133></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=111><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=260.133><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Select Dividend Trust</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=260.133><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Premium Dividend Fund II</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Business</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Each Fund is a diversified closed-end management investment company organized as a Massachusetts business trust.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Net assets as </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">of September </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">30, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=260.133><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">$219.2 million</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=260.133><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">$287.1 million</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Listing </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">(common </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">shares)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=260.133><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">NYSE under the ticker symbol &#147;DIV&#148;</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=260.133><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">NYSE under the ticker symbol &#147;PDT&#148;</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Rating of </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">preferred </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">shares</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:24px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; padding-left:24px; font-size:14.667px"><FONT FACE="Times New Roman">&#147;AA&#148; from S&amp;P</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:24px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; padding-left:24px; font-size:14.667px"><FONT FACE="Times New Roman">&#147;aa2&#148; from Moody&#146;s</FONT></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Fiscal year </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">end date</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=260.133><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">6/30</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=260.133><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">10/31</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Investment </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">adviser, sub-</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">adviser and </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">portfolio </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">managers</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px"><I>Investment Adviser:</I></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">John Hancock Advisers, LLC</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><I>Investment Sub-Adviser:</I></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">MFC Global Investment Management (U.S.), LLC</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><I>Portfolio managers:</I></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Gregory K. Phelps</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">- &nbsp;Joined MFC Global (U.S.) in 2005</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">- &nbsp;Joined Adviser in 1995</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">- &nbsp;Began business career in 1980</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Mark T. Maloney</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">- Joined MFC Global (U.S.) in 2005</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">- Joined Adviser in 1982</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">- Began business career in 1976</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px"><I>Managers share investment strategy and decisions.</I></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Investment </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">objective</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Each Fund&#146;s investment objective is to provide high current income, consistent with modest growth of capital for holders of its common shares. &nbsp;The potential for modest capital appreciation on the Fund&#146;s investments in common stocks is a secondary consideration. &nbsp;The managers intend to manage each Fund&#146;s portfolio to maximize income qualifying for the Dividend Received Deduction. &nbsp;Each Fund&#146;s objective is not fundamental and may be changed without shareholder approval.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Primary </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">investments</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Each Fund pursues its investment objective by investing in a diversified portfolio of dividend-paying preferred and common stocks. &nbsp;Under normal circumstances, each Fund invests at least 80% of its net<B> </B>assets in dividend-paying securities. &nbsp;The &#147;assets&#148; are defined as net assets, including the liquidation preference amount of the preferred shares, plus borrowings for investment purposes. &nbsp;Each Fund normally invests more than<B> </B>65% of its total assets in securities of companies in the utilities industry.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Investment </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">strategy</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">
The managers perform their own investment analysis when making investment
decisions for the Funds and do not rely solely on the ratings assigned to
securities by the Rating Agencies. &nbsp;The managers&#146; analysis may include
consideration of the issuer&#146;s experience and managerial strength, changing
financial condition, borrowing requirements or debt maturity schedules, and its
responsiveness to changes in business conditions and interest or dividend rates.
&nbsp;The managers also consider relative values based on anticipated cash flow,
interest or dividend coverage, asset coverage and earnings prospects.</P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">
In selecting preferred stocks, the managers consider current effective yield,
price stability and the underlying fundamental characteristics of the issuer,
with particular emphasis on debt and dividend coverage and the potential for
timely payment of dividends. &nbsp;The managers select common stocks on the
basis of their current dividend rate and fundamental value. &nbsp;Each Fund
focuses on common stocks of those issuers which, in the opinion of the managers,
have strong fundamental characteristics, large market capitalizations, favorable
credit quality and current dividend yields generally higher than the currently
available dividend yield quoted on the S&amp;P 500 Index. &nbsp;In assessing the
fundamental values of common stocks, the managers concentrate on the
relationship between the issuer&#146;s underlying earning power and the relevant
price of the issuer&#146;s stock. &nbsp;The potential for modest capital
appreciation on a Fund&#146;s investments in common stocks is a secondary
consideration.</P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">
The managers attempt to reduce investment and market risk by allocating
substantially all of a Fund&#146;s assets among the following three sectors:</P>


<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Symbol; font-size:14.667px"><FONT FACE="Symbol">&#183;</FONT></P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Stock Sector
&#151; consisting of common stocks with current dividend yields generally higher
than the currently available dividend yield quoted on the S&amp;P 500 Index.</P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Symbol; font-size:14.667px"><FONT FACE="Symbol">&#183;</FONT></P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred Stock
Sector &#151; consisting of cumulative fixed-rate preferred stocks, sinking fund
preferred stocks, convertible preferred stocks and adjustable rate preferred
stocks which the managers believe have above-average current effective dividend
yields.</P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Symbol; font-size:14.667px"><FONT FACE="Symbol">&#183;</FONT></P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Low Volatility
Sector &#151; consisting predominantly of auction preferred stocks (as well as
remarketed preferred stocks in the case of Select Dividend Fund) and money
market instruments, as well as certain dividend-paying securities which, in the
managers&#146; opinion, are currently exhibiting greater price stability than
the securities in the Common and Preferred Stock Sectors.</P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Symbol; font-size:14.667px">
<FONT FACE="Symbol">&nbsp;</FONT></P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The managers
determine the assets allocated to each of the above sectors based on its
assessment of the maximum level of current income that can be achieved
consistent with each Fund&#146;s objective of modest growth of capital.
&nbsp;The managers rely in part on quantitative analytical techniques which
measure the relative risks and opportunities of each sector based on current and
historical market data, as well as on its own assessment of economic and market
conditions. &nbsp;During periods of stock market weakness or uncertain market or
economic conditions, as determined by the managers, the Funds may substantially
increase the portion of their assets invested in the Low Volatility Sector.
&nbsp;The managers continually review each Fund&#146;s asset allocation

and make adjustments, as they deem appropriate.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Diversification</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Each Fund is diversified, which means that, with respect to 75% of its total assets, neither Fund invests (i) more than 5% of its total assets in securities of a single issuer, nor (ii) in securities representing more than 10% of the outstanding voting securities of an issuer.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Concentration</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Each Fund normally invests more than 65% of its total assets in securities of companies in the utilities industry. &nbsp;No more than 25% of the Fund&#146;s total assets may be invested in securities of companies in any other one industry; provided that this limitation does not apply to obligations issued or guaranteed as to interest and principal by the U.S. Government or its agencies or instrumentalities or to repurchase agreements secured by such obligations or to bank money-market instruments.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Investment </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">companies</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Each Fund may invest up to 10% of the value of its total assets in dividend-paying securities of registered investment companies that invest primarily in investment grade securities. &nbsp;Neither Fund will acquire securities of any one investment company if, immediately thereafter, (i)&nbsp;the Fund would own in the aggregate more than 3% of such company&#146;s total outstanding voting securities or (ii)&nbsp;securities issued by such company would have an aggregate value in excess of 5% of the Fund&#146;s total assets. &nbsp;In addition, each Fund and all other investment companies having the same adviser will not acquire securities of any one investment company amounting in the aggregate to more than 10% of such company&#146;s total outstanding voting stock. &nbsp;The investment companies in
which the






Fund invests include those open- and closed-end investment companies whose distributions qualify for the Dividends Received Deduction. &nbsp;To the extent that investment advisory and brokerage expenses of an investment company are reflected in the price of its shares held in the Fund&#146;s portfolio, there is a duplication of such expenses.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Preferred stocks</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The preferred stocks in which each Fund invests are rated investment-grade (at least &#147;BBB&#148; by S&amp;P or &#147;Baa&#148; by Moody&#146;s) at the time of investment or are preferred stocks of issuers of investment-grade senior debt, some of which may have speculative characteristics, or if not rated, are of comparable quality as determined by the managers.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Common stocks</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Each Fund invests in common stocks of issuers whose senior debt is rated investment grade or, in the case of issuers that have no rated senior debt outstanding, whose senior debt is considered by the managers to be of comparable quality.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Debt securities</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The debt obligations in which each Fund invests are rated investment-grade (at least &#147;BBB&#148; by S&amp;P or &#147;Baa&#148; by Moody&#146;s) at the time of investment, or if not rated, are of comparable quality as determined by the managers.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Foreign </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">securities</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Neither Fund&#146;s prospectus references the ability to invest in foreign securities.<B> </B>&nbsp;Neither Fund may invest in Russian securities of any type.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Illiquid </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">securities</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Each Fund may invest up to 20% of its net assets in securities purchased in direct placements.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">When-issued </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">purchases</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Each Fund may make contracts to purchase securities on a &#147;when-issued&#148; basis, which means that delivery and payment for the securities take place at a future date beyond the customary settlement date. &nbsp;The payment obligation and the interest rate on the securities will be fixed at the time the Fund enters into the commitment, but interest will not accrue to the Fund until delivery of and payment for the securities. &nbsp;An amount of cash or short-term U.S. Government securities equal to the Fund&#146;s commitment would be deposited in a segregated account at the Fund&#146;s custodian bank to secure the Fund&#146;s obligation. &nbsp;Although the Fund would generally purchase securities on a when-issued basis with the intention of actually acquiring the securities for its portfolio
(or for d






elivery pursuant to options contracts it has entered into) the Fund may dispose of a security prior to settlement if the managers deem it advisable.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Repurchase </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">agreements</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Each Fund may invest up to 5% of its net assets in repurchase agreements with broker-dealers, banks and other financial institutions. &nbsp;Each Fund may enter into repurchase agreements, provided that the Fund&#146;s custodian bank always has possession of securities serving as collateral whose market value at least equals the amount of the repurchase obligation. &nbsp;To minimize this risk of loss, each Fund enters into repurchase agreements only with financial institutions considered by the managers to be creditworthy under guidelines adopted by the Fund&#146;s Board.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Reverse </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">repurchase </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">obligations</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Current Rating Agency Guidelines prohibit the Funds from entering into reverse repurchase agreements unless the relevant Rating Agency has advised the Fund in writing that any such action would not adversely affect the then-current rating of the preferred shares and that any such action will be in accordance with guidelines established by the relevant Rating Agency.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Securities loans</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Both Funds are currently prohibited by Rating Agency Guidelines from lending portfolio securities but, if permitted to do so, they may seek to obtain additional income by making secured loans of their portfolio securities with a value of up to 33&#8531;% of each Fund&#146;s total assets. &nbsp;All securities loans will be made pursuant to agreements requiring that the loans be continuously secured by collateral in cash or short-term debt obligations at least equal at all times to the market value of the loaned securities. &nbsp;Each Fund may pay reasonable finders&#146;, administrative and custodial fees in connection with loans of its portfolio securities. &nbsp;Although voting rights or rights to consent accompanying loaned securities pass to the borrower, each Fund retains the right to call the
loans a






t any time on reasonable notice and it will do so in order that the securities may be voted by the Fund with respect to matters materially affecting the Fund&#146;s investment. &nbsp;Each Fund may also call a loan in order to sell the securities involved. &nbsp;Loans of portfolio securities are made only to borrowers considered by the managers to be creditworthy under guidelines adopted by each Fund&#146;s Board.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Active trading</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The managers make portfolio adjustments that reflect the Fund&#146;s investment strategy but do not trade securities for the Fund for the purpose of seeking short-term profits. &nbsp;However, if the Fund is required to sell assets to effect mandatory redemptions of the preferred shares or to repurchase common shares, the Fund&#146;s portfolio turnover will be higher than would otherwise be the case. &nbsp;Each Fund&#146;s intention to operate so that the dividends paid can be designated as qualifying for the Dividends Received Deduction and tax considerations relating to the maintenance of a Fund&#146;s status as a regulated investment company limit the Fund&#146;s portfolio turnover and the amount of short-term capital gains it realizes.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The portfolio turnover rate for Select Dividend Fund for the period ended June 30, 2006 was 26%. &nbsp;The portfolio turnover rate for Premium Dividend Fund II for the period ended October 31, 2006, was 24%. Each Fund&#146;s annual portfolio turnover rate generally will not exceed 200% (excluding turnover of securities having maturities of one year or less).</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Derivatives</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Each Fund is permitted to engage in options and futures transaction under its investment restrictions. &nbsp;Each Fund will engage in such transactions to hedge against a decline in the value of securities included in the Fund&#146;s portfolio or in the price of securities which it plans to purchase for the Fund through the writing and purchase of options and the purchase and sale of financial contracts and related options on such futures contracts. &nbsp;In addition, each Fund may seek to increase the current return of the Fund&#146;s portfolio by writing covered call or secured put options. &nbsp;Each Fund&#146;s ability to engage in options and futures transactions may be limited by the Rating Agency Guidelines. &nbsp;Neither Fund will engage in options and futures transactions for leveraging
purposes.






</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Short sales</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Current Rating Agency Guidelines provide that neither Fund may make short sales of securities unless the relevant Rating Agency has advised the Fund in writing that any such action would not adversely affect its then-current rating of the preferred shares of the Fund and that any such action will be in accordance with guidelines established by the relevant Rating Agency.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Temporary </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">defensive </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">positions</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">There may be times when, in the managers&#146; judgment, conditions in the securities markets would make pursuing the Fund&#146;s investment strategy inconsistent with achieving the Fund&#146;s investment objective. &nbsp;At such times, the managers may employ alternative strategies primarily to seek to reduce fluctuations in the value of the Fund&#146;s assets. &nbsp;In implementing defensive strategies, depending on the circumstances, the Fund may invest any portion of its portfolio in U.S. Government securities, investment grade corporate debt securities, high quality, short-term money market instruments and in cash. &nbsp;Investment income received by a Fund with respect to these investments will not be eligible for the Dividends Received Deduction when distributed to shareholders and may
increase the






 amount of additional dividends payable on the preferred shares. &nbsp;It is impossible to predict when, or for how long, the Fund may use these alternative strategies.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=111><P style="line-height:17.333px; margin:0px; font-size:14.667px">Borrowings</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=520.267 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Current Rating Agency Guidelines prohibit the Funds from borrowing money, unless the relevant Rating Agency has advised the Fund in writing that any such action would not adversely affect the then-current rating of the preferred shares and that any such action will be in accordance with guidelines established by the relevant Rating Agency.</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<A NAME="_Toc155621868"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>COMPARISON OF GLOBAL DIVIDEND FUND TO PREMIUM DIVIDEND FUND II</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=109.2></TD><TD width=261></TD><TD width=261></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=109.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Global Dividend Fund</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Premium Dividend Fund II</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Business</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=522 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Each Fund is a diversified closed-end management investment company organized as a Massachusetts business trust.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Net assets as of September 30, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">$177.3 million</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">$287.1 million</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Listing (common shares)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">NYSE under the ticker symbol &#147;PGD&#148;</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">NYSE under the ticker symbol &#147;PDT&#148;</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Rating of preferred shares</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=522 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:24px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; padding-left:24px; font-size:14.667px"><FONT FACE="Times New Roman">&#147;AA&#148; from S&amp;P</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:24px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; padding-left:24px; font-size:14.667px"><FONT FACE="Times New Roman">&#147;aa2&#148; from Moody&#146;s</FONT></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Fiscal year end date</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">7/31</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">10/31</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Investment adviser, sub-adviser and portfolio managers</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=522 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px"><I>Investment Adviser:</I></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">John Hancock Advisers, LLC</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><I>Investment Sub-Adviser:</I></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">MFC Global Investment Management (U.S.), LLC</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><I>Portfolio managers:</I></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Gregory K. Phelps</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">- &nbsp;Joined MFC Global (U.S.) in 2005</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">- &nbsp;Joined Adviser in 1995</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">- &nbsp;Began business career in 1980</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Mark T. Maloney</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">- Joined MFC Global (U.S.) in 2005</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">- Joined Adviser in 1982</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">- Began business career in 1976</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px"><I>Managers share investment strategy and decisions.</I></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Investment objective</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund&#146;s investment objective is to provide a high level of current income, consistent with modest growth of capital, for holders of its common shares of beneficial interest. &nbsp;The potential for modest capital appreciation on the Fund&#146;s investment in common stocks is a secondary consideration. &nbsp;This objective is not fundamental and may be changed without shareholder approval.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund&#146;s investment objective is to provide high current income, consistent with modest growth of capital for holders of its common shares. &nbsp;The potential for modest capital appreciation on the Fund&#146;s investments in common stocks is a secondary consideration. &nbsp;The managers manage the Fund&#146;s portfolio to maximize income qualifying for the Dividends Received Deduction. &nbsp;This objective is not fundamental and may be changed without shareholder approval.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Primary </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">investments</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund pursues its objective by investing in a diversified portfolio of dividend-paying preferred and common stocks of domestic and foreign issuers, as well as debt obligations, with the Fund investing only in U.S. dollar-denominated securities. &nbsp;Under normal circumstances, the Fund invests at least 80% of its net assets in dividend-paying preferred and common stocks of domestic and foreign issuers. &nbsp;The &#147;assets&#148; are defined as net assets, including the liquidation preference amount of the DARTS, plus borrowings for investment purposes. &nbsp;Under normal market conditions, the Fund invests at least 65% of its total assets in securities of issuers located in three or more countries, including the United States, with no more than 25% of the Fund&#146;s total assets in securities of issuers
located






in any single country other than the United States. &nbsp;Under normal market conditions, the Fund concentrates its investment in securities of domestic and foreign companies in the utilities industry by investing at least 25% of its total assets in such securities. &nbsp;In addition, under normal market conditions, the Fund invests a portion of its assets (although less than 25% of its total assets) in securities issued by companies in the banking industry.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund pursues its investment objective by investing in a diversified portfolio of dividend-paying preferred and common stocks. &nbsp;Under normal circumstances, the Fund invests at least 80% of its net assets in dividend-paying securities. &nbsp;The &#147;assets&#148; are defined as net assets, including the liquidation preference amount of the DARTS, plus borrowings for investment purposes. &nbsp;Each Fund normally invests more than 65% of its total assets in securities of companies in the utilities industry.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Investment </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">strategy</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The managers perform their own investment analysis when making investment decisions for the Fund and do not rely solely on the ratings assigned to securities by the Rating Agencies. &nbsp;The managers&#146; analysis may include consideration of the issuer&#146;s experience and managerial strength, changing financial condition, borrowing requirements or debt maturity schedules, and its responsiveness to changes in business conditions and interest or dividend rates. &nbsp;The managers also consider relative values based on anticipated cash flow, interest or dividend coverage, asset coverage and earnings prospects.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">In selecting preferred stocks and debt obligations, the managers consider current effective yield, price stability and the underlying fundamental characteristics of the issuer, with particular emphasis on debt and dividend coverage and the potential for timely payment of dividends and interest. &nbsp;The managers select common stocks on the basis of their current dividend rate and fundamental value. &nbsp;The Fund focuses on common stocks of those issuers which, in the opinion of the managers, have strong fundamental characteristics, large market capitalizations, favorable credit quality and current dividend yields generally higher than the currently available quoted dividend yield on common stocks included in the S&amp;P 500 Index. &nbsp;In assessing the fundamental values of common stocks, the managers concentrate on the relationship between the issuer&#146;s underlying earning power and the relevant price of
the iss






uer&#146;s stock. &nbsp;The potential for modest capital appreciation on the Fund&#146;s investments in common stocks will be a secondary consideration.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The managers will attempt to reduce investment and market risk by allocating substantially all of the Fund&#146;s assets among the following three sectors:</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Symbol; font-size:14.667px"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">Common Stock Sector &#151; consisting of common stocks with current dividend yields generally higher than the currently available quoted dividend yield on common stocks included in the S&amp;P 500 Index.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Symbol; font-size:14.667px"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">Preferred Stock and Bond Sector &#151; consisting of (i) cumulative fixed-rate preferred stocks, sinking fund preferred stocks, convertible preferred stocks and adjustable rate preferred stocks and (ii) investment grade debt obligation of a variety of domestic and foreign issuers, including corporations, banks, governments and their agencies, instrumentalities, and political subdivisions and international and supranational organizations, which the managers believe have above-average current effective yields.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Symbol; font-size:14.667px"><FONT FACE="Symbol">&#183;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">
Low Volatility Sector &#151; consisting predominantly of auction rate preferred
stocks, remarketed preferred stocks and money market instruments, as well as
certain dividend-paying securities which, in the managers&#146; opinion, are
currently exhibiting greater price stability than the securities in the Common
Stock and Preferred Stock and Bond Sectors.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">
The managers determine the assets allocated to each of the above sectors based
on their assessment of the maximum level of current income that can be achieved
consistent with the Fund&#146;s objective of modest growth of capital and its
investment policies. &nbsp;The managers rely in part on quantitative analytical
techniques which measure the relative risks and opportunities of each sector
based on current and historical market data, as well as on its own assessment of
economic and market conditions. &nbsp;During periods of stock or bond market
weakness or uncertain market or economic conditions, as determined by the
managers, the Fund may substantially increase the portion of their assets
invested in the Low Volatility Sector. &nbsp;The managers continually review the
Fund&#146;s asset allocation and make adjustments as they deem appropriate.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The managers perform their own investment analysis when making investment decisions for the Fund and do not rely solely on the ratings assigned to securities by the Rating Agencies. &nbsp;The managers&#146; analysis may include consideration of the issuer&#146;s experience and managerial strength, changing financial condition, borrowing requirements or debt maturity schedules, and its responsiveness to changes in business conditions and interest or dividend rates. &nbsp;The managers also consider relative values based on anticipated cash flow, interest or dividend coverage, asset coverage and earnings prospects.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">
In selecting preferred stocks, the managers consider current effective yield,
price stability and the underlying fundamental characteristics of the issuer,
with particular emphasis on debt and dividend coverage and the potential for
timely payment of dividends. &nbsp;The managers select common stocks on the
basis of their current dividend rate and fundamental value. &nbsp;The Fund
focuses on common stocks of those issuers which, in the opinion of the managers,
have strong fundamental characteristics, large market capitalizations, favorable
credit quality and current dividend yields generally higher than the currently
available dividend yield quoted on the S&amp;P 500 Index. &nbsp;In assessing the
fundamental values of common stocks, the managers concentrate on the
relationship between the issuer&#146;s underlying earning power and the relevant
price of the issuer&#146;s stock. &nbsp;The potential for modest capital
appreciation on the Fund&#146;s investments in common stocks is a secondary
consideration.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The managers attempt to reduce investment and market risk by allocating substantially all of the Fund&#146;s assets among the following three sectors:</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Common Stock Sector &#151; consisting of common stocks with current dividend yields generally higher than the currently available dividend yield quoted on the S&amp;P 500 Index.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Preferred Stock Sector &#151; consisting of cumulative fixed-rate preferred stocks, sinking fund preferred stocks, convertible preferred stocks and adjustable rate preferred stocks which the managers believe have above-average current effective dividend yields.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Low Volatility Sector &#151; consisting predominantly of auction preferred stocks and money market instruments, as well as certain dividend-paying securities which, in the managers&#146; opinion, are currently exhibiting greater price stability than the securities in the Common and Preferred Stock Sectors.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The managers determine the assets allocated to each of the above sectors based on their assessment of the maximum level of current income that can be achieved consistent with the Fund&#146;s objective of modest growth of capital. &nbsp;The managers rely in part on quantitative analytical techniques which measure the relative risks and opportunities of each sector based on current and historical market data, as well as on its own assessment of economic and market conditions. &nbsp;During periods of stock market weakness or uncertain market or economic conditions, as determined by the managers, the Fund may substantially increase the portion of their assets invested in the Low Volatility Sector. &nbsp;The managers continually review the Fund&#146;s asset allocation and make adjustments as they deem appropriate.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Dividends </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Received </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Deduction</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">So long as any DARTS are outstanding, when considering the relative yields available from alternative investments, the managers take into account whether the income derived from such securities qualifies for the Dividends Received Deduction. &nbsp;If the income derived from such securities does not so qualify for the Dividends Received Deduction, the managers take into account whether the yields available on non-Dividends Received Deduction qualifying securities are sufficiently in excess of the yields available from comparable Dividends Received Deduction qualifying securities to compensate for any additional or higher dividends that the Fund may be required to pay on the DARTS. &nbsp;Because the Fund may pay dividends that qualify for the Dividends Received Deduction only from the dividends the Fund receives
from equ






ity securities of U.S. issuers, depending on the relative yields available from time to time on non-Dividends Received Deduction qualifying securities and Dividends Received Deduction qualifying securities, a substantial portion of the Fund&#146;s total assets may be invested in dividend paying securities of U.S. issuers. &nbsp;Under normal market conditions, the Fund anticipates that at least 50% of the dividends paid to the holders of the DARTS will qualify for the Dividends Received Deduction when distributed to shareholders.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The managers manage the Fund&#146;s portfolio to maximize income qualifying for the Dividends Received Deduction. &nbsp;The Fund operates so that dividends paid qualify in their entirety for the Dividends Received Deduction and the Fund does not intend to realize any net capital gains, but there is no assurance that this result will be achieved. &nbsp;If any dividends on the DARTS do not so qualify because the Fund realizes net capital gains or receives net income, excluding net capital gains, in excess of dividends that qualify for the Dividends Received Deduction, the Fund will pay additional dividends so that the Net After-Tax Return to holders of the DARTS will, under then-current law, be the same as the Net After-Tax Return that would have been derived if such dividends had so qualified.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Dividend roll </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">program</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">In order to seek to increase dividend income, the Fund may engage in a &#147;dividend roll program.&#148; &nbsp;Under such a program, the Fund will purchase dividend-paying stock prior to its ex-dividend date and sell it on or after the ex-dividend date. &nbsp;The Fund currently intends to hold such stock of U.S. domestic issuers at least 46 days and to meet certain other requirements in connection with its efforts to enable dividends from such stock to be eligible for the Dividends Received Deduction when distributed to shareholders. &nbsp;Dividends from stock of foreign issuers are not eligible for the Dividends Received Deduction.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">N/A</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Diversification</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=522 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Each Fund is diversified, which means that, with respect to 75% of its total assets, each Fund cannot invest (i) more than 5% of its total assets in securities of a single issuer or (ii) in securities representing more than 10% of the outstanding voting securities of an issuer.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Concentration</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund will not invest more than 25% of the value of its total assets in the securities of issuers primarily engaged in any one industry except the utilities industry, in which the Fund invests not less than 25% of its total assets; provided that this limitation does not apply to obligations issued or guaranteed as to interest and principal by the U.S. Government or its agencies or instrumentalities or to repurchase agreements secured by such obligations.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund normally invests more than 65% of its total assets in securities of companies in the utilities industry. &nbsp;No more than 25% of the Fund&#146;s total assets may be invested in securities of companies in any other one industry; provided that this limitation does not apply to obligations issued or guaranteed as to interest and principal by the U.S. Government or its agencies or instrumentalities or to repurchase agreements secured by such obligations or to bank money-market instruments.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Investment </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">companies</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">To the extent permitted by the 1940 Act, the Fund may invest in dividend paying securities of registered investment companies that invest primarily in investment grade securities. &nbsp;To the extent that investment advisory and brokerage expenses of an investment company are reflected in the price of its shares held in the Fund&#146;s portfolio, investment in securities of other investment companies results in a duplication of such expenses.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund may invest up to 10% of the value of its total assets in dividend-paying securities of registered investment companies that invest primarily in investment grade securities. &nbsp;The Fund will not acquire securities of any one investment company if, immediately thereafter, the Fund would own in the aggregate more than 3% of such company&#146;s total outstanding voting stock or securities issued by such company would have an aggregate value in excess of 5% of the Fund&#146;s total assets. &nbsp;In addition, the Fund and all other investment companies having the same adviser will not acquire securities of any one investment company amounting in the aggregate to more than 10% of such company&#146;s total outstanding voting stock. &nbsp;The investment companies in which the Fund invests include those open-
and clo






sed-end investment companies whose distributions qualify for the Dividends Received Deduction. &nbsp;To the extent that investment advisory and brokerage expenses of an investment company are reflected in the price of its shares held in the Fund&#146;s portfolio, there is a duplication of such expenses.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Preferred </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">stocks</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=522 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The preferred stocks in which each Fund invests are rated investment-grade (at least &#147;BBB&#148; by S&amp;P or &#147;Baa&#148; by Moody&#146;s) at the time of investment or are preferred stocks of issuers of investment-grade senior debt, some of which may have speculative characteristics, or if not rated, are of comparable quality as determined by the managers.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Common </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">stocks</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=522 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Each Fund invests in common stocks of issuers whose senior debt is rated investment grade or, in the case of issuers that have no rated senior debt outstanding, whose senior debt is considered by the managers to be of comparable quality.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Debt securities</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund may invest up to 35% of its total assets in debt obligations of a variety of domestic and foreign issuers, including corporations, banks, governments and their agencies, instrumentalities and political subdivisions and international and supranational organizations.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The debt obligations in which the Fund invests are rated investment-grade (at least &#147;BBB&#148; by S&amp;P or &#147;Baa&#148; by Moody&#146;s) at the time of investment or, if not rated, will be of comparable quality as determined by the managers.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The debt obligations in which the Fund invests are rated investment-grade (at least &#147;BBB&#148; by S&amp;P or &#147;Baa&#148; by Moody&#146;s) at the time of investment or, if not rated, are of comparable quality as determined by the managers.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Foreign </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">securities</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund invests in three or more countries (including the United States), but it may not invest more than 25% of its total assets in any single country, excluding the United States.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund may invest only in U.S. dollar denominated securities of foreign issuers. &nbsp;These securities may include investment grade preferred stocks of foreign corporations and investment grade debt obligations of a variety of foreign issuers, including foreign corporations and banks, foreign governments and their agencies, instrumentalities and political subdivisions, and international and supranational organizations such as the World Bank and the Asian Development Bank. &nbsp;The foreign securities in which the Fund invests are of issuers located in Western Europe, Canada, Australia, New Zealand or the Far East, although the Fund is not prohibited from investing in securities of issuers located in any other country or region. &nbsp;When selecting among issuers located in different countries, the managers consider such factors as relative yield, credit quality, interest rate trends and political and economic
stabil






ity.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund may invest in Russian securities, with restrictions. &nbsp;The Fund may invest a maximum of 10% of its total assets in Russian fixed income securities and a maximum of 5% of its total assets in Russian equity securities. &nbsp;Further, all Russian securities must be (i)&nbsp;denominated in USD; (ii)&nbsp;traded on a major exchange; and (3) held physically outside of Russia.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">As an alternative to investing directly in foreign securities, the Fund may invest in American Depositary Receipts (&#147;ADRs&#148;). &nbsp;The Fund will only invest in those ADRs sponsored by the issuer of the underlying foreign security.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund&#146;s prospectus does not reference the ability to invest in foreign securities.<B> </B>&nbsp;The Fund may not invest in Russian securities of any type.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Illiquid </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">securities</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund may invest up to 20% of its total assets in securities for which there is no readily available secondary market, including securities acquired in private placements, joint ventures and partnerships.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund may invest up to 20% of its net assets in securities purchased in direct placements.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">When-issued </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">purchases</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund may make contracts to purchase securities on a &#147;when-issued&#148; or &#147;delayed delivery&#148; basis. &nbsp;Pursuant to such contracts, delivery and payment for the securities occurs at a date later than the customary settlement date. &nbsp;The payment obligation and the interest rate on the securities are fixed at the time the Fund enters into the commitment, but interest will not accrue to the Fund until delivery of and payment for the securities. &nbsp;An amount of cash or high quality securities equal to the amount of the Fund&#146;s commitment is deposited in a segregated account at the Fund&#146;s custodian to secure the Fund&#146;s obligation. &nbsp;Although the Fund generally purchases securities on a when-issued or delayed delivery basis with the intention of actually acquiring the
securities






for its portfolio (or for delivery pursuant to options contracts it has entered into) and not for leverage purposes, the Fund may dispose of a security prior to settlement if the managers deem it advisable.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund may make contracts to purchase securities on a &#147;when-issued&#148; basis, which means that delivery and payment for the securities take place at a future date beyond the customary settlement date. &nbsp;The payment obligation and the interest rate on the securities are fixed at the time the Fund enters into the commitment, but interest does not accrue to the Fund until delivery of and payment for the securities. &nbsp;An amount of cash or short-term U.S. Government securities equal to the Fund&#146;s commitment is deposited in a segregated account at the Fund&#146;s custodian bank to secure the Fund&#146;s obligation. &nbsp;Although the Fund generally purchases securities on a when-issued basis with the intention of actually acquiring the securities for its portfolio (or for delivery pursuant to
options co






ntracts it has entered into), the Fund may dispose of a security prior to settlement if the managers deem it advisable.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2 rowspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Repurchase </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">agreements</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund may engage in repurchase agreements with broker-dealers, banks and other financial institutions.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund may invest up to 5% of its net assets in repurchase agreements with broker-dealers, banks and other financial institutions.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=522 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Each Fund may enter into repurchase agreements, provided that each Fund&#146;s custodian bank always has possession of securities serving as collateral whose market value at least equals the amount of the repurchase obligation. &nbsp;To minimize the risk of loss, each Fund will enter into repurchase agreements only with financial institutions considered by the managers to be creditworthy under guidelines adopted by the Fund&#146;s Board.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Reverse </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">repurchase </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">obligations</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=522 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Current Rating Agency Guidelines prohibit the Funds from entering into reverse repurchase agreements unless the relevant Rating Agency has advised the Fund in writing that any such action would not adversely affect the then-current rating of the preferred shares and that any such action will be in accordance with guidelines established by the relevant Rating Agency.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Securities loans</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=522 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Current Rating Agency Guidelines prohibit the Fund from lending any securities unless it has received written confirmation by the relevant Rating Agency that such action would not impair the ratings then assigned to the DARTS. &nbsp;In the future, and if permitted to do so, the Funds may seek to obtain additional income by making secured loans of their portfolio securities with a value of up to 33&#8531;% of each Fund&#146;s total assets. &nbsp;All securities loans will be made pursuant to agreements requiring that the loans be continuously secured by collateral in cash or short-term debt obligations at least equal at all times to the market value of the loaned securities. &nbsp;Each Fund may pay reasonable finders&#146;, administrative and custodial fees in connection with loans of its portfolio
securities.






&nbsp;Although voting rights or rights to consent accompanying loaned securities pass to the borrower, each Fund retains the right to call the loans at any time on reasonable notice and it will do so in order that the securities may be voted by the Fund with respect to matters materially affecting the Fund&#146;s investment. &nbsp;Each Fund may also call a loan in order to sell the securities involved. &nbsp;Loans of portfolio securities will be made only to borrowers considered by the managers to be creditworthy under guidelines adopted by each Fund&#146;s Board.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Active trading</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The portfolio turnover rate for Global Dividend Fund for the period ended July 31, 2006, was 24%. &nbsp;The Fund&#146;s annual portfolio turnover rate generally will not exceed 200% (excluding turnover of securities having maturities of one year or less).</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The managers make portfolio adjustments that reflect the Fund&#146;s investment strategy, but do not trade securities for the Fund for the purpose of seeking short-term profits. &nbsp;However, if the Fund is required to sell assets to effect mandatory redemptions of the preferred shares or to repurchase common shares, the Fund&#146;s portfolio turnover will be higher than would otherwise be the case. &nbsp;The Fund&#146;s intends to operate so that the dividends paid are designated as qualifying in their entirety for the Dividends Received Deduction, and tax considerations relating to the maintenance of the Fund&#146;s status as a regulated investment company limit the Fund&#146;s portfolio turnover and the amount of short-term capital gains it may realize.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The portfolio turnover rate for Premium Dividend Fund II for the period ended October 31, 2006, was 24%. The Fund&#146;s annual portfolio turnover rate generally will not exceed 200% (excluding turnover of securities having maturities of one year or less).</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Derivatives</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund is permitted to engage in options and futures transactions under its investment restrictions. &nbsp;The Fund may engage in such transactions when deemed advantageous in order to pursue the Fund&#146;s investment objective, to seek to hedge against the effects of market conditions, to seek to stabilize the value of its assets, to facilitate the sale of securities, to establish a position in the securities markets as a temporary substitute for purchasing particular securities, to manage the effective dollar-weighted average duration of the Fund&#146;s portfolio and for other appropriate risk management purposes. &nbsp;In addition, the Fund may seek to increase the current return of the Fund&#146;s portfolio by writing covered call or secured put options. &nbsp;The Fund&#146;s ability to engage in options
and fut






ures transactions may be limited by the Rating Agency Guidelines. &nbsp;The Fund will not engage in options and futures transactions for speculative purposes.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund is permitted to engage in options and futures transaction under its investment restrictions. &nbsp;The Fund may engage in such transactions to hedge against a decline in the value of securities included in the Fund&#146;s portfolio or in the price of securities which it plans to purchase for the Fund through the writing and purchase of options and the purchase and sale of financial contracts and related options on such futures contracts. &nbsp;In addition, the Fund may seek to increase the current return of the Fund&#146;s portfolio by writing covered call or secured put options. &nbsp;The Fund&#146;s ability to engage in options and futures transactions may be limited by the Rating Agency Guidelines. &nbsp;The Fund will not engage in options and futures transactions for leveraging purposes.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Short sales</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Rating Agency Guidelines provide that the Fund may not make short sales of securities unless covered, unless it has received written confirmation from the relevant Rating Agency that any such action would not impair the rating then assigned to the DARTS and that any such action will be in accordance with the guidelines established by the relevant Rating Agency.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Current Rating Agency Guidelines provide that the Fund may not make short sales of securities unless the relevant Rating Agency has advised the Fund in writing that any such action would not adversely affect its then-current rating of the preferred shares of the Fund and that any such action will be in accordance with guidelines established by the relevant Rating Agency.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Temporary </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">defensive </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">positions</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">When in the judgment of the managers a temporary defensive posture is appropriate, the Fund may invest its assets without limitation in U.S. Government obligations, high grade (i.e., rated within the two highest rating categories by a nationally recognized rating service) corporate debt securities of domestic issuers, U.S. dollar-denominated high grade debt obligations of foreign issuers, high grade, short-term money market instruments and cash.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">There may be times when, in the managers&#146; judgment, conditions in the securities markets would make pursuing the Fund&#146;s investment strategy inconsistent with achieving the Fund&#146;s investment objective. &nbsp;At such times, the managers may employ alternative strategies primarily to seek to reduce fluctuations in the value of the Fund&#146;s assets. &nbsp;In implementing defensive strategies, depending on the circumstances, the Fund may invest any portion of its portfolio in U.S. Government securities, investment grade corporate debt securities, high quality, short-term money market instruments and in cash. &nbsp;Investment income received by a Fund with respect to these investments will not be eligible for the Dividends Received Deduction when distributed to shareholders and may increase the amount
of add






itional dividends payable on the preferred shares. &nbsp;It is impossible to predict when, or for how long, the Fund may use these alternative strategies.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=109.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Borrowings</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Current Agency Guidelines prohibit the Fund from borrowing money except for the purpose of clearing transactions in portfolio securities (which borrowings shall under any circumstances be limited to the lesser of $10 million and an amount equal to 5% of the market value of the Fund&#146;s assets at the time of such borrowings and which borrowings shall be repaid within 60 days and not be extended or renewed), unless the Fund has received written confirmation from the relevant Rating Agency that such action would not impair the ratings then assigned to the DARTS.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=261><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Current Agency Guidelines prohibit the Fund from borrowing money unless the relevant Rating Agency has advised the Fund in writing that any such action would not adversely affect the then-current rating of the DARTS and that any such action will be in accordance with guidelines established by the relevant Rating Agency.</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<A NAME="_Toc155621869"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>COMPARISON OF PREFERRED DIVIDEND FUND TO PREMIUM DIVIDEND FUND II</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=103.2></TD><TD width=264></TD><TD width=264></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=103.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Preferred Dividend Fund</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Premium Dividend Fund II</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Business</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=528 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Each Fund is a diversified closed-end management investment company organized as a Massachusetts business trust.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Net assets as of September 30, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">$154.2 million</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin:0px; font-size:14.667px">$287.1 million</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Listing (common shares)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">NYSE under the ticker symbol &#147;PPF&#148;</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin:0px; font-size:14.667px">NYSE under the ticker symbol &#147;PDT&#148;</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Rating of preferred shares</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">&#147;aa&#148; from Moody&#146;s</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:24px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; padding-left:24px; font-size:14.667px"><FONT FACE="Times New Roman">&#147;AA&#148; from S&amp;P</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:24px; text-indent:-24px; font-family:Wingdings; font-size:14.667px"><FONT FACE="Wingdings">&#167;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; padding-left:24px; font-size:14.667px"><FONT FACE="Times New Roman">&#147;aa2&#148; from Moody&#146;s</FONT></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Fiscal year end date</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">5/31</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin:0px; font-size:14.667px">10/31</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Investment adviser, sub-adviser and portfolio managers</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=528 colspan=2><P style="line-height:17.333px; margin:0px; font-size:14.667px"><I>Investment Adviser:</I></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">John Hancock Advisers, LLC</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><I>Investment Sub-Adviser:</I></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">MFC Global Investment Management (U.S.), LLC</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><I>Portfolio managers:</I></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Gregory K. Phelps</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">- &nbsp;Joined MFC Global (U.S.) in 2005</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">- &nbsp;Joined Adviser in 1995</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">- &nbsp;Began business career in 1980</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Mark T. Maloney</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">- Joined MFC Global (U.S.) in 2005</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">- Joined Adviser in 1982</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">- Began business career in 1976</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px"><I>Managers share investment strategy and decisions.</I></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Investment objective</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund&#146;s investment objective is to provide a high level of current income, consistent with preservation of capital. &nbsp;This objective is non-fundamental and can be changed without shareholder approval.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund&#146;s investment objective is to provide high current income, consistent with modest growth of capital for holders of its common shares. &nbsp;The potential for modest capital appreciation on the Fund&#146;s investments in common stocks is a secondary consideration. &nbsp;The managers manage the Fund&#146;s portfolio to maximize income qualifying for the Dividends Received Deduction. &nbsp;This objective is not fundamental and may be changed without shareholder approval.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Primary investments</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund pursues its objective by investing in preferred stocks that, in the opinion of the managers, may be undervalued relative to similar securities in the marketplace. &nbsp;Under normal circumstances, the Fund invests at least 80% of its assets in dividend-paying preferred securities.<B> &nbsp;</B>The &#147;assets&#148; are defined as net assets including the liquidation preference amount of the preferred shares plus borrowings for investment purposes.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund pursues its investment objective by investing in a diversified portfolio of dividend paying preferred and common stocks. &nbsp;Under normal circumstances, the Fund invests at least 80% of its net assets in dividend-paying securities. &nbsp;The &#147;assets&#148; are defined as net assets, including the liquidation preference amount of the DARTS, plus borrowings for investment purposes. &nbsp;The Fund normally invests more than 65% of its total assets in securities of companies in the utilities industry.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Investment strategy</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The managers perform their own investment analysis when making investment decisions for the Fund and do not rely solely on the ratings assigned to rated securities. &nbsp;The managers&#146; analysis may include consideration of the issuer&#146;s experience and managerial strength, changing financial condition, borrowing requirements or debt maturity schedules, and its responsiveness to changes in business conditions and interest or dividend rates. &nbsp;The managers also consider relative values based on anticipated cash flow, interest or dividend coverage, asset coverage, earnings prospects, current yield, price stability and the underlying fundamental characteristics of the issuer, with particular emphasis on the potential for timely payment of dividends and interest.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The managers perform their own investment analysis when making investment decisions for the Fund and do not rely solely on the ratings assigned to securities by the Rating Agencies. &nbsp;The managers&#146; analysis may include consideration of the issuer&#146;s experience and managerial strength, changing financial condition, borrowing requirements or debt maturity schedules, and its responsiveness to changes in business conditions and interest or dividend rates. &nbsp;The managers also consider relative values based on anticipated cash flow, interest or dividend coverage, asset coverage and earnings prospects.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">In selecting preferred stocks, the managers consider current effective yield, price stability and the underlying fundamental characteristics of the issuer, with particular emphasis on debt and dividend coverage and the potential for timely payment of dividends. &nbsp;The managers select common stocks on the basis of their current dividend rate and fundamental value. &nbsp;The Fund focuses on common stocks of those issuers which, in the opinion of the managers, have strong fundamental characteristics, large market capitalizations, favorable credit quality and current dividend yields generally higher than the currently available dividend yield quoted on the S&amp;P 500 Index. &nbsp;In assessing the fundamental values of common stocks, the managers concentrate on the relationship between the issuer&#146;s underlying earning power and the relevant price of the issuer&#146;s stock. &nbsp;The potential for modest
capital app






reciation on a Fund&#146;s investments in common stocks is a secondary consideration.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The managers attempt to reduce investment and market risk by allocating substantially all of the Fund&#146;s assets among the following three sectors:</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Common Stock Sector &#151; consisting of common stocks with current dividend yields generally higher than the currently available dividend yield quoted on the S&amp;P 500 Index.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Preferred Stock Sector &#151; consisting of cumulative fixed-rate preferred stocks, sinking fund preferred stocks, convertible preferred stocks and adjustable rate preferred stocks which the managers believe have above-average current effective dividend yields.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Low Volatility Sector &#151; consisting predominantly of auction preferred stocks and money market instruments, as well as certain dividend-paying securities which, in the managers&#146; opinion, are currently exhibiting greater price stability than the securities in the Common and Preferred Stock Sectors.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The managers determine the assets allocated to each of the above sectors based on its assessment of the maximum level of current income that can be achieved consistent with the Fund&#146;s objective of modest growth of capital. &nbsp;The managers rely in part on quantitative analytical techniques which measure the relative risks and opportunities of each sector based on current and historical market data, as well as on its own assessment of economic and market conditions. &nbsp;During periods of stock market weakness or uncertain market or economic conditions, as determined by the managers, the Fund may substantially increase the portion of their assets invested in the Low Volatility Sector. &nbsp;The managers continually review the Fund&#146;s asset allocation and make adjustments as they deem appropriate.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Dividends Received Deduction</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">So long as any preferred shares are outstanding, when considering the relative yields available from alternative investments, the managers manage the Fund&#146;s portfolio to maximize the income derived from such securities that qualifies for the Dividends Received Deduction. &nbsp;If the income derived from such investments does not so qualify, the managers will take into account whether the yields available on non-Dividends Received Deduction qualifying securities to compensate for the additional dividends that the Fund will be required to pay to the holders of the preferred shares. &nbsp;Because only equity securities of U.S. issuers pay dividends from which the Fund may make distributions that qualify for the Dividends Received Deduction, depending on the relative yields available from time to time on
non-Dividends






 Received Deduction qualifying securities and Dividends Received Deduction qualifying securities, a substantial portion of the Fund&#146;s total assets may be invested in dividend paying securities of U.S. issuers.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The managers manage the Fund&#146;s portfolio to maximize income qualifying for the Dividends Received Deduction. &nbsp;The Fund operates so that dividends paid qualify in their entirety for the Dividends Received Deduction and the Fund does not intend to realize any net capital gains, but there is no assurance that this result will be achieved. &nbsp;If any dividends on the DARTS do not so qualify because the Fund realizes net capital gains or receives net income, excluding net capital gains, in excess of dividends that qualify for the Dividends Received Deduction, the Fund will pay additional dividends so that the Net After-Tax Return to holders of the DARTS will, under then-current law, be the same as the Net After-Tax Return that would have been derived if such dividends had so qualified.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Diversification</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=528 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Each Fund is diversified, which means that, with respect to 75% of its total assets, the Fund cannot invest (i) more than 5% of its total assets in securities of a single issuer or (ii) in securities representing more than 10% of the outstanding voting securities of an issuer.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Concentration</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund emphasizes investments in preferred stocks issued by corporations in the financial services and utilities sectors, as well as other regulated industries. &nbsp;However, the Fund does not invest more than 25% of the value of its total assets in the securities of issuers primarily engaged in the financial services sector, utilities sectors or any other industry; provided that this limitation does not apply to obligations issued or guaranteed as to interest and principal by the U.S. Government or its agencies or instrumentalities or to repurchase agreements secured by such obligations.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund normally invests more than 65% of its total assets in securities of companies in the utilities industry. &nbsp;No more than 25% of the Fund&#146;s total assets may be invested in securities of companies in any other one industry; provided that this limitation does not apply to obligations issued or guaranteed as to interest and principal by the U.S. Government or its agencies or instrumentalities or to repurchase agreements secured by such obligations or to bank money-market instruments.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Preferred </P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">stocks</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=528 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The preferred stocks in which each Fund invests are rated investment-grade (at least &#147;BBB&#148; by S&amp;P or &#147;Baa&#148; by Moody&#146;s) at the time of investment or are preferred stocks of issuers of investment-grade senior debt, some of which may have speculative characteristics or, if not rated, are of comparable quality as determined by the managers.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Common </P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">stocks</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Up to 20% of the Fund&#146;s total assets may be invested in common stocks. &nbsp;The Fund invests in common stocks of issuers whose senior debt is rated investment-grade or, in the case of issuers that have no rated senior debt outstanding, whose senior debt is considered by the managers to be of comparable quality.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund invests in common stocks of issuers whose senior debt is rated investment-grade or, in the case of issuers that have no rated senior debt outstanding, whose senior debt is considered by the managers to be of comparable quality.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Debt securities</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund may invest up to 20% of its total assets in debt securities with ratings equivalent to those of the preferred stocks in which the Fund may invest. &nbsp;Debt securities in which the Fund may invest include securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities and custodial receipts therefor; securities issued or guaranteed by a foreign government or any of its political subdivisions, authorities, agencies or instrumentalities or by international or supranational entities; corporate debt securities including notes, bonds and debentures; certificates of deposit and bankers&#146; acceptances issued or guaranteed by, or time deposits maintained at banks (including U.S. or foreign branches of U.S. banks or U.S. or foreign branches of foreign banks) having total assets of
more tha






n $1 billion; commercial paper; and mortgage related securities. &nbsp;These securities are U.S. dollar denominated and may be of any maturity.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The debt obligations in which the Fund invests are rated investment-grade (at least &#147;BBB&#148; by S&amp;P or &#147;Baa&#148; by Moody&#146;s) at the time of investment or, if not rated, are of comparable quality as determined by the managers.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">Foreign </P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">securities</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund will not invest in foreign denominated securities. The Fund may not invest in Russian securities of any type.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund&#146;s prospectus does not reference the ability to invest in foreign securities.<B> </B>The Fund may not invest in Russian securities of any type.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Illiquid securities</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund may invest up to 5% of its total assets in securities for which there is no readily available secondary market, including securities acquired in private placements, joint ventures and partnerships.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund may invest up to 20% of its net assets in securities purchased in direct placements.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">When-issued purchases</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=528 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Each Fund may make contracts to purchase securities on a &#147;when-issued&#148; basis, which means that delivery and payment for the securities take place at a future date beyond the customary settlement date. &nbsp;The payment obligation and the interest rate on the securities are fixed at the time the Fund enters into the commitment, but interest does not accrue to the Fund until delivery of and payment for the securities. &nbsp;An amount of cash or short-term U.S. Government securities equal to the Fund&#146;s commitment is deposited in a segregated account at the Fund&#146;s custodian bank to secure the Fund&#146;s obligation. &nbsp;Although the Fund generally purchases securities on a when-issued or delayed delivery basis with the intention of actually acquiring the securities for its portfolio
(or for






delivery pursuant to options contracts it has entered into), the Fund may dispose of a security prior to settlement if the managers deem it advisable.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2 rowspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Repurchase agreements</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund may engage in repurchase agreements with broker-dealers, banks and other financial institutions.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund may invest up to 5% of its net assets in repurchase agreements with broker-dealers, banks and other financial institutions.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=528 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Each Fund may enter into repurchase agreements, provided that the Fund&#146;s custodian bank always has possession of securities serving as collateral whose market value at least equals the amount of the repurchase obligation. &nbsp;To minimize this risk of loss, each Fund enters into repurchase agreements only with financial institutions considered by the managers to be creditworthy under guidelines adopted by the Fund&#146;s Board.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Reverse repurchase agreements</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund is currently prohibited by current Rating Agency Guidelines from entering into reverse repurchase agreements unless the relevant Rating Agency has advised the Fund in writing that any such action would not adversely affect the then-current rating of the preferred shares.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund is currently prohibited by current Rating Agency Guidelines from entering into reverse repurchase agreements unless the relevant Rating Agency has advised the Fund in writing that any such action would not adversely affect the then-current rating of the preferred shares and that any such action will be in accordance with guidelines established by the relevant Rating Agency.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2 rowspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Securities loans</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund does not currently intend to lend portfolio securities.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund is currently prohibited by Rating Agency Guidelines from lending portfolio securities.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=528 colspan=2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">In the future, and if permitted to do so, the Funds may seek to obtain additional income by making secured loans of their portfolio securities with a value of up to 33&#8531;% of each Fund&#8217;s total assets. &nbsp;All securities loans are made pursuant to agreements requiring that the loans be continuously secured by collateral in cash or short-term debt obligations at least equal at all times to the market value of the loaned securities. &nbsp;Each Fund may pay reasonable finders&#146;, administrative and custodial fees in connection with loans of its portfolio securities. &nbsp;Although voting rights or rights to consent accompanying loaned securities pass to the borrower, each Fund retains the right to call the loans at any time on reasonable notice and it will do so
in ord






er that the securities may be voted by the Fund with respect to matters materially affecting the Fund&#146;s investment. &nbsp;Each Fund may also call a loan in order to sell the securities involved. &nbsp;Loans of portfolio securities are made only to borrowers considered by the managers to be creditworthy under guidelines adopted by each Fund&#146;s Board.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Active trading</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The portfolio turnover rate for Preferred Dividend Fund for the period ended May 31, 2006, was 16%. &nbsp;The Fund&#146;s annual portfolio turnover rate generally will not exceed 200% (excluding turnover of securities having maturities of one year or less).</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The managers make portfolio adjustments that reflect the Fund&#146;s investment strategy, but do not trade securities for the Fund for the purpose of seeking short-term profits. &nbsp;However, if the Fund is required to sell assets to effect mandatory redemptions of the preferred shares or to repurchase common shares, the Fund&#146;s portfolio turnover will be higher than would otherwise be the case. &nbsp;The Fund&#146;s intention to operate so that the dividends paid are designated as qualifying in their entirety for the Dividends Received Deduction and tax considerations relating to the maintenance of the Fund&#146;s status as a regulated investment company limit the Fund&#146;s portfolio turnover and the amount of short-term capital gains it may realize.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The portfolio turnover rate for Premium Dividend Fund II for the period ended October 30, 2005 was 11%. The Fund&#146;s annual portfolio turnover rate generally will not exceed 200% (excluding turnover of securities having maturities of one year or less).</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Derivatives</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund is permitted to engage in options, futures and swap transactions under its Investment Transactions. &nbsp;The Fund may engage in such transactions when deemed advantageous in order to pursue the Fund&#146;s investment objective, to seek to hedge against the effects of market conditions, to seek to stabilize the value of its assets, to facilitate the sale of securities, to establish a position in the securities markets as a temporary substitute for purchasing particular securities, to manage the effective duration of the Fund&#146;s portfolio and for appropriate risk management purposes. &nbsp;In addition, the Fund is permitted under the Fund&#146;s investment restrictions to seek to increase the current return of the Fund&#146;s portfolio by writing covered call or secured put options. &nbsp;However,
the Fund






does not currently intend to engage in options, futures and swaps transactions other than for hedging and risk management purposes. &nbsp;The Fund&#146;s ability to engage in options, futures and swaps transactions may be limited by the Rating Agency Guidelines.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">The Fund is permitted to engage in options and futures transaction under its investment restrictions. &nbsp;The Fund may engage in such transactions to hedge against a decline in the value of securities included in the Fund&#146;s portfolio or in the price of securities which it plans to purchase for the Fund through the writing and purchase of options and the purchase and sale of financial contracts and related options on such futures contracts. &nbsp;In addition, the Fund may seek to increase the current return of the Fund&#146;s portfolio by writing covered call or secured put options. &nbsp;The Fund&#146;s ability to engage in options and futures transactions may be limited by the Rating Agency Guidelines. &nbsp;The Fund will not engage in options and futures transactions for leveraging purposes.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Short sales</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Current Rating Agency Guidelines provide that the Fund may not make short sales of securities unless covered and unless it has received written confirmation from the relevant Rating Agency that any such action would not impair the rating then assigned to the preferred shares.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Current Rating Agency Guidelines provide that the Fund may not make short sales of securities unless the Rating Agency has advised the Fund in writing that any such action would not adversely affect its then-current rating of the preferred shares of the Fund and that any such action will be in accordance with guidelines established by the relevant Rating Agency.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Temporary defensive positions</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">There may be times when, in the managers&#146; judgment, conditions in the securities market would make pursuit of the Fund&#146;s investment strategy inconsistent with achievement of the Fund&#146;s investment objective. &nbsp;At such times, the managers may employ alternative strategies primarily to seek to reduce fluctuations in the value of the Fund&#146;s assets. &nbsp;In implementing these temporary defensive strategies, depending on the circumstances, the Fund may invest an unlimited portion of its portfolio in U.S. dollar-denominated corporate debt securities, short-term money market instruments, in each case rated within the two highest rating categories by a nationally recognized statistical rating organization, U .S. Government securities and cash .</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">There may be times when, in the managers&#146; judgment, conditions in the securities markets would make pursuing the Fund&#146;s investment strategy inconsistent with achieving the Fund&#146;s investment objective. &nbsp;At such times, the managers may employ alternative strategies primarily to seek to reduce fluctuations in the value of the Fund&#146;s assets. &nbsp;In implementing defensive strategies, depending on the circumstances, the Fund may invest any portion of its portfolio in U.S. Government securities, investment grade corporate debt securities, high quality, short-term money market instruments and in cash. &nbsp;Investment income received by a Fund with respect to these investments will not be eligible for the Dividends Received Deduction when distributed to shareholders and may increase the amount
of add






itional dividends payable on the preferred shares. &nbsp;It is impossible to predict when, or for how long, the Fund may use these alternative strategies.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=103.2><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Borrowings</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Current Rating Agency Guidelines prohibit the Fund from borrowing money except for the purpose of clearing transactions in portfolio securities (which borrowings shall under any circumstances be limited to the lesser of $10 million and an amount equal to 5% of the market value of the Fund&#146;s assets at the time of such borrowing and which borrowings shall be repaid within 60 days and not be extended or renewed), unless the Fund has received written confirmation from the relevant Rating Agency that such action would not impair the ratings then assigned to the preferred shares. &nbsp;If the Fund&#146;s borrowings exceed 5% of its net assets, the Fund may not purchase additional portfolio securities.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=264><P style="line-height:17.333px; margin-top:0px; margin-bottom:7.333px; font-size:14.667px">Current Rating Agency Guidelines prohibit the Fund from borrowing money, unless the relevant Rating Agency has advised the Fund in writing that any such action would not adversely affect the then-current rating of the DARTS and that any such action will be in accordance with guidelines established by the relevant Rating Agency.</P>
</TD><A NAME="_Toc155621870"></A></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:14.667px" align=center><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>FEE, EXPENSE AND DISTRIBUTIONS ON PREFERRED SHARES TABLE FOR COMMON SHAREHOLDERS OF THE FUNDS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>Summary of Expense Comparison</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">As the tables below indicate, the pro forma total annual expenses of Premium Dividend Fund II are expected to be lower than your Fund&#146;s total annual expenses.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>The Funds&#146; Expenses</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The tables below illustrate the anticipated reduction in operating expenses expected as a result of the Reorganization. &nbsp;The tables set forth (i) the fees, expenses and distributions to preferred shareholders paid by Premium Dividend Fund I for the 12-month period ended September 30, 2006, (ii) the fees, expenses and distributions to preferred shareholders paid by Premium Dividend Fund II for the 12-month period ended October 31, 2006; (iii) the fees, expenses, and distributions to preferred shareholders paid by Select Dividend Trust for the 12-month period ended June 30, 2006; (iv) the fees, expenses and distributions to preferred shareholders paid by Global Dividend Fund for the 12-month period ended July 31, 2006; (v) the fees, expenses and distributions to preferred shareholders paid by Preferred Dividend Fund for the 12-month period ended May 31, 2006; and (vi) the pro forma fees, expenses and
distributions






to preferred shareholders for the Acquiring Fund for the 12-month period ended October 31, 2006, assuming each of the Reorganizations had been completed at the beginning of such period. &nbsp;The following tables show each Fund&#146;s expenses as a percentage of net assets attributable to common shares and reflect the issuance of preferred shares in an amount equal to 34.0% of the Acquiring Fund&#146;s total assets, 31.2% of Premium Dividend Fund I&#146;s total assets, 33.2% of Select Dividend Trust&#146;s total assets, 34.4% of Global Dividend Fund&#146;s total assets, 32.5% of Preferred Dividend Fund&#146;s total assets and 34.5% of the combined Fund&#146;s total assets after the Reorganizations are completed.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">As shown below, the Reorganizations are expected to result in decreased total annual expenses for shareholders of each Fund.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=209.2></TD><TD width=74.933></TD><TD width=82.2></TD><TD width=62.733></TD><TD width=62.733></TD><TD width=64.4></TD><TD width=82.2></TD></TR>
<TR><TD valign=top width=209.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=347 colspan=5><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>ACTUAL</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=82.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>PRO FORMA(1)</P>
</TD></TR>
<TR><TD valign=top width=209.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=74.933><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Premium </B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Dividend </B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Fund I </B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(PDF)</B></P>
</TD><TD valign=top width=82.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Premium </B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Dividend </B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Fund II </B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(PDT)</B></P>
</TD><TD valign=top width=62.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Select </B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Dividend </B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Trust (DIV)</B></P>
</TD><TD valign=top width=62.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Global Dividend Fund (PGD)</B></P>
</TD><TD valign=top width=64.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Preferred Dividend Fund (PPF)</B></P>
</TD><TD valign=top width=82.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Premium Dividend Fund II (PDT)</B></P>
</TD></TR>
<TR><TD valign=top width=209.2><P style="line-height:14.667px; margin:0px; font-size:12px"><I>Common Shareholder </I></P>
<P style="line-height:14.667px; margin:0px; font-size:12px"><I>Transaction Expenses</I>(2)</P>
</TD><TD valign=top width=74.933><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=82.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=64.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=82.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=209.2><P style="line-height:14.667px; margin:0px; font-size:12px">Sales Load (as a percentage </P>
<P style="line-height:14.667px; margin:0px; font-size:12px">of offering price)</P>
</TD><TD valign=top width=74.933><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>None(3)</P>
</TD><TD valign=top width=82.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>None(3)</P>
</TD><TD valign=top width=62.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>None(3)</P>
</TD><TD valign=top width=62.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>None(3)</P>
</TD><TD valign=top width=64.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>None(3)</P>
</TD><TD valign=top width=82.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>None(3)</P>
</TD></TR>
<TR><TD valign=top width=209.2><P style="line-height:14.667px; margin:0px; font-size:12px">Dividend Reinvestment </P>
<P style="line-height:14.667px; margin:0px; font-size:12px">Plan Fees</P>
</TD><TD valign=top width=74.933><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>None(4)</P>
</TD><TD valign=top width=82.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>None(4)</P>
</TD><TD valign=top width=62.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>None(4)</P>
</TD><TD valign=top width=62.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>None(4)</P>
</TD><TD valign=top width=64.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>None(4)</P>
</TD><TD valign=top width=82.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>None(4)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=164.333></TD><TD width=74.133></TD><TD width=80.733></TD><TD width=79.4></TD><TD width=79.4></TD><TD width=79.4></TD><TD width=81></TD></TR>
<TR><TD valign=top width=164.333><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px">(Unaudited)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=393.067 colspan=5><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>ACTUAL</B></P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:24px; font-size:12px" align=center><B>Percentage of Net Assets Attributable to Common Shares (Assuming Leverage as Described Above)(5)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=81><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>PRO FORMA(1)</B></P>
</TD></TR>
<TR><TD valign=top width=164.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=74.133><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=center><B>Premium Dividend Fund I (PDF)</B></P>
</TD><TD valign=top width=80.733><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=center><B>Premium Dividend Fund II (PDT)</B></P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=center><B>Select Dividend Trust (DIV)</B></P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=center><B>Global Dividend Fund (PGD)</B></P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=center><B>Preferred Dividend Fund (PPF)</B></P>
</TD><TD valign=top width=81><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=center><B>Premium Dividend Fund II (PDT)</B></P>
</TD></TR>
<TR><TD valign=top width=164.333><P style="line-height:14.667px; margin:0px; font-size:12px"><I>Annual Expenses </I>(as a percentage of net assets attributable to common shares)</P>
</TD><TD valign=top width=74.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=79.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=79.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=79.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=81><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=164.333><P style="line-height:14.667px; margin:0px; font-size:12px">Management Fee</P>
</TD><TD valign=top width=74.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.17%(6)</P>
</TD><TD valign=top width=80.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.23%(6)</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.19%</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.22%</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.21%</P>
</TD><TD valign=top width=81><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.21%(6)</P>
</TD></TR>
<TR><TD valign=top width=164.333><P style="line-height:14.667px; margin:0px; font-size:12px">Administration Fee</P>
</TD><TD valign=top width=74.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.15%</P>
</TD><TD valign=top width=80.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.16%</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.22%</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.23%</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.23%</P>
</TD><TD valign=top width=81><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.15%</P>
</TD></TR>
<TR><TD valign=top width=164.333><P style="line-height:14.667px; margin:0px; font-size:12px">Interest Payments on Borrowed Funds</P>
</TD><TD valign=top width=74.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>None</P>
</TD><TD valign=top width=80.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>None</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>None</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>None</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>None</P>
</TD><TD valign=top width=81><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>None</P>
</TD></TR>
<TR><TD valign=top width=164.333><P style="line-height:14.667px; margin:0px; font-size:12px">Other Expenses (7)</P>
</TD><TD valign=top width=74.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.29%</P>
</TD><TD valign=top width=80.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.28%</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.29%</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.34%</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.46%</P>
</TD><TD valign=top width=81><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.22%</P>
</TD></TR>
<TR><TD valign=top width=164.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=74.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=79.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=79.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=79.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=81><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=164.333><P style="line-height:14.667px; margin:0px; font-size:12px">Total Annual Expenses</P>
</TD><TD valign=top width=74.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.61%</P>
</TD><TD valign=top width=80.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.67%</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.70%</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.79%</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.90%</P>
</TD><TD valign=top width=81><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.58%</P>
</TD></TR>
<TR><TD valign=top width=164.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=74.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=80.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=79.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=79.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=79.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=81><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=164.333><P style="line-height:14.667px; margin:0px; font-size:12px">Dividends on Preferred Shares</P>
</TD><TD valign=top width=74.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.72%(8)(9)</P>
</TD><TD valign=top width=80.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>2.09%(8)(10)</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.62%(8)(11)</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.81%(8)(12)</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.72%(8)(13)</P>
</TD><TD valign=top width=81><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.93%(8)(14)</P>
</TD></TR>
<TR><TD valign=top width=164.333><P style="line-height:14.667px; margin:0px; padding-left:12px; text-indent:-12px; font-size:12px">Total Annual Fund Operating Expenses and Dividends on Preferred Shares</P>
</TD><TD valign=top width=74.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>3.33%</P>
</TD><TD valign=top width=80.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>3.76%</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>3.32%</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>3.60%</P>
</TD><TD valign=top width=79.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>3.62%</P>
</TD><TD valign=top width=81><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>3.51%</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">(1) The <I>pro forma</I> column shown assumes all of the Reorganizations are completed. &nbsp;As described herein, an unfavorable vote by one of the Acquired Funds will not affect the implementation of the Reorganization by another Acquired Fund if approved by such other Acquired Fund. &nbsp;As such, there could be other combinations of approved Reorganizations.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">(2) No expense information is presented with respect to preferred shares because holders of preferred shares do not bear any transaction or operating expenses of any of the Funds and will not bear any transaction or operating expenses of the combined Fund.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">(3) Shares of Funds purchased on the secondary market are not subject to sales charges but may be subject to brokerage commissions or other charges. &nbsp;The table does not include an underwriting commission paid by shareholders in the initial offering of each Fund.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">(4) Each participant in a Fund&#146;s dividend reinvestment plan pays a proportionate share of the brokerage commissions incurred with respect to open market purchases in connection with such plan.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">(5) Stated as percentages of net assets attributable to common shares, assuming no issuance of preferred shares or borrowings, each Fund&#146;s expenses would be as follows:</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=159.267></TD><TD width=71.867></TD><TD width=76.133></TD><TD width=62.067></TD><TD width=62.067></TD><TD width=64.4></TD><TD width=78.733></TD></TR>
<TR><TD valign=top width=159.267><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px">(Unaudited)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=336.533 colspan=5><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>ACTUAL</B></P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:24px; font-size:12px" align=center><B>Percentage of Net Assets Attributable to Common Shares (Assuming No Leverage)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=78.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>PRO FORMA(1)</P>
</TD></TR>
<TR><TD valign=top width=159.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=71.867><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=center><B>Premium Dividend Fund I (PDF)</B></P>
</TD><TD valign=top width=76.133><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=center><B>Premium Dividend Fund II (PDT)</B></P>
</TD><TD valign=top width=62.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=center><B>Select Dividend Trust (DIV)</B></P>
</TD><TD valign=top width=62.067><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=center><B>Global Dividend Fund (PGD)</B></P>
</TD><TD valign=top width=64.4><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=center><B>Preferred Dividend Fund (PPF)</B></P>
</TD><TD valign=top width=78.733><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px" align=center><B>Premium Dividend Fund II (PDT)</B></P>
</TD></TR>
<TR><TD valign=top width=159.267><P style="line-height:14.667px; margin:0px; font-size:12px">Annual Expenses (as a percentage of net assets attributable to common shares)</P>
</TD><TD valign=top width=71.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=76.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=64.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=159.267><P style="line-height:14.667px; margin:0px; font-size:12px">Management Fee</P>
</TD><TD valign=top width=71.867><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.79%(6)</P>
</TD><TD valign=top width=76.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.79%(6)</P>
</TD><TD valign=top width=62.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.80%</P>
</TD><TD valign=top width=62.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.80%</P>
</TD><TD valign=top width=64.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.80%</P>
</TD><TD valign=top width=78.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.80%(6)</P>
</TD></TR>
<TR><TD valign=top width=159.267><P style="line-height:14.667px; margin:0px; font-size:12px">Administration Fee</P>
</TD><TD valign=top width=71.867><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.10%</P>
</TD><TD valign=top width=76.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.10%</P>
</TD><TD valign=top width=62.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.15%</P>
</TD><TD valign=top width=62.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.15%</P>
</TD><TD valign=top width=64.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.15%</P>
</TD><TD valign=top width=78.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.10%</P>
</TD></TR>
<TR><TD valign=top width=159.267><P style="line-height:14.667px; margin:0px; font-size:12px">Other Expenses (7)</P>
</TD><TD valign=top width=71.867><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.20%</P>
</TD><TD valign=top width=76.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.18%</P>
</TD><TD valign=top width=62.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.19%</P>
</TD><TD valign=top width=62.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.23%</P>
</TD><TD valign=top width=64.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.30%</P>
</TD><TD valign=top width=78.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.09%</P>
</TD></TR>
<TR><TD valign=top width=159.267><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=71.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=76.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=62.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=64.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=159.267><P style="line-height:14.667px; margin:0px; font-size:12px">Total Annual Expenses</P>
</TD><TD valign=top width=71.867><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.09%</P>
</TD><TD valign=top width=76.133><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.07%</P>
</TD><TD valign=top width=62.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.14%</P>
</TD><TD valign=top width=62.067><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>1.18%</P>
</TD><TD valign=top width=64.4><P style="line-height:14.667px; margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.25%</P>
</TD><TD valign=top width=78.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0.99%</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">(6)<B> </B>Reflects the effective management fee rate. &nbsp;Premium Dividend Fund I and Premium Dividend Fund II pay a monthly management fee to the Adviser at an annual rate of 0.50% of the Fund&#146;s average weekly NAV and the value attributable to the preferred shares (collectively, &#147;managed assets&#148;), plus 5.00% of the Fund&#146;s weekly gross income. &nbsp;The Adviser&#146;s total fee with respect to each Fund is limited to a maximum amount equal to 1.00% annually of the Fund&#146;s average weekly managed assets.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">
(7) In connection with the Reorganizations, there are certain other transaction
expenses not reflected in &#147;Other Expenses&#148; which include, but are not
limited to: costs related to the preparation, printing and distributing of this
Joint Proxy Statement/Prospectus to shareholders; costs related to preparation
and distribution of materials distributed to each Fund&#146;s Board; expenses
incurred in connection with the preparation of each Agreement and Plan of
Reorganization and the registration statement on Form N-14; SEC and state
securities commission filing fees; legal and audit fees; portfolio transfer
taxes (if any); and any similar expenses incurred in connection with the
Reorganizations. &nbsp;In accordance with applicable SEC rules, the Board of
each Fund reviewed the fees and expenses that will be borne directly or
indirectly by the Funds in connection with the Reorganizations. &nbsp;After
considering various alternatives for all

ocating these costs borne by Funds and not paid by the Adviser, the Board of
each Fund agreed that, in the event the Reorganizations are approved and
completed, the expenses of the Reorganizations will be shared by the Acquired
Funds and the Acquiring Fund in proportion to and up to the amount of their
first year&#146;s projected annual expense savings as a result of the
Reorganizations and the Adviser will bear the balance of these expenses.
&nbsp;The table below summarizes each Fund&#146;s net assets (common shares
only) at October 31, 2006, projected annual expense savings to each Fund as a
result of the Reorganizations, allocation of Reorganization expenses among the
Funds in dollars and percentages, an estimated pay-back period (in years) and
the resulting effect on each Fund&#146;s NAV per common share at October 31,
2006. &nbsp;Some Funds will benefit more from projected annual expense savings
of the Reorganizations than other Funds. &nbsp;The projected annual expense
savings are generally not expected to be immediately realized. &nbsp;If
shareholders sell their common shares prior to the estimated pay-back period,
then they may not realize any of the projected expense savings resulting from
the reduced expense ratio of the combined Fund. &nbsp;The NAV per common share
of each Fund will be reduced at the closing date of the respective
Reorganization to reflect the allocation of Reorganization expenses to each
Fund. &nbsp;The reduction in NAV per common share resulting from the allocation
of Reorganization expenses, when compared to the relative net asset sizes of
each Fund involved in the Reorganizations, will be greater in some Funds than
others. &nbsp;In the event a Reorganization is not completed, the costs
associated with such Reorganization will be borne by the Acquiring Fund and the
remaining Acquired Funds whose shareholders have approved their respective
Reorganizations. &nbsp;The numbers presented in the table are estimates; actual
results may differ.</P>

<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=140.933></TD><TD width=87.733></TD><TD width=74.333></TD><TD width=111.733></TD><TD width=76.6></TD><TD width=83.2></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=140.933><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Fund</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(Unaudited)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=87.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Net Assets (Common Shares Only)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=74.333><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Projected Annual Expense Savings</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=111.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Reorganization Expense Allocation in Dollars/Percentage</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=76.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Estimated Payback Period (in Months)</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=83.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Reduction to Net Asset Value per Common Share</B></P>
</TD></TR>
<TR><TD valign=top width=140.933><P style="line-height:14.667px; margin:0px; font-size:12px">Premium Dividend Fund I (PDT)</P>
</TD><TD valign=top width=87.733><P style="line-height:14.667px; margin:0px; font-size:12px">$155,962,651</P>
</TD><TD valign=top width=74.333><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>$152,827</P>
</TD><TD valign=top width=111.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>$120,497 / 17.1 %</P>
</TD><TD valign=top width=76.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>9</P>
</TD><TD valign=top width=83.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>$0.00788</P>
</TD></TR>
<TR><TD valign=top width=140.933><P style="line-height:14.667px; margin:0px; font-size:12px">Premium Dividend Fund II (PDF)</P>
</TD><TD valign=top width=87.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>$193,704,386</P>
</TD><TD valign=top width=74.333><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>$134,403</P>
</TD><TD valign=top width=111.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>$105,970 / 15.0 %</P>
</TD><TD valign=top width=76.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>9</P>
</TD><TD valign=top width=83.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>$0.00704</P>
</TD></TR>
<TR><TD valign=top width=140.933><P style="line-height:14.667px; margin:0px; font-size:12px">Select Dividend Fund (DIV)</P>
</TD><TD valign=top width=87.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>$154,525,217</P>
</TD><TD valign=top width=74.333><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>$214,773</P>
</TD><TD valign=top width=111.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>$169,337 / 24.0 %</P>
</TD><TD valign=top width=76.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>9</P>
</TD><TD valign=top width=83.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>$0.01692</P>
</TD></TR>
<TR><TD valign=top width=140.933><P style="line-height:14.667px; margin:0px; font-size:12px">Global Dividend Fund (PGD)</P>
</TD><TD valign=top width=87.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>$121,323,875</P>
</TD><TD valign=top width=74.333><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>$239,542</P>
</TD><TD valign=top width=111.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>$188,866 / 26.8 %</P>
</TD><TD valign=top width=76.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>9</P>
</TD><TD valign=top width=83.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>$0.02263</P>
</TD></TR>
<TR><TD valign=top width=140.933><P style="line-height:14.667px; margin:0px; font-size:12px">Preferred Dividend Fund (PPF)</P>
</TD><TD valign=top width=87.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>$103,520,802</P>
</TD><TD valign=top width=74.333><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>$153,494</P>
</TD><TD valign=top width=111.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>$121,022 / 17.1 %</P>
</TD><TD valign=top width=76.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>9</P>
</TD><TD valign=top width=83.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>$0.01668</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>

<P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px">
(8) Dividend rates on preferred shares are set in the auction process.
&nbsp;Prevailing interest rate, yield curve and market circumstances at the time
at which the dividend rate on preferred shares for the next dividend period are
set substantially influence the rate determined in an auction. &nbsp;As these
factors change over time, so too do the dividend rates set. &nbsp;In this
regard, the dividend rates for each Fund&#146;s preferred shares were set on
different dates and therefore do not provide a direct comparison of what these
rates would be if established on the same date. The dividend rates for Premium
Dividend Fund II historically and on a pro-forma combined basis include the
most recent dividend rate resets and reflect recent increases in short-term
interest rates.</P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px">(9) Reflects a dividend rate on preferred shares of 3.64%.</P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px">(10) Reflects a dividend rate on preferred shares of 3.77%.</P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px">(11) Reflects a dividend rate on preferred shares of 3.36%.</P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px">(12) Reflects a dividend rate on preferred shares of 3.44%.</P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px">(13) Reflects a dividend rate on preferred shares of 3.32%.</P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px">(14) Reflects a dividend rate on preferred shares of 3.77%. &nbsp;Such rate is an estimate and may differ based on varying market conditions that may exist as and when preferred shares are issued.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The purpose of the tables in this section is to assist you in understanding the various costs and expenses that a shareholder will bear directly or indirectly by investing in a Fund&#146;s common shares and the combined fund&#146;s costs and expenses that are expected to be incurred in the first year following the Reorganizations.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>Example</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">
The following example is intended to help you compare the costs of investing in
the Acquiring Fund pro forma after the Reorganizations with the costs of
investing in the Acquired Funds and the Acquiring Fund without the
Reorganizations. &nbsp;An investor would pay the following expenses on a $1,000
investment in common shares, assuming (i) the operating expense ratio for each
Fund (as a percentage of net assets attributable to common shares) set forth in
the table above for years 1 through 10, (ii) dividends on preferred shares as
set forth in the table above and (iii) a 5% annual return throughout the
period.(1)</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">(Unaudited)</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=331.2></TD><TD width=76.8></TD><TD width=76.8></TD><TD width=76.8></TD><TD width=76.8></TD></TR>
<TR><TD valign=top width=331.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=76.8><P style="margin:0px" align=center>1 Year</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=76.8><P style="margin:0px" align=center>3 Years</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=76.8><P style="margin:0px" align=center>5 Years</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=76.8><P style="margin:0px" align=center>10 Years</P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px">Premium Dividend Fund I (PDF)</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$336</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$1,024</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$1,736</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$3,622</P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px">Premium Dividend Fund II (PDT)</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$378</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$1,149</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$1,939</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$4,002</P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px">Select Dividend Trust (DIV)</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$335</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$1,021</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$1,731</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$3,613</P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px">Global Dividend Fund (PGD)</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$363</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$1,103</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$1,864</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$3,862</P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px">Preferred Dividend Fund (PPF)</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$364</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$1,109</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$1,873</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$3,880</P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px">Pro Forma &#150; Premium Dividend Fund II (PDT) (2)</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$354</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$1,077</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$1,822</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$3,783</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">(1) Based on these assumptions but excluding preferred shares dividend payments, you would pay the following expenses on a $1,000 investment in common shares:</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">(Unaudited)</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=331.2></TD><TD width=76.8></TD><TD width=76.8></TD><TD width=76.8></TD><TD width=76.8></TD></TR>
<TR><TD valign=top width=331.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=76.8><P style="margin:0px" align=center>1 Year</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=76.8><P style="margin:0px" align=center>3 Years</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=76.8><P style="margin:0px" align=center>5 Years</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=76.8><P style="margin:0px" align=center>10 Years</P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px">Premium Dividend Fund I (PDF)</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$111</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$347</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$601</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$1,329</P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px">Premium Dividend Fund II (PDT)</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$109</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$340</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$590</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$1,306</P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px">Select Dividend Trust (DIV)</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$116</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$362</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$628</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$1,386</P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px">Global Dividend Fund (PGD)</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$120</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$375</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$649</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$1,432</P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px">Preferred Dividend Fund (PPF)</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$127</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$397</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$686</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$1,511</P>
</TD></TR>
<TR><TD valign=top width=331.2><P style="margin:0px">Pro Forma &#150; Premium Dividend Fund II (PDT) (2)</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$101</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$315</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$547</P>
</TD><TD valign=top width=76.8><P style="margin:0px" align=center>$1,213</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">(2) The <I>pro forma </I>row shown above assumes each of the Reorganizations is completed. &nbsp;As described herein, an unfavorable vote by one of the Acquired Funds will not affect the implementation of the Reorganizations of another Acquired Fund if approved by such other Acquired Fund. &nbsp;This means that there could be other combinations of approved Reorganizations.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The example set forth above assumes the reinvestment of all dividends and distributions at NAV. &nbsp;The example should not be considered a representation of past or future expenses or annual rates of return. &nbsp;Actual expenses or annual rates of return may be more or less than those assumed for purposes of the example.</P>
<A NAME="_Toc155621871"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>ADDITIONAL INFORMATION ABOUT COMMON SHARES OF THE FUNDS</B></P>
<A NAME="_Toc155621872"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>GENERAL</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The outstanding common shares of each Fund are fully paid and nonassessable by a Fund (except as described under &#147;Governing Law&#148; below). &nbsp;The common shares of each Fund have no preemptive, conversion, exchange or redemption rights. &nbsp;Each common share has one vote, with fractional shares voting proportionately. &nbsp;Common shares are freely transferable.</P>
<A NAME="_Toc155621873"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>OUTSTANDING SECURITIES</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Set forth below is information about each Fund&#146;s common shares as of October 31, 2006.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Premium Dividend Fund I</B></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(1)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Title of Class</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(2)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Amount Authorized</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(3)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Amount Held by Fund</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(4)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Amount Outstanding Exclusive of Amount Shown Under (3)</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px">Common Shares</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>unlimited*</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>15,292,571</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Premium Dividend Fund II</B></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(1)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Title of Class</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(2)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Amount Authorized</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(3)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Amount Held by Fund</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(4)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Amount Outstanding Exclusive of Amount Shown Under (3)</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px">Common Shares</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>unlimited*</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>15,046,539</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Select Dividend Trust</B></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(1)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Title of Class</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(2)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Amount Authorized</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(3)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Amount Held by Fund</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(4)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Amount Outstanding Exclusive of Amount Shown Under (3)</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px">Common Shares</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>unlimited*</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>10,010,393</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Global Dividend Fund</B></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(1)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Title of Class</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(2)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Amount Authorized</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(3)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Amount Held by Fund</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(4)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Amount Outstanding Exclusive of Amount Shown Under (3)</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px">Common Shares</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>unlimited*</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>8,344,700</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Preferred Dividend Fund</B></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(1)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Title of Class</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(2)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Amount Authorized</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(3)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Amount Held by Fund</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>(4)</B></P>
<P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Amount Outstanding Exclusive of Amount Shown Under (3)</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px">Common Shares</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>unlimited*</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>0</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>7,257,200</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">* with requisite vote of holders of preferred shares</P>
<A NAME="_Toc155621874"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>PURCHASE AND SALE</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Purchase and sale procedures for the common shares of each of the Funds are identical. &nbsp;Investors typically purchase and sell common shares of the Funds through a registered broker-dealer on the NYSE, thereby incurring a brokerage commission set by the broker-dealer. &nbsp;Alternatively, investors may purchase or sell common shares of the Funds through privately negotiated transactions with existing shareholders.</P>
<A NAME="_Toc155621875"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>COMMON SHARE PRICE DATA</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The following table sets forth the high and low sales prices for common shares of each Fund on the NYSE for each full quarterly period within the two most recent fiscal years and each full quarter since the beginning of the current fiscal year, along with the NAV and discount or premium to NAV for each quotation.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>PREMIUM DIVIDEND FUND I</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=115.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Quarterly Period Ending</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>High Price</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Net Asset Value</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Premium (Discount)</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Low Price</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Net Asset Value</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Premium (Discount)</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">December 31, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.11</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$10.42</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(14.37%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8.58</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.87</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(11.41%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">September 30, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8.65</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.94</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(16.14)%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$7.87</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.25</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(11.40%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">June 30, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8.36</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.60</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(11.11%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$7.82</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.00</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(14.81%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">March 31, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8.69</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.78</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(9.33%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8.06</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.47</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(15.15%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">December 31, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8.90</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.88</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(8.73%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$7.99</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.24</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(15.04%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">September 30, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.48</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$10.06</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(5.77%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8.88</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.73</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(9.64%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">June 30, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.46</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$10.01</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(3.63%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8.78</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.48</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(7.68%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">March 31, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$10.00</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.95</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>3.84%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8.67</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.38</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(8.06%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">December 31, 2004</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$10.05</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.75</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>5.90%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.38</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.27</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.93%</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">September 30, 2004</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.54</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.27</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>6.59%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8.92</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8.73</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.77%)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>PREMIUM DIVIDEND FUND II</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=115.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Quarterly Period Ending</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>High Price</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Net Asset Value</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Premium (Discount)</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Low Price</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Net Asset Value</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Premium (Discount)</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">January 31, 2007</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$[ &nbsp;]</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$[ &nbsp;]</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>[ &nbsp;]%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$[ &nbsp;]</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$[ &nbsp;]</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>[ &nbsp;]%</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">October 31, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$11.32</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.88</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(13.85%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$10.54</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.15</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(10.09%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">July 31, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8.29</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.64</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(11.11%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$7.82</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.00</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(16.14%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">April 30, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8.69</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.78</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(9.33%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8.00</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.23</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(13.92%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">January 31, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8.56</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.65</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(8.75%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$7.99</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.24</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(15.15%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">October 31, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.36</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$10.03</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(5.87%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8.10</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.24</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(13.37%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">July 31, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.48</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$10.06</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(3.87%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8.93</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.58</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(8.17%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">April 30, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.82</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.95</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.10%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8.67</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.38</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(8.06%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">January 31, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$10.05</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.78</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>4.77%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.58</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.35</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.93%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">October 31, 2004</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.87</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.38</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>6.59%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9.00</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8.87</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.77%)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>SELECT DIVIDEND TRUST</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=115.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Quarterly Period Ending</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>High Price</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Net Asset Value</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Premium (Discount)</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Low Price</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Net Asset Value</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Premium (Discount)</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">December 31, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.66&nbsp;</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$15.78&nbsp;</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(15.79%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.67</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.90</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(12.72%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">September 30, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.76</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$15.02</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(16.55%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$11.91</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.08</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(14.28%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">June 30, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.42</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.52</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(13.37%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$11.72</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.67</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(15.49%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">March 31, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.86</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.77</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(12.52%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.11</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.30</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(15.72%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">December 31, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.37</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.96</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(10.61%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$11.82</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.89</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(17.05%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">September 30, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.91</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$15.28</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(7.19%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.05</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.73</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(11.82%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">June 30, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.85</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$15.20</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(7.73%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.68</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.42</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(13.33%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">March 31, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.55</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.99</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1.17%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.40</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.20</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(13.35%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">December 31, 2004</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$15.30</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.76</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>4.88%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.30</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.03</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1.42%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">September 30, 2004</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.65</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.09</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>6.32%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.68</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.31</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.95%</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">June 30, 2004</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$15.21</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.71</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>6.26%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.11</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.05</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(5.36%)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>GLOBAL DIVIDEND FUND</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=115.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Quarterly Period Ending</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>High Price</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Net Asset Value</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Premium (Discount)</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Low Price</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Net Asset Value</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Premium (Discount)</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">January 31, 2007</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$[ &nbsp;]</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$[ &nbsp;]</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>[ &nbsp;]%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$[ &nbsp;]</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$[ &nbsp;]</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>[ &nbsp;]%</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">October 31, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.84</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.56</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(14.46%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$11.86</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.76</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(11.16%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">July 31, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$11.83</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.77</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(10.17%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$11.19</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.96</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(15.70%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">April 30, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.45</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.09</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(10.89%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$11.40</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.33</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(15.21%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">January 31, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.48</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.89</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(10.09%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$11.45</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.32</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(15.25%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">October 31, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.28</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.51</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(7.22%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$11.40</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.30</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(15.34%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">July 31, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.44</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.51</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(6.93%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.30</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.88</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(11.45%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">April 30, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.70</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.30</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>3.52%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.10</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.65</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(12.26%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">January 31, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.33</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.16</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>3.66%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.21</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.55</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(3.08%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">October 31, 2004</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.73</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.59</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>3.48%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.45</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.75</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(2.43%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">July 31, 2004</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.68</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.16</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(2.43%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$11.39</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.40</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(9.17%)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>PREFERRED DIVIDEND FUND</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=115.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD><TD width=87.2></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Quarterly Period Ending</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>High Price</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Net Asset Value</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Premium (Discount)</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Low Price</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Net Asset Value</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Premium (Discount)</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">November 30, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.55</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.38</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(8.82%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.76</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.88</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(5.00%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">August 31, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.03</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.00</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(10.90%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$11.85</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.19</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(6.86%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">May 31, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.41</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.11</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(4.46%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$11.89</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.23</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(12.06%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">February 28, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.80</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.11</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>0.15%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.95</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.66</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(6.74%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">November 30, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.22</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.51</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1.19%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.29</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.60</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(10.03%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">August 31, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.23</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.46</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.84%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.38</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.14</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(7.08%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">May 31, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.66</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.41</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(4.75%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.30</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.98</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(13.54%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">February 28, 2005</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.15</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.54</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1.71%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.38</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.95</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(5.93%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">November 30, 2004</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.72</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.11</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.44%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.90</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.59</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(6.77%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">August 31, 2004</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.25</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$13.59</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1.92%)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.05</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.79</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(6.66%)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=115.2><P style="line-height:14.667px; margin:0px; font-size:12px">May 31, 2004</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.91</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.25</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>5.37%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$11.38</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.70</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(13.00%)</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">As of October 31, 2006, (i) the net value per share for common shares of the Acquiring Fund was $12.87 and the market price per share was $11.26, representing a discount to NAV of 12.51%, (ii) the NAV per share for common shares of Premium Dividend Fund I was $10.20 and the market price per share was $8.80, representing a discount to NAV of 13.73%, (iii) the NAV per share for common shares of Select Dividend Trust was $15.44 and the market price per share was $13.16, representing a discount to NAV of 14.77%, (iv) the NAV per share for common shares of Global Dividend Fund was $14.54 and the market price per share was $12.71, representing a discount to NAV of 12.59%, and (v) the NAV per share for common shares of Preferred Dividend Fund was $14.26 and the market price per share was $13.25, representing a discount to NAV of 7.08%.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The NAV per share and market price per share of the common shares of each Fund may fluctuate prior to the closing date of each Reorganization. &nbsp;Depending on market conditions immediately prior to the closing date of a Reorganization, Acquiring Fund Common Shares may trade at a larger or smaller discount to NAV than an Acquired Fund&#146;s common shares. &nbsp;This could result in the Acquiring Fund Common Shares having a market value that is greater or less than the market value of an Acquired Fund&#146;s common shares on the closing date of a Reorganization.</P>
<A NAME="_Toc155621876"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>SHARE REPURCHASES</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Common shares of both the Acquired Funds and the Acquiring Fund have historically traded at a discount to NAV. &nbsp;The Boards of Global Dividend Fund and Preferred Dividend Fund will consider at least annually action that might be taken to seek to reduce or eliminate any material discount from net asset value that may occur in respect of common shares, which may include the repurchase of such common shares in the open market or in private transactions, the making of a tender offer for such shares or conversion of the Fund to an open-end investment company. &nbsp;There can be no assurance, however, that the Board of Global Dividend Fund or Preferred Dividend Fund will decide to take any of these actions or that share repurchases or tender offers, if undertaken, will reduce market discount. &nbsp;The Board of Trustees of each other Fund will, from time to time, consider either repurchasing shares of common
stock on th






e open market or making a tender offer for shares of the common stock. &nbsp;Notwithstanding any of the foregoing, so long as a Fund&#146;s preferred shares are outstanding, such Fund may not purchase, redeem or otherwise acquire any of its common shares if (i) dividends on the preferred shares are in arrears, or (ii)&nbsp;the 1940 Act asset coverage requirements and any additional asset coverage requirements that may be imposed by a Rating Agency in connection with any rating of the preferred shares would not be met after giving effect to the transaction. &nbsp;Any service fees incurred in connection with any tender offer made by a Fund will be borne by that Fund and will not reduce the stated consideration to be paid to tendering common shareholders.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Subject to its investment restrictions, a Fund may borrow to finance the repurchase of shares or to make a tender offer. &nbsp;Interest on any borrowings to finance share repurchase transactions or the accumulation of cash by a Fund in anticipation of share repurchases or tenders will reduce the Fund&#146;s net income. &nbsp;The Fund will comply with the Securities Exchange Act of 1934, as amended (the &#147;1934 Act&#148;), the 1940 Act and the rules and regulations thereunder in connection with any share repurchase, tender offer or borrowing that might be approved by the Fund&#146;s Board. &nbsp;Any such borrowings will be subject to the limitations imposed by the 1940 Act and the Rating Agency Guidelines.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The repurchase by a Fund of its common shares at prices below NAV will result in an increase in the NAV of those common shares that remain outstanding. &nbsp;However, there can be no assurance that common share repurchases or tender offers at or below NAV will result in the Fund&#146;s common shares trading at a price equal to their NAV. &nbsp;Nevertheless, the fact that a Fund&#146;s common shares may be the subject of repurchase or tender offers from time to time, or that the Fund may be converted to an open-end investment company, may reduce any spread between market price and NAV that might otherwise exist.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">In addition, a purchase by the Fund of its common shares will decrease the Fund&#146;s total assets which would likely have the effect of increasing the Fund&#146;s expense ratio. &nbsp;Any purchase by the Fund of its common shares at a time when preferred shares are outstanding will increase the leverage applicable to the outstanding common shares then remaining.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Before deciding whether to take any action if the common shares trade below NAV, a Fund&#146;s Board would likely consider all relevant factors, including the extent and duration of the discount, the liquidity of the Fund&#146;s portfolio, the impact of any action that might be taken on the Fund or its shareholders and market considerations. &nbsp;Based on these considerations, even if a Fund&#146;s shares should trade at a discount, the Fund&#146;s Board may determine that, in the interest of the Fund and its shareholders, no action should be taken.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B><I>Premium Dividend Fund I, Global Dividend Fund and Preferred Dividend Fund</I></B><I>. &nbsp;</I>Although the decision to take action in response to a discount from the NAV is made by a Fund&#146;s Board at the time it considers such issue, it is the present policy of the Boards of Premium Dividend Fund I and Preferred Dividend Fund, which may be changed by the Board, not to authorize repurchases of common shares or a tender offer for such shares if: &nbsp;(i) such transactions, if consummated, would (a)&nbsp;result in the delisting of the common shares from the NYSE or (b) impair the Fund&#146;s status as a regulated investment company under the Code (which would make the Fund a taxable entity, causing the Fund&#146;s income to be taxed at the corporate level in addition to the taxation of shareholders who receive dividends from the Fund) or as a registered closed-end investment company under the 1940
Act; (ii) the Fund would not be able to liquidate portfolio securities in an orderly manner and consistent with the Fund&#146;s investment objective and policies in order to repurchase common shares; or (iii) there is, in the Board&#146;s judgment, any (a) material legal action or proceeding instituted or threatened challenging such transactions or otherwise materially adversely affecting the Fund, (b)&nbsp;general suspension of or limitation on prices for trading securities on the NYSE or other national securities exchange, (c)&nbsp;declaration of a banking moratorium by federal or state authorities or any suspension of payment by United States or New York banks or other banks in which the Fund invests, (d) material limitation affecting the Fund or the issuers of its portfolio securities by federal or state authorities on the extension of credit by lending institutions or on the exchange of foreign currency, (e)&nbsp;commencement of war, armed hostilities or other international or national calamity directly




 or
indirectly involving the United States or (f)&nbsp;other event or condition which would have a material adverse effect (including any adverse tax effect) on the Fund or its shareholders if shares were repurchased. &nbsp;Each Fund&#146;s Board may in the future modify these conditions in light of experience.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B><I>Select Dividend Fund and Premium Dividend Fund II.</I></B>

&nbsp;In authorizing repurchases of common shares, the Boards of Select Dividend
Fund and Premium Dividend II will consider the effect of such repurchases on the
Fund&#146;s expense ratio, portfolio turnover, its ability to achieve its
investment objective, the maintenance of its status as a regulated investment
company and whether, as a consequence of such repurchases, the Fund would be
required to pay additional dividends on the preferred shares. It is the policy
of each Fund&#146;s Board, which may be changed by the Board, not to effect
share repurchases of common shares which would have a material adverse effect,
including adverse tax consequences, on the Fund or its shareholders. Annually,
the Boards of Select Dividend Fund and Premium Dividend Fund II will consider
making a tender offer for the common shares at their then-current net asset
value. &nbsp;At that time, each Board will consider the liquidity provided by
trading on the NYSE, including the historical price performance and trading
volume of the common share on the NYSE and whether such a tender is in the best
interests of the Fund and holders of the common shares. &nbsp;Any such tender
offer or repurchase must comply with the Rating Agency Guidelines and the 1940
Act asset coverage requirements as long as any preferred shares are
outstanding.</P>
<A NAME="_Toc155621877"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>DIVIDENDS AND DISTRIBUTIONS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B><I>Premium Dividend Fund II and Select Dividend Fund. &nbsp;</I></B>Each of Premium Dividend Fund II and Select Dividend Fund intends to pay monthly dividends on the common shares out of net income, subject to the Fund&#146;s obligations with respect to the preferred shares, Rating Agency Guidelines and the 1940 Act asset coverage requirements as long as any preferred shares are outstanding. &nbsp;Each Fund&#146;s net income is all of its income (other than net capital gains) reduced by its expenses. &nbsp;Each Fund&#146;s net capital gains equal the excess of its net long-term capital gains over its net short-term capital losses. &nbsp;Distributions derived from net capital gains, if any, will generally be made annually.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B><I>Global Dividend Fund and Preferred Dividend Fund.</I></B> &nbsp;It is the policy of Global Dividend Fund and Preferred Dividend Fund to make monthly distributions to the holders of common shares of substantially all investment company taxable income remaining after the payment of dividends on any outstanding preferred shares. &nbsp;Investment company taxable income of a Fund consists of all of the Fund&#146;s taxable income (after reduction by deductible expenses) other than its net capital gain. &nbsp;Net capital gain (net long-term capital gain in excess of net short-term capital loss), if any, if distributed, is expected to be distributed at least annually and would be designated proportionately between the common shares and any preferred shares, as described below in &#147;U.S. Federal Income Tax Matters.&#148; &nbsp;Alternatively, with respect to Preferred Dividend Fund only, the Fund may and
presently expe






cts to retain such net capital gain, the tax consequences of which are described below under &#147;U.S. Federal Income Tax Matters.&#148; &nbsp;The expenses of each Fund are accrued each day.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B><I>Premium Dividend Fund I.</I></B> &nbsp;Premium Dividend Fund I intends to pay monthly dividends on the shares of the common stock, out of earned surplus or net profits remaining after payment of all required dividends (including additional dividends, if any) on the shares of the DARTS. &nbsp;The Fund intends to retain net capital gains, if any, for the benefit of shareholders of the common stock. &nbsp;The Fund&#146;s &#147;net income&#148; includes all dividends, interest and other income and short-term capital gains earned by the Fund on its portfolio holdings, net of the Fund&#146;s expenses. &nbsp;The Fund&#146;s &#147;net capital gains&#148; consist of the excess of net long-term capital gains over net short-term capital losses.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B><I>All Funds. &nbsp;</I></B>As long as any preferred shares are outstanding, no Fund will declare, pay or set apart for payment any dividend or other distribution in respect of the common stock or any other stock of a Fund ranking junior to the preferred shares (or on parity with such shares, in the case of Select Dividend Trust, Global Dividend Fund and Preferred Dividend Fund) as to dividends or upon liquidation, or call for redemption, redeem, purchase or otherwise acquire for consideration any common shares or any other shares of the Fund ranking junior to the preferred shares (or on parity with, in the case of Select Dividend Trust, Global Dividend Fund and Preferred Dividend Fund) as to dividends or upon liquidation, unless (i) immediately thereafter, the 1940 Act asset coverage requirements and any asset coverage requirements that may be imposed by a Rating Agency in connection with any rating of the
preferr






ed shares are met, (ii) full cumulative dividends (including additional dividends, if any) on all preferred shares for all past dividend periods have been paid or declared and a sum sufficient for the payment of such dividends set apart for payment and (iii) the Fund has redeemed the full number of preferred shares required to be redeemed by any provision for mandatory redemption contained in the Agreement and Declaration of Trust.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">In addition, as long as any preferred shares are outstanding, no Fund is permitted to declare any dividend or distribution on its common shares unless, at the time of such declaration and after taking account of such dividend or distribution, the Fund is in compliance with the 1940 Act asset coverage requirements and with any applicable Rating Agency Guidelines. &nbsp;The Fund intends, to the extent necessary, to redeem or purchase preferred shares from time to time to maintain compliance with the 1940 Act asset coverage requirements and the Rating Agency Guidelines. &nbsp;To the extent this is not possible, any restriction on the payment of dividends or distributions might impair the ability of a Fund to maintain its qualification, for federal income tax purposes, as a regulated investment company that is exempt from taxation on income or gains distributed to its shareholders.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">If, for any taxable year, any portion of the distributions paid by a Fund on the preferred shares does not qualify for the Dividends Received Deduction, the Fund will be required to pay additional dividends to holders of the preferred shares to compensate for the resulting reduction in the Net After-Tax Return (as defined below) to the holders of the preferred shares. &nbsp;Such additional dividends would decrease the amount of the Fund&#146;s net income and net capital gains available for distribution to holders of common shares and may reduce the Fund&#146;s NAV per share.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The term &#147;Net After-Tax Return&#148; means, with respect to any dividend paid on the preferred shares, the amount of such dividend less the federal corporate income tax to which such dividend would be subject, giving effect to the actual or assumed (as the case may be) amount of such dividend effectively designated under Section 854 of the Code as eligible for the Dividends Received Deduction. &nbsp;For this purpose, in the case of any dividend (i) the applicable income tax rate shall be assumed to be the highest marginal federal income tax rate applicable to corporations under the law in effect at the time of the payment of such dividend if received by a domestic corporation reporting taxable income based on a calendar year, disregarding any alternative minimum tax and (ii)&nbsp;assuming the full amount of such dividend were effectively designated under Section 854 of the Code (or any successor provision)
as eli






gible for Dividends Received Deduction, the holder receiving such dividend shall be assumed to be entitled to the Dividends Received Deduction with respect to such dividend in an amount equal to the maximum amount provided in Section 243(a)(1) of the Code (or any successor provision) as in effect at the time of payment of such dividend. &nbsp;The highest marginal federal income tax rate for corporations currently is 35% and the maximum amount provided in Section 243(a)(1) of the Code currently is 70%.</P>
<A NAME="_Toc155621878"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>DIVIDEND REINVESTMENT PLAN</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund offers its shareholders a Dividend Reinvestment Plan (each a &#147;Plan,&#148; collectively the &#147;Plans&#148;), which offers the opportunity to earn compounded yields. &nbsp;Each holder of common shares of the Funds, other than holders of Preferred Dividend Fund and Premium Dividend Fund II, will automatically have all distributions of dividends and capital gains reinvested by Mellon Investor Services, as Plan agent for the common shareholders (the &#147;Plan Agent&#148;), unless an election is made to receive cash. &nbsp;Holders of common shares of Preferred Dividend Fund and Premium Dividend Fund II must elect to have all distributions of dividends and capital gains reinvested by the Plan Agent. &nbsp;Holders of common shares who elect not to participate in the Plan (or, in the case of Preferred Dividend Fund and Premium Dividend Fund II, who do not elect to participate in the Plan) will receive
all di






stributions in cash, paid by check mailed directly to the shareholder of record (or, if the common shares are held in street or other nominee name, then to the nominee) by the Plan Agent, as dividend-disbursing agent. &nbsp;After the Reorganizations, a holder of shares of a Fund who currently elects to receive dividends in cash will continue to receive dividends in cash; all holders who currently elect to participate in the Plan of a Fund will have their dividends automatically reinvested in shares of the combined fund.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Shareholders of Preferred Dividend Fund and Premium Dividend Fund II may join their respective Plans by filling out and mailing an authorization card, by notifying the Plan Agent by telephone or by visiting the Plan Agent&#146;s Web Site at <FONT COLOR=#0000FF><U>www.melloninvestor.com</U></FONT>. &nbsp;Shareholders of Preferred Dividend Fund and Premium Dividend Fund II must indicate an election to reinvest all or a portion of dividend payments. &nbsp;If received in proper form by the Plan Agent before the record date of a dividend, the election will be effective with respect to all dividends paid after such record date.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Shareholders whose shares are held in the name of a broker or a nominee should contact the broker or nominee to determine whether and how they may participate in the Plan. &nbsp;The Plan Agent serves as agent for the holders of common shares in administering the Plan. &nbsp;If Premium Dividend Fund I, Select Dividend Trust, Preferred Dividend Fund or the Acquiring Fund declares a dividend payable either in common shares or in cash, non-participants will receive the equivalent in common shares. &nbsp;If the market price of the common shares of a Fund on the payment date of the dividend is equal to or exceeds their NAV as determined on the payment date, participants in the Plans (other than the Plan of Global Dividend Fund) will be issued common shares (out of authorized but unissued shares) at a value equal to or higher of NAV or 95% of the market price. &nbsp;If the NAV exceeds the market price of the common
shares at






 such time, or if the Board of a Fund declares a dividend payable only in cash, the Plan Agent will, as agent for Plan participants, buy shares in the open market, on the NYSE or elsewhere, for the participants&#146; accounts. &nbsp;Such purchases will be made promptly after the payable date for such dividend and, in any event, prior to the next ex-dividend date after such date, except where necessary to comply with federal securities laws. &nbsp;If, before the Plan Agent has completed its purchases, the market price exceeds the NAV of the common shares of a Fund, the average per share purchase price paid by the Plan Agent may exceed the NAV of the common shares, resulting in the acquisition of fewer shares than if the dividend had been paid in shares issued by a Fund.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">With respect to Global Dividend Fund only, after the Fund declares a dividend or makes a capital gains distribution, the Plan Agent will, as an agent for the participants, receive the cash payment and use it to buy shares on the open market, on the NYSE or elsewhere, for the participants&#146; accounts. &nbsp;Global Dividend Fund will not issue any new shares in connection with the Plan.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent&#146;s open market purchases in connection with the reinvestment of dividends and distributions. &nbsp;The cost per share of the shares purchased for each participant&#146;s account will be the average cost, including brokerage commissions, of any shares purchased on the open market plus, in the case of Premium Dividend Fund I, Select Dividend Trust, Preferred Dividend Fund and the Acquiring Fund, the cost of any shares issued by those Funds. &nbsp;There will be no brokerage charges with respect to common shares issued directly by Premium Dividend Fund I, Select Dividend Trust, Preferred Dividend Fund or the Acquiring Fund. &nbsp;There are no other charges to participants for reinvesting dividends or capital gain distributions.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Participants in a Plan may withdraw from the Plan at any time by contacting the Plan Agent by telephone, in writing or by visiting the Plan Agent&#146;s Web Site at <FONT COLOR=#0000FF><U>www.melloninvestor.com</U></FONT>. &nbsp;Such withdrawal will be effective immediately if, with respect to Premium Dividend Fund I and Global Dividend Fund, received prior to a dividend record date (and with respect to Premium Dividend Fund II, Select Dividend Trust and Preferred Dividend Fund, if received not less than 10 days prior to a dividend record date); otherwise, it will be effective for all subsequent dividend record dates. &nbsp;When a participant withdraws from a Plan or upon termination of a Plan, as provided below, certificates for whole common shares credited to his or her account under a Plan will be issued and a cash payment will be made for any fraction of a share credited to such account.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The Plan Agent maintains each shareholder&#146;s account in a Plan and furnishes monthly written confirmations of all transactions in the accounts, including information needed by the shareholders for personal and tax records. &nbsp;The Plan Agent will hold common shares in the account of each Plan participant in non-certificated form in the name of the participant. &nbsp;Proxy material relating to the shareholders&#146; meetings of a Fund will include those shares purchased, as well as shares held pursuant to a Plan.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The reinvestment of dividends and distributions will not relieve participants of any federal income tax that may be payable or required to be withheld on such dividends or distributions. &nbsp;Participants under a Plan will receive tax information annually. &nbsp;The amount of dividend to be reported on the 1099-DIV should be: (1) in the case of shares issued by a Fund (other than Global Dividend Fund), the fair market value of such shares on the dividend payment date or (2) in the case of shares purchased by the Plan Agent in the open market, the amount of cash used by the Plan Agent to purchase shares in the open market, including the amount of cash allocated to brokerage commissions paid on such purchases. &nbsp;Experience under a Plan may indicate that changes are desirable. &nbsp;Accordingly, each Fund reserves the right to amend or terminate its Plan as applied to any dividend or distribution paid
subsequent to






written notice of the change sent to all shareholders of a Fund at least 90 days before the record date for the dividend or distribution. &nbsp;The Plan may be amended or terminated by the Plan Agent after at least 90 days written notice to all shareholders of a Fund. &nbsp;All correspondence or additional information concerning the Plans should be directed to the Plan Agent, Mellon Bank, N.A., c/o Mellon Investor Services, P.O. Box 3338, South Hackensack, NJ 07606-1938 (Telephone: 1-800-852-0218).</P>
<A NAME="_Toc155621879"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>ADDITIONAL INFORMATION ABOUT PREFERRED SHARES OF THE FUNDS</B></P>
<A NAME="_Toc155621880"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>GENERAL</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The preferred shares of Premium Dividend Fund I, Premium Dividend Fund II and Global Dividend Fund are labeled &#147;DARTS&#148;, the preferred shares of Select Dividend Trust are labeled &#147;AMPS&#148; and the preferred shares of Preferred Dividend Fund are labeled &#147;ARPS&#148;. &nbsp;The DARTS, AMPS and ARPS are preferred shares of beneficial interest that entitle their holders to receive when, as and if declared by the Board of a Fund, out of funds legally available therefore, cumulative cash dividends at a rate per annum that may vary for the successive dividend periods for each series of preferred shares, and cumulative cash additional dividends, payable on specified dates. &nbsp;The DARTS, AMPS and ARPS are not traded on a stock exchange or over-the-counter. &nbsp;Each preferred share carries one vote on matters on which preferred shares can be voted. &nbsp;The DARTS, AMPS or ARPS are not
convertible into






common shares and have no preemptive rights. &nbsp;Each of the outstanding DARTS, AMPS and ARPS have a liquidation preference of $100,000 plus an amount equal to accumulated and unpaid dividends per share (whether or not earned by the Fund or declared, including additional dividends, if any) and are fully paid and nonassessable (except as described under &#147;Governing Law&#148; below).</P>
<A NAME="_Toc155621881"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>SERIES</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Under the 1940 Act, each Fund is permitted to have outstanding more than one series of preferred shares as long as no single series has priority over another series as to the distribution of assets of the Fund or the payment of dividends. &nbsp;Other than Premium Dividend Fund II, each Fund currently has one series of preferred shares outstanding. &nbsp;Premium Dividend Fund II currently has two series of DARTS outstanding. &nbsp;If the Reorganizations are approved and completed, the combined fund will have six series of DARTS. &nbsp;The existing series of Acquiring Fund DARTS will remain Series A and Series B and the Acquiring Fund will issue: &nbsp;Acquiring Fund DARTS, Series C in exchange for the existing series of DARTS of Premium Dividend Fund I; Acquiring Fund DARTS, Series D in exchange for the existing series of AMPS of Select Dividend Trust; Acquiring Fund DARTS, Series E in exchange for the existing
series






of ARPS of Preferred Dividend Fund; and Acquiring Fund DARTS, Series F in exchange for the existing series of DARTS of Global Dividend Fund. The additional series of preferred shares that will be exchanged for existing series of preferred shares of each Acquired Fund are expected to be designated in accordance with the foregoing, but may be designated pursuant to the order that each series is issued by the Acquiring Fund. &nbsp;The aggregate liquidation preference of each new series will equal the aggregate liquidation preference of the existing shares that the respective new series replaces. &nbsp;For each series, the number of shares and the liquidation preference per share will be the same as the existing series. &nbsp;The auction dates, rate period and dividend payment dates of the Acquiring Fund DARTS received in the Reorganization will be the same as that of the preferred shares held immediately prior to the Reorganization. The closings of the Reorganizations are conditioned upon the Acquiring
Fund DAR






TS receiving a rating of &#147;AA&#148; from S&amp;P and &#147;aa2&#148; from Moody&#146;s.</P>
<A NAME="_Toc155621882"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>OUTSTANDING SECURITIES</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Set forth below is information about each Fund&#146;s preferred shares as of December 22, 2006.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Premium Dividend Fund I</B></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(1)</B></P>
<P style="margin:0px" align=center><B>Title of Class</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(2)</B></P>
<P style="margin:0px" align=center><B>Amount Authorized</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(3)</B></P>
<P style="margin:0px" align=center><B>Amount Held by Fund</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(4)</B></P>
<P style="margin:0px" align=center><B>Amount Outstanding Exclusive of Amount Shown Under (3)</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px">DARTS, Series A</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center>unlimited</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center>0</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center>685</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Premium Dividend Fund II</B></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(1)</B></P>
<P style="margin:0px" align=center><B>Title of Class</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(2)</B></P>
<P style="margin:0px" align=center><B>Amount Authorized</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(3)</B></P>
<P style="margin:0px" align=center><B>Amount Held by Fund</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(4)</B></P>
<P style="margin:0px" align=center><B>Amount Outstanding Exclusive of Amount Shown Under (3)</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px">DARTS, Series A</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center>unlimited</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center>0</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center>500</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px">DARTS, Series B</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center>unlimited</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center>0</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center>500</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Select Dividend Trust</B></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(1)</B></P>
<P style="margin:0px" align=center><B>Title of Class</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(2)</B></P>
<P style="margin:0px" align=center><B>Amount Authorized</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(3)</B></P>
<P style="margin:0px" align=center><B>Amount Held by Fund</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(4)</B></P>
<P style="margin:0px" align=center><B>Amount Outstanding Exclusive of Amount Shown Under (3)</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px">AMPS, Series A</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center>unlimited</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center>0</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center>700</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Global Dividend Fund</B></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(1)</B></P>
<P style="margin:0px" align=center><B>Title of Class</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(2)</B></P>
<P style="margin:0px" align=center><B>Amount Authorized</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(3)</B></P>
<P style="margin:0px" align=center><B>Amount Held by Fund</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(4)</B></P>
<P style="margin:0px" align=center><B>Amount Outstanding Exclusive of Amount Shown Under (3)</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px">DARTS</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center>unlimited</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center>0</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center>600</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>Preferred Dividend Fund</B></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(1)</B></P>
<P style="margin:0px" align=center><B>Title of Class</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(2)</B></P>
<P style="margin:0px" align=center><B>Amount Authorized</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(3)</B></P>
<P style="margin:0px" align=center><B>Amount Held by Fund</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center><B>(4)</B></P>
<P style="margin:0px" align=center><B>Amount Outstanding Exclusive of Amount Shown Under (3)</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px">ARPS</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center>unlimited</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center>0</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px" align=center>525</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<A NAME="_Toc155621883"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>PURCHASE AND SALE</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund&#146;s series of preferred shares are purchased and sold at separate auctions conducted on a regular basis (unless a Fund elects, subject to certain conditions, to declare a special dividend period) by Deutsche Bank Trust Company Americas (&#147;Deutsche Bank&#148;), as Auction Agent for each of the Funds&#146; preferred shares (other than Preferred Dividend Fund), or The Bank of New York (&#147;BONY&#148;), as Auction Agent for Preferred Dividend Fund&#146;s ARPS. &nbsp;Unless otherwise permitted by the Funds, existing and potential holders of preferred shares only may participate in auctions through their broker-dealers. &nbsp;Broker-dealers submit the orders of their respective customers who are existing and potential holders of preferred shares to the Auction Agent. &nbsp;On or prior to each auction date for the preferred shares (the business day prior to the beginning of a dividend period), each
holder






may submit a hold order, bid or sell order to its broker-dealer. &nbsp;Broker dealers may maintain a secondary trading market in the preferred shares outside of auctions; however, historically they have not done so and are not expected to do so in the future. The broker-dealers have no obligation to make a secondary market in the preferred shares outside of the auction and there can be no assurance that a secondary market for the preferred shares will develop or, if it does develop, that it will provide holders with liquidity of investment. &nbsp;The preferred shares are not registered on any stock exchange or on the National Association of Securities Dealers Automated Quotations system.</P>
<A NAME="_Toc155621884"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>BROKER-DEALERS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">After each auction, the Auction Agent will pay a service charge, from funds provided by each Fund, to each broker-dealer, at the annual rate of 0.25% of the aggregate purchase price of all preferred shares placed by such broker-dealer in such auction, for the number of &nbsp;days in the rate period to which such auction relates, calculated on the basis of a year of 360 days. For purposes of the preceding sentence, preferred shares will be deemed to have been placed by a broker-dealer if such shares were (i) the subject of hold orders deemed to have been made by existing holders of preferred shares that initially were acquired by such existing holders through such broker-dealer or (ii) the subject of the following orders submitted by such broker-dealer: (a) a submitted bid of an existing holder pursuant to which such existing holder continues to hold such shares as a result of the auction, (b) a submitted bit of
a pote






ntial holder pursuant to which such potential holder purchases such shares as a result of the auction or (c) a submitted hold order.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The broker-dealer agreements provide that a broker-dealer may submit orders in auctions for its own account unless a Fund notifies all broker-dealers that they may no longer do so; provided, however, that in any event such broker-dealers may continue to submit hold orders and sell orders. If a broker-dealer submits an order for its own account in any auction, it may have knowledge of orders placed through it in that auction and therefore have an advantage over other bidders; such broker-dealer, however, would not have knowledge of orders submitted by other broker-dealers in that auction. In the broker-dealer agreements, broker-dealers agree to handle customer orders in accordance with their respective duties under applicable securities laws and rules.</P>
<A NAME="_Toc155621885"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>DIVIDENDS AND DISTRIBUTIONS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><I>General.</I> &nbsp;Dividends on the preferred shares, which accrue daily, are cumulative at a rate that was established at each offering of the preferred shares and has been reset every 49 days thereafter by auction. &nbsp;Separate auctions will be conducted for each series of preferred shares of each Fund. &nbsp;Dividends will be payable when, as and if declared by a Fund&#146;s Board, every 49 days, subject to certain exceptions. &nbsp;Prior to each dividend payment date, each Fund is required to deposit with the Auction Agent sufficient and timely funds for the payment of declared dividends payable on such dividend payment date. &nbsp;Dividends generally will be paid through The Depository Trust Company or its successor (the &#147;Securities Depository&#148;) on each dividend payment date. &nbsp;The Securities Depository, in accordance with current procedures, is expected to distribute dividends received
from a






Fund in next-day funds on each dividend payment date to agent members. &nbsp;These agent members are in turn expected to distribute such dividends to the person for whom they are acting as agents. &nbsp;The auction dates, rate period and dividend payment dates of the Acquiring Fund DARTS received in the Reorganization will be the same as that of the preferred shares held immediately prior to the Reorganization. &nbsp;Notwithstanding the foregoing, (i) if an auction with respect to a dividend period for the preferred shares is not held for any reason, the dividend rate on the shares of the preferred shares for such dividend period shall be the Maximum Applicable Rate (as defined in each Fund&#146;s By-Laws) on the auction date with respect to such dividend period and (ii) if the preferred shares are called for redemption, the dividend rate for such shares until the commencement of the next dividend period will be the dividend rate otherwise in effect on the date of the Notice of Redemption and the
dividend ra






te for such shares for each subsequent dividend period or part thereof (if any) until the redemption date will be the Maximum Applicable Rate on the auction date with respect to such dividend period.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">If the Acquiring Fund, Select Dividend Trust, Global Dividend Fund or Preferred Dividend Fund fails to pay on any dividend payment date (or within the applicable grace period) the full amount of any dividend, the applicable rate will not, until such failure to pay is cured, be determined based on the results of an auction, but instead will be equal to 200% of the 60-day &#147;AA&#148; Composite Commercial Paper Rate (as defined in each Fund&#146;s By-Laws).</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">No dividends shall be declared or paid or set apart for payment on the preferred shares for any dividend period or part thereof unless full cumulative dividends (including additional dividends, if any) have been or contemporaneously are declared and paid on each of the preferred shares through the most recent dividend payment date. &nbsp;If full cumulative dividends are not paid on the preferred shares, all dividends on the preferred shares will be paid pro rata to the holders of the outstanding preferred shares. &nbsp;Holders of preferred shares will not be entitled to any dividends, whether payable in cash, property or stock, in excess of full cumulative dividends. &nbsp;No interest, or sum of money in lieu of interest, will be paid in respect of any dividend payment that may be in arrears.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Under current law, dividends paid by a Fund will be taxable as ordinary income and will be eligible for the Dividends Received Deduction to the extent that they are designated by a Fund as qualifying for such deduction. &nbsp;Each of Premium Dividend Fund I, Premium Dividend Fund II and Select Dividend Trust intends to operate so that dividends paid will qualify in their entirety for the Dividends Received Deduction and each Fund does not intend to realize any net capital gains, but there can be no assurance that this result will be achieved. &nbsp;Preferred Dividend Fund will be managed with a view to maximizing the portion of the Fund&#146;s distributions to holders of the preferred shares that, under normal market conditions, will qualify for the Dividends Received Deduction. &nbsp;Under normal market conditions, Global Dividend Fund anticipates that at least 50% of the dividends paid to holders of the
preferred sh






ares as a class will qualify for the Dividends Received Deduction.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">If, with respect to Premium Dividend Fund I, the qualified dividends are less than its net income, exclusive of net capital gains, then the Fund will allocate the qualified dividends first to the preferred shares and then to the common shares, provided that the Fund receives an opinion of counsel that such preferential allocation is permitted under applicable law. &nbsp;If any other Fund realizes net capital gains in any taxable year, the Fund will designate a proportionate share of the dividends on the common shares and the preferred shares for the year as derived from such gains. &nbsp;Similarly, if the net income of any Fund other than Premium Dividend Fund I exceeds its qualified dividends in any taxable year, the Fund will designate a proportionate share of the dividends on the common shares and the preferred shares for the year as qualifying for the Dividends Received Deduction. &nbsp;In either case,
dividends o






n the preferred shares for the taxable year would not qualify in their entirety for the Dividends Received Deduction and additional dividends would become payable on the preferred shares to compensate for the resulting reduction in the Net After-Tax Return to the holders of the preferred shares.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"> <I>Additional Dividends.</I> &nbsp;With respect to all Funds other than Premium Dividend Fund I, if for any taxable year, (i) a Fund realizes net capital gain, or (ii) the net income of a Fund, excluding net capital gains, exceeds its qualified dividends (each an &#147;Additional Dividend Event&#148;), a Fund will not designate a portion of the dividends paid on the preferred shares as qualifying for the Dividends Received Deduction. &nbsp;In that event, a cumulative additional dividend will become payable on each series of the preferred shares to all holders of record of the preferred shares as of the applicable dividend payment date and will be calculated such that the Net After-Tax Return to a holder of preferred shares that is a corporation based on the dividends paid with respect to the relevant dividend period for which the Additional Dividend Event occurs and the additional dividend relating to such
dividends

will be the same as the Net After-Tax Return that would have been derived from such dividends if such Additional Dividend Event had not occurred.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">If, for any taxable year, any portion of the dividends paid on the preferred shares of Premium Dividend Fund I is ineligible for the Dividends Received Deduction because (i) the dividends received by the Fund that qualify for the Dividends Received Deduction are less than the net income of the Fund, excluding net capital gains, and, as a result, the Fund is not permitted to designate all of the dividends paid on the shares of the DARTS as qualifying for the Dividends Received Deduction or (ii) the net capital gains of the Fund are not allocated solely to the shares of the common stock (each an &#147;Indemnity Event&#148;), then a cumulative additional dividend will become payable on the shares of the DARTS in December of such year such that the Net After-Tax Return to a holder of shares of the DARTS that is a corporation from the dividends paid in respect of the year and the additional dividend relating to such
divide






nds will be the same as the Net After-Tax Return that would have been derived from the dividends paid in respect of the year if such Indemnity Event had not occurred.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">
Unlike the other Funds, Premium Dividend Fund I has a provision in its By-Laws
governing its preferred shares that permits it to allocate items of income and
gain disproportionately to preferred shares such that items that are not
eligible for the Dividends Received Deduction can be allocated away from
preferred shares. &nbsp;This provision is based upon federal income tax law in
effect at the time of the launch of Premium Dividend Income Fund I.
&nbsp;Subsequent changes in federal income tax law permit pre-existing funds,
such as Premium Dividend Income Fund I, to continue this practice but prohibit
all funds offered subsequently from doing this. &nbsp;All of the Funds other
than Premium Dividend Income Fund I accordingly do not have this capability.
&nbsp;In certain circumstances, this allocation practice could enable Premium
Dividend Fund I to avoid paying additional dividends on preferred shares at the
expense of common shareholders where the other Funds could not. &nbsp;Following
the Reorganization of Premium Dividend Fund I and the Acquiring Fund, common
shareholders of Premium Dividend Fund I will no longer have this potential
benefit. &nbsp;Because the Acquiring Fund operates to ensure that all dividends
paid are eligible for the Dividends Received Deduction, Advisers does not
believe that the loss of this benefit will be of material significance as a
practical matter to common shareholders of Premium Dividend Fund I and is
substantially outweighed by the benefits of the Reorganization.</P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">
If any designations or allocations made by a Fund are not given effect for
federal income tax purposes, a Fund will not be required to pay additional
dividends on the preferred shares to compensate for the resulting reduction in
the Net After-Tax Return to the holders of the preferred shares. &nbsp;Moreover,
no additional dividends shall be payable as a result of any change in the law
concerning the eligibility of amounts paid with respect to the preferred shares
for the Dividends Received Deduction or the reduction or elimination of the
Dividends Received Deduction.</P>
<A NAME="_Toc155621886"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>DIVIDEND RATES</B></P>

<P style="line-height:17.333px; margin:0px; font-size:14.667px">
The following table provides information about the dividend rates for each
series of each Fund&#146;s preferred shares as of a recent auction date:</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=163.2></TD><TD width=384></TD><TD width=91.2></TD></TR>
<TR><TD valign=top width=163.2><P style="margin-top:0px; margin-bottom:6.667px" align=center><B><U>AUCTION DATE</U></B></P>
</TD><TD valign=top width=384><P style="margin-top:0px; margin-bottom:6.667px" align=center><B><U>FUND/SERIES</U></B></P>
</TD><TD valign=top width=91.2><P style="margin-top:0px; margin-bottom:6.667px" align=center><B><U>RATE</U></B></P>
</TD></TR>
<TR><TD valign=top width=163.2><P style="margin:0px">January 26, 2007</P>
</TD><TD valign=top width=384><P style="margin:0px">Premium Dividend Fund I, DARTS, Series A</P>
</TD><TD valign=top width=91.2><P style="margin:0px" align=right>%</P>
</TD></TR>
<TR><TD valign=top width=163.2><P style="margin:0px">January 3, 2007</P>
</TD><TD valign=top width=384><P style="margin:0px">Premium Dividend Fund II, DARTS, Series A</P>
</TD><TD valign=top width=91.2><P style="margin:0px" align=right>%</P>
</TD></TR>
<TR><TD valign=top width=163.2><P style="margin:0px">January 10, 2007</P>
</TD><TD valign=top width=384><P style="margin:0px">Premium Dividend Fund II, DARTS, Series B</P>
</TD><TD valign=top width=91.2><P style="margin:0px" align=right>%</P>
</TD></TR>
<TR><TD valign=top width=163.2><P style="margin:0px">December 19, 2006</P>
</TD><TD valign=top width=384><P style="margin:0px">Select Dividend Trust, AMPS, Series A</P>
</TD><TD valign=top width=91.2><P style="margin:0px" align=right>%</P>
</TD></TR>
<TR><TD valign=top width=163.2><P style="margin:0px">January 5, 2007</P>
</TD><TD valign=top width=384><P style="margin:0px">Global Dividend Fund, DARTS</P>
</TD><TD valign=top width=91.2><P style="margin:0px" align=right>%</P>
</TD></TR>
<TR><TD valign=top width=163.2><P style="margin:0px">January 2, 2007</P>
</TD><TD valign=top width=384><P style="margin:0px">Preferred Dividend Fund, ARPS</P>
</TD><TD valign=top width=91.2><P style="margin:0px" align=right>%</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The dividend rates in effect at the closing of the Reorganizations will be the rates determined at the auctions held immediately prior to the closing date of each Reorganization. &nbsp;The auction dates, rate period and dividend payment dates of the Acquiring Fund DARTS received in the Reorganization will be the same as that of the preferred shares held immediately prior to the Reorganization.</P>
<A NAME="_Toc155621887"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>RATINGS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The DARTS of Premium Dividend Fund I have been issued a rating of &#147;AA&#148; from S&amp;P. &nbsp;The preferred shares of Premium Dividend Fund II, Select Dividend Trust and Global Dividend Fund have been issued a rating of &#147;AA&#148; from S&amp;P and &#147;aa2&#148; from Moody&#146;s. &nbsp;The ARPS of Preferred Dividend Fund have been rated &#147;aa&#148; by Moody&#146;s. &nbsp;The ratings expected to be received by the Acquiring Fund DARTS are &#147;AA&#148; from S&amp;P and &#147;aa2&#148; from Moody&#146;s. Compliance with the Rating Agency Guidelines may impose restrictions on the securities in which a Fund may invest. &nbsp;Each Fund intends that, so long any preferred shares are outstanding, the composition of such Fund&#146;s portfolio reflects in part the Rating Agency Guidelines established by S&amp;P and/or Moody&#146;s in connection with the Fund&#146;s receipt of ratings of &#147;AA&#148;
from S&a






mp;P and/or &#147;aa2&#148; or &#147;aa&#148; from Moody&#146;s, as applicable. &nbsp;Compliance with the Rating Agency Guidelines is required by each Fund&#146;s By-Laws.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The Rating Agency Guidelines require the Fund to meet, as of certain specified dates, certain asset coverage requirements that are imposed in connection with the rating of the preferred shares. &nbsp;If the Fund fails to meet such asset coverage requirements, the Fund may be required to redeem some or all of its outstanding preferred shares or may be required to purchase or otherwise acquire sufficient assets to meet the asset coverage requirements of the Rating Agency. &nbsp;In addition to the Rating Agency Guidelines, each Fund is required to comply with the 1940 Act requirement that the value of its total assets, less all liabilities not constituting senior securities of the Fund, must be at least equal to 200% of the aggregate liquidation preference of the preferred shares outstanding plus the value of any senior securities representing indebtedness. &nbsp;If a Fund fails to meet the 1940 Act asset coverage
requir






ement as of certain specified evaluation dates and fails, within a specified period, to cure such failure, it may be required to redeem some or all of the outstanding preferred shares.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">S&amp;P and Moody&#146;s are nationally recognized, independent statistical Rating Agencies which issue ratings that reflect the perceived creditworthiness of various securities. &nbsp;Each Fund will pay certain fees to S&amp;P and/or Moody&#146;s for rating the preferred shares. &nbsp;The guidelines for rating such preferred shares have been developed by S&amp;P and Moody&#146;s in connection with other issuances of asset-backed and similar securities, including debt obligations and auction rate preferred stock, generally on a case-by-case basis through discussions with the respective issuers of these securities. &nbsp;The guidelines are designed to ensure that assets underlying outstanding debt or preferred stock will be sufficiently varied and will be of sufficient quality, duration and amount to justify investment grade ratings. &nbsp;The guidelines do not have the force of law on a Fund, but have been
adopted by






each Fund in its By-Laws in order to satisfy current requirements necessary for S&amp;P and/or Moody&#146;s to issue the above-described ratings for the preferred shares, which ratings are generally relied upon by institutional investors in purchasing such securities. &nbsp;In the context of a closed-end investment company such as the Fund, therefore, the guidelines provide a set of tests for portfolio composition and asset coverage that supplement (and in some cases are more restrictive than) the applicable requirements under the 1940 Act. &nbsp;A Rating Agency&#146;s guidelines will apply to the preferred shares of a Fund only so long as such Rating Agency is rating the preferred shares.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund may, but is not required to, adopt any modifications to the Rating Agency Guidelines that may hereafter by established by S&amp;P or Moody&#146;s. &nbsp;Failure to adopt any such modifications, however, may result in a change in the ratings assigned to the preferred shares or a withdrawal of ratings altogether. &nbsp;In addition, any Rating Agency providing a rating for the preferred shares may, at any time, change or withdraw any such rating. &nbsp;The Board of each Fund may, without shareholder approval, amend, alter or repeal any or all of the definitions and related provisions which have been adopted by a Fund pursuant to the Rating Agency Guidelines in the event S&amp;P and/or Moody&#146;s is no longer rating the preferred shares or the Fund receives written confirmation from S&amp;P and/or Moody&#146;s that any such amendment, alternation or repeal would not impair the rating then assigned to
the prefe






rred shares.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">A preferred stock rating is an assessment of the capacity and willingness of an issuer to pay preferred stock obligations. &nbsp;The rating on the preferred shares is not a recommendation to purchase, hold or sell those shares, inasmuch as the rating does not comment as to market price or suitability for a particular investor. &nbsp;The Rating Agency Guidelines described above also do not address the likelihood that an owner of preferred shares will be able to sell such shares in an auction or otherwise. &nbsp;The rating is based on current information furnished to S&amp;P and/or Moody&#146;s by a Fund and/or the Adviser and information obtained from other sources. &nbsp;The rating may be changed, suspended or withdrawn as a result of changes in, or the unavailability of, such information. &nbsp;The common shares of each Fund have not been rated by S&amp;P or Moody&#146;s. &nbsp;Each Fund may at some future
time seek






to have the preferred shares rated by an additional or substitute Rating Agency.</P>
<A NAME="_Toc155621888"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>REDEMPTIONS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Notwithstanding the provisions for redemptions described below, no Fund may redeem, purchase or otherwise acquire preferred shares (or, with respect to Select Dividend Trust, Global Dividend Fund and Preferred Dividend Fund, mail a notice of redemption with respect to an optional redemption), unless: (i) all accumulated and unpaid dividends (including additional dividends) on all outstanding preferred shares for all applicable past dividend periods shall have been or are contemporaneously paid or declared, and a sum sufficient for the payment of such dividends is set apart for payment and (ii) the 1940 asset coverage requirements and any asset coverage requirements that may be imposed by a Rating Agency in connection with any rating of the preferred shares would be met on the date of such redemption, purchase or other acquisition after giving effect thereto. &nbsp;Global Dividend Fund is subject to the
additional cond






ition that: (a) in the case the preferred shares are then being rated by Moody&#146;s, the Fund has cash and short-term money market instruments maturing prior to the redemption date in the aggregate amount equal in value to the amount required to be paid upon any such redemption (including any required premium) and, (b) in the case the preferred shares are then being rated by S&amp;P, the Fund has S&amp;P Eligible Asset (as, defined in the By-Laws) with a maturity or tender date not later than the redemption date and with a value at least equal to the amount required to be paid upon any such redemption (including any required premium). Preferred Dividend Fund is subject to the additional condition set forth in (a) above. &nbsp;Notwithstanding any of the foregoing, a Fund may, subject to the requirements of the 1940 Act, redeem, purchase or otherwise acquire preferred shares (1) as a whole, either pursuant to an optional redemption or a mandatory redemption or (2) pursuant to a purchase or exchange
offer mad






e on an equal basis for all of the outstanding preferred shares for a price that is proper under the 1940 Act. &nbsp;In the event that fewer than all of the outstanding preferred shares are to be redeemed pursuant to either an optional redemption or a mandatory redemption, the shares to be redeemed shall otherwise be selected by lot, or such other method as the Board deems fair and equitable.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><I>Optional Redemptions.</I> &nbsp;The preferred shares are redeemable at the option of each Fund, as a whole or in part, on any dividend payment date with respect to Global Dividend Fund, Select Dividend Trust and Preferred Dividend Fund and on the second business day preceding any dividend payment date with respect to the Acquiring Fund and Premium Dividend Fund I, at a price equal to $100,000 per share plus, in each case, accumulated and unpaid dividends (including additional dividends, if any) to the redemption date. &nbsp;The ARPS of Preferred Dividend Fund may not be optionally redeemed in part if, after such partial redemption, fewer than 30 ARPS remain outstanding. &nbsp;The DARTS of Global Dividend Fund may not be optionally redeemed in part if, after such partial redemption fewer than 30 DARTS remain outstanding. &nbsp;No other Funds have any provision for the minimum number of preferred shares
outstanding
to allow the Fund to optionally redeem its shares. &nbsp;Each Fund (other than Preferred Dividend Fund) provides that optional redemptions may occur with not fewer than 30 nor more than 45 days&#146; notice. &nbsp;Preferred Dividend Fund provides that optional redemptions may occur with no fewer than 25 nor more than 30 days&#146; notice.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><I>Mandatory Redemptions. </I>&nbsp;The preferred shares are subject to mandatory redemption if either the 1940 Act asset coverage requirements or the asset coverage requirements that may be imposed by a Rating Agency in connection with any rating of the preferred shares are not met as of an applicable cure date, in part to the extent necessary to restore such asset coverage or, if such asset coverage cannot be so restored, as a whole. &nbsp;In each case, the redemption price will be $100,000 per share plus accumulated and unpaid dividends (including additional dividends, if any) to the redemption date.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">If a Fund does not have funds legally available for the redemption of all or any portion of the preferred shares to be redeemed on any mandatory redemption date, the Fund will redeem on such mandatory redemption date the number of preferred shares that it has legally available funds to redeem and the remainder of the preferred shares required to be redeemed will be redeemed on the earliest practicable date next following the day on which the Fund has funds legally available for the redemption of the preferred shares, pursuant to a notice of redemption (which will specify a mandatory redemption date that is not fewer than the minimum number of days after the date of such notice required by the 1940 Act).</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">From and after the occurrence of any event requiring the redemption of preferred shares, and for so long as any preferred shares are subject to mandatory redemption, a Fund may not reinvest the proceeds of any assets received prior to the mandatory redemption date for any such shares except in short-term money market instruments with maturity dates prior to such mandatory redemption date, except that the foregoing restrictions will not be applicable to any reinvestment of such proceeds if, after giving effect thereto, the Fund would have sufficient monies to redeem all of the preferred shares that are subject to redemption on such mandatory redemption date.</P>
<A NAME="_Toc155621889"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>LIQUIDATION RIGHTS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">In the event of any voluntary or involuntary liquidation, dissolution or winding up of a Fund, holders of preferred shares are entitled to receive, out of the assets of a Fund available for distribution to shareholders after satisfying claims of creditors but before any payment or distribution of assets is made to the holders of the common shares or any other class of shares of beneficial interest ranking junior to the preferred shares upon liquidation, a liquidation distribution in the amount of $100,000 per share plus an amount equal to accumulated and unpaid dividends (whether or not earned or declared and including additional dividends, if any) to the date of such distribution. If upon such events, the assets of a Fund are insufficient to pay the holders of preferred shares the full amount of the liquidation distributions to which they are entitled, holders of preferred shares will share ratably in any such
distri






bution of assets. &nbsp;Unless and until payment in full has been made to holders of preferred shares of the liquidation distributions to which they are entitled, no dividends or distributions in liquidation will be made to holders of the common shares or any other shares of beneficial interest ranking junior to the preferred shares and no purchase, redemption or other acquisition for any consideration by a Fund will be made in respect of the common shares or any other shares of beneficial interest ranking junior to the preferred shares upon liquidation. After payment to holders of the preferred shares of the full amount of the liquidation distributions to which they are entitled, such holders will have no rights or claims to the remaining assets of the Fund. &nbsp;Neither a sale, lease or exchange of all or substantially all of the property and assets of a Fund nor a consolidation or merger of a Fund with or into any other trust or corporation will be deemed to be a liquidation, whether voluntary or
involun






tary, dissolution or winding up of a Fund for the purpose of determining liquidation rights.</P>
<A NAME="_Toc155621890"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>ADDITIONAL INFORMATION</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">For additional information on Acquiring Fund DARTS, Acquired Fund shareholders should consult the Acquiring Fund&#146;s By-Laws<B> </B>attached as Appendix A to the Statement of Additional Information. &nbsp;Acquiring Fund DARTS issued in connection with the Reorganizations will be governed by the By-Laws of the Acquiring Fund, which, upon completion of the Reorganizations, will be amended to reflect the creation of new series and the issuance of additional DARTS.</P>
<A NAME="_Toc155621891"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>U.S. FEDERAL INCOME TAX MATTERS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The following is a summary discussion of certain U.S. federal income tax consequences that may be relevant to a shareholder of acquiring, holding and disposing of common shares or preferred shares of a Fund. &nbsp;This discussion only addresses U.S. federal income tax consequences to U.S. shareholders who hold their shares as capital assets and does not address all of the U.S. federal income tax consequences that may be relevant to particular shareholders in light of their individual circumstances. &nbsp;This discussion also does not address the tax consequences to shareholders who are subject to special rules, including, without limitation, financial institutions; insurance companies; dealers in securities or foreign currencies; foreign shareholders; shareholders who hold their shares as or in a hedge against currency risk, a constructive sale or a conversion transaction; shareholders who are subject to the
alternati






ve minimum tax, or tax-exempt or tax-deferred plans accounts, or entities. &nbsp;In addition, the discussion does not address any state, local or foreign tax consequences and it does not address any U.S. federal tax consequences other than U.S. federal income tax consequences. &nbsp;The discussion reflects applicable tax laws of the United States as of the date of this Prospectus, which tax laws may be changed or subject to new interpretations by the courts or the IRS retroactively or prospectively. &nbsp;No attempt is made to present a detailed explanation of all U.S. federal income tax concerns affecting each Fund and its shareholders, and the discussion set forth herein does not constitute tax advice. &nbsp;Investors are urged to consult their own tax advisers to determine the specific tax consequences to them of investing in a Fund, including the applicable federal, state, local and foreign tax consequences to them and the effect of possible changes in tax laws.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund intends to elect to be treated and to qualify each year as a &#147;regulated investment company&#148; under Subchapter M of the Code so that it generally will not pay U.S. federal income tax on income and capital gains distributed to shareholders. &nbsp;In order to qualify as a regulated investment company under Subchapter M of the Code, which qualification this discussion assumes, a Fund must, among other things, (i) derive at least 90% of its gross income for each taxable year from (a) dividends, interest, payments with respect to securities loans, gains from the sale or other disposition of stock, securities or foreign currencies, or other income (including gains from options, futures and forward contracts) derived with respect to its business of investing in such stock, securities or currencies and (b) net income derived from interests in certain publicly traded partnerships that are treated as
partnersh






ips for U.S. federal income tax purposes and that derive less than 90% of their gross income for the items described in (a) above (each a &#147;Qualified Publicly Traded Partnership&#148;) (the &#147;90% income test&#148;); and (ii) diversify its holdings so that, at the end of each quarter of each taxable year: (a) at least 50% of the value of the Fund&#146;s total assets is represented by (I) cash and cash items, U.S. government securities, the securities of other regulated investment companies and (II) other securities, with such other securities limited, in respect to any one issuer, to an amount not greater than 5% of the value of the Fund&#146;s total assets and not more than 10% of the outstanding voting securities of such issuer and (b) not more than 25% of the value of the Fund&#146;s total assets is invested in the securities (other than U.S. government securities and the securities of other regulated investment companies) of (I) any one issuer, (II) any two or more issuers that the Fund
controls a






nd that are determined to be engaged in the same or similar trades or businesses or related trades or businesses or (III) any one or more Qualified Publicly Traded Partnerships. For purposes of the 90% income test, the character of income earned by certain entities in which a Fund invests that are not treated as corporations for U.S. federal income tax purposes (<I>e.g.</I>, partnerships or trusts) will generally pass through to the Fund. &nbsp;Consequently, a Fund may be required to limit its equity investments in such entities that earn fee income, rental income or other nonqualifying income.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">If a Fund qualifies as a regulated investment company and, for each taxable year, it distributes to its shareholders an amount equal to or exceeding the sum of (i) 90% of its &#147;investment company taxable income&#148; as that term is defined in the Code (which includes, among other things, dividends, taxable interest and the excess of any net short-term capital gains over net long-term capital losses, as reduced by certain deductible expenses) without regard to the deduction for dividends paid and (ii) 90% of the excess of its gross tax-exempt interest, if any, over certain disallowed deductions, the Fund generally will be relieved of U.S. federal income tax on any income of a Fund, including &#147;net capital gains&#148; (the excess of net long-term capital gain over net short-term capital loss), distributed to shareholders. However, if a Fund retains any investment company taxable income or net capital
gain, it g






enerally will be subject to U.S. federal income tax at regular corporate rates on the amount retained. &nbsp;Each Fund intends to distribute at least annually all or substantially all of its investment company taxable income, net tax exempt interest, if any, and net capital gain. &nbsp;If for any taxable year a Fund did not qualify as a regulated investment company, it would be treated as a corporation subject to U.S. federal income tax thereby subjecting any income earned by the Fund to tax at the corporate level at a 35% federal tax rate and, when such income is distributed, to a further tax at the shareholder level. &nbsp;In addition, a Fund could be required to recognize unrealized gains, pay taxes and make distributions (which could be subject to interest charges) before requalifying as a regulated investment company.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">In order to avoid incurring a nondeductible 4% federal excise tax obligation, the Code requires that a Fund distribute (or be deemed to have distributed) by December 31 of each calendar year an amount at least equal to the sum of (i)&nbsp;98% of its ordinary income for such year, (ii) 98% of its capital gain net income (which is the excess of its realized net long-term capital gain over its realized net short-term capital loss), generally computed on the basis of the one-year period ending on October 31 of such year, after reduction by any available capital loss carryforwards and (iii)&nbsp;100% of any ordinary income and capital gain net income from the prior year (as previously computed) that were not paid out during such year and on which the Fund paid no federal income tax. &nbsp;Under current law, provided that a Fund qualifies as a regulated investment company for federal income tax purposes, the Fund
should not






 be liable for any income, corporate excise or franchise tax in the Commonwealth of Massachusetts.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Although dividends generally will be treated as distributed when paid, any dividend declared by a Fund as of a record date in October, November or December and paid during the following January will be treated for U.S. federal income tax purposes as received by shareholders on December 31 of the calendar year in which it is declared. &nbsp;In addition, certain other distributions made after the close of a taxable year of a Fund may be &#147;spilled back&#148; and treated as paid by the Fund (except for purposes of the 4% excise tax) during such taxable year. &nbsp;In such case, shareholders will be treated as having received such dividends in the taxable year in which the distributions were actually made.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each holder of common shares of the Funds, other than holders of Preferred Dividend Fund and Premium Dividend Fund II, will automatically have all distributions of dividends and capital gains reinvested by the Plan Agent, unless an election is made to receive cash. &nbsp;Holders of common shares of Preferred Dividend Fund and Premium Dividend Fund II must elect to have all distributions of dividends and capital gains reinvested by the Plan Agent. &nbsp;For U.S. federal income tax purposes, assuming the Fund has sufficient current or accumulated earnings and profits, such distributions generally will be taxable whether a shareholder takes them in cash or they are reinvested pursuant to the Plan in additional shares of the Fund. &nbsp;In general, dividends from investment company taxable income are taxable either as ordinary income or, if so designated by the Fund, as &#147;qualified dividend income&#148; taxable
to ind






ividual shareholders at a maximum 15% tax rate (if any) and dividends from net capital gain (if any) that are designated as capital gain dividends are taxable as long-term capital gains for U.S. federal income tax purposes without regard to the length of time the shareholder has held shares of the Fund. &nbsp;A portion of the dividend distributions to individual shareholders may qualify as &#147;qualified dividend income&#148; as that term is defined in Section 1(h)(11) of the Code, qualifying for the maximum 15% tax rate on dividends under the Jobs and Growth Tax Relief Reconciliation Act of 2003 to the extent that such dividends are attributable to qualified dividend income from the Fund&#146;s investments in common and preferred stock of U.S. companies and stock of certain foreign corporations, provided that certain holding period and other requirements are met. &nbsp;Capital gain dividends distributed by a Fund (if any) to individual shareholders generally will qualify for the maximum 15% tax rate
under






such Act. &nbsp;Absent further legislation, the maximum 15% tax rate on qualified dividend income and long-term capital gains will cease to apply to taxable years beginning after December 31, 2010. &nbsp;Shareholders receiving distributions in the form of additional shares issued by a Fund will be treated for federal income tax purposes as receiving a distribution in an amount equal to the amount of cash they would have received had they elected to receive cash, except when a Fund distributes newly issued shares, in which case the amount of the distribution will be equal to the fair market value of the shares received, determined as of the distribution date. &nbsp;The basis of such shares will equal the amount of the distribution. &nbsp;The source and U.S. federal income tax status of all distributions will be reported to shareholders annually and shareholders receiving distributions in the form of additional shares of a Fund will receive a report as to the NAV of those shares.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">If a Fund retains any net capital gains for a taxable year, the Fund may designate the retained amount as undistributed capital gains in a notice to shareholders who, if subject to U.S. federal income tax on long-term capital gains, (i) will be required to include in income for U.S. federal income tax purposes, as long-term capital gain, their proportionate shares of such undistributed amount and (ii) will be entitled to credit their proportionate shares of the tax paid by the Fund on the undistributed amount against their U.S. federal income tax liabilities, if any, and to claim refunds to the extent the credit exceeds such liabilities.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">If a Fund acquires any equity interest (under Treasury regulations that may be promulgated in the future, generally including not only stock but also an option to acquire stock such as is inherent in a convertible bond) in certain foreign corporations that receive at least 75% of their annual gross income from passive sources (such as interest, dividends, certain rents and royalties, or capital gains) or that hold at least 50% of their assets in investments producing such passive income (&#147;passive foreign investment companies&#148;), the Fund could be subject to U.S. federal income tax and additional interest charges on &#147;excess distributions&#148; received from such companies or on gain from the disposition of stock in such companies, even if all income or gain actually received by the Fund is timely distributed to its shareholders. The Fund would not be able to pass through to its shareholders any
credit or






deduction for such a tax. &nbsp;An election may generally be available that would ameliorate these adverse tax consequences, but any such election could require the Fund to recognize taxable income or gain (subject to tax distribution requirements) without the concurrent receipt of cash. &nbsp;These investments could also result in the treatment of capital gains from the sale of stock of passive foreign investment companies as ordinary income. &nbsp;Each Fund will monitor and may limit and/or manage its holdings in passive foreign investment companies to limit its tax liability or maximize its return from these investments.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">When a Fund utilizes leverage through borrowing or issuing preferred shares, a failure by the Fund to meet the asset coverage requirements imposed by the 1940 Act or by any rating organization that has rated such leverage or additional restrictions that may be imposed by certain lenders on the payment of dividends or distributions potentially could limit or suspend the Fund&#146;s ability to make distributions on its common shares. &nbsp;Such a suspension or limitation could prevent the Fund from distributing at least 90% of its investment company taxable income as is required under the Code and therefore might jeopardize the Fund&#146;s qualification for taxation as a regulated investment company and/or might subject the Fund to the 4% excise tax discussed above. &nbsp;Upon any failure to meet such asset coverage requirements, a Fund may, in its sole discretion, purchase or redeem shares of preferred stock in
order t






o maintain or restore the requisite asset coverage and avoid the adverse consequences to the Fund and its shareholders of failing to satisfy the distribution requirement. &nbsp;There can be no assurance, however, that any such action would achieve these objectives. &nbsp;Each Fund will endeavor to avoid restrictions on its ability to distribute dividends.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">If for any taxable year a Fund fails to qualify for treatment as a regulated investment company under the Code, the Fund will incur a regular Federal corporate income tax on its taxable income (including capital gain), irrespective of whether such income has been distributed to shareholders. &nbsp;Distributions to its shareholders for such year would be taxable as ordinary dividends to the extent of the Fund&#146;s current and accumulated earnings and profits, if any. &nbsp;Before requalifying as a regulated investment company for a subsequent taxable year, the Fund would be required to distribute to shareholders any earnings and profits accumulated in the taxable year(s) for which it did not qualify as a regulated investment company.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">If a Fund invests in certain pay-in-kind securities, zero coupon securities, deferred interest securities or, in general, any other securities with original issue discount (or with market discount if the Fund elects to include market discount in income currently), the Fund generally must accrue income on such investments for each taxable year, which generally will be prior to the receipt of the corresponding cash payments. &nbsp;However, a Fund must distribute, at least annually, all or substantially all of its investment company taxable income, including such accrued income, to shareholders to qualify as a regulated investment company under the Code and avoid U.S. federal income and excise taxes. &nbsp;Therefore, a Fund may have to dispose of its portfolio securities under disadvantageous circumstances to generate cash, or may have to borrow the cash, to satisfy distribution requirements.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">At the time of an investor&#146;s purchase of a Fund&#146;s shares, a portion of the purchase price may be attributable to realized or unrealized appreciation in the Fund&#146;s portfolio or undistributed taxable income of the Fund. &nbsp;Consequently, subsequent distributions by the Fund with respect to these shares from such appreciation or income may be taxable as ordinary income to such investor even if the NAV of the investor&#146;s shares is, as a result of the distributions, reduced below the investor&#146;s cost for such shares and the distributions economically represent a return of a portion of the investment.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Sales and other dispositions of a Fund&#146;s shares generally are taxable events for shareholders that are subject to tax. &nbsp;Shareholders should consult their own tax advisers with reference to their individual circumstances to determine whether any particular transaction in a Fund&#146;s shares is properly treated as a sale for tax purposes, as the following discussion assumes, and the tax treatment of any gains or losses recognized in such transactions. &nbsp;In general, if shares of a Fund are sold, the shareholder will recognize gain or loss equal to the difference between the amount realized on the sale and the shareholder&#146;s adjusted basis in the shares sold. &nbsp;Such gain or loss generally will be treated as long-term gain or loss if the shares were held for more than one year and otherwise generally will be treated as short-term gain or loss. &nbsp;Any loss recognized by a shareholder upon
the sale






or other disposition of shares with a tax holding period of six months or less generally will be treated as a long-term capital loss to the extent of any amounts treated as distributions of long-term capital gains with respect to such shares. &nbsp;Losses on sales or other dispositions of shares may be disallowed under &#147;wash sale&#148; rules in the event of other investments in a Fund (including those made pursuant to reinvestment of dividends and/or capital gains distributions) within a period of 61 days beginning 30 days before and ending 30 days after a sale or other disposition of shares. &nbsp;In that event, the basis of the replacement shares of the Fund will be increased to reflect the disallowed loss.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Under Treasury regulations, if a shareholder recognizes a loss with respect to shares of $2 million or more for an individual shareholder, or $10 million or more for a corporate shareholder, in any single taxable year (or a greater amount over a combination of years), the shareholder must file with the IRS a disclosure statement on Form 8886. &nbsp;Direct shareholders of portfolio securities are in many cases excepted from this reporting requirement but, under current guidance, shareholders of regulated investment companies are not excepted. &nbsp;The fact that a loss is reportable under these regulations does not affect the legal determination of whether or not the taxpayer&#146;s treatment of the loss is proper. &nbsp;Shareholders should consult with their tax advisers to determine the applicability of these regulations in light of their individual circumstances.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Options written or purchased and futures contracts entered into by a Fund on certain securities and indices may cause the Fund to recognize gains or losses from marking-to-market even though such options may not have lapsed, been closed out, or exercised, or such futures or forward contracts may not have been performed or closed out. &nbsp;The tax rules applicable to these contracts may affect the characterization of some capital gains and losses recognized by a Fund as long-term or short-term. &nbsp;Additionally, a Fund may be required to recognize gain if an option, futures contract, forward contract, short sale or other transaction that is not subject to the mark-to-market rules is treated as a &#147;constructive sale&#148; of an &#147;appreciated financial position&#148; held by the Fund under Section 1259 of the Code. &nbsp;Any net mark-to-market gains and/or gains from constructive sales may also have to
be dist






ributed to satisfy the distribution requirements referred to above even though a Fund may receive no corresponding cash amounts, possibly requiring the Fund to dispose of portfolio securities or borrow to obtain the necessary cash. &nbsp;Losses on certain options, futures or forward contracts and/or offsetting positions (portfolio securities or other positions with respect to which a Fund&#146;s risk of loss is substantially diminished by one or more options, futures or forward contracts) may also be deferred under the tax straddle rules of the Code, which may also affect the characterization of capital gains or losses from straddle positions and certain successor positions as long-term or short-term. &nbsp;Certain tax elections may be available that would enable a Fund to ameliorate some adverse effects of the tax rules described in this paragraph. &nbsp;The tax rules applicable to options, futures, forward contracts and straddles may affect the amount, timing and character of a Fund&#146;s income
and gains






 or losses and hence of its distributions to shareholders.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Dividends of investment company taxable income designated by a Fund and received by corporate shareholders of the Fund will qualify for the Dividends Received Deduction to the extent of the amount of qualifying dividends received by the Fund from domestic corporations for the taxable year. &nbsp;A dividend received by a Fund will not be treated as a qualifying dividend (i) if the stock on which the dividend is paid is considered to be &#147;debt-financed&#148; (generally, acquired with borrowed funds), (ii) if the Fund fails to meet certain holding period requirements for the stock on which the dividend is paid or (iii) to the extent that the Fund is under an obligation (pursuant to a short sale or otherwise) to make related payments with respect to positions in substantially similar or related property. Moreover, the Dividends Received Deduction may be disallowed or reduced if the corporate shareholder fails
to satis






fy the foregoing requirements with respect to its shares of a Fund or by application of the Code.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The federal income tax treatment of a Fund&#146;s investment in preferred securities or other securities and its transactions involving, among other things, swaps, caps, floors and collars is uncertain and may be subject to recharacterization by the IRS. &nbsp;To the extent the tax treatment of such securities or transactions differs from the tax treatment expected by a Fund, the timing or character of income recognized by the Fund could be affected and the Fund may be required to purchase or sell securities, or otherwise change its portfolio, in order to comply with the tax rules applicable to regulated investment companies under the Code.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The IRS has taken the position that if a regulated investment company has two or more classes of shares, it must designate distributions made to each class in any year as consisting of no more than such class&#146;s proportionate share of particular types of income, including dividends qualifying for the Dividends Received Deduction (if any) and capital gains. &nbsp;A class&#146;s proportionate share of a particular type of income is determined according to the percentage of total dividends paid by the regulated investment company during the year to such class. &nbsp;Consequently, each Fund other than Premium Dividend Fund I intends to designate distributions made to the common shareholders and the preferred shareholders of particular types of income (including ordinary income, qualified dividend income (if any) and capital gains) in accordance with each such class&#146;s proportionate share of such income.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Dividends (including additional dividends, if any) paid on the preferred shares and dividends paid on the common shares (other than capital gains dividends described below) will be eligible for the Dividends Received Deduction to the extent they are designated by a Fund as qualifying for such deduction, except the aggregate<B> </B>amount of dividends which may be designated by a Fund for any year cannot exceed the aggregate<B> </B>amount of qualified dividends received by the Fund in that year for which it would be allowed if it were not a regulated investment company.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Under current law, for any taxable year of a Fund, ordinary income dividends paid by the Fund will qualify fully for the Dividends Received Deduction if the qualified dividends received by the Fund are not less than the net income of the Fund exclusive of net capital gains (stated differently, if the income of the Fund other than such dividends or net capital gains does not exceed the expenses of the Fund). &nbsp;Each Fund intends to operate so as to achieve this result, but there can be no assurance that it will be achieved. &nbsp;A Fund&#146;s &#147;net income&#148; includes all dividends, interest and other income and short-term capital gains earned by the Fund on its portfolio holdings, net of the Fund&#146;s expenses. &nbsp;The term &#147;net capital gains&#148; means the excess of net long-term capital gains over net short-term capital losses.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Under Rev. Rul. 89-81, 1989-1 C.B. 226, distributions on the preferred shares and the common shares are required to consist proportionately of each type of income with particular tax characteristics earned by a Fund. &nbsp;Thus, if for a given taxable year, a particular percentage of the total net income of a Fund qualifies for the Dividends Received Deduction, then a uniform percentage of the distributions on the preferred shares and on the common shares of each Fund other than Premium Dividends Fund I will qualify for such deductions. &nbsp;As a Fund established prior to the issuance of Rev. Rul 89-81, Premium Dividends Fund I is not subject to the proportionality requirement of the ruling. &nbsp;Instead, in the case of Premium Dividend Fund I, if the qualified dividends received by the Fund are less than its net income, exclusive of net capital gains, then the Fund will allocate the qualified dividends first
to the






 preferred shares and then to the common shares, <I>provided </I>that Premium Dividend Fund I receives an opinion of counsel that such a preferential allocation is permitted under applicable law. &nbsp;If such an opinion is not received by Premium Dividend Fund I, then the Fund will allocate the qualifying dividends ratably among the common shares and the preferred shares, most likely ratably in proportion to the dividends paid on shares of each. &nbsp;In the event that qualified dividends are allocated ratably between the preferred shares and the common shares of a Fund, some portion of the dividends payable on the preferred shares might not qualify for the Dividends Received Deduction. &nbsp;In such event, the Fund would pay additional dividends to maintain the Net After-Tax Return of holders of preferred shares. &nbsp;Payment of any such additional dividends on the preferred shares will reduce the amount available for payment of dividends on the common shares.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Based in part on the lack of any present intention on the part of any Fund to redeem or purchase the preferred shares at any time in the future, each Fund believes that under present law its preferred shares will constitute stock of the Fund and distributions with respect to the preferred shares (other than distributions in redemption of the preferred shares that are treated as exchanges under Section 302(b) of the Code) will constitute dividends to the extent of the Fund&#146;s current or accumulated earnings and profits as calculated for U.S. federal income tax purposes. Such dividends generally will be taxable as ordinary income to shareholders (other than qualified dividend income and capital gain dividends). &nbsp;This view relies in part on a published ruling of the IRS stating that certain preferred stock similar in many material respects to the preferred shares represents equity. &nbsp;It is possible,
however,






 that the IRS might take a contrary position asserting, for example that the preferred shares constitute debt of a Fund. &nbsp;If this position were upheld, the discussion of the treatment of distributions above would not apply. &nbsp;Instead distributions by such Fund to shareholders of preferred shares would constitute interest, whether or not such distributions exceeded the earnings and profits of the Fund, would be included in full in the income of the recipient and would be taxed as ordinary income.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">If a Fund retains any net capital gain for a taxable year, the Fund may designate the retained amount as undistributed capital gains in a notice to shareholders who, if subject to U.S. federal income tax on long-term capital gains, (i)&nbsp;will be required to include in income for U.S. federal income tax purposes, as long-term capital gain, their proportionate shares of such undistributed amount, and (ii)&nbsp;will be entitled to credit their proportionate shares of the tax paid by the Fund on the undistributed amount against their U.S. federal income tax liabilities, if any, and to claim refunds to the extent the credit exceeds such liabilities.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Sales, redemptions and other dispositions of preferred shares generally are taxable events for shareholders that are subject to tax. &nbsp;Shareholders should consult their own tax advisers with reference to their individual circumstances to determine whether any particular transaction in a Fund&#146;s shares (including a redemption of preferred shares) is properly treated as a sale or exchange for tax purposes, as the following discussion assumes, and the tax treatment of any gains or losses recognized in such transactions. &nbsp;In general, if preferred shares are sold, the shareholder will recognize gain or loss equal to the difference between the amount realized on the sale and the shareholder&#146;s adjusted basis in the shares sold. &nbsp;Such gain or loss generally will be treated as long-term gain or loss if the shares were held for more than one year and otherwise generally will be treated as
short-term gain






or loss. &nbsp;Even if a redemption of preferred shares were treated as a sale or exchange, any declared but unpaid dividends distributed to shareholders in connection with the redeemed shares will be taxable to shareholders as dividends as described above.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Any loss recognized by a shareholder upon the sale or other disposition of shares with a tax holding period of six months or less generally will be treated as a long-term capital loss to the extent of any amounts treated as distributions of long-term capital gain with respect to such shares. &nbsp;Losses on sales or other dispositions of shares may be disallowed under &#147;wash sale&#148; rules in the event a shareholder acquires other shares in a Fund (including those acquired pursuant to reinvestment of dividends and/or capital gains distributions) within a period of 61 days beginning 30 days before and ending 30 days after a sale or other disposition of shares.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund is required in certain circumstances to backup withhold on reportable payments, including dividends, capital gains distributions, and proceeds of sales or other dispositions of a Fund&#146;s shares paid to certain holders of the Fund&#146;s shares who do not furnish the Fund with their correct social security number or other taxpayer identification number and certain other certifications, or who are otherwise subject to backup withholding. &nbsp;Backup withholding is not an additional tax. &nbsp;Any amounts withheld from payments made to a shareholder may be refunded or credited against such shareholder&#146;s U.S. federal income tax liability, if any, provided that the required information is furnished to the IRS.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The foregoing is a general and abbreviated summary of the provisions of the Code and the Treasury regulations currently in effect as they generally affect the taxation of a Fund and its preferred shareholders. &nbsp;As noted above, these provisions are subject to change by legislative, judicial or administrative action, and any such change may be retroactive. &nbsp;A further discussion of the U.S. federal income tax rules applicable to each Fund can be found in the Statement of Additional Information, which is incorporated by reference into this Joint Proxy Statement/Prospectus. &nbsp;Shareholders are urged to consult their tax advisers regarding specific questions as to U.S. federal, foreign, state and local income or other taxes.</P>
<A NAME="_Toc155621892"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>GOVERNING LAW</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund is organized as a business trust under the laws of the Commonwealth of Massachusetts. &nbsp;Premium Dividend Fund I was organized as a corporation in the State of Maryland on June 20, 1988, commenced investment operations on October 28, 1988, and was reorganized as a business trust under the laws of the Commonwealth of Massachusetts on July 18, 1990; Premium Dividend Fund II was organized on September 26, 1989, and commenced investment operations on December 21, 1989; Select Dividend Trust was organized on May 8, 1990, and commenced investment operations on July 31, 1990; Global Dividend Fund was organized on May 28, 1992, and commenced investment operations on August 1, 1992; and Preferred Dividend Fund was organized on March 22, 1993, and commenced investment operations on June 1, 1993.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Under Massachusetts law, shareholders of each Fund, including holders of the common shares and any preferred shares, could, in certain circumstances, be held personally liable for the obligations of a Fund. &nbsp;However, each Agreement and Declaration of Trust disclaims shareholder liability for acts or obligations of the Fund. &nbsp;Notice of such disclaimer may be given in any agreement, obligation or instrument entered into or executed by a Fund or the Trustees on behalf of the Fund. &nbsp;Each Agreement and Declaration of Trust provides for indemnification out of Fund property for all loss and expense of any shareholder held personally liable for the obligations of the Fund. &nbsp;Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances in which a Fund would be unable to meet its obligations.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Agreement and Declaration of Trust further provides that obligations of the Fund are not binding upon the Trustees or officers individually but only upon the property of the Fund and that the Trustees or officers will not be liable for actions or failures to act. &nbsp;Nothing in each Agreement and Declaration of Trust, however, protects a Trustee or officer against any liability to which such Trustee or officer may be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such Trustee&#146;s or officer&#146;s office.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund is also subject to federal securities laws, including the 1940 Act and the rules and regulations promulgated by the SEC thereunder, and applicable state securities laws. &nbsp;Each Fund is registered as a diversified, closed-end management investment company under the 1940 Act.</P>
<A NAME="_Toc155621893"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>CERTAIN PROVISIONS OF THE DECLARATIONS OF TRUST</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund&#146;s Agreement and Declaration of Trust and By-Laws include certain provisions that may have the effect of limiting the ability of other entities or persons to acquire control of the Fund or to cause it to engage in certain transactions or to modify its structure. &nbsp;The affirmative vote of the holders of at least 75% of the outstanding common shares of each Fund, voting as a separate class, is required to remove a Trustee elected by the holders of the common shares from his office during his term or for an amendment of the Agreement and Declaration of Trust to reduce or eliminate the 75% vote required for such removal, unless with respect to the former such termination has been authorized by the affirmative vote of two-thirds of the total number of Trustees elected by the holders of the common shares then in office, in which case the affirmative vote of a majority of the outstanding shares of
such clas






s is required. &nbsp;Trustees elected by the holders of the common shares may only be removed by the shareholders for cause. &nbsp;The affirmative vote of the holders of at least a majority of the outstanding preferred shares of a Fund, voting as a separate class, is required for the removal of a Trustee elected by the holders of the preferred shares, with or without cause, from his office during his term, or for an amendment of the Agreement and Declaration of Trust to reduce or eliminate the majority vote required for such removal.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund&#146;s Board is divided into three classes of approximately equal size. &nbsp;The terms of the Trustees of the different classes are staggered so that approximately one third of the Board is elected by shareholders each year. &nbsp;Such classification may prevent replacement of a majority of the Trustees for up to a two year period.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">In addition, the affirmative vote of the holders of at least 67% of the outstanding common shares and preferred shares of each Fund, each voting as a separate class, is required to authorize any of the following actions: &nbsp;(i)&nbsp;merger or consolidation of a Fund, (ii) sale of all or substantially all of the assets of a Fund, (iii) liquidation or dissolution of a Fund or (iv) amendment of the Agreement and Declaration of Trust to reduce the 67% vote required to authorize the actions in (i) through (iii), unless with respect to any of the foregoing actions in (i) through (iii), such action has been authorized by the affirmative vote of two-thirds of the total number then in office, in which case the affirmative vote of at least a majority of the outstanding common shares and preferred shares, each voting as a separate class, is required to authorize the actions in (i) through (iii). &nbsp;Global Dividend
Fund&#14






6;s voting rights with respect to mergers or consolidations differs from the other Funds in that so long as its DARTS are rated by Moody&#146;s and S&amp;P, the Fund will not merge or consolidate into or with any other corporation or entity, unless it has received written confirmation from Moody&#146;s and/or S&amp;P, as the case may be, that such action would not impair the ratings then assigned to the DARTS.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">For all Funds other than Preferred Dividend Fund, conversion to an open-end investment company would require the approval of the holders of the Fund&#146;s outstanding common shares, voting together as a single class, and the holders of the Fund&#146;s preferred shares, voting as a separate class. &nbsp;With respect to all Funds other than Preferred Dividend Fund, the affirmative vote of the holders of at least 75% of the outstanding common shares and preferred shares of a Fund, each voting as a separate class, is required to authorize (i) a Fund&#146;s conversion from a closed-end to an open-end investment company or (ii) amendment of the Agreement and Declaration of Trust to reduce the 75% vote required to authorize conversion, unless with respect to the former, such action has been authorized by the affirmative vote of two-thirds of the total number of Trustees then in office, in which case the affirmative
vote of






at least a majority of the outstanding shares of each class is required to authorize the action in (i).</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">With respect to Preferred Dividend Fund, the affirmative vote of the holders of at least a majority of the outstanding common shares and preferred shares of the Fund, voting as a single class, is required to authorize the Fund&#146;s conversion from a closed-end to an open-end investment company, provided that with respect to the foregoing, such action has been authorized by the affirmative vote of two thirds of the total numbers of Trustees then in office. &nbsp;In the event that conversion from a closed-end to an open-end investment company is approved by less than two thirds of the total number of Trustees then in office, a majority of the Trustees then in office and the affirmative vote of the holders of at least 75% of the outstanding common shares and preferred shares of Preferred Dividend Fund, voting as a single class, is required to (i) authorize the Fund&#146;s conversion from a closed-end to an
open-end inv






estment company or (ii) amend the Agreement and Declaration of Trust to reduce the 75% vote required to authorize conversion.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The Trustees of each Fund have determined that the voting requirements described above, which are greater than the minimum requirements under the 1940 Act, are in the best interests of each Fund and its shareholders generally. &nbsp;Refer to the Agreement and Declaration of Trust and By-Laws of each Fund, on file with the SEC, for the full text of these provisions. &nbsp;These provisions could have the effect of depriving shareholders of an opportunity to sell their shares at a premium over prevailing market prices by discouraging a third party from seeking to obtain control of a Fund in a tender offer or similar transaction.</P>
<A NAME="_Toc155621894"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>CONVERSION TO OPEN-END FUNDS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund may be converted to an open-end investment company at any time by a vote of the outstanding common shares and preferred shares as stated in that Fund&#146;s Agreement and Declaration of Trust and By-Laws. &nbsp;See &#147;Certain Provisions of the Declarations of Trust.&#148;</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">If a Fund converted to an open-end investment company, it would be required to redeem all preferred shares then outstanding, and the Fund&#146;s common shares would no longer be listed on the NYSE. &nbsp;If a Fund were converted to an open-end investment company, it is also likely that new common shares would be sold at NAV plus a sales load. &nbsp;Conversion to open-end status would also require a Fund to modify certain investment restrictions and policies including those related to the issuance of senior securities, borrowing money and illiquid securities. &nbsp;Shareholders of an open-end investment company may require the company to redeem their shares at any time (except in certain circumstances as authorized by or permitted under the 1940 Act) at their NAV, less such redemption charge, if any, as might be in effect at the time of redemption. &nbsp;In order to avoid maintaining large cash positions or
liquidating






 favorable investments to meet redemptions, open-end companies typically engage in a continuous offering of their shares. &nbsp;Open-end companies are thus subject to periodic asset in-flows and out-flows that can complicate portfolio management. &nbsp;A Fund&#146;s Board may at any time propose conversion of a Fund to open-end status, depending upon its judgment regarding the advisability of such action in light of circumstances then prevailing.</P>
<A NAME="_Toc155621895"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>VOTING RIGHTS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Except as otherwise indicated in this Joint Proxy Statement/Prospectus or as otherwise required by applicable law, holders of the preferred shares of each Fund have equal voting rights with holders of common shares of each Fund (one vote per share) and will vote together with holders of common shares as a single class.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">When holders of the preferred shares are entitled to vote, each holder is entitled to cast one vote per preferred share. &nbsp;For purposes of any right of holders of the preferred shares to vote on any matter, whether such right is created by the Fund&#146;s Agreement and Declaration of Trust, the By-Laws, by statute or otherwise, no holder of preferred shares will be entitled to vote and no preferred shares will be deemed to be outstanding for the purpose of voting or determining the number of shares entitled to vote or of shares deemed outstanding for quorum purposes, as the case may be, sufficient funds for the redemption of such shares have been deposited with the preferred shares paying agent and irrevocable instructions and authority to pay the redemption price to such holder of preferred shares for that purpose and the requisite notice of redemption has been given.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The common shares and the preferred shares of each Fund vote as separate classes on amendments to the Agreement and Declaration of Trust or By-Laws that would adversely affect their respective interests (other than an amendment to the By-Laws of Preferred Dividend Fund to incorporate the requirements of any nationally recognized statistical rating organization in connection with the rating of the preferred shares). &nbsp;So long as preferred shares of a Fund are outstanding: (i) the Fund may not be voluntarily liquidated, dissolved, wound up, merged or consolidated and may not sell all or substantially all of its assets, without the approval of the holders of at least 67% of the preferred shares and the common shares, each voting as a separate class; (ii) the Fund may not take any action adversely affecting either the preferred shares or the common shares without the approval of at least a majority of the
outstanding






shares of such class; provided that, in the case of Preferred Dividend Fund, neither the approval of the holders of preferred shares nor the holders of the common shares shall be required in the event the By-Laws are amended to incorporate the requirements of any Rating Agency in connection with any rating of the preferred shares by any Rating Agency, whether such Rating Agency is in addition to or in substitution of Moody&#146;s or in connection with any requirements that may be from time to time imposed by Moody&#146;s, provided any such amendment is approved by at least a majority of the Trustees then in office; (iii) the affirmative vote of the lesser of (x) the holders of more than 50% of the preferred shares then outstanding and the holders of more than 50% of the common shares then outstanding, each voting as a separate class or (y) in the case of each Fund other than Premium Dividend Fund II, the holders of at least 67% of the preferred shares and the holders of at least 67% of the common
shares, eac






h voting as a separate class, present at a meeting if more than 50% of the outstanding shares of each class are represented in person or by proxy at such meeting, is required to approve any action requiring a vote of security holders under Section 13(a) of the 1940 Act, including a change to the Fund&#146;s fundamental investment policies; (iv) the approval of at least a majority of Trustees in the case of Preferred Dividend Fund only, and 75% of the outstanding preferred shares and common shares, each voting as a separate class for all Funds other than Preferred Dividend Fund, and voting as a single class in the case of Preferred Dividend Fund, is required to convert the Fund from a closed-end investment company to an open-end investment company; and (v) the approval of a majority of the outstanding preferred shares, voting as a separate class, is required to amend, alter or repeal any of the preferences, rights or powers or to increase or decrease the number of preferred shares authorized to be
issued or t






o issue (x) in the case of Premium Dividend Fund I, Premium Dividend Fund II, Select Dividend Trust and Global Dividend Fund any additional series of preferred shares, and (y) in the case of Global Dividend Fund and Preferred Dividend Fund, another class of equity securities with a dividend or liquidation preferred payable senior to or in parity with the preferred shares; provided however, that if any of the actions specified in either (i) or (iv) above are recommended by two-thirds of the total number of Trustees then in office, then the approval of at least a majority of the outstanding preferred shares and common shares, each voting as a separate class (except with respect to (iv) in the case of &nbsp;Preferred Dividend Fund, in which case the holders of preferred shares and common shares shall vote as a single class), shall be sufficient authorization. &nbsp;Global Dividend Fund&#146;s voting rights with respect to mergers or consolidations differs from the other Funds in that so long as its DARTS
are ra






ted by Moody&#146;s and S&amp;P, the Fund will not merge or consolidate into or with any other corporation or entity, unless it has received written confirmation from Moody&#146;s and/or S&amp;P, as the case may be, that such action would not impair the ratings then assigned to the DARTS. &nbsp;The common shares and the preferred shares of each Fund will also vote separately to the extent otherwise required under Massachusetts law or the 1940 Act as in effect from time to time.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Holders of preferred shares of each Fund, voting separately as a single class, are entitled to elect two of the Fund&#146;s Trustees and the remaining Trustees are elected by holders of the common shares voting separately as a single class. &nbsp;However, if at any time dividends on the preferred shares are unpaid in an amount equal to two full years&#146; dividends thereon, the holders of all outstanding preferred shares, voting separately as a single class, will be entitled to elect, until such time as the accumulated and unpaid dividends have been paid or provided for, additional Trustees who, together with the two Trustees ordinarily elected by them, will be a majority of the Fund&#146;s Trustees.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Such voting right will continue unless and until all accumulated and unpaid dividends (including additional dividends, if any) on the then outstanding preferred shares, including the accumulated and unpaid dividends for the current dividend period shall have been paid or declared and a sum sufficient set apart for the payment of such dividends, at which time the additional voting right described in the preceding paragraph shall cease, subject, however, to its revesting in holders of the preferred shares upon the further occurrence of accumulated dividends on any outstanding preferred shares being unpaid in an amount equal to two full years&#146; dividends. &nbsp;If a Fund pays, or declares and sets apart for payment, in full, all dividends payable on all outstanding preferred shares before holders of the preferred shares have exercised their right to elect additional Trustees of the Fund, such holders will be
deemed n






ot to have acquired such additional voting right.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The term of office of all persons who are Trustees of a Fund at the time of a special meeting of holders of the preferred shares at which additional Trustees will be elected will continue, notwithstanding the election of additional Trustees at such meeting by such holders. &nbsp;The persons elected by holders of the preferred shares, together with the incumbent Trustees elected by holders of the preferred shares or the common shares, will constitute the duly elected Trustees of a Fund. &nbsp;Upon the expiration of the right to elect additional Trustees, the term of office of the additional Trustees will terminate automatically and only the incumbent Trustees (including the two Trustees previously elected by the holders of the preferred shares) will constitute the duly elected Trustees.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The Trustees elected by holders of the common shares will (subject to the 1940 Act and other applicable law) be subject to removal for cause only by the vote of holders of 75% of the outstanding common shares, provided, however, that if such removal is recommended by two-thirds of the total number of Trustees then in office elected by the holders of the common shares, the vote of the holders of a majority of the common shares then outstanding shall be sufficient authorization. &nbsp;The Trustees elected by holders of the preferred shares will (subject to the provisions of the 1940 Act and other applicable law) be subject to removal, with or without cause, by the vote of the holders of a majority of the outstanding preferred shares. &nbsp;Any vacancy on the Board occurring by reason of such removal or otherwise may be filled (subject to the provisions of the 1940 Act and other applicable law) by a vote of a
majority of






 the remaining Trustees, or the remaining Trustee, previously elected by holders of the common shares or the preferred shares, respectively, or by a vote of holders of the common shares or the preferred shares, as the case may be.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The Trustees of each Fund have determined that the voting requirements described above, which are greater than the minimum requirements under the 1940 Act, are in the best interests of each Fund and its shareholders generally. &nbsp;Refer to the Agreement and Declaration of Trust and By-Laws of each Fund, on file with the SEC, for the full text of these provisions. &nbsp;These provisions could have the effect of depriving shareholders of an opportunity to sell their shares at a premium over prevailing market prices by discouraging a third party from seeking to obtain control of a Fund through a tender offer or similar transaction.</P>
<A NAME="_Toc155621896"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>PAST PERFORMANCE OF EACH FUND</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">As shown in the table below, the performance of Premium Dividend Fund II has exceeded that of the other Funds for 1, 3 and 10-year periods. &nbsp;Each Fund&#146;s performance at market price may differ from its results at NAV. &nbsp;Although market price performance generally reflects investment results, it may also be influenced by several factors, including changes in investor perceptions of each Fund or its investment adviser, market conditions, fluctuations in supply and demand for each Fund&#146;s shares and changes in each Fund&#146;s distributions.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>TOTAL RETURNS AS OF OCTOBER 31, 2006</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=67.2></TD><TD width=57.067></TD><TD width=57.133></TD><TD width=57.133></TD><TD width=57.133></TD><TD width=57.133></TD><TD width=57.067></TD><TD width=57.133></TD><TD width=57.133></TD><TD width=57.133></TD><TD width=57.133></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=67.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=114.2 colspan=2><P style="margin:0px" align=center><B>Premium Dividend Fund I</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=114.267 colspan=2><P style="margin:0px" align=center><B>Premium Dividend Fund II</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=114.2 colspan=2><P style="margin:0px" align=center><B>Select Dividend Trust</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=114.267 colspan=2><P style="margin:0px" align=center><B>Global Dividend Fund</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=114.267 colspan=2><P style="margin:0px" align=center><B>Preferred Dividend Fund</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=67.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" width=57.067><P style="margin:0px" align=center>NAV</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" width=57.133><P style="margin:0px" align=center>Market Price</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" width=57.133><P style="margin:0px" align=center>NAV</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" width=57.133><P style="margin:0px" align=center>Market Price</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" width=57.133><P style="margin:0px" align=center>NAV</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" width=57.067><P style="margin:0px" align=center>Market Price</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" width=57.133><P style="margin:0px" align=center>NAV</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" width=57.133><P style="margin:0px" align=center>Market Price</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" width=57.133><P style="margin:0px" align=center>NAV</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" width=57.133><P style="margin:0px" align=center>Market Price</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=67.2><P style="margin:0px">1 year</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.067><P style="margin:0px" align=right>15.33%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>12.94%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>15.91%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>8.11%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>15.48%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.067><P style="margin:0px" align=right>15.99%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>14.44%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>17.96%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>10.78%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>12.32%</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=67.2><P style="margin:0px">3 years</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.067><P style="margin:0px" align=right>11.77%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>4.30%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>12.55%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>7.16%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>11.97%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.067><P style="margin:0px" align=right>3.83%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>11.86%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>8.15%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>9.84%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>8.90%</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=67.2><P style="margin:0px">5 years</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.067><P style="margin:0px" align=right>8.32%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>5.50%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>9.05%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>8.28%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>8.34%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.067><P style="margin:0px" align=right>5.14%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>8.98%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>7.58%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>9.09%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>9.16%</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=67.2><P style="margin:0px">10 years</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.067><P style="margin:0px" align=right>8.57%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>6.56%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>8.76%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>8.16%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>8.19%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.067><P style="margin:0px" align=right>6.93%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>8.66%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>8.24%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>8.45%</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=57.133><P style="margin:0px" align=right>7.62%</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>FINANCIAL HIGHLIGHTS</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>PREMIUM DIVIDEND FUND I. </B>&nbsp;The following schedule presents financial highlights for one common share of the Fund outstanding throughout the periods indicated.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=258.867></TD><TD width=72.2></TD><TD width=72.2></TD><TD width=72.2></TD><TD width=72.2></TD><TD width=64.4></TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><B>Period ended</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>9-30-02(1)</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>9-30-03(1)</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>9-30-04(1)</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>9-30-05(1)</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>9-30-06</B></P>
</TD></TR>
<TR><TD style="background-color:#404040" valign=top width=612.067 colspan=6><P style="margin-top:3.333px; margin-bottom:3.333px; color:#FFFFFF"><FONT COLOR=#FFFFFF><B>Per share operating performance</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><FONT COLOR=#000000><B>Net asset value, beginning of period</B></FONT></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$9.74</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$8.30</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$8.82</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$9.25</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>$9.85</B></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Net investment income(2)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>0.78</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>0.69</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>0.64</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>0.65</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>0.67</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Net realized and unrealized gain</P>
<P style="margin-top:0px; margin-bottom:13.333px">(loss) on investments</P>
</TD>


<TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>(1.49)</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>0.54</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>0.56</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>0.66</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>0.04</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Distributions to DARTS</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.08)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.06)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.05)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.11)</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>(0.16)</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><B>Total from investment operations</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>(0.79)</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>1.17</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>1.15</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>1.20</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>0.55</B></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><B>Less distributions to common shareholders</B></P>
</TD><TD valign=top width=72.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=64.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">From net investment income</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.65)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.65)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.72)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.60)</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>(0.53)</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><B>Net asset value, end of period</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$8.30</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$8.82</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$9.25</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$9.85</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>$9.87</B></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><B>Per share market value, end of period</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$9.15</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$9.24</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$9.38</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$8.90</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>$8.63</B></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><B>Total return at market value(3) (%)</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>12.03</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>8.91</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>9.76</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>1.09</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>3.27</B></P>
</TD></TR>
<TR><TD style="background-color:#404040" valign=top width=612.067 colspan=6><P style="margin-top:3.333px; margin-bottom:3.333px; color:#FFFFFF"><FONT COLOR=#FFFFFF><B>Ratios and supplemental data</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><FONT COLOR=#000000>Net assets applicable to common</FONT></P>
<P style="margin-top:0px; margin-bottom:13.333px">shares, end of period (in millions)</P>
</TD>
<TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>$125</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>$134</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>$141</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>$151</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>$151</P>
</TD></TR>
<TR>
<TD valign=top width=258.867><P style="margin:0px">Ratio of net investment income to</P>
<P style="margin-top:0px; margin-bottom:13.333px">average net assets(4) (%)</P>
</TD>
<TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>1.79</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>1.90</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>1.70</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>1.65</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>1.61</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Ratio of net investment income to</P>
<P style="margin-top:0px; margin-bottom:13.333px">average net assets(5) (%)</P>
</TD>
<TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>8.42</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>8.33</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>7.06</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>6.69</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>7.07</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Portfolio turnover (%)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>11</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>10</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>16</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>17</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>30</P>
</TD></TR>
<TR><TD style="background-color:#404040" valign=top width=612.067 colspan=6><P style="margin-top:3.333px; margin-bottom:3.333px; color:#FFFFFF"><FONT COLOR=#FFFFFF><B>SENIOR SECURITIES</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><FONT COLOR=#000000>Total value of DARTS outstanding</FONT></P>
<P style="margin:0px">(in millions)</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$68</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$69</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$69</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$69</P>
</TD><TD valign=bottom width=64.4><P style="margin:0px" align=right>$69</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Involuntary liquidation preference</P>
<P style="margin:0px">per unit (in thousands)</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=64.4><P style="margin:0px" align=right>$100</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Average market value per unit</P>
<P style="margin:0px">(in thousands)</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=64.4><P style="margin:0px" align=right>$100</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Asset coverage per unit(6)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>$280,462</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>$287,811</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>$304,418</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>$320,275</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>$318,822</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin:0px; font-size:12.667px">(1) Audited by previous auditor.</P>
<P style="line-height:17.333px; margin:0px; font-size:12.667px">(2) Based on the average of shares outstanding.</P>
<P style="line-height:17.333px; margin:0px; font-size:12.667px">(3) Assumes dividend reinvestment.</P>
<P style="line-height:17.333px; margin:0px; font-size:12.667px">(4) Ratios calculated on the basis of expenses relative to the average net assets of common shares. Without the exclusion of preferred shares, the ratio of expenses would have been 1.20%, 1.23%, 1.14%, 1.13% and 1.09%, respectively.</P>
<P style="line-height:17.333px; margin:0px; font-size:12.667px">(5) Ratios calculated on the basis of net investment income relative to the average net assets of common shares. Without the exclusion of preferred shares, the ratio of net investment income would have been 5.65%, 5.39%, 4.73%, 4.57% and 4.80%, respectively.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:12.667px; font-size:12.667px">(6) Calculated by subtracting the Fund&#146;s total liabilities from the Fund&#146;s total assets and dividing such amount by the number of DARTS outstanding as of the applicable 1940 Act Evaluation Date, which may differ from the financial reporting date.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>PREMIUM DIVIDEND FUND II.</B> &nbsp;The following schedule presents financial highlights for one common share of the Fund outstanding throughout the periods indicated.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=258.533></TD><TD width=78.867></TD><TD width=78.867></TD><TD width=78.867></TD><TD width=78.867></TD><TD width=64.4></TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px"><B>Period ended</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>10-31-02(1)</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>10-31-03(1)</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>10-31-04(1)</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>10-31-05(1)</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>10-31-06</B></P>
</TD></TR>
<TR><TD style="background-color:#404040" valign=top width=638.4 colspan=6><P style="margin-top:3.333px; margin-bottom:3.333px; color:#FFFFFF"><FONT COLOR=#FFFFFF><B>Per share operating performance</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px"><FONT COLOR=#000000><B>Net asset value, beginning of period</B></FONT></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>$12.06</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>$10.01</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>$10.99</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>$11.73</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>$11.78</B></P>
</TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px">Net investment income(2)</P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right>0.99</P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right>0.87</P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right>0.84</P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right>0.85</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>0.88</P>
</TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px">Net realized and unrealized gain</P>
<P style="margin-top:0px; margin-bottom:13.333px">(loss) on investments</P>
</TD><TD valign=top width=78.867><P style="margin-top:0px; margin-bottom:13.333px" align=right>(2.14)</P>
</TD><TD valign=top width=78.867><P style="margin-top:0px; margin-bottom:13.333px" align=right>1.21</P>
</TD><TD valign=top width=78.867><P style="margin-top:0px; margin-bottom:13.333px" align=right>0.80</P>
</TD><TD valign=top width=78.867><P style="margin-top:0px; margin-bottom:13.333px" align=right>0.14</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>1.11</P>
</TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px">Distributions to DARTS Series A and B</P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right>(0.12)</P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right>(0.08)</P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right>(0.09)</P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right>(0.17)</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>(0.25)</P>
</TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px"><B>Total from investment operations</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>(1.27)</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>2.00</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>1.55</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>0.82</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>1.74</B></P>
</TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px"><B>Less distributions to common shareholders</B></P>
</TD><TD valign=top width=78.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=78.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=64.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px">From net investment income</P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right>(0.78)</P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right>(1.02)</P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right>(0.81)</P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right>(0.77)</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>(0.65)</P>
</TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px"><B>Net asset value, end of period</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>$10.01</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>$10.99</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>$11.73</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>$11.78</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>$12.87</B></P>
</TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px"><B>Per share market value, end of period</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>$9.40</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>$11.14</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>$11.19</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>$11.05</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>$11.26</B></P>
</TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px"><B>Total return at market value(3) (%)</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>(7.55)</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>30.87</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>8.06</B></P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right><B>5.35</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>8.11</B></P>
</TD></TR>
<TR><TD style="background-color:#404040" valign=top width=638.4 colspan=6><P style="margin-top:3.333px; margin-bottom:3.333px; color:#FFFFFF"><FONT COLOR=#FFFFFF><B>Ratios and supplemental data</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px"><FONT COLOR=#000000>Net assets applicable to common</FONT></P>
<P style="margin:0px">shares, end of period (in millions)</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$150</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$165</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$177</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$177</P>
</TD><TD valign=bottom width=64.4><P style="margin:0px" align=right>$194</P>
</TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px">Ratio of net investment income to</P>
<P style="margin:0px">average net assets(4) (%)</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>1.91</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>1.91</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>1.78</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>1.67</P>
</TD><TD valign=bottom width=64.4><P style="margin:0px" align=right>1.67</P>
</TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px">Ratio of net investment income to</P>
<P style="margin:0px">average net assets(5) (%)</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>8.66</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>8.45</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>7.38</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>6.96</P>
</TD><TD valign=bottom width=64.4><P style="margin:0px" align=right>7.36</P>
</TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px">Portfolio turnover (%)</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>10</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>9</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>9</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>11</P>
</TD><TD valign=bottom width=64.4><P style="margin:0px" align=right>24</P>
</TD></TR>
<TR><TD style="background-color:#404040" valign=top width=638.4 colspan=6><P style="margin-top:3.333px; margin-bottom:3.333px; color:#FFFFFF"><FONT COLOR=#FFFFFF><B>SENIOR SECURITIES</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px"><FONT COLOR=#000000>Total value of DARTS Series A outstanding</FONT></P>
<P style="margin:0px">(in millions)</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$50</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$50</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$50</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$50</P>
</TD><TD valign=bottom width=64.4><P style="margin:0px" align=right>$50</P>
</TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px">Total value of DARTS Series B outstanding</P>
<P style="margin:0px">(in millions)</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$50</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$50</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$50</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$50</P>
</TD><TD valign=bottom width=64.4><P style="margin:0px" align=right>$50</P>
</TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px">Involuntary liquidation preference</P>
<P style="margin:0px">per unit (in thousands)</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=64.4><P style="margin:0px" align=right>$100</P>
</TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px">Average market value per unit</P>
<P style="margin:0px">(in thousands)</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=78.867><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=64.4><P style="margin:0px" align=right>$100</P>
</TD></TR>
<TR><TD valign=top width=258.533><P style="margin:0px">Asset coverage per unit(6)</P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right>$247,689</P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right>$264,239</P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right>$272,034</P>
</TD><TD valign=top width=78.867><P style="margin:0px" align=right>$276,340</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>$292,301</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(1) Audited by previous auditor.</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(2) Based on the average of shares outstanding.</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(3) Assumes dividend reinvestment.</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(4) Ratios calculated on the basis of expenses relative to the average net assets of common shares. Without the exclusion of preferred shares, the ratio of expenses would have been 1.20%, 1.16%, 1.12%, 1.08% and 1.07%, respectively.</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(5) Ratios calculated on the basis of net investment income relative to the average net assets of common shares. Without the exclusion of preferred shares, the ratio of net investment income would have been 5.46%, 5.14%, 4.66%, 4.50% and 4.74%, respectively.</P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:24px; font-size:12px">(6) Calculated by subtracting the Fund&#146;s total liabilities from the Fund&#146;s total assets and dividing such amount by the number of DARTS outstanding as of the applicable 1940 Act Evaluation Date, which may differ from the financial reporting date.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>SELECT DIVIDEND TRUST.</B> &nbsp;The following schedule presents financial highlights for one common share of the Fund outstanding throughout the periods indicated.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=258.867></TD><TD width=72.2></TD><TD width=72.2></TD><TD width=72.2></TD><TD width=72.2></TD><TD width=64.4></TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><B>Period ended</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>6-30-02(1)</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>6-30-03(1)</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>6-30-04(1)</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>6-30-05(1)</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>6-30-06</B></P>
</TD></TR>
<TR><TD style="background-color:#404040" valign=top width=612.067 colspan=6><P style="margin-top:3.333px; margin-bottom:3.333px; color:#FFFFFF"><FONT COLOR=#FFFFFF><B>Per share operating performance</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><FONT COLOR=#000000><B>Net asset value, beginning of period</B></FONT></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$15.43</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$13.77</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$13.73</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$13.36</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>$15.19</B></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Net investment income(2)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>1.18</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>1.08</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>0.96</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>1.03</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>1.00</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Net realized and unrealized gain</P>
<P style="margin-top:0px; margin-bottom:13.333px">(loss) on investments</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>(1.61)</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>0.06</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>(0.17)</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>1.94</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>(1.06)</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Distributions to AMPS</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.15)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.10)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.08)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.15)</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>(0.23)</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><B>Total from investment operations</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>(0.58)</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>1.04</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>0.71</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>2.82</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>(0.29)</B></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><B>Less distributions to common shareholders</B></P>
</TD><TD valign=top width=72.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=64.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">From net investment income</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(1.08)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(1.08)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(1.08)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.99)</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>(0.82)</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><B>Net asset value, end of period</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$13.77</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$13.73</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$13.36</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$15.19</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>$14.08</B></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><B>Per share market value, end of period</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$13.69</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$14.72</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$13.65</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$13.79</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>$12.07</B></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><B>Total return at market value(3) (%)</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>(0.45)</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>16.82</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>0.23</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>8.46</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>(6.65)</B></P>
</TD></TR>
<TR><TD style="background-color:#404040" valign=top width=612.067 colspan=6><P style="margin-top:3.333px; margin-bottom:3.333px; color:#FFFFFF"><FONT COLOR=#FFFFFF><B>Ratios and supplemental data</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><FONT COLOR=#000000>Net assets applicable to common</FONT></P>
<P style="margin-top:0px; margin-bottom:13.333px">shares, end of period (in millions)</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>136</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>137</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>133</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>152</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>141</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Ratio of net investment income to</P>
<P style="margin-top:0px; margin-bottom:13.333px">average net assets(4) (%)</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>1.77</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>1.90</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>1.78</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>1.72</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>1.70</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Ratio of net investment income to</P>
<P style="margin-top:0px; margin-bottom:13.333px">average net assets(5) (%)</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>7.99</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>8.62</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>7.04</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>7.17</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>6.89</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Portfolio turnover (%)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>15</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>2</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>18</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>36</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>26</P>
</TD></TR>
<TR><TD style="background-color:#404040" valign=top width=612.067 colspan=6><P style="margin-top:3.333px; margin-bottom:3.333px; color:#FFFFFF"><FONT COLOR=#FFFFFF><B>SENIOR SECURITIES</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><FONT COLOR=#000000>Total value of AMPS outstanding</FONT></P>
<P style="margin:0px">(in millions)</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$70</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$70</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$70</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$70</P>
</TD><TD valign=bottom width=64.4><P style="margin:0px" align=right>$70</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Involuntary liquidation preference</P>
<P style="margin:0px">per unit (in thousands)</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=64.4><P style="margin:0px" align=right>$100</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Average market value per unit</P>
<P style="margin:0px">(in thousands)</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=64.4><P style="margin:0px" align=right>$100</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Asset coverage per unit(6)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>$290,311</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>$294,629</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>$288,521</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>$316,085</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>$300,063</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(1) Audited by previous auditor.</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(2) Based on the average of shares outstanding.</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(3) Assumes dividend reinvestment.</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(4) Ratios calculated on the basis of expenses relative to the average net assets of common shares. Without the exclusion of preferred shares, the ratio of expenses would have been 1.20%, 1.22%, 1.18%, 1.16% and 1.14%, respectively.</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(5) Ratios calculated on the basis of net investment income relative to the average net assets of common shares. Without the exclusion of preferred shares, the ratio of net investment income would have been 5.40%, 5.52%, 4.65%, 4.82% and 4.64%, respectively.</P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px">(6) Calculated by subtracting the Fund&#146;s total liabilities from the Fund&#146;s total assets and dividing such amount by the number of DARTS outstanding as of the applicable 1940 Act Evaluation Date, which may differ from the financial reporting date.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>GLOBAL DIVIDEND FUND. </B>&nbsp;The following schedule presents financial highlights for one common share of the Fund outstanding throughout the periods indicated.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=258.867></TD><TD width=72.2></TD><TD width=72.2></TD><TD width=72.2></TD><TD width=72.2></TD><TD width=64.4></TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><B>Period ended</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>7-31-02(1)</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>7-31-03(1)</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>7-31-04(1)</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>7-31-05(1)</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>7-31-06</B></P>
</TD></TR>
<TR><TD style="background-color:#404040" valign=top width=612.067 colspan=6><P style="margin-top:3.333px; margin-bottom:3.333px; color:#FFFFFF"><FONT COLOR=#FFFFFF><B>Per share operating performance</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><FONT COLOR=#000000><B>Net asset value, beginning of period</B></FONT></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$13.82</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$11.62</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$12.36</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$12.76</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>$14.48</B></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Net investment income(2)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>1.12</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>0.98</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>0.94</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>0.99</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>0.99</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Net realized and unrealized gain</P>
<P style="margin-top:0px; margin-bottom:13.333px">(loss) on investments</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>(2.20)</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>0.84</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>0.51</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>1.82</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>(0.66)</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Distributions to DARTS</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.15)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.11)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.08)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.17)</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>(0.25)</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><B>Total from investment operations</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>(1.23)</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>1.71</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>1.37</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>2.64</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>0.08</B></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><B>Less distributions to common shareholders</B></P>
</TD><TD valign=top width=72.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=72.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=64.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">From net investment income</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.97)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.97)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.97)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>(0.92)</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>(0.82)</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><B>Net asset value, end of period</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$11.62</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$12.36</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$12.76</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$14.48</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>$13.74</B></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><B>Per share market value, end of period</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$11.13</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$12.40</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$12.45</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>$13.14</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>$11.83</B></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><B>Total return at market value(3) (%)</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>(5.06)</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>20.79</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>8.31</B></P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right><B>13.03</B></P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right><B>(3.67)</B></P>
</TD></TR>
<TR><TD style="background-color:#404040" valign=top width=612.067 colspan=6><P style="margin-top:3.333px; margin-bottom:3.333px; color:#FFFFFF"><FONT COLOR=#FFFFFF><B>Ratios and supplemental data</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><FONT COLOR=#000000>Net assets applicable to common</FONT></P>
<P style="margin-top:0px; margin-bottom:13.333px">shares, end of period (in millions)</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>$97</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>$103</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>$107</P>
</TD><TD valign=top width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>$121</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>$115</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Ratio of net investment income to</P>
<P style="margin:0px">average net assets(4) (%)</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>1.94</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>2.03</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>1.90</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>1.86</P>
</TD><TD valign=bottom width=64.4><P style="margin:0px" align=right>1.79</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Ratio of net investment income to</P>
<P style="margin:0px">average net assets(5) (%)</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>8.44</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>8.35</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>7.23</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>7.19</P>
</TD><TD valign=bottom width=64.4><P style="margin:0px" align=right>7.21</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Portfolio turnover (%)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>17</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>5</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>7</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>19</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>24</P>
</TD></TR>
<TR><TD style="background-color:#404040" valign=top width=612.067 colspan=6><P style="margin-top:3.333px; margin-bottom:3.333px; color:#FFFFFF"><FONT COLOR=#FFFFFF><B>SENIOR SECURITIES</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px"><FONT COLOR=#000000>Total value of DARTS outstanding</FONT></P>
<P style="margin-top:0px; margin-bottom:13.333px">(in millions)</P>
</TD><TD valign=bottom width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>$60</P>
</TD><TD valign=bottom width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>$60</P>
</TD><TD valign=bottom width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>$60</P>
</TD><TD valign=bottom width=72.2><P style="margin-top:0px; margin-bottom:13.333px" align=right>$60</P>
</TD><TD valign=bottom width=64.4><P style="margin:0px" align=right>$60</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Involuntary liquidation preference</P>
<P style="margin:0px">per unit (in thousands)</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=64.4><P style="margin:0px" align=right>$100</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Average market value per unit</P>
<P style="margin:0px">(in thousands)</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=72.2><P style="margin:0px" align=right>$100</P>
</TD><TD valign=bottom width=64.4><P style="margin:0px" align=right>$100</P>
</TD></TR>
<TR><TD valign=top width=258.867><P style="margin:0px">Asset coverage per unit(6)</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>$254,633</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>$271,743</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>$275,341</P>
</TD><TD valign=top width=72.2><P style="margin:0px" align=right>$300,181</P>
</TD><TD valign=top width=64.4><P style="margin:0px" align=right>$289,424</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:normal; margin:0px; font-size:12px">(1) Audited by previous auditor.</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(2) Based on the average of shares outstanding.</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(3) Assumes dividend reinvestment.</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(4) Ratios calculated on the basis of expenses relative to the average net assets of common shares. Without the exclusion of preferred shares, the ratio of expenses would have been 1.26%, 1.26%, 1.22%, 1.22% and 1.18%, respectively.</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(5) Ratios calculated on the basis of net investment income relative to the average net assets of common shares. Without the exclusion of preferred shares, the ratio of net investment income would have been 5.48%, 5.18%, 4.65%, 4.73% and 4.73%, respectively.</P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px">(6) Calculated by subtracting the Fund&#146;s total liabilities from the Fund&#146;s total assets and dividing such amount by the number of DARTS outstanding as of the applicable 1940 Act Evaluation Date, which may differ from the financial reporting date.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>PREFERRED DIVIDEND FUND.</B> &nbsp;The following schedule presents financial highlights for one common share of the Fund outstanding throughout the periods indicated.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=234.467></TD><TD width=66.4></TD><TD width=66.4></TD><TD width=66.4></TD><TD width=66.4></TD><TD width=59.4></TD></TR>
<TR><TD valign=top width=234.467><P style="line-height:14.667px; margin:0px; font-size:12px"><B>Period ended</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>5-31-02(1)</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>5-31-03(1)</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>5-31-04(1)</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>5-31-05(1)</B></P>
</TD><TD valign=top width=59.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>5-31-06</B></P>
</TD></TR>
<TR><TD style="background-color:#404040" valign=top width=559.467 colspan=6><P style="line-height:14.667px; margin-top:3px; margin-bottom:3px; font-size:12px; color:#FFFFFF"><FONT COLOR=#FFFFFF><B>Per share operating performance</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=234.467><P style="line-height:14.667px; margin:0px; font-size:12px"><FONT COLOR=#000000><B>Net asset value, beginning of period</B></FONT></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>$12.96</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>$12.39</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>$13.06</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>$12.97</B></P>
</TD><TD valign=top width=59.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>$14.41</B></P>
</TD></TR>
<TR><TD valign=top width=234.467><P style="line-height:14.667px; margin:0px; font-size:12px">Net investment income(2)</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1.18</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1.08</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1.02</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1.13</P>
</TD><TD valign=top width=59.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1.05</P>
</TD></TR>
<TR><TD valign=top width=234.467><P style="line-height:14.667px; margin:0px; font-size:12px">Net realized and unrealized gain</P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px">(loss) on investments</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>(0.73)</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>0.56</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>0.08</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>1.32</P>
</TD><TD valign=top width=59.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1.00)</P>
</TD></TR>
<TR><TD valign=top width=234.467><P style="line-height:14.667px; margin:0px; font-size:12px">Distributions to DARTS</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.16)</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.11)</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.08)</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.15)</P>
</TD><TD valign=top width=59.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.24)</P>
</TD></TR>
<TR><TD valign=top width=234.467><P style="line-height:14.667px; margin:0px; font-size:12px"><B>Total from investment operations</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>0.29</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>1.53</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>1.02</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>2.30</B></P>
</TD><TD valign=top width=59.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>(0.19)</B></P>
</TD></TR>
<TR><TD valign=top width=234.467><P style="line-height:14.667px; margin:0px; font-size:12px"><B>Less distributions to common shareholders</B></P>
</TD><TD valign=top width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=66.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=59.4><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=234.467><P style="line-height:14.667px; margin:0px; font-size:12px">From net investment income</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.86)</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.86)</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(1.11)</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.86)</P>
</TD><TD valign=top width=59.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>(0.86)</P>
</TD></TR>
<TR><TD valign=top width=234.467><P style="line-height:14.667px; margin:0px; font-size:12px"><B>Net asset value, end of period</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>$12.39</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>$13.06</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>$12.97</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>$14.41</B></P>
</TD><TD valign=top width=59.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>$13.36</B></P>
</TD></TR>
<TR><TD valign=top width=234.467><P style="line-height:14.667px; margin:0px; font-size:12px"><B>Per share market value, end of period</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>$12.47</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>$13.07</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>$12.00</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>$13.58</B></P>
</TD><TD valign=top width=59.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>$11.95</B></P>
</TD></TR>
<TR><TD valign=top width=234.467><P style="line-height:14.667px; margin:0px; font-size:12px"><B>Total return at market value(3) (%)</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>13.76</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>12.50</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>(0.24)</B></P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>20.77</B></P>
</TD><TD valign=top width=59.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right><B>(6.11)</B></P>
</TD></TR>
<TR><TD style="background-color:#404040" valign=top width=559.467 colspan=6><P style="line-height:14.667px; margin-top:3px; margin-bottom:3px; font-size:12px; color:#FFFFFF"><FONT COLOR=#FFFFFF><B>Ratios and supplemental data</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=234.467><P style="line-height:14.667px; margin:0px; font-size:12px"><FONT COLOR=#000000>Net assets applicable to common</FONT></P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px">shares, end of period (in millions)</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$90</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$95</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$94</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$105</P>
</TD><TD valign=top width=59.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$97</P>
</TD></TR>
<TR><TD valign=top width=234.467><P style="line-height:14.667px; margin:0px; font-size:12px">Ratio of net investment income to</P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px">average net assets(4) (%)</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>1.96</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>2.11</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>1.88</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>1.81</P>
</TD><TD valign=top width=59.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1.90</P>
</TD></TR>
<TR><TD valign=top width=234.467><P style="line-height:14.667px; margin:0px; font-size:12px">Ratio of net investment income to</P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px">average net assets(5) (%)</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>9.09</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>9.21</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>7.60</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>8.19</P>
</TD><TD valign=top width=59.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>7.52</P>
</TD></TR>
<TR><TD valign=top width=234.467><P style="line-height:14.667px; margin:0px; font-size:12px">Portfolio turnover (%)</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>16</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>9</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>7</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>11</P>
</TD><TD valign=top width=59.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>16</P>
</TD></TR>
<TR><TD style="background-color:#404040" valign=top width=559.467 colspan=6><P style="line-height:14.667px; margin-top:3px; margin-bottom:3px; font-size:12px; color:#FFFFFF"><FONT COLOR=#FFFFFF><B>SENIOR SECURITIES</B></FONT></P>
</TD></TR>
<TR><TD valign=top width=234.467><P style="line-height:14.667px; margin:0px; font-size:12px"><FONT COLOR=#000000>Total value of DARTS outstanding</FONT></P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px">(in millions)</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$53</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$53</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$53</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$53</P>
</TD><TD valign=top width=59.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$53</P>
</TD></TR>
<TR><TD valign=top width=234.467><P style="line-height:14.667px; margin:0px; font-size:12px">Involuntary liquidation preference</P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px">per unit (in thousands)</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$100</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$100</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$100</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$100</P>
</TD><TD valign=top width=59.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$100</P>
</TD></TR>
<TR><TD valign=top width=234.467><P style="line-height:14.667px; margin:0px; font-size:12px">Average market value per unit</P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px">(in thousands)</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$100</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$100</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$100</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$100</P>
</TD><TD valign=top width=59.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$100</P>
</TD></TR>
<TR><TD valign=top width=234.467><P style="line-height:14.667px; margin:0px; font-size:12px">Asset coverage per unit(6)</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$270,318</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$277,801</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$276,094</P>
</TD><TD valign=top width=66.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$298,017</P>
</TD><TD valign=top width=59.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$283,075</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(1) Audited by previous auditor.</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(2) Based on the average of shares outstanding.</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(3) Assumes dividend reinvestment.</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(4) Ratios calculated on the basis of expenses relative to the average net assets of common shares. Without the exclusion of preferred shares, the ratio of expenses would have been 1.26%, 1.30%, 1.22%, 1.19% and 1.25%, respectively.</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(5) Ratios calculated on the basis of net investment income relative to the average net assets of common shares. Without the exclusion of preferred shares, the ratio of net investment income would have been 5.84%, 5.70%, 4.94%, 5.38% and 4.96%, respectively.</P>
<P style="line-height:14.667px; margin-top:0px; margin-bottom:24px; font-size:12px">(6) Calculated by subtracting the Fund&#146;s total liabilities from the Fund&#146;s total assets and dividing such amount by the number of DARTS outstanding as of the applicable 1940 Act Evaluation Date, which may differ from the financial reporting date.</P>
<A NAME="_Toc155621897"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>PROPOSAL TO APPROVE THE AGREEMENT AND PLAN OF REORGANIZATION</B></P>
<A NAME="_Toc155621898"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>DESCRIPTION OF THE REORGANIZATIONS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">
You are being asked to approve an Agreement and Plan of Reorganization, a form
of which is attached to this Joint Proxy Statement/Prospectus as Exhibit A.
&nbsp;Additional information about the Reorganization and the Agreement is set
forth below under &#147;Further Information on the Reorganization.&#148;
&nbsp;Each Agreement provides for a Reorganization on the following terms:</P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">
Each Reorganization is scheduled to occur at 5:00 p.m., Eastern Time, on the
relevant dividend payment date immediately following the shareholders' meeting
as follows:</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; text-indent:-24px; font-size:14.667px"></P>
<TABLE align="center" style="font-size:13.333px" cellspacing=0><TR><TD width=180></TD><TD width=192></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=180><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>Fund</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=192><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>Closing Date</B></P>
</TD></TR>
<TR><TD valign=top width=180><P style="line-height:17.333px; margin:0px; font-size:14.667px">Premium Dividend Fund I</P>
</TD><TD valign=top width=192><P style="line-height:17.333px; margin:0px; font-size:14.667px">Monday, May 7, 2007</P>
</TD></TR>
<TR><TD valign=top width=180><P style="line-height:17.333px; margin:0px; font-size:14.667px">Select Dividend Trust</P>
</TD><TD valign=top width=192><P style="line-height:17.333px; margin:0px; font-size:14.667px">Wednesday, May 16, 2007</P>
</TD></TR>
<TR><TD valign=top width=180><P style="line-height:17.333px; margin:0px; font-size:14.667px">Preferred Dividend Fund</P>
</TD><TD valign=top width=192><P style="line-height:17.333px; margin:0px; font-size:14.667px">Tuesday, May 29, 2007</P>
</TD></TR>
<TR><TD valign=top width=180><P style="line-height:17.333px; margin:0px; font-size:14.667px">Global Dividend Fund</P>
</TD><TD valign=top width=192><P style="line-height:17.333px; margin:0px; font-size:14.667px">Monday, June 4, 2007</P>
</TD></TR>
</TABLE>

<P></P>
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<BR>Each Acquiring Fund will transfer all of its assets to the Acquiring Fund and
the Acquiring Fund will assume each Acquired Fund&#146;s liabilities. &nbsp;This
will result in the addition of each Acquired Fund&#146;s assets to the Acquiring
Fund&#146;s portfolio. &nbsp;The NAV of each Fund will be computed as of 4:00
p.m., Eastern Time, on the business day immediately preceding the relevant
closing date of each Reorganization.</FONT></P>

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<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">
The Acquiring Fund will issue and cause to be listed on the NYSE additional
Acquiring Fund Common Shares in an amount equal to the value of each Acquired
Fund&#146;s net assets attributable to its common shares. &nbsp;As part of the
liquidation of the Acquired Funds, these shares will immediately be distributed
to common shareholders of record of each Acquired Fund in proportion to their
holdings held immediately prior to the Reorganization, less the costs of the
Reorganization (though common shareholders may receive cash for fractional
shares). &nbsp;As a result, common shareholders of each Acquired Fund will end
up as common shareholders of the Acquiring Fund.</FONT></P>
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<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">
The Acquiring Fund will issue Acquiring Fund DARTS, Series C to Premium Dividend
Fund I. &nbsp;The aggregate liquidation preference of Acquiring Fund DARTS,
Series C received in the Reorganization will equal the aggregate liquidation
preference of DARTS, Series A of Premium Dividend Fund I held immediately prior
to the Reorganization. &nbsp;As part of the liquidation of Premium Dividend Fund
I, the Acquiring Fund DARTS, Series C will be distributed to Premium Dividend
Fund I&#146;s holders of DARTS, Series A in proportion to their holdings
immediately prior to the Reorganization. &nbsp;As a result, holders of DARTS,
Series A of Premium Dividend Fund I will end up as holders of Acquiring Fund
DARTS, Series C.</FONT></P>
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<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">
The Acquiring Fund will issue Acquiring Fund DARTS, Series D to Select Dividend
Trust. &nbsp;The aggregate liquidation preference of Acquiring Fund DARTS,
Series D received in the Reorganization will equal the aggregate liquidation
preference of AMPS Series A of Select Dividend Trust held immediately prior to
the Reorganization. &nbsp;As part of the liquidation of Select Dividend Trust,
the Acquiring Fund DARTS, Series D will be distributed to holders of AMPS Series
A of Select Dividend Trust in proportion to their holdings immediately prior to
the Reorganization. &nbsp;As a result, holders of AMPS Series A of Select
Dividend Trust will end up as holders of Acquiring Fund DARTS, Series
D.</FONT></P>
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<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">
The Acquiring Fund will issue Acquiring Fund DARTS, Series E to Preferred
Dividend Fund. &nbsp;The aggregate liquidation preference of Acquiring Fund
DARTS, Series E received in the Reorganization will equal the aggregate
liquidation preference of ARPS of Preferred Dividend Fund held immediately prior
to the Reorganization. &nbsp;As part of the liquidation of Preferred Dividend
Fund, the Acquiring Fund DARTS, Series E will be distributed to holders of ARPS
of Preferred Dividend Fund in proportion to their holdings immediately prior to
the Reorganization. &nbsp;As a result, holders of ARPS of Preferred Dividend
Fund will end up as holders of Acquiring Fund DARTS, Series E.</FONT></P>

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<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">
The Acquiring Fund will issue Acquiring Fund DARTS, Series F to Global Dividend
Fund. &nbsp;The aggregate liquidation preference of Acquiring Fund DARTS, Series
F received in the Reorganization will equal the aggregate liquidation preference
of DARTS of Global Dividend Fund held immediately prior to the Reorganization.
&nbsp;As part of the liquidation of Global Dividend Fund, the Acquiring Fund
DARTS, Series F will be distributed to holders of DARTS of Global Dividend Fund
in proportion to their holdings immediately prior to the Reorganization.
&nbsp;As a result, holders of DARTS of Global Dividend Fund will end up as
holders of Acquiring Fund DARTS, Series F.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">
After the shares are issued, the existence of each Acquired Fund will be
terminated.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The distribution of Acquiring Fund Common Shares and Acquiring Fund DARTS will be accomplished by opening new accounts on the books of the Acquiring Fund in the names of the common and preferred shareholders of the Acquired Funds and transferring to those shareholder accounts the Acquiring Fund Common Shares and the Acquiring Fund DARTS previously credited on those books to the accounts of the Acquired Funds. &nbsp;Each newly-opened account on the books of the Acquiring Fund for the former common shareholders of the Acquired Funds will represent the respective pro rata number of Acquiring Fund Common Shares (rounded down, in the case of fractional shares held other than in a Dividend Reinvestment Plan account, to the next largest number of whole shares) due such shareholder. &nbsp;No fractional Acquiring Fund Common Shares will be issued (except for shares held in a Plan account). &nbsp;In the event of
fractional shares in an account other than a Plan account, the Acquiring Fund&#146;s transfer agent will aggregate all such fractional Acquiring Fund Common Shares and sell the resulting whole shares on the NYSE for the account of all holders of such fractional interests, and each such holder will be entitled to the pro rata share of the proceeds from such sale upon surrender of the Acquired Fund common share certificates. &nbsp;Similarly, each newly-opened account on the books of the Acquiring Fund for the former preferred shareholders of each Acquired Fund would represent the respective pro rata number of Acquiring Fund DARTS due such shareholder. &nbsp;See &#147;Further Information on the Reorganizations &#151; Additional Terms of the Agreement and Plan of Reorganization&#148; below for a description of the procedures to be followed by the Acquired Funds&#146; shareholders to obtain Acquiring Fund Common Shares or Acquiring Fund DARTS (and cash in lieu of fractional shares, if any).</P>
<A NAME="_Toc155621899"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>REASONS FOR THE PROPOSED REORGANIZATIONS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The Board of each Acquired Fund believes that the proposed Reorganizations will be advantageous to the shareholders of each Acquired Fund for several reasons. &nbsp;The Board considered the following matters, among others, in approving the proposal.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><I>First</I>, that following the Reorganizations, the substantially larger trading market in common shares of the Acquiring Fund as compared to that of each Acquired Fund prior to the Reorganizations, may provide for enhanced market liquidity which may reduce the extent of trading discounts that would be experienced in a substantially smaller trading market under otherwise similar circumstances. &nbsp;Trading discounts can result from many different factors and there is no assurance that a larger trading market for common shares will have the effect of reducing trading discounts.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><I>Second</I>, that the Reorganization would permit each Acquired Fund&#146;s shareholders to pursue similar investment goals in a larger fund. &nbsp;Each Acquired Fund (other than Preferred Dividend Fund) focuses on dividend-paying preferred and common stocks and, in the case of Preferred Dividend Fund, preferred stocks. &nbsp;In addition, the Acquiring Fund and Acquired Funds have certain overlapping portfolio holdings. &nbsp;The greater asset size of the combined fund may allow it, relative to each Acquired Fund, to obtain better net prices on securities trades and achieve greater diversification of portfolio holdings.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">
<I>Third</I>, Select Dividend Trust, Global Dividend Fund and Preferred Dividend
Fund will benefit from a reduction in their administration fee (i.e., from 0.15%
to 0.10%). &nbsp;Premium Dividend Fund I&#146;s administration fee will remain
the same at 0.10%. &nbsp;As a result of the Reorganization, shareholders of the
Acquired Funds will experience a reduction in the total amount of fees, as a
percentage of average net assets, that they indirectly pay. &nbsp;Shareholders
of each Acquired Fund other than Select Dividend Trust will also experience
lower combined total expenses and dividend payments on preferred shares as a
result of the Reorganizations. &nbsp;Shareholders of Select Dividend Trust will
experience somewhat higher combined total expenses and dividend payments on
preferred shares as a result of a higher dividend rate on preferred shares borne
by common shareholders. This higher historical dividend rate reflects the more
recent dividend reset by the Acquiring Fund, which reflects recent increases in
short-term interest rates.


<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><I>Fourth</I>, the annual effective rate of the combined fund&#146;s management fee is expected to be slightly lower than the management fee rate of Select Dividend Trust, Global Dividend Fund and Preferred Dividend Fund and, for Premium Dividend Fund I, the management fee rate is expected to slightly increase.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><I>Fifth</I>, that the Acquiring Fund has performed better than the other Funds for one-, three- and ten-year periods. &nbsp;While past performance cannot predict future results, the Trustees believe there are no reasons why the Acquiring Fund will not continue to generate strong returns.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><I>Sixth</I>, that a combined fund offers economies of scale that may lead to lower per share expenses. &nbsp;Each Fund incurs NYSE listing fees, printing fees, costs for legal, auditing, custodial and administrative services, and miscellaneous fees. &nbsp;Many of these expenses are duplicative, and there may be an opportunity to reduce each Acquired Fund&#146;s expense ratio over time because of the economies of scale if the Funds are combined.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><I>Seventh</I>, that on the closing date of the Reorganization with respect to each Acquired Fund, the Reorganization will result in the exchange of shares between the Acquiring Fund and each Acquired Fund which will be based on their relative NAVs (i.e., the Acquired Funds will get their NAV&#146;s worth of the Acquiring Fund&#146;s common shares). &nbsp;However, the Acquiring Fund Common Shares received in the Reorganizations may trade at a market discount from NAV following the Reorganizations so that an Acquired Fund common shareholder is not able to sell these shares for the NAV received.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The Board of each Acquired Fund considered that the Reorganization presents an excellent opportunity for the Acquiring Fund to acquire substantial investment assets without the obligation to pay commissions or other transaction costs that a Fund normally incurs when purchasing securities. &nbsp;This opportunity provides an economic benefit to the Acquiring Fund and its shareholders.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The boards of each Fund also considered that the Adviser and MFC Global (U.S.) will benefit from the Reorganizations. &nbsp;For example, the Adviser and MFC Global (U.S.) may achieve cost savings due to the Fund&#146;s lower fixed costs, which may result in reduced costs resulting from a consolidated portfolio management effort. &nbsp;The boards believe, however, that these savings will not amount to a significant economic benefit to the Adviser or MFC Global (U.S.).</P>
<A NAME="_Toc155621900"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>COMPARATIVE FEES AND EXPENSE RATIOS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The Acquiring Fund&#146;s pro forma annual operating expenses would be lower than each Acquired Fund&#146;s current annual operating expenses. &nbsp;A full comparison of advisory fee rates and expense ratios is included above.</P>
<A NAME="_Toc155621901"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>COMPARATIVE PERFORMANCE</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The Trustees also considered details of the relative performance of the Funds and the Acquiring Fund.</P>
<A NAME="_Toc155621902"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>BOARD&#146;S EVALUATION AND RECOMMENDATION</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">For the reasons described above, the Board of each Acquired Fund, including the Trustees who are not &#147;interested persons&#148; (as defined in the 1940 Act) of an Acquired Fund in each respective Reorganization or the Adviser (&#147;Independent Trustees&#148;), approved the Reorganization. &nbsp;In particular, the Trustees determined that each Reorganization is in the best interests of each Acquired Fund and that the interest of Acquired Fund shareholders would not be diluted as a result of the Reorganization. &nbsp;Similarly, the Board of the Acquiring Fund, including the Independent Trustees, approved each Reorganization. &nbsp;They also determined each Reorganization is in the best interests of the Acquiring Fund and that the interests of the Acquiring Fund&#146;s shareholders would not be diluted as a result of each Reorganization.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:29.333px; padding-left:96px; padding-right:96px; text-indent:24px; font-size:14.667px" align=center><B>The Trustees of each Acquired Fund recommend that shareholders of the Acquired Funds vote FOR each proposal to approve an Agreement and Plan of Reorganization.</B></P>
<A NAME="_Toc155621903"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>FURTHER INFORMATION ON THE REORGANIZATIONS</B></P>
<A NAME="_Toc155621904"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>TAX STATUS OF THE REORGANIZATIONS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The following is a general summary of the material anticipated U.S. federal income tax consequences of the Reorganization. &nbsp;The discussion is based upon the Code, Treasury regulations, court decisions, published positions of the IRS and other applicable authorities, all as in effect on the date hereof and all of which are subject to change or differing interpretations (possibly with retroactive effect). &nbsp;The discussion is limited to U.S. persons who hold shares of an Acquired Fund as capital assets for U.S. federal income tax purposes (generally, assets held for investment). &nbsp;This summary does not address all of the U.S. federal income tax consequences that may be relevant to a particular shareholder or to shareholders who may be subject to special treatment under U.S. federal income tax laws. &nbsp;No ruling has been or will be obtained from the IRS regarding any matter relating to the
Reorganizations.






 &nbsp;No assurance can be given that the IRS would not assert, or that a court would not sustain, a position contrary to any of the tax aspects described below. &nbsp;Prospective investors must consult their own tax advisers as to the U.S. federal income tax consequences of the Reorganizations, as well as the effects of state, local and non-U.S. tax laws.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">It is a condition to closing the Reorganization that the Acquired Funds and the Acquiring Fund receive an opinion from Kirkpatrick &amp; Lockhart Preston Gates Ellis LLP, dated as of the closing date of the Reorganization, regarding the characterization of such Reorganization as a &#147;reorganization&#148; within the meaning of Section 368(a) of the Code. &nbsp;As such a reorganization, the U.S. federal income tax consequences of the Reorganization can be summarized as follows:</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">No gain or loss will be recognized by an Acquired Fund or the Acquiring Fund upon the transfer to the Acquiring Fund of substantially all of the assets of the Acquired Fund in exchange for Acquiring Fund Common Shares and Acquiring Fund DARTS and the assumption by the Acquiring Fund of substantially all of the liabilities of the Acquired Fund and the subsequent liquidation of the Acquired Fund.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">No gain or loss will be recognized by a shareholder of an Acquired Fund who exchanges, as the case may be, all of his, her or its Acquired Fund common shares for Acquiring Fund Common Shares pursuant to a Reorganization (except with respect to cash received in lieu of a fractional share, as discussed below) or all of his, her or its Acquired Fund preferred shares for Acquiring Fund DARTS pursuant to the Reorganization.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">The aggregate tax basis of the Acquiring Fund Common Shares or Acquiring Fund DARTS, as the case may be, received by a shareholder of an Acquired Fund pursuant to a Reorganization will be the same as the aggregate tax basis of the shares of the Acquired Fund surrendered in exchange therefor (reduced by any amount of tax basis allocable to a fractional share for which cash is received).</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">The holding period of the Acquiring Fund Common Shares or Acquiring Fund DARTS, as the case may be, received by a shareholder of an Acquired Fund pursuant to the Reorganization will include the holding period of the shares of the Acquired Fund surrendered in exchange therefor.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">A shareholder of an Acquired Fund that receives cash in lieu of a fractional Acquiring Fund Common Share pursuant to the Reorganization will recognize capital gain or loss with respect to the fractional share in an amount equal to the difference between the amount of cash received for the fractional share and the portion of such shareholder&#146;s tax basis in its Acquired Fund common shares that is allocable to the fractional share. &nbsp;The capital gain or loss will be long-term if the holding period for such Acquired Fund common shares is more than one year as of the date of the exchange.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">The Acquiring Fund&#146;s tax basis in an Acquired Fund&#146;s assets received by the Acquiring Fund pursuant to the Reorganization will, in each instance, equal the tax basis of such assets in the hands of such Acquired Fund immediately prior to such Reorganization, and the Acquiring Fund&#146;s holding period of such assets will, in each instance, include the period during which the assets were held by such Acquired Fund.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">The Acquiring Fund intends to continue to be taxed under the rules applicable to regulated investment companies as defined in Section 851 of the Code, which are the same rules currently applicable to each of the Acquired Funds and their shareholders.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The opinion described above will be based on U.S. federal income tax law in effect on the closing date of the Reorganization. &nbsp;In rendering its opinion, Kirkpatrick &amp; Lockhart Preston Gates Ellis LLP will also rely upon certain representations of the management of the Acquiring Fund and the Acquired Funds and assume, among other things, that the Reorganizations will be consummated in accordance with each Agreement and Plan of Reorganization and as described herein. &nbsp;An opinion of counsel is not binding on the IRS or any court.</P>
<A NAME="_Toc155621905"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>ADDITIONAL TERMS OF THE AGREEMENT AND PLAN OF REORGANIZATION</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Certain terms of each Agreement and Plan of Reorganization are described above. &nbsp;The following is a summary of certain additional terms of each Agreement and Plan of Reorganization. &nbsp;This summary and any other description of the terms of each Agreement and Plan of Reorganization contained in this Joint Proxy Statement/Prospectus are qualified in their entirety by Exhibit A, which is the Form of Agreement and Plan of Reorganization that is proposed for the Reorganization in its entirety.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><B><I>Surrender of Share Certificates</I>.</B> &nbsp;If your shares are represented by one or more share certificates before the closing date of the applicable Reorganization, you must either surrender the certificate to your Fund(s) or deliver to your Fund(s) a lost certificate affidavit, in the form of an accompanied by the surety bonds that your Fund(s) may require (collectively, an &#147;Affidavit&#148;). &nbsp;On the closing date of each Reorganization, all certificates that have not been surrendered will be canceled, will no longer evidence ownership of your Fund&#146;s shares and will evidence ownership of the Acquiring Fund&#146;s Common Shares. &nbsp;Until such share certificates have been so surrendered, no dividends payable to the holders of record of Acquired Fund common shares as of any date subsequent to the closing date will be reinvested pursuant to the Acquiring Fund&#146;s Dividend
Reinvestment Plan,






 but will instead be paid in cash. Once such Acquired Fund share certificates have been surrendered, a holder of shares of an Acquired Fund who currently elects to receive dividends in cash will continue to receive dividends in cash; all holders who currently elect to participate in the Dividend Reinvestment Plan of a Fund will have their dividends automatically reinvested in shares of the Acquiring Fund. &nbsp;Shareholders may not redeem or transfer Acquiring Fund shares received in the Reorganization until they have surrendered their Fund share certificates or delivered an Affidavit. &nbsp;The Acquiring Fund will not issue share certificates in the Reorganization. Upon consummation of the Reorganization, holders of Acquired Fund common shares will be entitled to receive cash in lieu of any fractional Acquiring Fund Common Shares held other than in a Dividend Reinvestment Plan Account.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:14.667px; font-size:14.667px">Preferred shares are held in &#147;street name&#148; by the Depository Trust Company and all transfers will be accomplished by book entry.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><I><B>Conditions to Closing the Reorganization.</B></I> &nbsp;The obligation of each Acquired Fund to consummate the Reorganization is subject to the satisfaction of certain conditions, including the performance by the Acquiring Fund of all of its obligations under the Agreement and the receipt of all consents, orders and permits necessary to consummate the Reorganization (see Agreement, Section 8).</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The obligation of the Acquiring Fund to consummate the Reorganization is subject to the satisfaction of certain conditions, including each Acquired Fund&#146;s performance of all of its obligations under the Agreement, the receipt of certain documents and financial statements from each Acquired Fund and the receipt of all consents, orders and permits necessary to consummate the Reorganization (see Agreement, Section 9).</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The obligations of the Acquired Funds and the Acquiring Fund are subject to approval of the Agreement by the necessary vote of the outstanding shares of the Acquired Funds, in accordance with the provisions of each Acquired Fund&#146;s Agreement and Declaration of Trust and By-Laws. &nbsp;The Funds&#146; obligations are also subject to the receipt of a favorable opinion of Kirkpatrick &amp; Lockhart Preston Gates Ellis LLP as to the federal income tax consequences of the Reorganization (see Agreement, Sections 8(f) and 9(f)).</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B><I>Termination of the Agreement.</I></B> &nbsp;The Board of an Acquired Fund and the Acquiring Fund may terminate the Agreement by mutual consent (even if shareholders of the Acquired Fund have already approved it) at any time before the closing date of the Reorganization, if the Boards believe that proceeding with the Reorganization would no longer be advisable.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B><I>Expenses of the Reorganization.</I></B> &nbsp;In the event the Reorganizations are approved and completed, the expenses of the Reorganizations will be shared by the Acquired Funds and the Acquiring Fund in proportion to and up to the amount of their respective first year&#146;s projected annual expense savings as a result of the Reorganization. &nbsp;The Adviser will bear the balance of these expenses. &nbsp;The expenses of the Reorganization will not be borne by the preferred shareholders of any Fund. &nbsp;In the event a Reorganization is not completed, the costs associated with such Reorganization will be borne by the Acquiring Fund and the remaining Acquired Funds whose shareholders have approved their respective Reorganizations. &nbsp;Neither the Funds nor the Adviser will pay any expenses of shareholders arising out of or in connection with the Reorganization.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>PAYMENT OF UNDISTRIBUTED INCOME IN ADVANCE TO REORGANIZATIONS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund generally retains an amount of earned net income that is not distributed in regular dividend payments in order to provide a reserve to regularize dividend payments over time. &nbsp;Each Acquired Fund intends to declare and pay a special dividend on common shares in advance of the Reorganization of that Fund distributing such reserved income. &nbsp;The record date for such special dividend will be a date following the approval of the Reorganization of such Acquiring Fund&#146;s common and preferred shareholders. &nbsp;If the Reorganization is not approved for an Acquiring Fund, no such special dividend will be declared or paid for that Acquired Fund. &nbsp;Similarly, if common and preferred shareholders of the Acquiring Fund approve the issuance of additional common shares and preferred shares in connection with the Reorganizations, the Acquiring Fund intends to declare and pay a special dividend on
common sh






ares in advance of the first Reorganization distributing such reserved income. &nbsp;The record date for such special dividend will be a date following the approval of the issuance of additional common shares and preferred shares in connection with the Reorganizations. &nbsp;If such approval is not obtained, no such special dividend will be declared or paid by the Acquiring Fund or any Acquired Fund.</P>
<A NAME="_Toc155621906"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>CAPITALIZATION</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">With respect to each Proposal, the following tables set forth the capitalization of each Fund as of October 31, 2006, and the pro forma combined capitalization of the Acquiring Fund as if each Reorganization had occurred on that date. &nbsp;The tables should not be relied upon to determine the amount of Acquiring Fund shares that will actually be received and distributed.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>If the Reorganization of your Fund(s) had taken place on October 31, 2006:</B></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=234.8></TD><TD width=68.4></TD><TD width=68.4></TD><TD width=68.4></TD><TD width=65></TD><TD width=65></TD><TD width=68.4></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=234.8><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px">(Unaudited)</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=335.2 colspan=5><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>ACTUAL</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>PRO FORMA</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=234.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px">Premium Dividend Fund I</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px">Premium Dividend Fund II</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px">Select Dividend Trust</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=65><P style="line-height:14.667px; margin:0px; font-size:12px">Global Dividend Fund</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=65><P style="line-height:14.667px; margin:0px; font-size:12px">Preferred Dividend Fund</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px">Premium Dividend Fund II</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=234.8><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px"><B>Net assets consist of (amounts in thousands):</B></P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$155,842</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$193,598</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$154,356</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$121,135</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$103,400</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$727,917</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=234.8><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-24px; font-size:12px">Common Shares (no par value)*</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>15,292,571</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>15,046,539</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>10,010,393</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>8,344,700</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>7,257,200</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>56,606</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=234.8><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-24px; font-size:12px">Paid in surplus</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$143,177</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$168,307</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$143,162</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$113,165</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$99,436</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$667,247</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=234.8><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-24px; font-size:12px">Net unrealized appreciation</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$20,071</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$30,358</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$15,384</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12,107</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$5,328</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$83,248</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=234.8><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; padding-left:24px; text-indent:-24px; font-size:12px">Accumulated undistributed net investment income</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$97</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$533</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$58</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$259</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>($906)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$532</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=234.8><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; padding-left:24px; text-indent:-24px; font-size:12px">Accumulated net realized gain (loss)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>($7,503)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>($5,600)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>($4,248)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>($4,396)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>($458)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>($23,110)</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=234.8><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; padding-left:24px; text-indent:-24px; font-size:12px"><B>Net assets applicable to common shares</B></P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$155,842</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$193,598</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$154,356</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$121,135</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin-top:0px; margin-bottom:12px; font-size:12px" align=right>$103,400</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$727,917</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=234.8><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-24px; font-size:12px"><B>Preferred Shares and accrued dividends (no par value, with liquidation preference of $100,000)*</B></P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$68,580</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$100,355</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$70,053</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$60,210</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$52,721</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$351,919</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=234.8><P style="line-height:14.667px; margin:0px; padding-left:24px; text-indent:-24px; font-size:12px"><B>Net assets including preferred shares</B></P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$224,422</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$293,953</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$224,409</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$181,345</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$156,121</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1,079,836</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=234.8><P style="line-height:14.667px; margin:0px; font-size:12px"><B>Net asset value per common share</B></P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$10.19</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.87</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$15.42</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.52</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=65><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$14.25</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=68.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$12.86</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">* &nbsp;Based on the number of outstanding shares listed in the table under &#147;Outstanding Shares and Quorum&#148; in the section entitled &#147;Information Concerning the Meeting&#148; below.</P>
<A NAME="_Toc155621907"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>MANAGEMENT OF THE FUNDS</B></P>
<A NAME="_Toc155621908"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>TRUSTEES AND OFFICERS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund&#146;s Board provides broad supervision over the affairs of each Fund. &nbsp;The officers of each Fund are responsible for the Fund&#146;s operations. &nbsp;The Trustees and officers of the Funds, together with their principal occupations during the past five years, are listed in the Statement of Additional Information. &nbsp;Each of the Trustees serves as a Trustee of each of the other leveraged closed-end investment companies for which the Adviser serves as investment adviser.</P>
<A NAME="_Toc155621909"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>THE ADVISER, SUBADVISER AND ADMINISTRATOR</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund has contracted with John Hancock Advisers, LLC, located at 601 Congress Street, Boston, Massachusetts 02210, to act as its investment adviser. &nbsp;The Adviser serves as the investment adviser to John Hancock Preferred Income Fund, John Hancock Preferred Income Fund II, and John Hancock Preferred Income Fund III, all leveraged dual-class closed-end investment companies. &nbsp;The Adviser was organized in 1968 and had, as of November 30, 2006, approximately $31.4 billion in assets under management. &nbsp;The Adviser is a wholly owned subsidiary of John Hancock Financial Services, Inc., a subsidiary of Manulife Financial Corporation (&#147;MFC&#148;).</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The Adviser has been managing closed-end funds since 1971 and has a long history of delivering regular dividends through several market cycles. &nbsp;The Adviser is an industry leader in preferred stock management and is the only firm to actively manage eight closed-end preferred stock funds.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Effective December 31, 2005, the investment management teams of the Adviser were reorganized into Sovereign Asset Management LLC, a wholly owned indirect subsidiary of John Hancock Life Insurance Company (&#147;JHLICo&#148;), a subsidiary of MFC. &nbsp;Effective October 1, 2006, Sovereign Asset Management LLC changed its name to MFC Global Investment Management (U.S.), LLC. &nbsp;MFC Global (U.S.), located at 101 Huntington Avenue, Boston, Massachusetts 02199, was organized in 1979 and as of November 30, 2006, had approximately $26.6 billion in assets under management. &nbsp;The Adviser remains the principal advisor on each Fund, and MFC Global (U.S.) acts as subadviser under the supervision of the Adviser. &nbsp;The restructuring did not have an impact on the Funds, which continue to be managed using the same investment philosophy and process. &nbsp;The Funds are not responsible for payment of the subadvisory
fees.
</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Under the terms of each investment advisory agreement between each Fund and the Adviser (each, an &#147;Advisory Agreement&#148;), each Fund has retained the Adviser to provide overall investment advice and to manage the investment of each Fund&#146;s assets and to place orders for the purchase and sale of its portfolio securities. &nbsp;The Adviser is responsible for obtaining and evaluating research, economic and statistical data and, subject to the supervision of the each Fund&#146;s Board, for formulating and implementing investment programs in furtherance of each Fund&#146;s investment objective. &nbsp;The Adviser will furnish each Fund the services of such members of its organization as may be duly elected officers of a Fund.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The Adviser and each Fund have entered into a Sub-Advisory Agreement with MFC Global (U.S.) under which MFC Global (U.S.), subject to the review of the Trustees and the overall supervision of the Adviser, is responsible for managing the investment operations of the Fund and the composition of each Fund&#146;s portfolio and furnishing each Fund with advice and recommendations with respect to investments, investment policies and the purchase and sale of securities.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Pursuant to its Advisory Agreements and Sub-Advisory Agreements, the Adviser and MFC Global (U.S.) are not liable for any error of judgment or mistake of law or for any loss suffered by a Fund in connection with the matters to which their respective Agreements relate, except a loss resulting from willful misfeasance, bad faith or gross negligence on the part of the Adviser or MFC Global (U.S.) in the performance of their duties or from their reckless disregard of the obligations and duties under the applicable Agreements.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The Adviser will also serve as the administrator to each Fund (the &#147;Administrator&#148;) pursuant to an agreement between the Fund and the Administrator (the &#147;Administration Agreement&#148;). &nbsp;Under the terms of each Administration Agreement, the Administrator provides administrative services to a Fund (to the extent such services are not provided to a Fund pursuant to other agreements) including (a) providing supervision of the Fund&#146;s non-investment operations, (b) providing the Fund with personnel to perform such executive, administrative and clerical services as are reasonably necessary to provide effective administration of the Fund, (c) arranging for the preparation, at the Fund&#146;s expense, of the Fund&#146;s tax returns, reports to shareholders, and reports filed with the SEC and other regulatory authorities, (d) providing the Fund with adequate office space and certain related
office equ






ipment and services and (e) maintaining all of the Fund&#146;s records other than those maintained pursuant to such agreements.</P>
<A NAME="_Toc155621910"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>COMPENSATION AND EXPENSES</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Under the Advisory Agreements between the Adviser and Select Dividend Trust, Global Dividend Fund and Preferred Dividend Fund, each Fund pays a monthly management fee to the Adviser at an annual rate of 0.80% of the Fund&#146;s average weekly net assets plus the value attributable to the preferred shares (collectively, &#147;managed assets&#148;). &nbsp;Under the Advisory Agreements between the Adviser and Premium Dividend Fund I and Premium Dividend Fund II, each Fund pays a monthly management fee to the Adviser at an annual rate of 0.50% of the Fund&#146;s managed assets plus 5.00% of the Fund&#146;s weekly gross income. &nbsp;The Adviser&#146;s total fees under the Advisory Agreements with Premium Dividend Fund I and Premium Dividend Fund II are limited to 1.00% annually of each Fund&#146;s average weekly managed assets. &nbsp;A discussion regarding the basis for the Board of Preferred Dividend Fund, Select
Dividen






d Trust, Global Dividend Fund, Premium Dividend Fund I and Premium Dividend Fund II approving each Advisory Agreement is available in their annual reports for the periods ending May 31, 2006, June 30, 2006, July 31, 2006, September 30, 2006 and October 31, 2006, respectively.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Pursuant to the Sub-Advisory Agreement, the Adviser will pay to the Sub-Adviser a monthly fee at an annual rate of 0.20% of each Fund&#146;s average daily net assets. &nbsp;The payment of the sub-advisory fee to MFC Global (U.S.) is not an additional payment by the Fund and the Fund has no obligation to MFC Global (U.S.) to pay the sub-advisory fee.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Each Fund pays the Adviser a monthly administration fee at an annual rate specified below based on each Fund&#146;s average weekly managed assets:</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=288></TD><TD width=128.733></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=288><P style="margin:0px" align=center><B>Fund</B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=128.733><P style="margin:0px" align=center><B>Administration Fee</B></P>
</TD></TR>
<TR><TD valign=top width=288><P style="margin-top:6.667px; margin-bottom:0px">Premium Dividend Fund I</P>
</TD><TD valign=top width=128.733><P style="margin-top:6.667px; margin-bottom:0px" align=center>0.10%</P>
</TD></TR>
<TR><TD valign=top width=288><P style="margin:0px">Premium Dividend Fund II</P>
</TD><TD valign=top width=128.733><P style="margin:0px" align=center>0.10%</P>
</TD></TR>
<TR><TD valign=top width=288><P style="margin:0px">Select Dividend Trust</P>
</TD><TD valign=top width=128.733><P style="margin:0px" align=center>0.15%</P>
</TD></TR>
<TR><TD valign=top width=288><P style="margin:0px">Global Dividend Fund</P>
</TD><TD valign=top width=128.733><P style="margin:0px" align=center>0.15%</P>
</TD></TR>
<TR><TD valign=top width=288><P style="margin:0px">Preferred Dividend Fund</P>
</TD><TD valign=top width=128.733><P style="margin:0px" align=center>0.15%</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The average weekly net assets are determined for the purpose of calculating the advisory fee and the administration fee by taking the average of all the weekly determinations of net assets (total assets less all liabilities, which liabilities do not include the aggregate liquidation preference of any outstanding preferred shares) during a given calendar month. &nbsp;The fees are payable for each calendar month as soon as practicable after the end of that month. &nbsp;In addition to the payments to the Adviser under the Advisory Agreement and to the Administrator under the Administration Agreement described above, each Fund pays certain other costs, including, but not limited to, any and all expenses, taxes and governmental fees incurred by the Fund; the compensation and expenses of Trustees who are not interested persons of the Adviser, and of independent advisers, independent contractors, consultants, managers
and ot






her unaffiliated agents employed by a Fund other than through the Adviser; the fees of any Rating Agency rating the preferred shares of a Fund; legal, accounting and auditing fees and expenses of each Fund; the fees or disbursements of custodians and depositories of the Fund&#146;s assets, transfer agents, disbursing agents, plan agents and registrars; the cost of preparing and mailing dividends, distributions, reports, notices and proxy materials to shareholders of each Fund; brokers&#146; commissions and underwriting fees; and the expense of periodic calculations of the NAV of the common shares of a Fund.</P>
<A NAME="_Toc155621911"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>DURATION AND TERMINATION; NON-EXCLUSIVE SERVICES</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Unless earlier terminated pursuant to its terms, each Advisory Agreement and Sub-Advisory Agreement will remain in effect for two years from their respective dates of execution and may each be continued from year to year thereafter if such continuation is specifically approved at least annually (i) by the Board or by the vote of a majority, as defined in the 1940 Act, of the holders of the outstanding preferred shares and the common shares, voting together as a single class, and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or the Subadvisory Agreement or interested persons, as defined in the 1940 Act, of any such party, by votes cast in person at a meeting called for the purpose of voting on such approval. &nbsp;Each Advisory Agreement and Sub-Advisory Agreement provides that it will terminate automatically if assigned and that it may be terminated without penalty
by the






 Trustees, the vote of a majority of the outstanding voting securities of the applicable Fund, or by the Adviser or Sub-Adviser, as the case may be, on sixty days&#146; written notice.</P>
<A NAME="_Toc155621912"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>PORTFOLIO MANAGEMENT</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Day-to-day management of each Fund&#146;s portfolio is the responsibility of Gregory K. Phelps and Mark T. Maloney.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Gregory K. Phelps is a Senior Vice President and Portfolio Manager&nbsp;at MFC Global (U.S.) and has served in&nbsp;these capacities since 2005.&nbsp; Prior to 2005, Mr. Phelps served as Senior Vice President and Portfolio Manager at the Adviser since 1995.&nbsp; Mr. Phelps has over 25 years of experience managing preferred securities within closed-end funds and in researching securities in the utility, bank, and oil and gas industries.&nbsp; Mr. Phelps has been a member of the investment team that manages the Funds since 1995.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Mark T. Maloney is a Vice President and Portfolio Manager at MFC Global (U.S.) and has served in&nbsp;these capacities since 2005.&nbsp; Prior to 2005, Mr. Maloney served as Vice President and Portfolio Manager at the Adviser since 1982.&nbsp;&nbsp;Mr. Maloney has&nbsp;over 9 years of investment experience focusing in the utility, bank, and oil and gas industries.&nbsp; Mr. Maloney has been&nbsp;a member of&nbsp;the investment team that manages the Funds since 1997.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The Statement of Additional Information includes additional information about the portfolio managers, including information about their compensation, accounts they manage other than the Funds and their ownership of Fund shares, if any.</P>
<P style="margin:0px"><BR></P>
<A NAME="_Toc155621913"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>PORTFOLIO TRANSACTIONS WITH AFFILIATES</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Pursuant to procedures determined by the Trustees and consistent with the above policy of obtaining best net results, a Fund may execute portfolio transactions with or through brokers affiliated with the Adviser and/or MFC Global (U.S.) (&#147;Affiliated Brokers&#148;). &nbsp;Affiliated Brokers may act as broker for a Fund on exchange transactions, subject, however, to the general policy of the Fund set forth above and the procedures adopted by the Trustees pursuant to the 1940 Act. &nbsp;Commissions paid to an Affiliated Broker must be at least as favorable as those which the Trustees believe to be contemporaneously charged by other brokers in connection with comparable transactions involving similar securities being purchased or sold. &nbsp;A transaction would not be placed with an Affiliated Broker if a Fund would have to pay a commission rate less favorable than the Affiliated Broker&#146;s contemporaneous
charges






 for comparable transactions for its other most favored, but unaffiliated, customers except for accounts for which the Affiliated Broker acts as clearing broker for another brokerage firm, and any customers of the Affiliated Broker not comparable to the Fund as determined by a majority of the Trustees who are not interested persons (as defined in the 1940 Act) of the Fund, the Adviser<B>, </B>the Sub-Adviser or the Affiliated Broker. Because the Adviser or MFC Global (U.S.) that is affiliated with the Affiliated Broker has, as an investment adviser to the Fund, the obligation to provide investment management services, which includes elements of research and related investment skills such research and related skills will not be used by the Affiliated Broker as a basis for negotiating commissions at a rate higher than that determined in accordance with the above criteria.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The Adviser&#146;s indirect parent, the John Hancock Life Insurance Company, is the indirect sole shareholder of Signator Investors, Inc., a broker-dealer (&#147;Signator&#148; or an &#147;Affiliated Broker&#148;). &nbsp;The Adviser&#146;s indirect parent, Manulife Financial, is the parent of another broker-dealer, John Hancock Distributors LLC (until December 31, 2004, Manulife Financial Securities, LLC) (&#147;JH Distributors&#148; or &#147;Affiliated Broker&#148;).</P>
<A NAME="_Toc155621914"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>OTHER SERVICE PROVIDERS</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The Bank of New York, One Wall Street, New York, NY 10286, is the custodian for each of the Funds. &nbsp;Mellon Investor Services, Newport Office Center VII, 480 Washington Boulevard, Jersey City, NJ 07310, is the transfer agent, registrar and dividend disbursing agent for the common shares of each Fund. &nbsp;Deutsche Bank Trust Company Americas, 280 Park Avenue, New York, NY 10017 is the Auction Agent, transfer agent, registrar, dividend disbursing agent and redemption agent for the preferred shares of each Fund other than Preferred Dividend Fund. &nbsp;BONY serves as Auction Agent, transfer agent, registrar, dividend disbursing agent and redemption agent for the ARPS of Preferred Dividend Fund.</P>
<BR>
<A NAME="_Toc155621915"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B>PROPOSAL 3: &nbsp;ELECTION OF TRUSTEES</B></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Each Fund&#146;s Board of Trustees consists of nine members. &nbsp;Holders of the common shares of each Fund are entitled to elect seven Trustees and holders of the preferred shares of each Fund are entitled to elect two Trustees. &nbsp;Messrs. Boyle, Carlin, Chapman, Cunningham, Ladner, Moore and Pruchansky are subject to election by holders of the common shares of each Fund. &nbsp;Mr. Dion and Ms. McGill Peterson are subject to election by holders of the preferred shares of each Fund.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Each Board of Trustees is divided into three staggered term classes containing three Trustees. &nbsp;The term of one class expires each year and no term continues for more than three years after the applicable election. &nbsp;Each class of Trustees will stand for election at the conclusion of its respective three-year term. &nbsp;Classifying the Trustees in this manner may prevent replacement of a majority of the Trustees for up to a two-year period.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">As of the date of this proxy, each nominee for election currently serves as Trustee of each Fund. &nbsp;Each of the nominees has consented to his or her nomination and has agreed to serve if elected. &nbsp;If, for any reason, any nominee should not be available for election or able to serve as a Trustee, the proxies will exercise their voting power in favor of such substitute nominee, if any, as the Funds&#146; Trustees may designate. &nbsp;The Funds have no reason to believe that it will be necessary to designate a substitute nominee.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:14.667px; font-size:14.667px">For each Fund, Messrs. Pruchansky and Boyle are the current nominees for election by the common shareholders and Ms. McGill Peterson is the current nominee for election by the preferred shareholders.</P>
<A NAME="_Toc155621916"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>INFORMATION CONCERNING TRUSTEES</B></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The following table sets forth certain information regarding the nominees for election to each Board. &nbsp;The table shows each Trustee&#146;s principal occupation or employment and other directorships during the past five years and the number of John Hancock funds overseen by the Trustee. &nbsp;The table also lists the Trustees who are not currently standing for election. &nbsp;The terms of Messrs. Carlin, Chapman and Cunningham will expire at the 2008 annual meeting and the terms of Messrs. Dion, Ladner and Moore will expire at the 2009 annual meeting.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=164.133></TD><TD width=240.933></TD><TD width=109.467></TD><TD width=109.467></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=bottom width=164.133><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Name, (Age), Address(1)<BR>
and Position with the Funds</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=240.933><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Principal Occupations and other Directorships During the Past Five Years</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Trustee Since</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Number of John Hancock Funds Overseen</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=624 colspan=4><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Nominees for Election <BR>
Term to Expire in 2010</B></P>
</TD></TR>
<TR><TD valign=top width=164.133><P style="line-height:13.333px; margin:0px; font-size:10.667px">James R. Boyle*<BR>
Born: 1959<BR>
Non-Independent Trustee</P>
</TD><TD valign=top width=240.933><P style="line-height:13.333px; margin:0px; font-size:10.667px">Chairman and Director, John Hancock Advisers, LLC (the &#147;Adviser&#148;), The Berkeley Financial Group, LLC (&#147;The Berkeley Group&#148;) (holding company) and John Hancock Funds, LLC (&#147;John Hancock Funds&#148;); President, John Hancock Annuities; Executive Vice President, John Hancock Life Insurance Company (since June, 2004); President U.S. Annuities; Senior Vice President, The Manufacturers Life Insurance Company (U.S.A.) (until 2004).</P>
</TD><TD valign=top width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>2005(A-E)</P>
</TD><TD valign=top width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>260</P>
</TD></TR>
<TR>
<BR>
<TD valign=top width=164.133><P style="line-height:13.333px; margin:0px; font-size:10.667px">Steven R. Pruchansky<BR>
Born: 1944<BR>
Independent Trustee</P>
</TD><TD valign=top width=240.933><P style="line-height:13.333px; margin:0px; font-size:10.667px">Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (since 2000); Director and President, Greenscapes of Southwest Florida, Inc. (until 2000); Managing Director, JonJames, LLC (real estate) &nbsp;(since 2001); Director, First Signature Bank &amp; Trust Company (until 1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991).</P>
</TD><TD valign=top width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>1992(A-D)<BR>
1993(E)</P>
</TD><TD valign=top width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>53</P>
</TD></TR>
<TR>
<BR>
<TD style="border-bottom:1px solid #000000" valign=top width=164.133><P style="line-height:13.333px; margin:0px; font-size:10.667px">Patti McGill Peterson+<BR>
Born: 1943 <BR>
Independent Trustee</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=240.933><P style="line-height:13.333px; margin:0px; font-size:10.667px">Executive Director, Council for International Exchange of Scholars and Vice President, Institute of International Education (since 1998); Senior Fellow, Cornell Institute of Public Affairs, Cornell University (until 1998); Former President of Wells College and St. Lawrence University; Director, Niagara Mohawk Power Corporation (until 2003); Director, Ford Foundation, International Fellowships Program (since 2002); Director, Lois Roth Endowment (since 2002); Director, Council for International Exchange (since 2003).</P>
<BR>

</TD><TD style="border-bottom:1px solid #000000" valign=top width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>2002(A-E)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>53</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=624 colspan=4><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Trustees not Standing for Election<BR>
Term to Expire in 2009</B></P>
</TD></TR>
<TR><TD valign=top width=164.133><P style="line-height:13.333px; margin:0px; font-size:10.667px">Ronald R. Dion+<BR>
Born 1946<BR>
Chairman and Independent Trustee</P>
</TD><TD valign=top width=240.933><P style="line-height:13.333px; margin:0px; font-size:10.667px">Chairman and Chief Executive Officer, R.M. Bradley &amp; Co., Inc.; Director, The New England Council and Massachusetts Roundtable; Trustee, North Shore Medical Center; Director, Boston Stock Exchange; Director, BJ&#146;s Wholesale Club, Inc. and a corporator of the Eastern Bank; Trustee, Emmanuel College; Director, Boston Municipal Research Bureau; Member of the Advisory Board, Carroll Graduate School of Management at Boston College.</P>
</TD><TD valign=top width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>1998(A-E)</P>
</TD><TD valign=top width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>53</P>
</TD></TR>
<TR><TD valign=top width=164.133><P style="line-height:13.333px; margin:0px; font-size:10.667px">Charles L. Ladner<BR>
Born: 1938<BR>
Independent Trustee</P>
</TD><TD valign=top width=240.933><P style="line-height:13.333px; margin:0px; font-size:10.667px">Chairman and Trustee, Dunwoody Village, Inc. (retirement services) (until 2003); Senior Vice President and Chief Financial Officer, UGI Corporation (public utility holding company) (retired 1998); Vice President and Director for AmeriGas, Inc. (retired 1998); Director of AmeriGas Partners, L.P. (gas distribution) (until 1997); Director, EnergyNorth, Inc. (until 1995); Director, Parks and History Association (until 2007).</P>
</TD><TD valign=top width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>1992 (A-D)<BR>
1993 (E)</P>
</TD><TD valign=top width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>160</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=164.133><P style="line-height:13.333px; margin:0px; font-size:10.667px">John A. Moore<BR>
Born: 1939<BR>
Independent Trustee</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=240.933><P style="line-height:13.333px; margin:0px; font-size:10.667px">President and Chief Executive Officer, Institute for Evaluating Health Risks, (nonprofit institution) (until 2001); Senior Scientist, Sciences International (health research) (until 2003); Former Assistant Administrator &amp; Deputy Administrator, Environmental Protection Agency; Principal, Hollyhouse (consulting)(since 2000); Director, CIIT Center for Health Science Research (nonprofit research) (since 2002).</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>2002 (A-E)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>53</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=624 colspan=4><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Trustees not Standing for Election<BR>
Term to Expire in 2008</B></P>
</TD></TR>
<TR><TD valign=top width=164.133><P style="line-height:13.333px; margin:0px; font-size:10.667px">James F. Carlin<BR>
Born 1940<BR>
Independent Trustee</P>
</TD><TD valign=top width=240.933><P style="line-height:13.333px; margin:0px; font-size:10.667px">Director and Treasurer, Alpha Analytical Laboratories (chemical analysis) (since 1985); Part Owner and Treasurer, Lawrence Carlin Insurance Agency, Inc. (since 1995); Part Owner and Vice President, Mone Lawrence Carlin Insurance Agency, Inc. (until 2005); Director/Treasurer, Rizzo Associates (engineering) (until 2000); &nbsp;Chairman and CEO, Carlin Consolidated, Inc. (management/investments) (since 1987); Director/Partner, Proctor Carlin &amp; Co., Inc. (until 1999); Trustee, Massachusetts Health and Education Tax Exempt Trust (since 1993); Director of the following: &nbsp;Uno Restaurant Corp. (until 2001), Arbella Mutual (insurance) (until 2000), HealthPlan Services, Inc. (until 1999), Flagship Healthcare, Inc. (until 1999), Carlin Insurance Agency, Inc. (until 1999); Chairman, Massachusetts Board of Higher Education (until 1999).</P>
</TD><TD valign=top width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>1988(A)</P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>1989(B)<BR>
1990(C)<BR>
1992(D)<BR>
1993(E)</P>
</TD><TD valign=top width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>53</P>
</TD></TR>
<TR><TD valign=top width=164.133><P style="line-height:13.333px; margin:0px; font-size:10.667px">Richard P. Chapman Jr.<BR>
Born: 1935<BR>
Independent Trustee</P>
</TD><TD valign=top width=240.933><P style="line-height:13.333px; margin:0px; font-size:10.667px">President and Chief Executive Officer, Brookline Bancorp, Inc. &nbsp;(lending) (since 1972); Chairman and Director, Lumber Insurance Co. (insurance) (until 2000); Chairman and Director, Northeast Retirement Services, Inc. (retirement administration) (since 1998). &nbsp;Vice Chairman, Northeastern University Board of Trustees (since 2004).</P>
</TD><TD valign=top width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>2005(A-E)</P>
</TD><TD valign=top width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>53</P>
</TD></TR>
<TR><TD valign=top width=164.133><P style="line-height:13.333px; margin:0px; font-size:10.667px">William H. Cunningham<BR>
Born: 1944<BR>
Independent Trustee</P>
</TD><TD valign=top width=240.933><P style="line-height:13.333px; margin:0px; font-size:10.667px">Former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman and CEO, IBT Technologies (until 2001); Director of the following: &nbsp;Hire.com (until 2004), STC Broadcasting, Inc. and Sunrise Television Corp. (until 2001), Symtx, Inc.(electronic manufacturing) (since 2001), Adorno/Rogers Technology, Inc. (until 2004), Pinnacle Foods Corporation (until 2003), rateGenius (until 2003), Lincoln National Corporation (insurance) (since 2006), Jefferson-Pilot Corporation (diversified life insurance company) (until 2006), New Century Equity Holdings (formerly Billing Concepts) (until 2001), eCertain (until 2001), ClassMap.com (until 2001), Agile Ventures (until 2001), AskRed.com (until 2001), Southwest Airlines, Introgen and Viasystems Group, Inc. (electronic manufacturer) (until 2003); Advisory Director, Interactive Bridge, Inc. (college fundraising)
(until 2001); Advisory Director, Q Investments (until 2003); Advisory Director, JP Morgan Chase Bank (formerly Texas Commerce Bank &#150; Austin), LIN Television (since 2002), WilTel Communications (until 2003) and Hayes Lemmerz International, Inc. (diversified automotive parts supply company) (since 2003).</P>
</TD><TD valign=top width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>1994(A-E)</P>
</TD><TD valign=top width=109.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>160</P>
</TD></TR>
</TABLE>
<P style="line-height:13.333px; margin-top:0px; margin-bottom:10.667px; font-size:10.667px">
<BR>
* &#147;Interested person&#148; (as defined in the 1940 Act) of the Funds and the Adviser.<BR>
+ Trustee representing the holders of the preferred shares. <BR>
(A) Premium Dividend Fund I<BR>
(B) Premium Dividend Fund II<BR>
(C) Select Dividend Trust<BR>
(D) Global Dividend Fund<BR>
(E) Preferred Dividend Fund</P>
<A NAME="_Toc155621917"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>EXECUTIVE OFFICERS</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The table below lists the executive officers of the Funds:</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=148.467></TD><TD width=385.8></TD><TD width=89.733></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=bottom width=148.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Name, (Age), Address(1) and Position with the Funds</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=385.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Principal Occupation(s) during the Past 5 Years</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=89.733><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Officer Since</P>
</TD></TR>
<TR><TD valign=top width=148.467><P style="line-height:13.333px; margin:0px; font-size:10.667px">Keith F. Hartstein<BR>
Born: 1956<BR>
President and Chief Executive Officer</P>
</TD><TD valign=top width=385.8><P style="line-height:13.333px; margin:0px; font-size:10.667px">Senior Vice President, Manulife Financial Corporation (since 2004); Director, President and Chief Executive Officer, the Adviser, The Berkeley Group, John Hancock Funds, LLC (since 2005); Director, MFC Global Investment Management (U.S.), LLC (&#147;MFC Global (U.S.)&#148;) (since 2005); Director, John Hancock Signature Services, Inc. (since 2005); President and Chief Executive Officer, John Hancock Investment Management Services, LLC (since 2006); President and Chief Executive Officer, John Hancock Funds II, John Hancock Funds III, and John Hancock Trust; Director, Chairman and President, NM Capital Management, Inc. (since 2005); Chairman, Investment Company Institute Sales Force Marketing Committee (since 2003); Director, President and Chief Executive Officer, MFC Global (U.S.) (2005-2006); Executive Vice President, John Hancock Funds, LLC (until 2005).</P>
</TD><TD valign=top width=89.733><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>2005</P>
</TD></TR>
<TR><TD valign=top width=148.467><P style="line-height:13.333px; margin:0px; font-size:10.667px">Gordon Shone<BR>
Born: 1956<BR>
Treasurer</P>
</TD><TD valign=top width=385.8><P style="line-height:13.333px; margin:0px; font-size:10.667px">Treasurer, John Hancock Funds (since 2006); John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2005); Vice President and Chief Financial Officer, John Hancock Trust (2003-2005); Senior Vice President, John Hancock Life Insurance Company (U.S.A.) (since 2001); Vice President, John Hancock Investment Management Services, Inc. and John Hancock Advisers, LLC (since 2006), The Manufacturers Life Insurance Company (U.S.A.) (1998 to 2000).</P>
</TD><TD valign=top width=89.733><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>2006</P>
</TD></TR>
<TR><TD valign=top width=148.467><P style="line-height:13.333px; margin:0px; font-size:10.667px">Francis V. Knox, Jr.<BR>
Born: 1947<BR>
Chief Compliance Officer</P>
</TD><TD valign=top width=385.8><P style="line-height:13.333px; margin:0px; font-size:10.667px">Vice President and Chief Compliance Officer, John Hancock Investment Management Services, LLC, the Adviser and MFC Global (U.S.) (since 2005); Chief Compliance Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2005); Vice President and Assistant Treasurer, Fidelity Group of Funds (until 2004); Vice President and Ethics &amp; Compliance Officer, Fidelity Investments (until 2001).</P>
</TD><TD valign=top width=89.733><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>2005</P>
</TD></TR>
<TR><TD valign=top width=148.467><P style="line-height:13.333px; margin:0px; font-size:10.667px">John G. Vrysen<BR>
Born: 1955<BR>
Chief Financial Officer</P>
</TD><TD valign=top width=385.8><P style="line-height:13.333px; margin:0px; font-size:10.667px">Director, Executive Vice President and Chief Financial Officer, the Adviser, The Berkeley Group and John Hancock Funds, LLC (since 2005); Executive Vice President and Chief Financial Officer, John Hancock Investment Management Services, LLC (since 2005), Vice President and Chief Financial Officer, MFC Global (U.S.) (since 2005); Director, John Hancock Signature Services, Inc. (since 2005); Chief Financial Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III, John Hancock Trust (since 2005); Vice President and General Manager, Fixed Annuities, U.S. Wealth Management (until 2005); Vice President, Operations Manulife Wood Logan (2000-2004).</P>
</TD><TD valign=top width=89.733><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>2005</P>
</TD></TR>
<TR><TD valign=top width=148.467><P style="line-height:13.333px; margin:0px; font-size:10.667px">Thomas M. Kinzler</P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">Born: 1955<BR>
Secretary and Chief Legal Officer</P>
</TD><TD valign=top width=385.8><P style="line-height:13.333px; margin:0px; font-size:10.667px">Vice President and Counsel for John Hancock Life Insurance Company (U.S.A.) (since 2006); Secretary and Chief Legal Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2006); Vice President and Associate General Counsel for Massachusetts Mutual Life Insurance Company (1999-2006); Secretary and Chief Legal Counsel for MML Series Investment Fund (2000-2006); Secretary and Chief Legal Counsel for MassMutual Institutional Funds (2000-2004); Secretary and Chief Legal Counsel for MassMutual Select Funds and MassMutual Premier Funds (2004-2006).</P>
</TD><TD valign=top width=89.733><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>2006</P>
</TD></TR>
</TABLE>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">(1) Business address for Independent and Non-Independent Trustees and Officers is 601 Congress Street, Boston, Massachusetts 02210.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Each Fund&#146;s Board of Trustees currently has four standing committees (each a &#147;Committee&#148;): the Audit and Compliance Committee, the Governance Committee, the Contracts/Operations Committee and the Investment Performance Committee. &nbsp;Each Committee is comprised of Independent Trustees who are not &#147;interested persons&#148; as defined in the 1940 Act.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The current membership of each Committee is set forth below.</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD></TR>
<TR><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin-top:11.267px; margin-bottom:0px; font-size:12px" align=center>Audit</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin-top:11.267px; margin-bottom:0px; font-size:12px" align=center>Governance</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin-top:11.267px; margin-bottom:0px; font-size:12px" align=center>Contracts/Operations</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin-top:11.267px; margin-bottom:0px; font-size:12px" align=center>Investment Performance</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px">Messrs. Chapman, Ladner, Moore and Ms. Peterson</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px">All Independent Trustees</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px">Messrs. Carlin, Cunningham, Dion and Pruchansky</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=159.6><P style="line-height:14.667px; margin:0px; font-size:12px">All Independent Trustees</P>
</TD></TR>
</TABLE>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">All members of each Fund&#146;s Audit and Compliance Committee are independent under the New York Stock Exchange&#146;s Revised Listing Rules and each member is financially literate with at least one having accounting or financial management expertise. &nbsp;The Board has adopted a written charter for the Audit and Compliance Committee, which is attached as Attachment 1 to the proxy statement filed with the SEC on February 3, 2006 for the annual meeting held on March 22, 2006. &nbsp;The Audit and Compliance Committee recommends to the full Board the appointment of outside auditors for the Funds, monitors and oversees the audits of the Funds, communicates with both independent auditors and internal auditors on a regular basis and provides a forum for the auditors to report and discuss any matters they deem appropriate at any time. Each Audit and Compliance Committee reports that it has (i) reviewed and discussed
each F






und&#146;s audited financial statements with management; (ii) discussed with the independent auditors the matters relating to the quality of each Fund&#146;s financial reporting as required by SAS 61; (iii) received written disclosures and an independence letter from the independent auditors required by Independent Standards Board Standard No. 1, and discussed with the auditors their independence; and (iv) based on these discussions, recommended to the Board that each Fund&#146;s financial statements be included in each Fund&#146;s annual report for the last fiscal year. &nbsp;The Audit Committee&#146;s Report is set forth below under &#145;&#145;Additional Information&#146;&#146;</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">All of the Independent Trustees are members of the Governance Committee. &nbsp;The Governance Committee makes recommendations to the Board on issues related to corporate governance applicable to the Independent Trustees and to the composition and operation of the Board and recommends nominees to serve as members of the Board. &nbsp;Among other duties, the Governance Committee determines the compensation paid to the Independent Trustees. &nbsp;All members of the Governance Committee are independent under the New York Stock Exchange&#146;s Revised Listing Rules and are Independent Trustees. &nbsp;The Board has adopted a written charter for the Governance Committee, which is attached as Attachment 3 to the proxy statement filed with the SEC on February 3, 2006 for the annual meeting held on March 22, 2006. &nbsp;The Governance Committee selects and nominates for elections candidates for Independent Trustees.
&nbsp;The Tr






ustees who are not Independent Trustees and the Officers of the Fund are nominated and selected by the Board.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">In reviewing a potential nominee and in evaluating the renomination of current Independent Trustees, the Governance Committee expects to apply the following criteria: (i) the nominee&#146;s reputation for integrity, honesty and adherence to high ethical standards; (ii) the nominee&#146;s business acumen, experience and ability to exercise sound judgments; (iii) a commitment to understand the Fund and the responsibilities of a trustee of an investment company; (iv) a commitment to regularly attend and participate in meetings of the Board and its Committees, (v) the ability to understand potential conflicts of interest involving management of the Fund and to act in the interests of all shareholders; and (vi) the absence of a real or apparent conflict of interest that would impair the nominee&#146;s ability to represent the interests of all the shareholders and to fulfill the responsibilities of an Independent
Trustee. T






he Governance Committee does not necessarily place the same emphasis on each criteria and each nominee may not have each of these qualities.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">As long as an existing Independent Trustee continues, in the opinion of the Governance Committee, to satisfy the criteria listed above, the Committee generally would favor the renomination of an existing Trustee rather than a new candidate. &nbsp;Consequently, while the Governance Committee will consider nominees recommended by shareholders to serve as Trustees, the Governance Committee may only act upon such recommendations if there is a vacancy on the Board or the Governance Committee determines that the selection of a new or additional Trustee is in the best interests of the Funds. &nbsp;In the event that a vacancy arises or a change in Board membership is determined to be advisable, the Governance Committee will, in addition to any shareholder recommendations, consider candidates identified by other means, including candidates proposed by members of the Governance Committee. &nbsp;The Governance Committee
may reta






in a consultant to assist the Committee in a search for a qualified candidate.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Any shareholder recommendation must be submitted in compliance with all of the pertinent provisions of Rule 14a-8 under the 1934 Act and a Fund&#146;s by-laws to be considered by the Governance Committee. &nbsp;In evaluating a nominee recommended by a shareholder, the Governance Committee, in addition to the criteria discussed above, may consider the objectives of the shareholder in submitting that nomination and whether such objectives are consistent with the interests of all shareholders. &nbsp;If the Board determines to include a shareholder&#146;s candidate among the slate of its designated nominees, the candidate&#146;s name will be placed on the Fund&#146;s proxy card. &nbsp;If the Board determines not to include such candidate among its designated nominees and the shareholder has satisfied the requirements of Rule 14a-8, the shareholder&#146;s candidate will be treated as a nominee of the shareholder who
origin






ally nominated the candidate. &nbsp;In that case, the candidate will not be named on the proxy card distributed with the Fund&#146;s proxy statement. &nbsp;Each of the nominees for election as Trustee was recommended by the Governance Committee.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The Contracts/Operations Committee oversees the initiation, operation and renewal of the various contracts between the Fund and other entities. &nbsp;These contracts include advisory, custodial and transfer agency agreements and arrangements with other service providers.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The Investment Performance Committee monitors and analyzes the investment performance of the Funds generally, consults with the Adviser as necessary if a Fund is considered to require special attention, and reviews fund peer groups and other comparative standards as necessary.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:14.667px; font-size:14.667px">Each Board of Trustees held five meetings during each Fund&#146;s fiscal year. &nbsp;With respect to each Fund, no Trustee attended fewer than 75% of the aggregate of: (1) the total number of meetings of the Trustees of the Fund; and (2) the total number of meetings held by all Committees of the Trustees on which they served. &nbsp;The Funds hold joint meetings of the Trustees and all Committees.</P>
<A NAME="_Toc155621918"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>TRUSTEE OWNERSHIP</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The following table provides a dollar range indicating each Trustee&#146;s ownership of equity securities of the Funds as well as aggregate holdings of shares of equity securities of all John Hancock funds overseen by the Trustee, as of December 21, 2006.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px" align=center><B>Trustee Holdings(1)</B></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=137.4></TD><TD width=47.733></TD><TD width=107.467></TD><TD width=66></TD><TD width=110.2></TD><TD width=47.733></TD><TD width=107.467></TD></TR>
<TR><TD valign=top width=137.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=155.2 colspan=2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Premium Dividend Fund I</P>
</TD><TD valign=top width=176.2 colspan=2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Premium Dividend Fund II</P>
</TD><TD valign=top width=155.2 colspan=2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Select Dividend Trust</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=137.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Trustee</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Shares</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Dollar Range</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Shares</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Dollar Range</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Shares</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Dollar Range</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=624 colspan=7><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Independent Trustees</B></P>
</TD></TR>
<TR><TD valign=top width=137.4><P style="line-height:14.667px; margin:0px; font-size:12px">James F. Carlin</P>
</TD><TD valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>4,150</P>
</TD><TD valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$10,001 &#150; $50,000</P>
</TD><TD valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,200</P>
</TD><TD valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$10,001 &#150; $50,000</P>
</TD><TD valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>1,000</P>
</TD><TD valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$10,001 &#150; $50,000</P>
</TD></TR>
<TR><TD valign=top width=137.4><P style="line-height:14.667px; margin:0px; font-size:12px">Richard P. Chapman, Jr.</P>
</TD><TD valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD></TR>
<TR><TD valign=top width=137.4><P style="line-height:14.667px; margin:0px; font-size:12px">William H. Cunningham</P>
</TD><TD valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD></TR>
<TR><TD valign=top width=137.4><P style="line-height:14.667px; margin:0px; font-size:12px">Ronald R. Dion</P>
</TD><TD valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>100</P>
</TD><TD valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>65</P>
</TD><TD valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD></TR>
<TR><TD valign=top width=137.4><P style="line-height:14.667px; margin:0px; font-size:12px">Charles L. Ladner</P>
</TD><TD valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>390</P>
</TD><TD valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>200</P>
</TD><TD valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>200</P>
</TD><TD valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD></TR>
<TR><TD valign=top width=137.4><P style="line-height:14.667px; margin:0px; font-size:12px">Dr. John A. Moore</P>
</TD><TD valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>100</P>
</TD><TD valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>100</P>
</TD><TD valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>100</P>
</TD><TD valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD></TR>
<TR><TD valign=top width=137.4><P style="line-height:14.667px; margin:0px; font-size:12px">Patti McGill Peterson</P>
</TD><TD valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>153</P>
</TD><TD valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>130</P>
</TD><TD valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>102</P>
</TD><TD valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=137.4><P style="line-height:14.667px; margin:0px; font-size:12px">Steven R. Pruchansky</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>116</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>200</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>100</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=624 colspan=7><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Non-Independent Trustee</B></P>
</TD></TR>
<TR><TD valign=top width=137.4><P style="line-height:14.667px; margin:0px; font-size:12px">James R. Boyle</P>
</TD><TD valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=47.733><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=107.467><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=152.467></TD><TD width=53></TD><TD width=89.933></TD><TD width=66></TD><TD width=110.2></TD><TD width=152.4></TD></TR>
<TR><TD valign=top width=152.467><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=142.933 colspan=2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Global Dividend Fund</P>
</TD><TD valign=top width=176.2 colspan=2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Preferred Dividend Fund</P>
</TD><TD valign=top width=152.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>All John Hancock Funds<BR>
Overseen</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=152.467><P style="line-height:14.667px; margin:0px; font-size:12px">Trustee</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=53><P style="line-height:14.667px; margin:0px; font-size:12px">Shares</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=89.933><P style="line-height:14.667px; margin:0px; font-size:12px">Dollar Range</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px">Shares</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px">Dollar Range</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=152.4><P style="line-height:14.667px; margin:0px; font-size:12px">Dollar Range</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=624 colspan=6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Independent Trustees</B></P>
</TD></TR>
<TR><TD valign=top width=152.467><P style="line-height:14.667px; margin:0px; font-size:12px">James F. Carlin</P>
</TD><TD valign=top width=53><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>100</P>
</TD><TD valign=top width=89.933><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>100</P>
</TD><TD valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=152.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>Over $100,000</P>
</TD></TR>
<TR><TD valign=top width=152.467><P style="line-height:14.667px; margin:0px; font-size:12px">Richard P. Chapman, Jr.</P>
</TD><TD valign=top width=53><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=89.933><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=152.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>Over $100,000</P>
</TD></TR>
<TR><TD valign=top width=152.467><P style="line-height:14.667px; margin:0px; font-size:12px">William H. Cunningham</P>
</TD><TD valign=top width=53><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=89.933><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=152.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>Over $100,000</P>
</TD></TR>
<TR><TD valign=top width=152.467><P style="line-height:14.667px; margin:0px; font-size:12px">Ronald R. Dion</P>
</TD><TD valign=top width=53><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>100</P>
</TD><TD valign=top width=89.933><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>65</P>
</TD><TD valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=152.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>Over $100,000</P>
</TD></TR>
<TR><TD valign=top width=152.467><P style="line-height:14.667px; margin:0px; font-size:12px">Charles L. Ladner</P>
</TD><TD valign=top width=53><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>235</P>
</TD><TD valign=top width=89.933><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>200</P>
</TD><TD valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=152.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>Over $100,000</P>
</TD></TR>
<TR><TD valign=top width=152.467><P style="line-height:14.667px; margin:0px; font-size:12px">Dr. John A. Moore</P>
</TD><TD valign=top width=53><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>100</P>
</TD><TD valign=top width=89.933><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>100</P>
</TD><TD valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=152.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>Over $100,000</P>
</TD></TR>
<TR><TD valign=top width=152.467><P style="line-height:14.667px; margin:0px; font-size:12px">Patti McGill Peterson</P>
</TD><TD valign=top width=53><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>108</P>
</TD><TD valign=top width=89.933><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=152.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>Over $100,000</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=152.467><P style="line-height:14.667px; margin:0px; font-size:12px">Steven R. Pruchansky</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=53><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>300</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=89.933><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>275</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1 &#150; $10,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=152.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>Over $100,000</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=624 colspan=6><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>Non-Independent Trustee</B></P>
</TD></TR>
<TR><TD valign=top width=152.467><P style="line-height:14.667px; margin:0px; font-size:12px">James R. Boyle</P>
</TD><TD valign=top width=53><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=89.933><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=66><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=110.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD><TD valign=top width=152.4><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>&#151;</P>
</TD></TR>
</TABLE>
<P style="line-height:17.333px; margin-top:10.4px; margin-bottom:14.667px; font-size:14.667px">(1) The amounts reflect the aggregate dollar range of equity securities beneficially owned by the Trustees in the Funds and in all John Hancock funds overseen by each Trustee. &nbsp;For each Trustee, the amounts reflected include share equivalents of certain John Hancock funds in which the Trustee is deemed to be invested pursuant to the Deferred Compensation Plan for Independent Trustees, as more fully described under &#147;Remuneration of Trustees and Officers.&#148; &nbsp;The information as to beneficial ownership is based on statements furnished to the Funds by the Trustees. &nbsp;Each of the Trustees has all voting and investment powers with respect to the shares indicated. &nbsp;None of the Trustees beneficially owned individually, and the Trustees and executive officers of the Funds as a group did not beneficially own, in excess of one percent of the outstanding shares of any Fund.</P>
<A NAME="_Toc155621919"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>COMPLIANCE WITH SECTION 16(A) REPORTING REQUIREMENTS</B></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:14.667px; font-size:14.667px">Section 16(a) of the 1934 Act requires a Fund&#146;s executive officers, Trustees and persons who own more than 10% of a Fund&#146;s shares (&#147;10% Shareholders&#148;) to file reports of ownership and changes in ownership with the SEC. &nbsp;Executive officers, Trustees and 10% Shareholders are also required by SEC regulations to furnish each Fund with copies of all Section 16(a) forms they file. &nbsp;Based solely on a review of the copies of these reports furnished to the Funds and representations that no other reports were required to be filed, each Fund believes that during the past fiscal year its executive officers, Trustees and 10% Shareholders complied with all applicable Section 16(a) filing requirements.</P>
<A NAME="_Toc155621920"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>REMUNERATION OF TRUSTEES AND OFFICERS</B></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The following table provides information regarding the compensation paid by the Funds and the other investment companies in the John Hancock fund complex to the Independent Trustees for their services for each Fund&#146;s most recently completed fiscal year. &nbsp;Any non-Independent Trustees and each of the officers of the Funds are interested persons of the Adviser, are compensated by the Adviser and/or its affiliates, and receive no compensation from the Funds for their services.</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=130.667></TD><TD width=80></TD><TD width=80></TD><TD width=80></TD><TD width=80></TD><TD width=80></TD><TD width=93.333></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=bottom width=130.667><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Trustee</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Premium Dividend Fund I(1)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Premium Dividend Fund II(2)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Select Dividend Trust(3)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Global Dividend Fund(4)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Preferred Dividend(5)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=93.333><P style="line-height:14.667px; margin:0px; font-size:12px" align=center>Total Compensation from Fund and Fund Complex(6)</P>
</TD></TR>
<TR><TD valign=top width=130.667><P style="line-height:14.667px; margin:0px; font-size:12px">James F. Carlin</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$ 1,097</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1,418</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1,288</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$873</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$969</P>
</TD><TD valign=bottom width=93.333><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$5,645</P>
</TD></TR>
<TR><TD valign=top width=130.667><P style="line-height:14.667px; margin:0px; font-size:12px">Richard P. Chapman, Jr.*</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1,105</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1,429</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1,292</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$877</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$971</P>
</TD><TD valign=bottom width=93.333><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$5,674</P>
</TD></TR>
<TR><TD valign=top width=130.667><P style="line-height:14.667px; margin:0px; font-size:12px">William H. Cunningham*</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$970</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1,264</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1,194</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$790</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$911</P>
</TD><TD valign=bottom width=93.333><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$5,129</P>
</TD></TR>
<TR><TD valign=top width=130.667><P style="line-height:14.667px; margin:0px; font-size:12px">Ronald R. Dion*</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$686</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$891</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$720</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$496</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$494</P>
</TD><TD valign=bottom width=93.333><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$3,287</P>
</TD></TR>
<TR><TD valign=top width=130.667><P style="line-height:14.667px; margin:0px; font-size:12px">Charles L. Ladner</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$579</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$731</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$768</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$448</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$644</P>
</TD><TD valign=bottom width=93.333><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$3,170</P>
</TD></TR>
<TR><TD valign=top width=130.667><P style="line-height:14.667px; margin:0px; font-size:12px">Dr. John A. Moore*</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1,297</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1,677</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1,447</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1,003</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1,058</P>
</TD><TD valign=bottom width=93.333><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$6,482</P>
</TD></TR>
<TR><TD valign=top width=130.667><P style="line-height:14.667px; margin:0px; font-size:12px">Pattie McGill Peterson</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$570</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$736</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$781</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$458</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$596</P>
</TD><TD valign=bottom width=93.333><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$3,141</P>
</TD></TR>
<TR><TD valign=top width=130.667><P style="line-height:14.667px; margin:0px; font-size:12px">Steven R. Pruchansky*</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$871</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1,139</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$1,092</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$709</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$781</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=93.333><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$4,592</P>
</TD></TR>
<TR><TD valign=top width=130.667><P style="line-height:14.667px; margin:0px; font-size:12px">TOTALS</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$7,175</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$9,285</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$8,582</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$5,654</P>
</TD><TD valign=bottom width=80><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$6,424</P>
</TD><TD valign=bottom width=93.333><P style="line-height:14.667px; margin:0px; font-size:12px" align=right>$37,120</P>
</TD></TR>
</TABLE>
<BR><BR>
<P style="line-height:14.667px; margin:0px; font-size:12px">(1) Compensation is for fiscal year ended September 30, 2006</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(2) Compensation is for fiscal year ended October 31, 2006</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(3) Compensation is for fiscal year ended June 30, 2006</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(4) Compensation is for fiscal year ended July 31, 2006</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(5) Compensation is for fiscal year ended May 31, 2006</P>
<P style="line-height:14.667px; margin:0px; font-size:12px">(6) The total compensation paid by the John Hancock fund complex to the Independent Trustees for the calendar year ended December 31, 2006. &nbsp;All the Independent Trustees were Trustees of 53 funds in the John Hancock fund complex were Trustees of funds except Mr. Cunningham and Mr. Ladner who were Trustees of 160 funds.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:14.667px; font-size:14.667px">*As of September 30, 2006, the value of the aggregate accrued deferred compensation amount from all funds in the John Hancock fund complex for Mr. Chapman was $78,064, Mr. Cunningham was $155,553, Mr. Dion was $511,282, Dr. Moore was $301,295, Mr. Pruchansky was $301,658 and for Mr. Smith was $318,001 under the John Hancock Deferred Compensation Plan for Independent Trustees (the &#147;Plan&#148;). Under the Plan, an Independent Trustee may elect to have deferred fees invested by a Fund in shares of one or more funds in the John Hancock fund complex, and the amount paid to the Trustees under the Plan will be determined based upon the performance of such investments. &nbsp;Deferral of Trustees&#146; fees does not obligate any Fund to retain the services of any Trustee or obligate any Fund to pay any particular level of compensation to the Trustee.</P>
<A NAME="_Toc155621921"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>MATERIAL RELATIONSHIPS OF THE INDEPENDENT TRUSTEES</B></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">As of December 31, 2006, none of the Independent Trustees, nor any immediate family member, owns shares of the Adviser or is a principal underwriter of the Funds, nor does any such person own shares of a company controlling, controlled by or under common control with the Adviser or a principal underwriter of the Funds.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">There have been no transactions by the Funds since the beginning of the Funds&#146; last two fiscal years, nor are there any transactions currently proposed, in which the amount exceeds $60,000 and in which any Trustee of the Funds or any immediate family members has or will have a direct or indirect material interest, nor have any of the foregoing persons been indebted to the Funds in an amount in excess of $60,000 at any time since that date.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">No Independent Trustee, nor any immediate family member has had, in the past five years, any direct or indirect interest, the value of which exceeds $60,000, in the Adviser, a principal underwriter of the Funds or in a person (other than a registered investment company) directly or indirectly controlling, controlled by or under common control with, the Adviser or principal underwriter of the Funds. &nbsp;Moreover, no Independent Trustee or immediate family member has, or has had in the last two fiscal years of the Funds, any direct or indirect relationships or material interest in any transaction or in any currently proposed transaction, in which the amount involved exceeds $60,000, in which the following persons were or are a party: the Funds, an officer of the Funds, any investment company sharing the same investment adviser or principal underwriter as the Funds or any officer of such a company, any
investment advis






er or principal underwriter of the Funds or any officer of such a party, any person directly or indirectly controlling, controlled by or under common control with the Adviser or principal underwriter of the Funds, or any officer of such a person.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:14.667px; font-size:14.667px">Within the last two completed fiscal years of the Funds, no officer of any investment adviser or principal underwriter of the Funds or of any person directly or indirectly controlling, controlled by or under common control with the Adviser or principal underwriter of the Funds, has served as a director on a board of a company, where any of the Independent Trustees or nominees of the Funds, or immediate family members of such persons, has served as an officer.</P>
<A NAME="_Toc155621922"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>ADDITIONAL INFORMATION</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The Audit Committee reviewed and discussed the audited financial statements with management of Funds. &nbsp;The Audit Committee also discussed with the independent registered public accounting firm the matters required to be discussed by SAS 61 (Codification of Statements on Auditing Standards), as modified or supplemented. &nbsp;The Audit Committee received the written disclosures and the letter from the independent registered public accounting firm required by Independence Standards Board Standard No. 1 (Independence Standards Board Standard No. 1, Independence Discussions with Audit Committees), as modified or supplemented and discussed with the independent registered public accounting firm their independence.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Based on the review and discussions referred to above, the Audit Committee recommended to the Board of Trustees that the audited financial statements be included in the Fund&#146;s annual report to shareholders for the fiscal year ended September 30, 2005 for filing with the Securities and Exchange Commission. As mentioned, the audit committee consists of Messrs. Chapman, Ladner Moore (Chair) and Ms. Peterson.</P>
<A NAME="_Toc155621923"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>LEGAL PROCEEDINGS</B></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">There are no material pending legal proceedings to which any Trustee or affiliated person is a party adverse to the Funds or any of its affiliated persons or has a material interest adverse to the Funds or any of its affiliated persons. &nbsp;In addition, there have been no legal proceedings that are material to an evaluation of the ability or integrity of any Trustee or executive officer of the Funds within the past five years.</P>
<BR>
<BR>
<A NAME="_Toc155621924"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>VOTING INFORMATION AND REQUIRED VOTE</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund common and preferred share is entitled to one vote.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Approval of Proposal 1(a) requires the affirmative vote of a majority of the votes cast on the proposal, provided that the total votes cast on the proposal represents over 50% in interest of all securities entitled to vote on the matter.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Approval of Proposal 1(b) requires the affirmative vote of the holders of at least a majority of the DARTS then outstanding, voting separately as a class.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Approval of Proposal 2 requires, with respect to each Fund, the vote of the holders of at least a majority of the preferred shares then outstanding, and the holders of at least a majority of the common shares then outstanding, each voting as a separate class.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Proposal 3 requires, with respect to each Fund, a plurality of the votes cast by the common shares and the preferred shares, voting as separate classes, of a Fund to elect the common shares&#146; and preferred shares&#146; respective nominees of that Fund. &nbsp;A &#147;plurality&#148; means that the three nominees up for election by the common shares or preferred shares receiving the greatest number of votes of the common shares or preferred shares, as the case may be, will be elected as Trustees, regardless of the number of votes cast. &nbsp;Common and Preferred Classes vote separately on this proposal. &nbsp;Proposal 3 is considered a routine matter on which brokers holding shares in &#147;street name&#148; may vote without instruction under the rules of the New York Stock Exchange.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The following table summarizes how the quorum and voting requirements are determined:</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=212.8></TD><TD width=212.8></TD><TD width=212.8></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=212.8><P style="line-height:14.667px; margin:0px; font-size:12px"><B>Shares</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:14.667px; margin:0px; font-size:12px"><B>Quorum</B></P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:14.667px; margin:0px; font-size:12px"><B>Voting</B></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:14.667px; margin:0px; font-size:12px">In General</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:14.667px; margin:0px; font-size:12px">All shares &#147;present&#148; in person or by proxy are counted towards a quorum.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:14.667px; margin:0px; font-size:12px">Shares &#147;present&#148; in person will be voted in person at the meeting. Shares present by proxy will be voted in accordance with instructions.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:14.667px; margin:0px; font-size:12px">Proxy with no Voting Instruction (other than Broker Non-Vote)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:14.667px; margin:0px; font-size:12px">Considered &#147;present&#148; at meeting.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:14.667px; margin:0px; font-size:12px">Voted &#147;for&#148; a proposal.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:14.667px; margin:0px; font-size:12px">Broker Non-Vote*</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:14.667px; margin:0px; font-size:12px">Considered &#147;present&#148; at meeting.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:14.667px; margin:0px; font-size:12px">Not voted. &nbsp;Same effect as a vote &#147;against&#148; a proposal.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:14.667px; margin:0px; font-size:12px">Vote to Abstain</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:14.667px; margin:0px; font-size:12px">Considered &#147;present&#148; at meeting.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:14.667px; margin:0px; font-size:12px">Not voted. &nbsp;Same effect as a vote &#147;against&#148; a proposal.</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:14.667px; margin:0px; font-size:12px">Proportionately Voted Preferred Shares with No Voting Instruction</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:14.667px; margin:0px; font-size:12px">Considered &#147;present&#148; at meeting.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:14.667px; margin:0px; font-size:12px">Voted in proportion to preferred shares for which the broker received instructions.</P>
</TD></TR>
</TABLE>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">* &nbsp;Broker Non-Votes shall not include preferred shares which the broker is permitted to proportionately vote in accordance with applicable law or rules of a national securities exchange.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">If either the issuance of additional common shares or additional series of DARTS of the Acquiring Fund is not approved, none of the Reorganizations will occur. &nbsp;An unfavorable vote on a proposed Reorganization by the shareholders of one Acquired Fund will not affect the implementation of a Reorganization by another Acquired Fund, if such Reorganization is approved by the shareholders of such Acquired Fund and the issuance of additional common shares and preferred shares is approved by the shareholders of the Acquiring Fund. &nbsp;If the required approval of shareholders is not obtained with respect to a proposal, the Fund subject to the proposal will continue to engage in business and the respective Board will consider what further action may be appropriate.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">

     Shareholders  who  object  to the  proposed  Reorganization(s)  will not be
entitled under  Massachusetts  law or the relevant  Agreement and Declaration of
Trust, as amended, of each Fund to demand payment for, or an appraisal of, their
shares. &nbsp;However,  shareholders should be aware that the Reorganizations as
proposed  are  not  expected  to  result  in  recognition  of  gain  or  loss to
shareholders for federal income tax purposes and that shares of each Fund may be
sold at any time prior to the consummation of the proposed Reorganizations.</P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">
<b>Certain Voting Information Regarding Preferred Shares.</B>
     Pursuant  to the rules of the NYSE,  preferred  shares of each Fund held in
"street name" may be voted under certain  conditions by broker-dealer  firms and
counted for purposes of  establishing  a quorum of that Fund if no  instructions
are received one business day before the meeting or, if adjourned,  one business
day before the day to which the meeting is adjourned.  These conditions include,
among others,  that (i) at least 30% of a Fund's  preferred  shares  outstanding
have voted on the proposal,  and (ii) less than 10% of a Fund's preferred shares
outstanding   have  voted  against  such  proposal.   In  such   instance,   the
broker-dealer  firm will vote such  uninstructed  Fund's preferred shares on the
proposal  in the  same  proportion  as the  votes  cast  by all  Fund  preferred
shareholders  who voted on such proposal.  Each Fund will include shares held of
record by  broker-dealers  as to which such  authority  has been  granted in its
tabulation  of the total number of shares  present for  purposes of  determining
whether the necessary quorum of shareholders of such Fund exists.</P>

<A NAME="_Toc155621925"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>INFORMATION CONCERNING THE MEETING</B></P>
<A NAME="_Toc155621926"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>EXPENSES AND METHODS OF SOLICITATION</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">
     In addition to the mailing of these proxy materials, proxies may be
solicited by telephone, by fax or in person by the Trustees, officers and
employees of your Fund; by personnel of your Fund&#146;s investment adviser,
John Hancock Advisers, LLC and its transfer agent, Mellon Investor Services; or
by broker-dealer firms. &nbsp;Persons holding shares as nominees will be
reimbursed by the relevant Fund, upon request, for their reasonable expenses in
sending soliciting material to the principals of the accounts. &nbsp;The costs
of the annual meeting, including the solicitation of proxies for the election of
Trustees, will be borne equally by the Funds. &nbsp;Costs associated with the
Reorganizations, including a portion of the proxy solicitation expenses incurred
in connection with the Reorganizations, will be borne by common shareholders of
the Acquired Funds and the Acquiring Fund in proportion to and up to the amount
of their first year&#146;s projected annual expense savings as a result of the
Reorganizations. &nbsp;The Adviser will bear the balance of the Reorganization
costs.</P>

<P style="line-height:17.333px; margin:0px; font-size:14.667px">
     Mellon Investor Services LLC has been retained to assist in the
solicitation of proxies at a cost of approximately $6,000 per Fund plus
reasonable expenses. </P>

<A NAME="_Toc155621927"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px">
<BR><B>REVOKING PROXIES</B><BR><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">
Each Fund shareholder signing and returning a proxy has the power to revoke it at any time before it is exercised:</P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px">
<FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">By filing a written notice of revocation with Mellon Investor Services, Newport Office Center VII, 480 Washington Boulevard, Jersey City, NJ 07310, or</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin:0px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">By returning a duly executed proxy with a later date before the time of the meeting, or</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">If a shareholder has executed a proxy but is present at the meeting and wishes to vote in person, by notifying the secretary of your Fund (without complying with any formalities) at any time before it is voted.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Being present at the meeting alone does not revoke a previously executed and returned proxy.</P>
<A NAME="_Toc155621928"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px">

<B>OUTSTANDING SHARES AND QUORUM</B></P><BR>

<P style="line-height:17.333px; margin:0px; font-size:14.667px">
As of [February 12], 2007 (the &#147;record date&#148;), the number of shares of
beneficial interest of each Fund outstanding was as follows:</P>

<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=311.6></TD><TD width=167.2></TD></TR>
<TR>
        <TD style="border-bottom:1px solid #000000" width=311.6><P style="line-height:14.667px; margin:0px; font-size:12px"><B>FUND</B></P></TD>
        <TD style="border-bottom:1px solid #000000" width=167.2><P style="line-height:14.667px; margin:0px; font-size:12px" align=center><B>SHARES OUTSTANDING</B></P>
</TD></TR>
<TR><TD valign=top width=311.6><P style="line-height:14.667px; margin-top:6px; margin-bottom:0px; font-size:12px">Premium Dividend Fund I</P>
</TD><TD valign=top width=167.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=311.6><P style="line-height:14.667px; margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shares</P>
</TD><TD valign=top width=167.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=311.6><P style="line-height:14.667px; margin-top:0px; margin-bottom:6px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DARTS, Series A</P>
</TD><TD valign=top width=167.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=311.6><P style="line-height:14.667px; margin:0px; font-size:12px">Premium Dividend Fund II</P>
</TD><TD valign=top width=167.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=311.6><P style="line-height:14.667px; margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shares</P>
</TD><TD valign=top width=167.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=311.6><P style="line-height:14.667px; margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DARTS, Series A</P>
</TD><TD valign=top width=167.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=311.6><P style="line-height:14.667px; margin-top:0px; margin-bottom:6px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DARTS, Series B</P>
</TD><TD valign=top width=167.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=311.6><P style="line-height:14.667px; margin:0px; font-size:12px">Select Dividend Trust</P>
</TD><TD valign=top width=167.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=311.6><P style="line-height:14.667px; margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shares</P>
</TD><TD valign=top width=167.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=311.6><P style="line-height:14.667px; margin-top:0px; margin-bottom:6px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AMPS, Series A</P>
</TD><TD valign=top width=167.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=311.6><P style="line-height:14.667px; margin:0px; font-size:12px">Global Dividend Fund</P>
</TD><TD valign=top width=167.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=311.6><P style="line-height:14.667px; margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shares</P>
</TD><TD valign=top width=167.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=311.6><P style="line-height:14.667px; margin-top:0px; margin-bottom:6px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DARTS</P>
</TD><TD valign=top width=167.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=311.6><P style="line-height:14.667px; margin:0px; font-size:12px">Preferred Dividend Fund</P>
</TD><TD valign=top width=167.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=311.6><P style="line-height:14.667px; margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shares</P>
</TD><TD valign=top width=167.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=311.6><P style="line-height:14.667px; margin:0px; font-size:12px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ARPS</P>
</TD><TD valign=top width=167.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">
Only shareholders of record on the record date are entitled to notice of and to vote at the meeting. &nbsp;A majority of the outstanding shares of each Fund that are entitled to vote will be considered a quorum for the transaction of business.</P>
<A NAME="_Toc155621929"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>OTHER BUSINESS</B></P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Each Fund&#146;s Board knows of no business to be presented for consideration at the meeting. &nbsp;If other business is properly brought before the meeting, proxies will be voted according to the best judgment of the persons named as proxies.</P>
<A NAME="_Toc155621930"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>ADJOURNMENTS</B></P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">If a quorum is not present in person or by proxy at the time any session of the meeting is called to order, the persons named as proxies may vote those proxies that have been received to adjourn the meeting to a later date. &nbsp;If a quorum is present but there are not sufficient votes in favor of a proposal, the persons named as proxies may propose one or more adjournments of the meeting to permit further solicitation of proxies concerning the proposal. &nbsp;Any adjournment will require the affirmative vote of a majority of a Fund&#146;s shares at the session of the meeting to be adjourned. &nbsp;If an adjournment of the meeting is proposed because there are not sufficient votes in favor of a proposal, the persons named as proxies will vote those proxies favoring the proposal in favor of adjournment, and proxies voted against a proposal will be voted against adjournment.</P>
<A NAME="_Toc155621931"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>TELEPHONE VOTING</B></P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">
In addition to soliciting proxies by mail, by fax or in person, your Fund may also arrange to have votes recorded by telephone by officers and employees of your Fund or by personnel of the Adviser or MFC Global (U.S.) or transfer agent or a third party solicitation firm. &nbsp;The telephone voting procedure is designed to verify a shareholder&#146;s identity, to allow a shareholder to authorize the voting of shares in accordance with the shareholder&#146;s instructions and to confirm that the voting instructions have been properly recorded. &nbsp;If these procedures were subject to a successful legal challenge, these telephone votes would not be counted at the meeting. &nbsp;Your Fund has not obtained an opinion of counsel about telephone voting, but is currently not aware of any challenge.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">A shareholder will be called on a recorded line at the telephone number in a Fund&#146;s account records and will be asked to provide the shareholder&#146;s social security number or other identifying information.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">The shareholder will then be given an opportunity to authorize proxies to vote his or her shares at the meeting in accordance with the shareholder&#146;s instructions.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">A toll-free number will be available in case the voting information contained in the confirmation is incorrect.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Alternatively, a shareholder may call the Funds&#146; Voice Response Unit to vote:</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">Read the proxy statement and have your proxy card at hand.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">Call the toll-free number located on your proxy card.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">Follow recorded instructions.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">With both methods of telephone voting, to ensure that the shareholder&#146;s instructions have been recorded correctly, the shareholder will also receive a confirmation of the voting instructions.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">If the shareholder decides after voting by telephone to attend the meeting, the shareholder can revoke the proxy at that time and vote the shares at the meeting.</P>
<A NAME="_Toc155621932"></A><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>INTERNET VOTING</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Holders of common shares of each Fund will also have the opportunity to submit their voting instructions via the Internet by utilizing a program provided through a vendor. &nbsp;Voting via the Internet will not affect your right to vote in person if you decide to attend the meeting. &nbsp;Do not mail the proxy card if you are voting via the Internet. &nbsp;To vote via the Internet, you will need the &#147;control number&#148; that appears on your proxy card. &nbsp;These Internet voting procedures are designed to authenticate shareholder identities, to allow shareholders to give their voting instructions, and to confirm that shareholders&#146; instructions have been recorded properly. &nbsp;If you are voting via the Internet, you should understand that there may be costs associated with electronic access, such as usage charges from Internet access providers and telephone companies, that must be borne to you.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">
To vote via the Internet:</P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">
Read the proxy statement and have your proxy card(s) at hand.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">
Go to the Web Site listed on the proxy card.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">
Enter the &#8220;control number&#8221; found on your proxy card.</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>

<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">
Follow the instructions on the Web Site. &nbsp;Please call us at 1-800-843-0090 if you have any problems.</FONT></P>


<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:48px; text-indent:-24px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; padding-left:48px; font-size:14.667px"><FONT FACE="Times New Roman">
To ensure that your instructions have been recorded correctly, you will receive a confirmation of your voting instructions immediately after your submission and also by e-mail, if chosen.</FONT></P>




<A NAME="_Toc155621933"></A>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>SHAREHOLDERS&#146; PROPOSALS</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">
     Shareholder  proposals,  including  nominees  for  Trustee,  intended to be
presented  at a  Fund&#146;s  annual  meeting  in 2008 must be  received  by the
secretary  of  that  Fund  at  its  offices  at  601  Congress  Street,  Boston,
Massachusetts  02110, after October [29], 2007, but no later than November [28],
2007,  for  inclusion  in that  Fund&#146;s  proxy  statement  and form of proxy
relating to that meeting (subject to certain exceptions).</P>

<A NAME="_Toc155621934"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center>
<B>OWNERSHIP OF SHARES OF THE FUNDS</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">
To the knowledge of each Fund, as of [February 12], 2007, the following persons
owned of record or beneficially 5% or more of the outstanding shares of common
stock or preferred shares of each Fund, respectively:</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=343.2></TD><TD width=147.6></TD><TD width=147.6></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=343.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=147.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>
<B>Premium Dividend Fund I</B></P>
</TD></TR>
<TR><TD valign=top width=343.2><P style="line-height:13.333px; margin-top:5.333px; margin-bottom:0px; font-size:10.667px"><B>Names and Addresses of Owners of More than 5% of Shares</B></P>
</TD><TD valign=top width=147.6><P style="line-height:13.333px; margin-top:5.333px; margin-bottom:0px; font-size:10.667px" align=center><B>Common Shares</B></P>
</TD><TD valign=top width=147.6><P style="line-height:13.333px; margin-top:5.333px; margin-bottom:0px; font-size:10.667px" align=center><B>DARTS, Series A</B></P>
</TD></TR>
<TR><TD valign=top width=343.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=343.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=343.2></TD><TD width=144></TD><TD width=84></TD><TD width=67.2></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=343.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=144><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=151.2 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Premium Dividend Fund II</B></P>
</TD></TR>
<TR><TD valign=top width=343.2><P style="line-height:13.333px; margin-top:5.333px; margin-bottom:0px; font-size:10.667px"><B>Names and Addresses of Owners of More than 5% of Shares</B></P>
</TD><TD valign=top width=144><P style="line-height:13.333px; margin-top:5.333px; margin-bottom:0px; font-size:10.667px" align=center><B>Common Shares</B></P>
</TD><TD valign=top width=84><P style="line-height:13.333px; margin-top:5.333px; margin-bottom:0px; font-size:10.667px" align=center><B>DARTS, Series A</B><BR><B>DARTS, Series B</B></P>
</TD></TR>
<TR><TD valign=top width=343.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=144><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=343.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=144><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=84><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=67.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=343.2></TD><TD width=147.6></TD><TD width=147.6></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=343.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=147.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Select Dividend Trust</B></P>
</TD></TR>
<TR><TD valign=top width=343.2><P style="line-height:13.333px; margin-top:5.333px; margin-bottom:0px; font-size:10.667px"><B>Names and Addresses of Owners of More than 5% of Shares</B></P>
</TD><TD valign=top width=147.6><P style="line-height:13.333px; margin-top:5.333px; margin-bottom:0px; font-size:10.667px" align=center><B>Common Shares</B></P>
</TD><TD valign=top width=147.6><P style="line-height:13.333px; margin-top:5.333px; margin-bottom:0px; font-size:10.667px" align=center><B>AMPS, Series A</B></P>
</TD></TR>
<TR><TD valign=top width=343.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=343.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=343.2></TD><TD width=147.6></TD><TD width=147.6></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=343.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=147.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Global Dividend Fund</B></P>
</TD></TR>
<TR><TD valign=top width=343.2><P style="line-height:13.333px; margin-top:5.333px; margin-bottom:0px; font-size:10.667px"><B>Names and Addresses of Owners of More than 5% of Shares</B></P>
</TD><TD valign=top width=147.6><P style="line-height:13.333px; margin-top:5.333px; margin-bottom:0px; font-size:10.667px" align=center><B>Common Shares</B></P>
</TD><TD valign=top width=147.6><P style="line-height:13.333px; margin-top:5.333px; margin-bottom:0px; font-size:10.667px" align=center><B>DARTS</B></P>
</TD></TR>
<TR><TD valign=top width=343.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=343.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=343.2></TD><TD width=147.6></TD><TD width=147.6></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=343.2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=147.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Preferred Dividend Fund</B></P>
</TD></TR>
<TR><TD valign=top width=343.2><P style="line-height:13.333px; margin-top:5.333px; margin-bottom:0px; font-size:10.667px"><B>Names and Addresses of Owners of More than 5% of Shares</B></P>
</TD><TD valign=top width=147.6><P style="line-height:13.333px; margin-top:5.333px; margin-bottom:0px; font-size:10.667px" align=center><B>Common Shares</B></P>
</TD><TD valign=top width=147.6><P style="line-height:13.333px; margin-top:5.333px; margin-bottom:0px; font-size:10.667px" align=center><B>ARPS</B></P>
</TD></TR>
<TR><TD valign=top width=343.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=343.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=147.6><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">As of [February 12], 2007, the Trustees and officers of the Acquiring Fund owned in the aggregate less than 1% of the outstanding Acquiring Fund Common Shares and owned no Acquiring Fund DARTS.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">As of [February 12], 2007, the Trustees and officers of Premium Dividend Fund I owned in the aggregate less than 1% of the outstanding Premium Dividend Fund I common shares and owned no Premium Dividend Fund I DARTS.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">As of [February 12], 2007, the Trustees and officers of Select Dividend Trust owned in the aggregate less than 1% of the outstanding Select Dividend Trust common shares and owned no Select Dividend Trust AMPS.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">As of [February 12], 2007, the Trustees and officers of Global Dividend Fund owned in the aggregate less than 1% of the outstanding Global Dividend Fund common shares and owned no] Global Dividend Fund DARTS.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">As of [February 12], 2007, the Trustees and officers of Preferred Dividend Fund owned in the aggregate less than 1% of the outstanding Preferred Dividend Fund common shares and owned no Preferred Dividend Fund ARPS.</P>

<A NAME="_Toc155621936"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>EXPERTS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The financial highlights and financial statements of (i) Premium Dividend Fund I, for the periods ended September 30, 2006, (ii) Premium Dividend Fund II, for the periods ended October 31, 2006, (iii) Select Dividend Trust, for the periods ended June 30, 2006, (iv) Global Dividend Fund, for the periods ended July 31, 2006, and (v) Preferred Dividend Fund for the periods ended May 31, 2006, will be incorporated by reference into this Joint Proxy Statement and Prospectus by pre-effective amendment. The financial statements for each Fund&#146;s fiscal year ended 2005 (but not for semi-annual periods) and financial highlights have been independently audited by the registered public accounting firm &nbsp;, as stated in their reports appearing in the statement of additional information. &nbsp;The financial statements for each Fund&#146;s fiscal year ended 2006 (but not for semi-annual periods) and financial
highlights have






been independently audited by the registered public accounting firm &nbsp;, as stated in their reports appearing in the statement of additional information. These financial statements and financial highlights have been included in reliance on their reports given on their authority as experts in accounting and auditing.</P>
<A NAME="_Toc155621937"></A><P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px" align=center><B>AVAILABLE INFORMATION</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Each Fund is subject to the informational requirements of the 1934 Act and the 1940 Act and files reports, proxy statements and other information with the SEC. &nbsp;These reports, proxy statements and other information filed by the Funds can be inspected and copied (for a duplication fee) at the public reference facilities of the SEC at 450 Fifth Street, N.W., Washington, D.C., and at the Midwest Regional Office (500 West Madison Street, Suite 1400, Chicago, Illinois). &nbsp;Copies of these materials can also be obtained by mail from the Public Reference Section of the SEC at 450 Fifth Street, N.W. Washington, D.C. 20549, at prescribed rates. &nbsp;In addition, copies of these documents may be viewed on-screen or downloaded from the SEC&#146;s Internet site at http://www.sec.gov.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
</DIV>

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<DIV style="width:624px"><P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px" align=center><B>EXHIBIT A</B></P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:0px; font-size:16px" align=center><B>FORM OF<BR>
AGREEMENT AND PLAN OF REORGANIZATION</B></P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:0px; font-size:16px">In order to consummate the Reorganization (as defined in Section 1(b) below) and in consideration of the promises and the covenants and agreements hereinafter set forth, and intending to be legally bound, John Hancock Patriot XXXXXX Fund, a Massachusetts business trust and a registered closed-end investment company, File No. 811-XXXX (the &#147;Target Fund&#148;) and John Hancock Patriot Premium Dividend Fund II (the &#147;Acquiring Fund&#148; and together with the Target Fund, the &#147;Funds&#148;), a Massachusetts business trust and a registered closed-end investment company, File No. 811-05908, each hereby agree as follows:</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">1.</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px"><U>Representations and Warranties of the Acquiring Fund</U>.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:0px; font-size:16px">The Acquiring Fund represents and warrants to, and agrees with, the Target Fund that:</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(a)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Acquiring Fund is a Massachusetts business trust, with transferable shares, duly organized, validly existing under, and in good standing in conformity with, the laws of The Commonwealth of Massachusetts, and has the power to own all of its assets and to carry out its obligations under this Agreement. The Acquiring Fund has all necessary federal, state and local authorizations to carry on its business as it is now being conducted and to carry out this Agreement.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(b)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Acquiring Fund is duly registered under the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;) as a diversified, closed-end management investment company and such registration has not been revoked or rescinded and is in full force and effect. The Acquiring Fund has elected and qualified for the special tax treatment afforded regulated investment companies (&#147;RICs&#148;) under Section 851 of the Internal Revenue Code of 1986, as amended (the &#147;Code&#148;) at all times since its inception and intends to continue to so qualify until consummation of the reorganization contemplated hereby (the &#147;Reorganization&#148;) and thereafter. &nbsp;</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(c)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Acquiring Fund has furnished the Target Fund with the Acquiring Fund&#146;s Annual Report to Shareholders for the fiscal year ended October 31, 2006, and the audited financial statements appearing therein, having been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, fairly present the financial position of the Acquiring Fund as of the respective dates indicated, in conformity with accounting principles generally accepted in the United States applied on a consistent basis.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(d)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">An unaudited statement of assets, liabilities and capital of the Acquiring Fund and an unaudited schedule of investments of the Acquiring Fund, each as of the Valuation Time (as defined in Section 3(e) of this Agreement), will be furnished to the Target Fund, at or prior to the Closing Date (as defined in Section 7(a) herein), for the purpose of determining the number of Acquiring Fund Common Shares and Acquiring Fund DARTS (each as defined in Section 1(e) herein) to be issued pursuant to Section 3(a) of this Agreement; each will fairly present the financial position of the Acquiring Fund as of the Valuation Time in conformity with generally accepted accounting principles applied on a consistent basis.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(e)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Acquiring Fund has full power and authority to enter into and perform its obligations under this Agreement. The execution, delivery and performance of this Agreement has been duly authorized by all necessary action of its Board of Trustees, and this Agreement constitutes a valid and binding contract enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency, moratorium, fraudulent conveyance and similar<A NAME="eolPage101"></A> laws relating to or affecting creditors&#146; rights generally and court decisions with respect thereto.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(f)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">There are no material legal, administrative or other proceedings pending or, to the knowledge of the Acquiring Fund, threatened against it which assert liability on the part of the Acquiring Fund or which materially affect its financial condition or its ability to consummate the Reorganization. The Acquiring Fund is not charged with or, to the best of its knowledge, threatened with any violation or investigation of any possible violation of any provisions of any federal, state or local law or regulation or administrative ruling relating to any aspect of its business.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(g)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Acquiring Fund is not obligated under any provision of its Declaration of Trust dated September 26, 1989, as amended, or its by-laws, as amended, and is not a party to any contract or other commitment or obligation, and is not subject to any order or decree, which would be violated by its execution of or performance under this Agreement, except insofar as the Funds have mutually agreed to amend such contract or other commitment or obligation to cure any potential violation as a condition precedent to the Reorganization.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(h)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">There are no material contracts outstanding to which the Acquiring Fund is a party that have not been disclosed in the N-14 Registration Statement (as defined in subsection (k) below) or that will not otherwise be disclosed to the Target Fund prior to the Valuation Time.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(i)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Acquiring Fund has no known liabilities of a material amount, contingent or otherwise, other than those shown on its statements of assets, liabilities and capital referred to in subsection (c) above, those incurred in the ordinary course of its business as an investment company, and those incurred in connection with the Reorganization. As of the Valuation Time, the Acquiring Fund will advise the Target Fund in writing of all known liabilities, contingent or otherwise, whether or not incurred in the ordinary course of business, existing or accrued as of such time, except to the extent disclosed in the financial statements referred to in subsection (c) above.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(j)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">No consent, approval, authorization or order of any court or government authority or self-regulatory organization is required for the consummation by the Acquiring Fund of the Reorganization, except such as may be required under the rules of the New York Stock Exchange (&#147;NYSE&#148;), Securities Act of 1933, as amended (the &#147;1933 Act&#148;), the Securities Exchange Act of 1934, as amended (the &#147;1934 Act&#148;) and the 1940 Act or state securities laws (which term as used herein shall include the laws of the District of Columbia and Puerto Rico).</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(k)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The registration statement filed by the Acquiring Fund on Form N-14, which includes the proxy statement of the Target Fund and the Acquiring Fund with respect to the transactions contemplated herein (the &#147;Joint Proxy Statement/Prospectus&#148;), and any supplement or amendment thereto or to the documents therein (as amended or supplemented, the &#147;N-14 Registration Statement&#148;), on its effective date, at the time of the shareholders&#146; meetings referred to in Section 8(a) and Section 9(a) of this Agreement and at the Closing Date, insofar as it relates to the Acquiring Fund, (i) complied or will comply in all material respects with the provisions of the 1933 Act, the 1934 Act and the 1940 Act and the rules and regulations thereunder, and (ii) did not or will not contain any<A NAME="eolPage102"></A> untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary
to mak

e the statements therein not misleading; and the Joint Proxy Statement/Prospectus included therein did not or will not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that the representations and warranties in this subsection only shall apply to statements in or omissions from the N-14 Registration Statement made in reliance upon and in conformity with information furnished by the Acquiring Fund for use in the N-14 Registration Statement.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(l)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Acquiring Fund is authorized to issue an unlimited number of common shares of beneficial interest, no par value (the &#147;Acquiring Fund Common Shares&#148;), and an unlimited number of preferred shares of beneficial interest, no par value. The Board of Trustees of the Acquiring Fund has designated 598 preferred shares as Dutch Auction Rate Transferable Securities, Series A and 598 preferred shares as Dutch Auction Rate Transferable Securities, Series B (collectively, &#147;Acquiring Fund DARTS&#148;). Each outstanding Acquiring Fund Common Share and each Acquiring Fund DARTS share is fully paid and, nonassessable, and has full voting rights and no shareholder of the Acquiring Fund shall be entitled to any preemptive or other similar rights. &nbsp;In regard to the statement that the Acquiring Fund Common Shares and Acquiring Fund DARTS are non-assessable, it is noted that the Acquiring Fund is an entity of the type
commonly kn

own as a &#147;Massachusetts business trust.&#148; &nbsp;Under Massachusetts law, shareholders could, under certain circumstances, be held personally liable for the obligations of the Acquiring Fund. </P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(m)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Acquiring Fund Common Shares and the Acquiring Fund DARTS to be issued to the Target Fund pursuant to this Agreement will have been duly authorized and, when issued and delivered pursuant to this Agreement, will be legally and validly issued and will be fully paid and, nonassessable and will have full voting rights, and no shareholder of the Acquiring Fund will have any preemptive right of subscription or purchase in respect thereof. </P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(n)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">At or prior to the Closing Date, the Acquiring Fund Common Shares to be transferred to the Target Fund for distribution to the shareholders of the Target Fund on the Closing Date will be duly qualified for offering to the public in all states of the United States in which the sale of shares of the Funds presently are qualified, and there will be a sufficient number of such shares registered under the 1933 Act and, as may be necessary, with each pertinent state securities commission to permit the transfers contemplated by this Agreement to be consummated.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(o)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">At or prior to the Closing Date, the Acquiring Fund DARTS to be transferred to the Target Fund on the Closing Date will be duly qualified for offering to the public in all states of the United States in which the sale of DARTS of the Target Fund presently are qualified, and there are a sufficient number of Acquiring Fund DARTS registered under the 1933 Act and with each pertinent state securities commission to permit the transfers contemplated by this Agreement to be consummated.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(p)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">At or prior to the Closing Date, the Acquiring Fund will have obtained any and all regulatory, trustee and shareholder approvals necessary to issue the Acquiring Fund Common Shares and the Acquiring Fund DARTS to the Target Fund.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(q)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Acquiring Fund has filed, or intends to file, or has obtained extensions to file, all federal, state and local tax returns which are required to be filed by it, and has paid or has obtained extensions to pay, all federal, state and local taxes shown on said returns to be due and owing and all assessments received by it, up to and including the taxable year in which the Closing Date occurs. All tax liabilities of the Acquiring Fund have been adequately provided for on its books, and no tax deficiency or liability of the Acquiring Fund has been asserted and no question with respect thereto has been raised by the Internal Revenue Service or by any state or local tax authority for taxes in excess of those already paid, up to and including the taxable year in which the Closing Date occurs.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(r)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Acquiring Fund has elected to qualify and has qualified as a RIC as of and since its inception; has been a RIC under the Code at all times since the end of its first taxable year when it so qualified; qualifies and will continue to qualify as a RIC under the Code; and has satisfied the distribution requirements imposed by the Code for each of its taxable years. &nbsp;The Acquiring Fund has not at any time since its inception been liable for, and is not now liable for, and will not be liable for on the Closing Date, any material income or excise tax pursuant to Section 852 or Section 4982 of the Code. </P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">2.</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px"><U>Representations and Warranties of the Target Fund</U>.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:0px; font-size:16px">The Target Fund represents and warrants to, and agrees with, the Acquiring Fund that:</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(a)</P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:16px">The Target Fund is a Massachusetts business trust, with transferable shares, duly organized, validly existing in conformity with the laws of The Commonwealth of Massachusetts, and has the power to own all of its assets and to carry out this Agreement. The Target Fund has all necessary federal, state and local authorizations to carry on its business as it is now being conducted and to carry out this Agreement. </P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; font-size:16px">(b)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Target Fund is duly registered under the 1940 Act as a diversified, closed-end management investment company, and such registration has not been revoked or rescinded and is in full force and effect. The Target Fund has elected and qualified for the special tax treatment afforded RICs under Section 851 of the Code at all times since its inception, and intends to continue to so qualify through its taxable year ending upon liquidation.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(c)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">As used in this Agreement, the term &#147;Target Fund Investments&#148; shall mean: (i) the investments of the Target Fund shown on the schedule of its investments as of the Valuation Time furnished to the Acquiring Fund; and (ii) all other assets owned by the Target Fund or liabilities incurred as of the Valuation Time.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(d)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Target Fund has full power and authority to enter into and perform its obligations under this Agreement. The execution, delivery and performance of this Agreement has been duly authorized by all necessary action of its Board of Trustees and this Agreement constitutes a valid and binding contract enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency, moratorium, fraudulent conveyance and similar laws relating to or affecting creditors&#146; rights generally and court decisions with respect thereto.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(e)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Target Fund has furnished the Acquiring Fund with the Target Fund&#146;s Annual Report to Shareholders for the fiscal year ended [ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], and the audited financial statements appearing therein, having been audited by PricewaterhouseCoopers LLP, independent registered public accounting firm, [and the Target Fund&#146;s unaudited Semi-Annual Report to Shareholders dated _________] fairly present the financial position of the Target Fund as of the respective dates indicated, in conformity with accounting principles generally accepted in the United States applied on a consistent basis.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(f)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">An unaudited statement of assets, liabilities and capital of the Target Fund and an unaudited schedule of investments of the Target Fund, each as of the Valuation Time, will be furnished to the Acquiring Fund at or prior to the Closing Date for the purpose of determining the number of shares of Acquiring Fund Common Shares and Acquiring Fund DARTS to be issued to the Target Fund pursuant to Section 3 of this Agreement; each will fairly present the financial position of the Target Fund as of the Valuation Time in conformity with generally accepted accounting principles applied on a consistent basis.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(g)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">There are no material legal, administrative or other proceedings pending or, to the knowledge of the Target Fund, threatened against it which assert liability on the part of the Target Fund or which materially affect its financial condition or its ability to consummate the Reorganization. The Target Fund is not charged with or, to the best of its knowledge, threatened with any violation or investigation of any possible violation of any provisions of any federal, state or local law or regulation or administrative ruling relating to any aspect of its business.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(h)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">There are no material contracts outstanding to which the Target Fund is a party that have not been disclosed in the N-14 Registration Statement or will not otherwise be disclosed to the Acquiring Fund prior to the Valuation Time.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(i)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Target Fund is not obligated under any provision of its Declaration of Trust dated [ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], as amended, or its by-laws, as amended, or a party to any contract or other commitment or obligation, and is not subject to any order or decree which would be violated by its execution of or performance under this Agreement, except insofar as the Funds have<A NAME="eolPage104"></A> mutually agreed to amend such contract or other commitment or obligation to cure any potential violation as a condition precedent to the Reorganization.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(j)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Target Fund has no known liabilities of a material amount, contingent or otherwise, other than those shown on its statements of assets, liabilities and capital referred to above, those incurred in the ordinary course of its business as an investment company and those incurred in connection with the Reorganization. As of the Valuation Time, the Target Fund will advise the Acquiring Fund in writing of all known liabilities, contingent or otherwise, whether or not incurred in the ordinary course of business, existing or accrued as of such time.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(k)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Target Fund has filed, or intends to file, or has obtained extensions to file, all federal, state and local tax returns which are required to be filed by it, and has paid or has obtained extensions to pay, all federal, state and local taxes shown on said returns to be due and owing and all assessments received by it, up to and including the taxable year in which the Closing Date occurs. All tax liabilities of the Target Fund have been adequately provided for on its books, and no tax deficiency or liability of the Target Fund has been asserted and no question with respect thereto has been raised by the Internal Revenue Service or by any state or local tax authority for taxes in excess of those already paid, up to and including the taxable year in which the Closing Date occurs.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(l)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">At both the Valuation Time and the Closing Date, the Target Fund will have full right, power and authority to sell, assign, transfer and deliver the Target Fund Investments. At the Closing Date, subject only to the obligation to deliver the Target Fund Investments as contemplated by this Agreement, the Target Fund will have good and marketable title to all of the Target Fund Investments, and the Acquiring Fund will acquire all of the Target Fund Investments free and clear of any encumbrances, liens or security interests and without any restrictions upon the transfer thereof (except those imposed by the federal or state securities laws and those imperfections of title or encumbrances as do not materially detract from the value or use of the Target Fund Investments or materially affect title thereto).</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(m)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">No consent, approval, authorization or order of any court or governmental authority or self-regulatory organization is required for the consummation by the Target Fund of the Reorganization, except such as may be required under the 1933 Act, the 1934 Act, the 1940 Act, state securities laws or the rules of the NYSE.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(n)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The N-14 Registration Statement, on its effective date, at the time of the shareholders&#146; meetings called to vote on this Agreement and on the Closing Date, insofar as it relates to the Target Fund (i) complied or will comply in all material respects with the provisions of the 1933 Act, the 1934 Act and the 1940 Act and the rules and regulations thereunder, and (ii) did not or will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading; and the Joint Proxy Statement/Prospectus included therein did not or will not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that the representations and warranties in this subsection shall apply
only to

statements in or omissions from the N-14 Registration Statement made in reliance upon and in conformity with information furnished by the Target Fund for use in the N-14 Registration Statement. <A NAME="eolPage105"></A></P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(o)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Target Fund is authorized to issue [XXX/an unlimited number of] common shares of beneficial interest, no par value (the &#147;Target Fund Common Shares&#148;), and XXX preferred shares of beneficial interest, no par value (&#147;Target Fund Preferred Shares&#148;). Each outstanding Target Fund Common Share and each of the outstanding Target Fund Preferred Share is fully paid and nonassessable, and has full voting rights and no person is entitled to any preemptive or other similar rights with respect to Target Fund Common Shares and Target Fund Preferred Shares. &nbsp;In regard to the statement that Target Fund Common Shares and Target Fund Preferred Shares are non-assessable, it is noted that the Target Fund is an entity of the type commonly known as a &#147;Massachusetts business trust.&#148; &nbsp;Under Massachusetts law, shareholders could, under certain circumstances, be held personally liable for the obligations of
the Tar

get Fund. </P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(p)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">All of the issued and outstanding Target Fund Common Shares and Target Fund Preferred Shares were offered for sale and sold in conformity with all applicable federal and state securities laws.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(q)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The books and records of the Target Fund made available to the Acquiring Fund and/or its counsel are substantially true and correct and contain no material misstatements or omissions with respect to the operations of the Target Fund.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(r)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Target Fund will not sell or otherwise dispose of any of the Acquiring Fund Common Shares or Acquiring Fund DARTS to be received in the Reorganization, except in distribution to the shareholders of the Target Fund, as provided in Section 3 of this Agreement.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(s)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Target Fund has elected to qualify and has qualified as a &#147;RIC&#148; under the Code as of and since its inception; has been a RIC under the Code at all times since the end of its first taxable year when it so qualified; qualifies and will continue to qualify as a RIC under the Code for its taxable year ending upon its liquidation; and has satisfied the distribution requirements imposed by the Code for each of its taxable years. &nbsp;The Target Fund has not at any time since its inception been liable for, is not now liable for, and will not be liable for on the Closing Date, any material income excise tax under Section 852 or Section 4982 of the Code. </P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">3.</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px"><U>The Reorganization</U>.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(a)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">Subject to receiving the requisite approvals of the shareholders of the Acquiring Fund and the Target Fund, and to the other terms and conditions contained herein, the Target Fund agrees to convey, transfer and deliver to the Acquiring Fund and the Acquiring Fund agrees to acquire from the Target Fund, on the Closing Date, all of the Target Fund Investments (including interest accrued as of the Valuation Time on debt instruments), including the assumption of &nbsp;substantially all of the liabilities of the Target Fund, in exchange for that number of Acquiring Fund Common Shares and Acquiring Fund DARTS provided in Section 4 of this Agreement. Pursuant to this Agreement, as soon as practicable after the Closing Date, the Target Fund will distribute all Acquiring Fund Common Shares and Acquiring Fund DARTS received by it to its shareholders constructively in exchange for their Target Fund Common Shares and Target Fund
Preferred Shar

es. Such distributions shall be accomplished by the opening of shareholder accounts on the share ledger records of the Acquiring Fund in the amounts due the shareholders of the Target Fund based on their respective holdings in the Target Fund as of the Valuation Time.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(b)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">If it is determined that the portfolios of the Target Fund and the Acquiring Fund, when aggregated, would contain investments exceeding certain percentage limitations imposed upon the Acquiring Fund with respect to such investments, the Target Fund, if requested by the Acquiring Fund, will dispose of a sufficient amount of such investments as may be necessary to avoid violating such limitations as of the Closing Date. Notwithstanding the foregoing, (a) nothing herein will require the Target Fund to dispose of any portfolios, securities or other investments, if, in the reasonable judgment of the Target Fund&#146;s trustees or investment adviser, such disposition would adversely affect the tax-free nature of the Reorganization for federal income tax purposes or would otherwise not be in the best interests of the Target Fund, and (b) nothing will permit the Target Fund to dispose of any portfolio securities or other investments
if, in

 the reasonable judgment of the Acquiring Fund&#146;s trustees or investment adviser, such disposition would adversely affect the tax-free nature of the Reorganization for federal income tax purposes or would otherwise not be in the best interests of the Acquiring Fund.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(c)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">Prior to the Closing Date, the Target Fund shall declare a dividend or dividends which, together with all such previous dividends, shall have the effect of distributing to their respective shareholders all of their respective net investment company taxable income to and including the Closing Date, if any (computed without regard to any deduction for dividends paid), and all of its net capital gain, if any, realized to and including the Closing Date. </P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(d)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Target Fund will pay or cause to be paid to the Acquiring Fund any interest the Target Fund receives on or after the Closing Date with respect to any of the Target Fund Investments transferred to the Acquiring Fund hereunder. <A NAME="eolPage106"></A></P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(e)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Valuation Time shall be 4:00 p.m., Eastern time, on XXXX, 2007, or such earlier or later day and time as may be mutually agreed upon in writing (the &#147;Valuation Time&#148;).</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(f)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">Recourse for liabilities assumed from the Target Fund by the Acquiring Fund in the Reorganization will be limited to the assets acquired by the Acquiring Fund. The known liabilities of the Target Fund, as of the Valuation Time, shall be confirmed to the Acquiring Fund pursuant to Section 2(j) of this Agreement.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(g)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Target Fund will be terminated following the Closing Date by terminating its registration under the 1940 Act and its organization under Massachusetts law and will withdraw its authority to do business in any state where it is required to do so.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(h)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Acquiring Fund will file with the Secretary of State of The Commonwealth of Massachusetts, as required, any amendment to its Declaration of Trust and by-laws establishing the powers, rights and preferences of the Acquiring Fund DARTS prior to the closing of the Reorganization.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(i)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Acquiring Fund and the Target Fund each understand and acknowledge that the Acquiring Fund has or intends to enter into similar Agreements and Plans of Reorganization (&#147;Other Reorganizations&#148;) with [INSERT NAMES OF OTHER TARGET PATRIOT FUNDS] (&#147;Other Target Funds&#148;) pursuant to which the Acquiring Fund (1) would acquire all substantially all of the assets and assume substantially all of the liabilities of each of the Other Target Funds, and (2) common and preferred shareholders of the Other Target Funds will become Common and DARTS shareholders, respectively, of the Acquiring Fund. &nbsp;The effective dates of such Other Reorganizations are expected to be in proximity to the Closing Date, however, they are not expected to occur simultaneously with the Reorganization or with one another and may occur at any such time as the Acquiring Fund and each Other Target Fund may agree. &nbsp;The consummation of
the Reor

ganization is not conditioned upon the consummation of any such Other Reorganization. &nbsp;The Acquiring Fund and the Target Fund understand, acknowledge and agree that any or all of such Other Reorganizations may not occur and the status of any such Other Reorganization will not have a bearing on the consummation of the Reorganization.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">4.</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px"><U>Issuance and Valuation of Acquiring Fund Common Shares and Acquiring Fund DARTS in the Reorganization</U>.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(a)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">Acquiring Fund Common Shares and Acquiring Fund DARTS of an aggregate net asset value or aggregate liquidation preference, as the case may be, equal to the value of the Target Fund Investments acquired in the Reorganization determined as hereinafter provided, shall be issued by the Acquiring Fund to the Target Fund in exchange for such Target Fund Investments. The Acquiring Fund will issue to the Target Fund (i) a number of Acquiring Fund Common Shares, the aggregate net asset value of which will equal the aggregate net asset value of the Target Fund Common Shares, determined as set forth below, and (ii) a number of Acquiring Fund DARTS, the aggregate liquidation preference and value of which will equal the aggregate liquidation preference and value of the Target Fund Preferred Shares, determined as set forth below.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(b)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The net asset value of the Funds&#146; Common Shares and the liquidation preference and value of the Target Fund Preferred Shares and the Acquiring Fund DARTS shall be determined as of the Valuation Time in accordance with the regular procedures of the investment adviser, and no formula will be used to adjust the net asset value so determined of any Fund to take into account differences in realized and unrealized gains and losses. Values in all cases shall be determined as of the Valuation Time. The value of the Target Fund Investments to be transferred to the Acquiring Fund shall be determined pursuant to the regular procedures of the investment adviser.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(c)</P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:16px">Such valuation and determination shall be made by the Acquiring Fund in cooperation with the Target Fund and shall be confirmed in writing by the Acquiring Fund to the Target Fund. The net asset value per share of the Acquiring Fund Common Shares and the liquidation preference and value per share of the Acquiring Fund DARTS shall be determined in accordance with such procedures and the Acquiring Fund shall certify the computations involved. For purposes of determining the net asset value of each Target Fund Common Share and Acquiring Fund Common Share, the value of the securities held by the applicable Fund, plus any cash or other assets (including interest accrued but not yet received), minus all liabilities (including accrued expenses) and the aggregate liquidation value of the outstanding shares of Target Fund Preferred Shares or Acquiring Fund DARTS, as the case may be, shall be divided by the
total numb

er of Target Fund Common Shares or Acquiring Fund Common Shares, as the case may be, outstanding at such time.<A NAME="eolPage107"></A></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; font-size:16px">(d)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Acquiring Fund shall issue to the Target Fund Acquiring Fund Common Shares and the Acquiring Fund DARTS, each registered in the name of the Target Fund. The Target Fund shall then distribute the Acquiring Fund Common Shares and the Acquiring Fund DARTS to the holders of Target Fund Common Shares and Target Fund Preferred Shares by establishing open accounts for each Target Fund shareholder on the share ledger records of the Acquiring Fund. &nbsp;Certificates representing Acquiring Fund Common Shares and Acquiring Fund DARTS will not be issued to Target Fund shareholders. With respect to any Target Fund shareholder holding certificates evidencing ownership of Target Fund Common Shares as of the Closing Date, and subject to the Acquiring Fund being informed thereof in writing by the Target Fund, the Acquiring Fund will not permit such shareholder to receive Acquiring Fund Common Shares or Acquiring Fund DARTS, exchange
Acquiring

Fund Common Shares or Acquiring Fund DARTS credited to such shareholder&#146;s account for shares of other investment companies managed by the Adviser or any of its affiliates, or pledge or redeem such Acquiring Fund Common Shares or Acquiring Fund DARTS, in any case, until notified by the Target Fund or its agent that such shareholder has surrendered his or her outstanding certificates evidencing ownership of Target Fund Common Shares or Target Fund Preferred Shares or, in the event of lost certificates, posted adequate bond. The Target Fund, at its own expense, will request its shareholders to surrender their outstanding certificates evidencing ownership of Target Fund Common Shares or Target Fund Preferred Shares, as the case may be, or post adequate bond therefor.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(e)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">No fractional shares of Acquiring Fund Common Shares will be issued to holders of Target Fund Common Shares unless such shares are held in a Dividend Reinvestment Plan account. In lieu thereof, the Acquiring Fund&#146;s transfer agent, Mellon Investor Services, will aggregate all fractional Acquiring Fund Common Shares to be issued in connection with the Reorganization (other than those issued to a Dividend Reinvestment Plan account) and sell the resulting full shares on the New York Stock Exchange at the current market price for Acquiring Fund Common Shares for the account of all holders of such fractional interests, and each such holder will receive such holder&#146;s pro rata share of the proceeds of such sale upon surrender of such holder&#146;s certificates representing Acquiring Fund Common Shares.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">5.</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px"><U>Payment of Expenses</U>.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(a)</P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:16px">Except as otherwise provided in this Section 5, the costs associated with the Reorganization will be borne by Common Shareholders of the Target Fund and the Acquiring Fund in proportion to their projected annual expense savings as a result of the Reorganization. &nbsp;John Hancock Advisers, LLC the adviser to the Acquiring Fund and the Target Fund (the &#147;Adviser&#148;), will bear the balance of the costs of the Reorganization; provided, however, that the Acquiring Fund and the Target Fund will each pay any brokerage commissions, deal mark-ups and similar expenses (&#147;Portfolio Expenses&#148;).</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(b)</P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:16px">In the event the transactions contemplated by this Agreement are not consummated, then the costs associated with the Reorganization (other than Portfolio Expenses that the Acquiring Fund and Target Fund may incur in connection with the purchase or sale of portfolio securities) will be borne by the Acquiring Fund and the Other Target Funds whose shareholders have approved the Other Reorganizations in proportion to their projected annual expense savings as a result of the Other Reorganizations. &nbsp;The Adviser will bear the balance of such costs.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(c)</P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:16px">Notwithstanding any other provisions of this Agreement, if for any reason the transactions contemplated by this Agreement are not consummated, neither the Acquiring Fund nor the Target Fund shall be liable to the other for any damages resulting therefrom, including, without limitation, consequential damages, except as specifically set forth above.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(d)</P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:16px">Notwithstanding any of the foregoing, costs and expenses will in any event be paid by the party directly incurring them if and to the extent that the payment by another party of such costs and expenses would result in the disqualification of such party as a &#147;regulated investment company&#148; within the meaning of Subchapter M of the Code.</P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; font-size:16px">6.</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px"><U>Covenants of the Funds</U>.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(a)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">Each Fund covenants to operate its business as presently conducted in the ordinary course of business between the date hereof and the Closing Date, it being understood that such ordinary course of business will include regular and customary dividends and distributions.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(b)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Target Fund agrees that following the consummation of the Reorganization, it will terminate in accordance with the laws of The Commonwealth of Massachusetts and any other applicable law, it will not make any distributions of any Acquiring Fund Common Shares or Acquiring Fund DARTS other than to its respective shareholders and without first paying or adequately providing for the payment of all of its respective liabilities not assumed by the Acquiring Fund, if any, and on and after the Closing Date it shall not conduct any business except in connection with its termination.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(c)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Target Fund undertakes that if the Reorganization is consummated, it will file an application pursuant to Section 8(f) of the 1940 Act for an order declaring that the Target Fund has ceased to be a registered investment company.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(d)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">&nbsp;The Acquiring Fund will file the N-14 Registration Statement with the Securities and Exchange Commission (the &#147;Commission&#148;) and will use its best efforts to provide that the N-14 Registration Statement becomes effective as promptly as practicable. Each Fund agrees to cooperate fully with the other, and each will furnish to the other the information relating to itself to be set forth in the N-14 Registration Statement as required by the 1933 Act, the 1934 Act the 1940 Act, and the rules and regulations thereunder and the state securities laws.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(e)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Acquiring Fund has no plan or intention to sell or otherwise dispose of the Target Fund Investments, except for dispositions made in the ordinary course of business.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(f)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">Each of the Funds agrees that by the Closing Date all of its federal and other tax returns and reports required to be filed on or before such date shall have been filed and all taxes shown as due on said returns either have been paid or adequate liability reserves have been provided for the payment of such taxes.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(g)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The intention of the parties is that the transaction contemplated by this Agreement will qualify as a reorganization within the meaning of Section 368(a) of the Internal Revenue Code. Neither the Acquiring Fund nor the Target Fund shall take any action or cause any action to be taken (including, without limitation, the filing of any tax return) that is inconsistent with such treatment or results in the failure of the transaction to qualify as a reorganization within the meaning of Section 368(a) of the Internal Revenue Code. At or prior to the Closing Date, the Acquiring Fund and the Target Fund will take such action, or cause such action to be taken, as is reasonably necessary to enable Kirkpatrick &amp; Lockhart Preston Gates Ellis LLP (&#147;K&amp;L Gates&#148;), special counsel to the Funds, to render the tax opinion required herein (including, without limitation, each party&#146;s execution of representations reasonably
reques

ted by and addressed to K&amp;L Gates).</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(h)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">In connection with the covenant in subsection (f) above, the Funds agree to cooperate with each other in filing any tax return, amended return or claim for refund, determining a liability for taxes or a right to a refund of taxes or participating in or conducting any audit or other proceeding in respect of taxes. The Acquiring Fund agrees to retain for a period of ten (10) years following the Closing Date all returns, schedules and work papers and all material records or other documents relating to tax matters of the Target Fund for each of such Fund&#146;s taxable period first ending after the Closing Date and for all prior taxable periods.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(i)</P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:16px">After the Closing Date, the Target Fund shall prepare, or cause its agents to prepare, any federal, state or local tax returns required to be filed by such fund with respect to its final taxable year ending with its complete liquidation and for any prior periods or taxable years and further shall cause such tax returns to be duly filed with the appropriate taxing authorities. Notwithstanding the aforementioned provisions of this subsection, any expenses incurred by the Target Fund (other than for payment of taxes) in connection with the preparation and filing of said tax returns after the Closing Date shall be borne by such Fund to the extent such expenses have been accrued by such Fund in the ordinary course without regard to the Reorganization; any excess expenses shall be borne pursuant to Section 5 herein.<A NAME="eolPage109"></A></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; font-size:16px">(j)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Target Fund and the Acquiring Fund each agrees to mail to its respective shareholders of record entitled to vote at the annual meeting of shareholders at which action is to be considered regarding this Agreement, in sufficient time to comply with requirements as to notice thereof, a combined proxy statement and prospectus which complies in all material respects with the applicable provisions of Section 14(a) of the 1934 Act and Section 20(a) of the 1940 Act, and the rules and regulations, respectively, thereunder.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(k)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">Following the consummation of the Reorganization, the Acquiring Fund will continue its business as a diversified, closed-end management investment company registered under the 1940 Act.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">7.</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px"><U>Closing Date</U>.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(a)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">Delivery of the Target Fund Investments, and of the Acquiring Fund Common Shares and Acquiring Fund DARTS to be issued as provided in this Agreement, shall be made at such place and time as the Funds shall mutually agree on the next full business day following the Valuation Time, or at such other time and date agreed to by the Funds, the date and time upon which such delivery is to take place being referred to herein as the &#147;Closing Date.&#148; To the extent that any Target Fund Investments, for any reason, are not transferable on the Closing Date, the Target Fund shall cause such Target Fund Investments to be transferred to the Acquiring Fund&#146;s account with its custodian at the earliest practicable date thereafter.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(b)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Target Fund will deliver to the Acquiring Fund on the Closing Date confirmation or other adequate evidence as to the tax basis of the Target Fund Investments delivered to the Acquiring Fund hereunder.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(c)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">As soon as practicable after the close of business on the Closing Date, the Target Fund shall deliver to the Acquiring Fund a list of the names and addresses of all of the shareholders of record of the Target Fund on the Closing Date and the number of Target Fund Common Shares and Target Fund Preferred Shares owned by each such shareholder, certified to the best of its knowledge and belief by the transfer agent for the Target Fund or by its President.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">8.</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px"><U>Conditions of the Target Fund</U>.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:0px; font-size:16px">The obligations of the Target Fund hereunder shall be subject to the following conditions:</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(a)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">That this Agreement shall have been adopted, and the Reorganization shall have been approved, by the Board of Trustees of the Target Fund and by the affirmative vote of the holders of a majority of the outstanding Target Fund Common Shares and of the outstanding Target Fund Preferred Shares, each voting separately as a class; and that the Acquiring Fund shall have delivered to the Target Fund a copy of the resolution approving this Agreement adopted by the Board of Trustees of the Acquiring Fund, a certificate setting forth the vote of holders of Acquiring Fund Common Shares approving the issuance of additional Acquiring Fund Common Shares, and a certificate setting for the vote of holders of Acquiring Fund DARTS approving the issuance of additional Acquiring Fund DARTS, each certified by its Secretary.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(b)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">That the Target Fund shall have received from the Acquiring Fund a statement of assets, liabilities and capital, with values determined as provided in Section 4 of this Agreement, together with a schedule of such Fund&#146;s investments, all as of the Valuation Time, certified on the Acquiring Fund&#146;s behalf by its President (or any Vice President) or its Treasurer, and a certificate signed by the Fund&#146;s President (or any Vice President) and its Treasurer, dated as of the Closing Date, certifying that as of the Valuation Time and as of the Closing Date there has been no material adverse change in the financial position of the Acquiring Fund since the date of such Fund&#146;s most recent Annual or Semi-Annual Report, as applicable, other than changes in its portfolio securities since that date or changes in the market value of its portfolio securities.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(c)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">That the Acquiring Fund shall have furnished to the Target Fund a certificate signed by the Acquiring Fund&#146;s President (or any Vice President) or its Treasurer, dated as of the Closing Date, certifying that, as of the Valuation Time and as of the Closing Date, all representations and warranties of the Acquiring Fund made in this Agreement are true and correct in all material respects with the same effect as if made at and as of such dates, and that the Acquiring Fund has complied with all of the agreements and satisfied all of the conditions on its part to be performed or satisfied at or prior to each of such dates.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(d)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">That there shall not be any material litigation pending with respect to the matters contemplated by this Agreement.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(e)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Target Fund shall have received the opinion(s) of K&amp;L Gates, counsel for the Acquiring Fund, dated as of the Closing Date, addressed to the Target Fund substantially in the form and to the effect that:</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; text-indent:48px; font-size:16px">(i)</P>
<P style="line-height:18.667px; margin:0px; text-indent:96px; font-size:16px">the Acquiring Fund is duly formed and validly existing under the laws of its state of organization;</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; text-indent:48px; font-size:16px">(ii)</P>
<P style="line-height:18.667px; margin:0px; text-indent:96px; font-size:16px">the Acquiring Fund is registered as a closed-end, management investment company under the 1940 Act;</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; text-indent:48px; font-size:16px">(iii)</P>
<P style="line-height:18.667px; margin:0px; text-indent:96px; font-size:16px">this Agreement and the Reorganization provided for herein and the execution of this Agreement have been duly authorized and approved by all requisite action of the Acquiring Fund, and this Agreement has been duly executed and delivered by the Acquiring Fund and (assuming this Agreement is a valid and binding obligation of the other party hereto) is a valid and binding obligation of the Acquiring Fund;</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; text-indent:48px; font-size:16px">(iv)</P>
<P style="line-height:18.667px; margin:0px; text-indent:96px; font-size:16px">neither the execution or delivery by the Acquiring Fund of this Agreement nor the consummation by the Acquiring Fund of the transactions contemplated hereby violate any provision of any statute or any published regulation or any judgment or order disclosed to counsel by the Acquiring Fund as being applicable to the Acquiring Fund;</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; text-indent:48px; font-size:16px">(v)</P>
<P style="line-height:18.667px; margin:0px; text-indent:96px; font-size:16px">the Acquiring Fund Common Shares and Acquiring Fund DARTS have been duly authorized and, upon issuance thereof in accordance with this Agreement, will be validly issued, fully paid and nonassessable and no person is entitled to any preemptive or other similar rights with respect to Acquiring Fund Common Shares and Acquiring Fund DARTS. <B>&nbsp;</B>In regard to the statement that Acquiring Fund Common Shares and Acquiring Fund DARTS are non-assessable, such opinion will note that the Acquiring Fund is an entity of the type commonly known as a &#147;Massachusetts business trust.&#148; &nbsp;Under Massachusetts&#146;s law, shareholders could, under certain circumstances, be held personally liable for the obligations of the Acquiring Fund; and</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; text-indent:48px; font-size:16px">(vi)</P>
<P style="line-height:18.667px; margin:0px; text-indent:96px; font-size:16px">to their knowledge and subject to the qualifications set forth below, the execution and delivery by the Acquiring Fund of this Agreement and the consummation of the transactions herein contemplated do not require, under the laws of its state of organization or any state in which the Acquiring Fund is qualified to do business or the federal laws of the United States, the consent, approval, authorization, registration, qualification or order of, or filing with, any court or governmental agency or body (except such as have been obtained). Counsel need express no opinion, however, as to any such consent, approval, authorization, registration, qualification, order or filing which may be required as a result of the involvement of other parties to this Agreement in the transactions herein contemplated because of their legal or regulatory status or because of any other facts specifically pertaining to them. <A
NAME="eolPage111"></A></P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(f)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Target Fund shall have obtained an opinion from K&amp;L Gates dated as of the Closing Date, addressed to the Target Fund, and based upon such representations of the parties as K&amp;L Gates may reasonably request, that the consummation of the transactions set forth in this Agreement comply with the requirements of a reorganization as described in Section 368(a) of the Internal Revenue Code.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(g)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">That all proceedings taken by each of the Funds and its counsel in connection with the Reorganization and all documents incidental thereto shall be satisfactory in form and substance to the others.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(h)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">That the N-14 Registration Statement shall have become effective under the 1933 Act, and no stop order suspending such effectiveness shall have been instituted or, to the knowledge of the Acquiring Fund, be contemplated by the SEC.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">9.</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px"><U>Acquiring Fund Conditions</U>.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:0px; font-size:16px">The obligations of the Acquiring Fund hereunder shall be subject to the following conditions:</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(a)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">That this Agreement shall have been adopted, and the Reorganization shall have been approved, by the Board of Trustees of the Acquiring Fund and that the issuance of additional Acquiring Fund Common Shares shall have been approved by the holders of Acquiring Fund Common Shares by an affirmative vote of a majority of the votes cast, provided that total votes cast represent over 50% in interest of all securities entitled to vote on the matter; and that the issuance of additional Acquiring Fund DARTS shall have been approved by the holders of Acquiring Fund DARTS by an affirmative vote of at least a majority of the shares of the DARTS then outstanding; and the Target Fund shall have delivered to the Acquiring Fund a copy of the resolution approving this Agreement adopted by the Target Fund&#146;s Board of Trustees, and a certificate setting forth the vote of the holders of Target Fund Common Shares and Target Fund Preferred
Shares obt

ained, each certified by its Secretary.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(b)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">That the Target Fund shall have furnished to the Acquiring Fund a statement of its assets, liabilities and capital, with values determined as provided in Section 4 of this Agreement, together with a schedule of investments with their respective dates of acquisition and tax costs, all as of the Valuation Time, certified on the Target Fund&#146;s behalf by its President (or any Vice President) or its Treasurer, and a certificate signed by such Fund&#146;s President <A NAME="eolPage112"></A>(or any Vice President) or its Treasurer, dated as of the Closing Date, certifying that as of the Valuation Time and as of the Closing Date there has been no material adverse change in the financial position of the Target Fund since the date of such Fund&#146;s most recent Annual Report or Semi-Annual Report, as applicable, other than changes in the Target Fund Investments since that date or changes in the market value of the Target Fund
Investment

s.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(c)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">That the Target Fund shall have furnished to the Acquiring Fund a certificate signed by the Target Fund&#146;s President (or any Vice President) or its Treasurer, dated the Closing Date, certifying that as of the Valuation Time and as of the Closing Date all representations and warranties of the Target Fund made in this Agreement are true and correct in all material respects with the same effect as if made at and as of such dates and the Target Fund has complied with all of the agreements and satisfied all of the conditions on its part to be performed or satisfied at or prior to such dates.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(d)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">That there shall not be any material litigation pending with respect to the matters contemplated by this Agreement.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(e)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">That the Acquiring Fund shall have received the opinion of K&amp;L Gates, counsel for the Target Fund, dated as of the Closing Date, addressed to the Acquiring Fund, substantially in the form and to the effect that:</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; text-indent:48px; font-size:16px">(i)</P>
<P style="line-height:18.667px; margin:0px; text-indent:96px; font-size:16px">the Target Fund is duly formed and validly existing under the laws of its state of organization;</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; text-indent:48px; font-size:16px">(ii)</P>
<P style="line-height:18.667px; margin:0px; text-indent:96px; font-size:16px">the Target Fund is registered as a closed-end, management investment company under the 1940 Act;</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; text-indent:48px; font-size:16px">(iii)</P>
<P style="line-height:18.667px; margin:0px; text-indent:96px; font-size:16px">this Agreement and the Reorganization provided for herein and the execution of this Agreement have been duly authorized by all requisite action of the Target Fund, and this Agreement has been duly executed and delivered by the Target Fund and (assuming this Agreement is a valid and binding obligation of the other party hereto) is a valid and binding obligation of the Target Fund;</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; text-indent:48px; font-size:16px">(iv)</P>
<P style="line-height:18.667px; margin:0px; text-indent:96px; font-size:16px">neither the execution or delivery by the Target Fund of this Agreement nor the consummation by the Target Fund of the transactions contemplated hereby violate any provision of any statute, or any published regulation or any judgment or order disclosed to them by the Target Fund as being applicable to the Target Fund; and</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; text-indent:48px; font-size:16px">(v)</P>
<P style="line-height:18.667px; margin:0px; text-indent:96px; font-size:16px">to their knowledge and subject to the qualifications set forth below, the execution and delivery by the Target Fund of the Agreement and the consummation of the transactions herein contemplated do not require, under the laws of its state of organization or any state in which the Target Fund is qualified to do business, or the federal laws of the United States, the consent, approval, authorization, registration, qualification or order of, or filing with, any court or governmental agency or body (except such as have been obtained under the 1933 Act, 1934 Act, the 1940 Act or the rules and regulations thereunder). Counsel need express no opinion, however, as to any such consent, approval, authorization, registration, qualification, order or filing<A NAME="eolPage113"></A> which may be required as a result of the involvement of other parties to this Agreement in the transactions herein contemplated because of their legal or
regulatory

status or because of any other facts specifically pertaining to them.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(f)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">That the Acquiring Fund shall have obtained an opinion from K&amp;L Gates, counsel for the Target Fund, dated as of the Closing Date, addressed to the Acquiring Fund, and based upon such representation of the parties as K&amp;L Gates may reasonably request, that the consummation of the transactions set forth in this Agreement comply with the requirements of a reorganization as described in Section 368(a) of the Code.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(g)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">That the N-14 Registration Statement shall have become effective under the 1933 Act and no stop order suspending such effectiveness shall have been instituted or, to the knowledge of the Target Fund, be contemplated by the SEC.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(h)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">That all proceedings taken by the Target Fund and its counsel in connection with the Reorganization and all documents incidental thereto shall be satisfactory in form and substance to the Acquiring Fund.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(i)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">That prior to the Closing Date the Target Fund shall have declared a dividend or dividends which, together with all such previous dividends, shall have the effect of distributing to its shareholders all of its net investment company taxable income for the period to and including the Closing Date, if any (computed without regard to any deduction for dividends paid), and all of its net capital gain, if any, realized to and including the Closing Date. </P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(j)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The NYSE shall have approved the listing of the additional Acquiring Fund Common Shares to be issued to common shareholders of the Target Fund in connection with the reorganization.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(k)</P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:16px">The Acquiring Fund shall have obtained written confirmation from Moody&#146;s Investors Services, Inc. (&#147;Moody&#146;s&#148;) and Standard and Poor&#146;s Ratings Group (&#147;S&amp;P&#148;) that (i) consummation of the Reorganization will not impair the ratings assigned by such rating agencies to the existing Acquiring Fund DARTS, and (ii) the Acquiring Fund DARTS to be issued pursuant to the Reorganization will be rated &#147;aa2&#148; by Moody&#146;s and &#147;AA&#148; by S&amp;P.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">10.</P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:16px; text-indent:48px; font-size:16px"><U>Termination, Postponement and Waivers</U>.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(a)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">Notwithstanding anything contained in this Agreement to the contrary, this Agreement may be terminated and the Reorganization abandoned at any time (whether before or after adoption thereof by the shareholders of the Funds) prior to the Closing Date, or the Closing Date may be postponed (i) by mutual consent of the Boards of Trustees of the Funds, (ii) by the Board of Trustees of the Target Fund if any condition of the Target Fund&#146;s obligations set forth in Section 8 of this Agreement has not been fulfilled or waived by such Board, or (iii) by the Board of Trustees of the Acquiring Fund if any condition of the Acquiring Fund&#146;s obligations set forth in Section 9 of this Agreement have not been fulfilled or waived by such Board.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(b)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">If the transactions contemplated by this Agreement have not been consummated by [ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] 2007, this Agreement automatically shall terminate on that date, unless a later date is mutually agreed to by the Boards of Trustees of the Funds.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(c)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">In the event of termination of this Agreement pursuant to the provisions hereof, the same shall become void and have no further effect, and there shall not be any liability on the part of any Fund or persons who are their directors, trustees, officers, agents or shareholders in respect of this Agreement.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(d)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">At any time prior to the Closing Date, any of the terms or conditions of this Agreement benefiting a Fund may be waived by the Board of Trustees of such Fund, if, in the judgment of such Board after consultation with its counsel, such action or waiver will not have a material adverse effect on the benefits intended under this Agreement to the shareholders of their respective fund, on behalf of which such action is taken.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(e)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The respective representations and warranties contained in Sections 1 and 2 of this Agreement shall expire with, and be terminated by, the consummation of the Reorganization, and neither Fund nor any of its officers, trustees, agents or shareholders shall have any liability with respect to such representations or warranties after the Closing Date. This provision shall not protect any officer, trustee, agent or shareholder of either Fund against any liability to the entity for which that officer, trustee, agent or shareholder so acts or to its shareholders, to which that officer, trustee, agent or shareholder otherwise would be subject by reason of willful misfeasance, bad faith, gross negligence, or reckless disregard of the duties in the conduct of such office.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(f)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">If any order or orders of the Commission with respect to this Agreement shall be issued prior to the Closing Date and shall impose any terms or conditions which are determined by action of the Boards of Trustees of the Funds to be acceptable, such terms and conditions shall be binding as if a part of this Agreement without further vote or approval of the shareholders of the Funds unless such terms and conditions shall result in a change in the method of computing the number of Acquiring Fund Common Shares or Acquiring Fund DARTS to be issued to the Acquired Fund, in which event, unless such terms and conditions shall have been included in the proxy solicitation materials furnished to the shareholders of the Funds prior to the meetings at which the Reorganization shall have been approved, this Agreement shall not be consummated and shall terminate unless the Funds promptly shall call a special meeting of shareholders at which
such c

onditions so imposed shall be submitted for approval.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">11.</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px"><U>Indemnification</U>.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(a)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">Each party (an &#147;Indemnitor&#148;) shall indemnify and hold the other and its officers, trustees, agents and persons controlled by or controlling any of them (each an &#147;Indemnified<A NAME="eolPage115"></A> Party&#148;) harmless from and against any and all losses, damages, liabilities, claims, demands, judgments, settlements, deficiencies, taxes, assessments, charges, costs and expenses of any nature whatsoever (including reasonable attorneys&#146; fees) including amounts paid in satisfaction of judgments, in compromise or as fines and penalties, and counsel fees reasonably incurred by such Indemnified Party in connection with the defense or disposition of any claim, action, suit or other proceeding, whether civil or criminal, before any court or administrative or investigative body in which such Indemnified Party may be or may have been involved as a party or otherwise or with which such Indemnified Party may be or
may hav

e been threatened (collectively, the &#147;Losses&#148;) arising out of or related to any claim of a breach of any representation, warranty or covenant made herein by the Indemnitor, provided, however, that no Indemnified Party shall be indemnified hereunder against any Losses arising directly from such Indemnified Party&#146;s willful misfeasance, bad faith, gross negligence, or reckless disregard of the duties involved in the conduct of such Indemnified Party&#146;s position.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(b)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">The Indemnified Party shall use its best efforts to minimize any liabilities, damages, deficiencies, claims, judgments, assessments, costs and expenses in respect of which indemnity may be sought hereunder. The Indemnified Party shall give written notice to Indemnitor within the earlier of ten (10) days of receipt of written notice to Indemnified Party or thirty (30) days from discovery by Indemnified Party of any matters which may give rise to a claim for indemnification or reimbursement under this Agreement. The failure to give such notice shall not affect the right of Indemnified Party to indemnity hereunder unless such failure has materially and adversely affected the rights of the Indemnitor; provided that in any event such notice shall have been given prior to the expiration of the Survival Period. At any time after ten (10) days from the giving of such notice, Indemnified Party may, at its option, resist, settle or
otherwise

 compromise, or pay such claim unless it shall have received notice from Indemnitor that Indemnitor intends, at Indemnitor&#146;s sole cost and expense, to assume the defense of any such matter, in which case Indemnified Party shall have the right, at no cost or expense to Indemnitor, to participate in such defense. If Indemnitor does not assume the defense of such matter, and in any event until Indemnitor states in writing that it will assume the defense, Indemnitor shall pay all costs of Indemnified Party arising out of the defense until the defense is assumed; provided, however, that Indemnified Party shall consult with Indemnitor and obtain Indemnitor&#146;s prior written consent to any payment or settlement of any such claim. Indemnitor shall keep Indemnified Party fully apprised at all times as to the status of the defense. If Indemnitor does not assume the defense, Indemnified Party shall keep Indemnitor apprised at all times as to the status of the defense. Following indemnification as
provided for h

ereunder, Indemnitor shall be subrogated to all rights of Indemnified Party with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">12.</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px"><U>Other Matters</U>.</P>
<P style="margin:0px"><BR></P>
<P style="line-height:18.667px; margin-top:0px; margin-bottom:-18.667px; font-size:16px">(a)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">All covenants, agreements, representations and warranties made under this Agreement and any certificates delivered pursuant to this Agreement shall be deemed to have been material and relied upon by each of the parties, notwithstanding any investigation made by them or on their behalf.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(b)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">All notices hereunder shall be sufficiently given for all purposes hereunder if in writing and delivered personally or sent by registered mail or certified mail, postage prepaid. Notice to the Target Fund shall be addressed to the Target Fund c/o John Hancock, 601 Congress Street, Boston, Massachusetts 02210, Attention: General Counsel, or at such other address as the Target Fund may designate by written notice to the Acquiring Fund. Notice to the Acquiring Fund shall be addressed to the Acquiring Fund c/o 601 Congress Street, Boston, Massachusetts 02210, Attention: General Counsel, or at such other address and to the attention of such other person as the Acquiring Fund may designate by written notice to the Target Fund. Any notice shall be deemed to have been served or given as of the date such notice is delivered personally or mailed.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(c)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">This Agreement supersedes all previous correspondence and oral communications between the parties regarding the Reorganization, constitutes the only understanding with respect to the Reorganization, may not be changed except by a letter of agreement signed by each party and shall be governed by and construed in accordance with the laws of The Commonwealth of Massachusetts applicable to agreements made and to be performed in said state.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(d)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">It is expressly agreed that the obligations of the Acquiring Fund and the Target Fund hereunder shall not be binding upon any of their respective trustees, shareholders, nominees, officers, agents, or employees personally, but shall bind only the trust property of the respective Fund as provided in such Fund&#146;s Declaration of Trust. A copy of the Declaration of Trust of each of the Acquiring Fund and the Target Fund is on file with the Secretary of State of The Commonwealth of Massachusetts. The execution and delivery of this Agreement has been authorized by the trustees of each Fund and signed by authorized officers of each Fund, acting as such, and neither such authorization by such trustees, nor such execution and delivery by such officers shall be deemed to have been made by any of them individually or to impose any liability on any of them personally, but shall bind only the trust property of each Fund as provided
in such

Fund&#146;s Declaration of Trust.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(e)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">It is further expressly agreed that this Agreement shall be construed in accordance with and governed by the laws of The Commonwealth of Massachusetts.</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:-18.667px; font-size:16px">(f)</P>
<P style="line-height:18.667px; margin:0px; text-indent:48px; font-size:16px">This Agreement may be executed in any number of counterparts, each of which, when executed and delivered, shall be deemed to be an original but all such counterparts together shall constitute but one instrument.</P>
<P style="margin-top:15px; margin-bottom:0px"><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin:0px"><BR></P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:0px; font-size:16px">IN WITNESS WHEREOF, the parties have hereunto caused this Agreement to be executed and delivered by their duly authorized officers as of the day and year first written above.</P>
<P style="margin:0px" align=center><BR></P>
<P style="line-height:18.667px; margin:0px; font-size:16px"><B>JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II</B></P>
<P style="line-height:18.667px; margin:0px; font-size:16px"><B>_______________________________</B></P>
<P style="line-height:2px; margin-top:15px; margin-bottom:0px" align=center><BR></P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:0px; font-size:16px">[Name]<BR>
[Title] Attest: [Name]<BR>
[Title]</P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:0px; font-size:16px"><B>JOHN HANCOCK PATRIOT [ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] FUND</B></P>
<P style="line-height:18.667px; margin:0px; font-size:16px"><B>_______________________________</B></P>
<P style="line-height:2px; margin-top:15px; margin-bottom:0px" align=center><BR></P>
<P style="line-height:18.667px; margin-top:15px; margin-bottom:0px; font-size:16px">[Name]<BR>
[Title] Attest: [Name]<BR>
[Title]</P>
<P style="margin-top:15px; margin-bottom:0px"><BR>
<BR></P>
<P style="line-height:18.667px; margin:0px; text-indent:300.667px; font-size:16px"></P>
<P style="margin:0px"><BR></P>
</DIV>
















<DIV style="width:624px"><P style="line-height:17.333px; margin-top:13.733px; margin-bottom:42.2px; font-size:14.667px" align=center>February

[

 &nbsp;

]

, 2007</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px" align=center><B>STATEMENT OF ADDITIONAL INFORMATION<BR>
RELATING TO THE ACQUISITION OF THE ASSETS AND LIABILITIES OF</B></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px" align=center><B>JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND I<BR>
JOHN HANCOCK PATRIOT SELECT DIVIDEND TRUST<BR>
JOHN HANCOCK PATRIOT GLOBAL DIVIDEND FUND<BR>
AND<BR>
JOHN HANCOCK PATRIOT PREFERRED DIVIDEND FUND<BR>
(each an &#147;Acquired Fund&#148; and collectively the &#147;Acquired Funds&#148;)</B></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px" align=center><B>BY AND IN EXCHANGE FOR SHARES OF</B></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px" align=center><B>JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II<BR>
(the &#147;Acquiring Fund,&#148; together with the Acquired Funds, the &#147;Funds&#148;)</B></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px" align=center><B>DATED February

[

 &nbsp;

]

, 2007</B></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">This Statement of Additional Information is available to the shareholders of John Hancock Patriot Premium Dividend Fund I (&#147;Premium Dividend Fund I&#148;), John Hancock Patriot Select Dividend Trust (&#147;Select Dividend Trust&#148;), John Hancock Patriot Global Dividend Fund (&#147;Global Dividend Fund&#148;) and John Hancock Patriot Preferred Dividend Fund (&#147;Preferred Dividend Fund&#148;) in connection with proposed reorganizations (each a &#147;Reorganization&#148; and collectively the &#147;Reorganizations&#148;) whereby the Acquiring Fund will acquire substantially all of the assets and assume substantially all of the liabilities of the Acquired Funds in exchange for an equal aggregate value of newly-issued common shares of beneficial interest with no par value (&#147;Acquiring Fund Common Shares&#148;) and various series of newly-issued Dutch Auction Rate Transferable Securities preferred stock
with n






o par value and with liquidation preference of $100,000 per share (&#147;Acquiring Fund DARTS&#148;) corresponding to each Acquired Fund. &nbsp;Each Acquired Fund will (i) distribute Acquiring Fund Common Shares to its common shareholders and Acquiring Fund DARTS to its preferred shareholders, (ii) terminate its registration under the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;) and (iii) dissolve under applicable state law. &nbsp;Unless otherwise defined herein, capitalized terms have the meanings given to them in the Joint Proxy Statement/Prospectus dated February

[

 &nbsp;

]

, 2007 relating to the proposed Reorganizations of the Acquired Funds into the Acquiring Fund (the &#147;Proxy Statement/Prospectus&#148;).</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><B>This Statement of Additional Information is not a prospectus and should be read in conjunction with the Joint Proxy Statement/Prospectus.</B> &nbsp;A copy of the Joint Proxy Statement/Prospectus may be obtained, without charge, by writing to John Hancock Advisers, LLC at 601 Congress Street, Boston, Massachusetts 02210. &nbsp;You may also obtain a copy of the Joint Proxy Statement/Prospectus on the Securities and Exchange Commission&#146;s web site at (http://www.sec.gov).</P>
<A NAME="_Toc142448237"></A><A NAME="_Toc155700483"></A><P style="line-height:17.333px; margin-top:14.667px; margin-bottom:3.667px; font-size:14.667px" align=center><B>TABLE OF CONTENTS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; font-size:14.667px"><B>TABLE OF CONTENTS</B></P>
<P style="line-height:17.333px; margin:0px; text-indent:616px; font-size:14.667px"><B>2</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; font-size:14.667px"><B>ADDITIONAL INFORMATION ABOUT THE FUNDS</B></P>
<P style="line-height:17.333px; margin:0px; text-indent:616px; font-size:14.667px"><B>3</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:16px; font-size:14.667px">General Information</P>
<P style="line-height:17.333px; margin:0px; padding-left:16px; text-indent:603.333px; font-size:14.667px">3</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:16px; font-size:14.667px">Additional Investment Information</P>
<P style="line-height:17.333px; margin:0px; padding-left:16px; text-indent:603.333px; font-size:14.667px">3</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:16px; font-size:14.667px">Fundamental Investment Restrictions</P>
<P style="line-height:17.333px; margin:0px; padding-left:16px; text-indent:596px; font-size:14.667px">12</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; font-size:14.667px"><B>TRUSTEES AND OFFICERS OF THE FUNDS</B></P>
<P style="line-height:17.333px; margin:0px; text-indent:608.667px; font-size:14.667px"><B>15</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:16px; font-size:14.667px">General</P>
<P style="line-height:17.333px; margin:0px; padding-left:16px; text-indent:596px; font-size:14.667px">15</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:16px; font-size:14.667px">Board Committees</P>
<P style="line-height:17.333px; margin:0px; padding-left:16px; text-indent:596px; font-size:14.667px">19</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:16px; font-size:14.667px">Trustee Beneficial Ownership of Securities</P>
<P style="line-height:17.333px; margin:0px; padding-left:16px; text-indent:596px; font-size:14.667px">20</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:16px; font-size:14.667px">Compensation</P>
<P style="line-height:17.333px; margin:0px; padding-left:16px; text-indent:596px; font-size:14.667px">21</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; font-size:14.667px"><B>PROXY VOTING POLICIES</B></P>
<P style="line-height:17.333px; margin:0px; text-indent:608.667px; font-size:14.667px"><B>22</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; font-size:14.667px"><B>OWNERSHIP OF SHARES OF THE FUNDS</B></P>
<P style="line-height:17.333px; margin:0px; text-indent:608.667px; font-size:14.667px"><B>22</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; font-size:14.667px"><B>INVESTMENT ADVISORY AND OTHER SERVICES</B></P>
<P style="line-height:17.333px; margin:0px; text-indent:608.667px; font-size:14.667px"><B>22</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:16px; font-size:14.667px">Advisory Agreement</P>
<P style="line-height:17.333px; margin:0px; padding-left:16px; text-indent:596px; font-size:14.667px">22</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:16px; font-size:14.667px">Subadvisory Agreement</P>
<P style="line-height:17.333px; margin:0px; padding-left:16px; text-indent:596px; font-size:14.667px">23</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:16px; font-size:14.667px">Custodian</P>
<P style="line-height:17.333px; margin:0px; padding-left:16px; text-indent:596px; font-size:14.667px">24</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:16px; font-size:14.667px">Independent Auditors</P>
<P style="line-height:17.333px; margin:0px; padding-left:16px; text-indent:596px; font-size:14.667px">24</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; font-size:14.667px"><B>PORTFOLIO MANAGERS</B></P>
<P style="line-height:17.333px; margin:0px; text-indent:608.667px; font-size:14.667px">24</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:16px; font-size:14.667px">Portfolio Managers and Other Accounts Managed</P>
<P style="line-height:17.333px; margin:0px; padding-left:16px; text-indent:596px; font-size:14.667px"><B>24</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:16px; font-size:14.667px">Structure of Compensation</P>
<P style="line-height:17.333px; margin:0px; padding-left:16px; text-indent:596px; font-size:14.667px">26</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; padding-left:16px; font-size:14.667px">Ownership of Securities</P>
<P style="line-height:17.333px; margin:0px; padding-left:16px; text-indent:596px; font-size:14.667px">27</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; font-size:14.667px"><B>NET ASSET VALUE</B></P>
<P style="line-height:17.333px; margin:0px; text-indent:608.667px; font-size:14.667px"><B>27</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; font-size:14.667px"><B>BROKERAGE ALLOCATION</B></P>
<P style="line-height:17.333px; margin:0px; text-indent:608.667px; font-size:14.667px"><B>27</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; font-size:14.667px"><B>U.S. FEDERAL INCOME TAX MATTERS</B></P>
<P style="line-height:17.333px; margin:0px; text-indent:608.667px; font-size:14.667px"><B>29</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; font-size:14.667px"><B>ADDITIONAL INFORMATION</B></P>
<P style="line-height:17.333px; margin:0px; text-indent:608.667px; font-size:14.667px"><B>35</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; font-size:14.667px"><B>FINANCIAL STATEMENTS</B></P>
<P style="line-height:17.333px; margin:0px; text-indent:608.667px; font-size:14.667px"><B>35</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:-17.333px; font-size:14.667px"><B>PRO FORMA FINANCIAL STATEMENTS</B></P>
<P style="line-height:17.333px; margin:0px; text-indent:608.667px; font-size:14.667px"><B>36</B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><B>APPENDIX A &#150; DESCRIPTION OF RATINGS</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><B>APPENDIX B &#150; PRO FORMA FINANCIAL STATEMENTS</B></P>
<A NAME="_Toc142448238"></A><A NAME="_Toc155700484"></A><P style="line-height:17.333px; margin-top:14.667px; margin-bottom:3.667px; font-size:14.667px" align=center><B>ADDITIONAL INFORMATION ABOUT THE FUNDS</B></P>
<A NAME="_Toc142448239"></A><A NAME="_Toc155700485"></A><P style="line-height:17.333px; margin-top:14.667px; margin-bottom:3.667px; font-size:14.667px"><B>General Information</B></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>The Funds</U></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The Acquiring Fund is a diversified, closed-end management investment company organized under the laws of The Commonwealth of Massachusetts as an unincorporated business trust pursuant to an Amended and Restated Agreement and Declaration of Trust dated December 12, 1989.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Premium Dividend Fund I is a diversified, closed-end management investment company that was organized as a corporation in the State of Maryland on June 20, 1988, and was reorganized as a business trust under the laws of The Commonwealth of Massachusetts on July 18, 1990.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Preferred Dividend Fund is a diversified, closed end management investment company that was organized as a business trust under the laws of The Commonwealth of Massachusetts pursuant to an Agreement and Declaration of Trust dated March 22, 1993.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Global Dividend Fund is a diversified, closed-end management investment company that was organized as a business trust under the laws of The Commonwealth of Massachusetts pursuant to an Agreement and Declaration of Trust dated May 28, 1992.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Select Dividend Trust is a diversified, closed-end management investment company that was organized under as a business trust under the laws of The Commonwealth of Massachusetts on May 8, 1990 by an Agreement and Declaration of Trust.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The business office of each Fund is 601 Congress Street, Boston, Massachusetts 02210-2805.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>The Adviser and Subadviser</U></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Each Fund has an investment management contract with John Hancock Advisers, LLC (the &#147;Adviser&#148;), a wholly owned subsidiary of John Hancock Financial Services, Inc., itself a subsidiary of Manulife Financial Corporation (&#147;MFC&#148;). &nbsp;Effective December 31, 2005, the investment management teams of the Adviser were reorganized into MFC Global Investment Management (U.S.), LLC (&#147;MFC Global (U.S.)&#148; or &#147;Subadviser&#148;), a wholly owned indirect subsidiary of John Hancock Life Insurance Company (&#147;JHLICo&#148;), a subsidiary of MFC. &nbsp;The Adviser remains the principal adviser to each Fund, and MFC Global (U.S.) acts as subadviser to each Fund under the supervision of the Adviser. &nbsp;The reorganization of the management teams did not have an impact on the Funds, which continue to be managed using the same investment philosophy and process. &nbsp;The Funds are not
responsible for






 payment of the subadvisory fees.</P>
<A NAME="_Toc155700486"></A><P style="line-height:17.333px; margin-top:14.667px; margin-bottom:18.333px; font-size:14.667px"><B>Additional Investment Information</B></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">The Funds share similar investment objectives and policies. &nbsp;Primary investment strategies are described in the Joint Proxy/Prospectus Statement. &nbsp;The following is a description of the various investments the Funds may acquire in, whether as a primary or secondary strategy, and the specific Funds that may acquire each type of investment are identified.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><U>Preferred Stocks</U> &nbsp;(All Funds)</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Fixed-rate preferred stocks have fixed dividend rates. &nbsp;They can be perpetual, with no maturity date, or issued with a fixed maturity date. Certain issues of preferred stock are convertible into other equity securities. Perpetual preferred stocks provide a fixed dividend throughout the life of the issue, with no mandatory retirement provisions, but may be callable. Sinking fund preferred stocks provide for the redemption of a portion of the issue on a regularly scheduled basis with, in most cases, the entire issue being retired at a future date. The value of fixed rate preferred stocks can be expected to vary inversely with interest rates.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Adjustable rate preferred stocks have a variable dividend rate which is determined periodically, typically quarterly, according to a formula based on a specified premium or discount to the yield on particular U .S. Treasury securities, typically the highest base-rate yield of one of three U .S. Treasury securities: the 90-day Treasury bill; the 10-year Treasury note; and either the 20-year or 30-year Treasury bond or other index. The premium or discount to be added to or subtracted from this base-rate yield is fixed at the time of issuance and cannot be changed without the approval of the holders of the adjustable rate preferred stock. Some adjustable rate preferred stocks have a maximum and a minimum rate and in some cases are convertible into common stock.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Auction rate preferred stocks pay dividends that adjust based upon periodic auctions. Such preferred stocks are similar to short-term corporate money market instruments in that an auction rate preferred stockholder has the opportunity to sell the preferred stock at par in an auction, normally conducted at least every 49 days, through which buyers set the dividend rate in a bidding process for the next period. The dividend rate set in the auction depends upon market conditions and the credit quality of the particular issuer. Typically, the auction rate preferred stock&#146;s dividend rate is limited to a specified maximum percentage of an external commercial paper index as of the auction date. Further, the terms of auction rate preferred stocks generally provide that they are redeemable by the issuer at certain times or under certain conditions.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>Debt Securities</U> &nbsp;(Preferred Dividend Fund and Global Dividend Fund)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The Funds may invest in debt securities. &nbsp;Debt securities include securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities and custodial receipts therefor; securities issued guaranteed by a foreign government or any of its political subdivisions, authorities, agencies instrumentalities or by international or supranational entities; corporate debt securities including notes, bonds and debentures; certificates of deposit and bankers&#146; acceptances issued or guaranteed by, or time deposits maintained at, banks (including U.S. or foreign branches of U.S. banks or U.S. or foreign branches of foreign banks) having total assets of more than $1 billion; commercial paper; and mortgage related securities. &nbsp;These securities will be U.S. dollar denominated and may be of any maturity. &nbsp;The value of debt securities can be expected to vary inversely with interest rates.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>Common Stocks</U> &nbsp;(All Funds)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Each of the Funds invests in common stocks. Common stocks are shares of a corporation or other entity that entitle the holder to a pro rata share of the profits of the corporation, if any, without preference over any other shareholder or class of shareholders, including holders of such entity&#146;s preferred stock and other senior equity. &nbsp;Common stock usually carries with it the right to vote and frequently an exclusive right to do so. &nbsp;In selecting common stocks for investment, the Subadviser generally focuses more on the security&#146;s dividend paying capacity than on its potential for appreciation.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>Money Market Instruments</U> &nbsp;(All Funds)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The Funds may invest in Money market instruments. &nbsp;Money market instruments include short-term U.S. Government securities, investment grade commercial paper (unsecured promissory notes issued by corporations to finance their short-term credit needs), certificates of deposit and bankers&#146; acceptances. &nbsp;U.S. Government securities include Treasury notes, bonds and bills, which are direct obligations of the U.S. Government backed by the full faith and credit of the United States, and securities issued by agencies and instrumentalities of the U.S. Government, which may be guaranteed by the U.S. Treasury, may be supported by the issuer&#146;s right to borrow from the Treasury or may be backed by the credit of the federal agency or instrumentality itself.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>Registered Investment Companies</U> &nbsp;(All Funds except for Preferred Dividend Fund)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Each Fund may invest up to 10% of the value of its total assets in dividend-paying securities of registered investment companies that invest primarily in investment grade securities. &nbsp;A Fund will not acquire securities of any one investment company if, immediately thereafter, it would own in the aggregate more than 3% of such company&#146;s total outstanding voting securities or securities issued by such company would have an aggregate value in excess of 5% of the its total assets. &nbsp;In addition, each Fund and all other investment companies having the same investment adviser will not acquire securities of any one investment company amounting in the aggregate to more than 10% of such company&#146;s total outstanding voting stock. &nbsp;The Funds intend to invest in both open- and closed-end investment companies whose distributions qualify for the Dividends Received Deduction. &nbsp;To the extent that
investmen






t advisory and brokerage expenses of an investment company are reflected in the price of its shares held in a Fund&#146;s portfolio, there will be a duplication of such expenses.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:-17.333px; font-size:14.667px"><U>Illiquid Securities</U></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; text-indent:144px; font-size:14.667px">(Global Dividend Fund and Preferred Dividend Fund)</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The Funds may invest up to 5% of their total assets in securities for which there is no readily available secondary market, including securities acquired in private placements, joint ventures and partnerships. &nbsp;Securities issued in private placements are &#147;restricted securities&#148; which are subject to restrictions and, possibly, delays on resale. &nbsp;Restricted securities eligible for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 that are determined to be liquid by the Board of Trustees, or by the Adviser under guidelines approved by the Trustees, are not subject to this limitation.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>Foreign Securities</U> &nbsp;(All Funds)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The Funds may invest in U.S. dollar denominated securities of foreign issuers. &nbsp;The securities may include investment grade preferred stocks of foreign corporations and investment grade debt obligations of a variety of foreign issuers, including foreign corporations and banks, foreign governments and their agencies, instrumentalities and political subdivisions, and international and supranational organizations such as the World Bank and the Asian Development Bank. &nbsp;As an alternative to investing directly in foreign securities, the Funds may invest in American Deposit Receipts (&#147;ADRs&#148;), which are instruments issued by domestic banks representing an interest in securities foreign issuers held by such banks and entitling the holder of the ADR, to all dividends, interest and capital gains. &nbsp;The Funds only invest in those ADRs sponsored by the issuer of the underlying foreign security.
&nbsp;With t






he exception of Global Dividend Fund, no Fund may invest in Russian securities of any type.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Global Dividend Fund invests at least 65% of its assets in dividend paying securities of at least three countries including the United States, but may not invest more than 25% of its total assets in any single country other than the United States. &nbsp;Global Dividend Fund may invest in Russian securities (i) denominated in U.S. dollars, (ii) traded on a major exchange and (iii) held physically outside of Russia. &nbsp;It may invest up to 10% of its total assets in Russian fixed income securities and up to 5% of its total assets in Russian equity securities.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>Temporary Defensive Strategies</U> &nbsp;(All Funds)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">There may be times when, in the managers&#146; judgment, conditions in the securities markets would make pursuing the Fund&#146;s investment strategy inconsistent with achieving the Fund&#146;s investment objective. &nbsp;At such times, the managers may employ alternative strategies primarily to seek to reduce fluctuations in the value of the Fund&#146;s assets. &nbsp;In implementing defensive strategies, depending on the circumstances, the Acquiring Fund and Select Dividend Trust may invest any portion of its portfolio in U.S. Government securities, investment grade corporate debt securities, high quality, short-term money market instruments and in cash. &nbsp;Investment income received by a Fund with respect to these investments will not be eligible for the Dividends Received Deduction when distributed to shareholders and may increase the amount of additional dividends payable on the preferred shares.
&nbsp;During p






eriods of stock market weakness or uncertain market or economic conditions, as determined by the Adviser or Subadviser, Premium Dividend Fund I may substantially increase its investments in the Low Volatility Sector &#150; consisting predominantly of auction preferred stocks and money market instruments, as well as certain dividend paying securities which, in the Adviser&#146;s or Subadviser&#146;s opinion are currently exhibiting greater price stability than the securities in the Common and Preferred Stock Sectors. &nbsp;When in the judgment of the Adviser or Subadviser a temporary defensive posture is appropriate, Global Dividend Fund may invest its assets without limitation in U.S. Government obligations, high grade (i.e., rated within the two highest rating categories by a nationally recognized rating service) corporate debt securities of domestic issuers, U.S. dollar denominated high rate debt obligations of foreign issuers, high grade, short-term money market instruments and cash. &nbsp;In
implementing






 its temporary defensive strategies, depending on the circumstances, Preferred Dividend Fund may invest an unlimited portion of its portfolio in U.S. dollar denominated corporate debt securities, short-term money market instruments, in each case rated within the two highest rating categories by a nationally recognized statistical rating organization, U .S. Government securities and cash. &nbsp;It is impossible to predict when, or for how long, a Fund may use these alternative strategies.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>Options and Futures Transactions</U> &nbsp;(All Funds except for Preferred Dividend Fund)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:14.667px; font-size:14.667px">The Funds do not purchase or sell financial futures contracts, options on securities or options on financial futures contracts, but are permitted to do so under their Investment Restrictions. &nbsp;If a Fund were to engage in such transactions, it would do so in order to hedge against either a decline in the value of securities included in the Fund&#146;s portfolio or against an increase in the price of securities which it plans to purchase. &nbsp;In addition, a Fund might seek to increase the current return of its portfolio by writing covered call or covered put options. &nbsp;The Funds generally expect that any options and futures transactions would be conducted on securities exchanges. &nbsp;In certain instances, however, a Fund would purchase and sell options in the over-the-counter market. &nbsp;The staff of the Securities and Exchange Commission (the &#147;Commission&#148;) considers over-the-counter
option






s to be illiquid. &nbsp;A Fund&#146;s ability to terminate option positions established in the over-the-counter market may be more limited than in the case of exchange-traded options and may also involve the risk that securities dealers participating in such transactions would fail to meet their obligations to the Fund. &nbsp;There can be no assurance that the Fund would be able to effect closing transactions at any particular time or at an acceptable price. &nbsp;The use of options and futures involves the risk of imperfect correlation between movements in options and futures prices and movements in the prices of the securities that are being hedged. &nbsp;Expenses and losses incurred as a result of these hedging strategies would reduce current return. &nbsp;In addition, revenue derived from financial futures and options transactions will not qualify for the Dividends Received Deduction.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Preferred Dividend Fund intends to engage in interest rate swap transactions and to purchase or sell financial futures contracts, options on securities, options on financial futures contracts or write covered call or covered put options in order to hedge against either a decline in the value of securities included in the Fund&#146;s portfolio or against an increase in the price of securities which it plans to purchase or for other hedging or risk management purposes. &nbsp;Gains realized from such transactions would not be eligible for the Dividends Received Deduction when distributed to shareholders.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>When-Issued and Delayed Delivery Purchases</U> &nbsp;(All Funds)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The Funds may make contracts to purchase securities on a &#147;when-issued&#148; basis, which means that delivery and payment for the securities take place at a future date beyond the customary settlement date. &nbsp;The payment obligation and the interest rate on the securities will be fixed at the time a Fund enters into the commitment, but interest will not accrue to the Fund until delivery of and payment for the securities. &nbsp;An amount of cash or short-term U.S. Government securities equal to the Fund&#146;s commitment will be deposited in a segregated account at the Fund&#146;s custodian bank to secure the Fund&#146;s obligation. &nbsp;Although the Funds will generally purchase securities on a when-issued basis with the intention of actually acquiring the securities for its portfolio (or for delivery pursuant to options contracts it has entered into), the Funds may dispose of a security prior to
settlement if






 the Subadviser deems it advisable to do so. &nbsp;The Funds may realize short-term gains or losses in connection with such sales. &nbsp;Purchasing securities on a when-issued basis involves a risk of loss if the value of the security to be purchased declines prior to the settlement date. &nbsp;This risk is in addition to the risk of a decline in value of the Funds&#146; other assets. &nbsp;Furthermore, when such purchases are made through a dealer, the dealer&#146;s failure to consummate the sale may result in the loss to the Fund of an advantageous yield or price.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>Securities Loans</U> &nbsp;(All Funds)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The Funds do not currently intend to lend portfolio securities. &nbsp;In the future, the Funds may seek to obtain additional income by making secured loans of its portfolio securities with a value of up to 33 1/3% of its total assets. &nbsp;In such transactions, the borrower pays to a Fund an amount equal to any dividends or interest received on loaned securities. &nbsp;The Fund retains all or a portion of the interest received on investment of cash collateral or receives a fee from the borrower. &nbsp;Collateral for loaned securities may be invested in U.S. Government securities and other liquid, high grade debt securities. &nbsp;Dividends or dividend equivalents paid to the Funds with respect to securities loaned, and dividends paid by the Funds representing other income from securities loans, will not qualify for the Dividends Received Deduction. &nbsp;All securities loans will be made pursuant to agreements
requir






ing that the loans be continuously secured by collateral in cash or short-term debt obligations at least equal at all times to the market value of the loaned securities. &nbsp;The Funds may pay reasonable finders&#146;, administrative and custodial fees in connection with loans of its portfolio securities. &nbsp;Although voting rights or rights to consent accompanying loaned securities pass to the borrower, the Funds retain the right to call the loans at any time on reasonable notice and will do so in order that the securities may be voted by the Funds with respect to matters materially affecting the Funds&#146; investment. &nbsp;The Funds may also call a loan in order to sell the securities involved. &nbsp;Lending portfolio securities involves risks of delay in recovery of the loaned securities or, in some cases, loss of rights in the collateral should the borrower commence an action relating to bankruptcy, insolvency or reorganization. &nbsp;Accordingly, loans of portfolio securities will be made
only to b






orrowers considered by the Subadviser to be creditworthy under guidelines adopted by the Board of Trustees.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>Repurchase Agreements</U> &nbsp;(All Funds)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The Funds may engage in repurchase agreements with broker-dealers, banks and other financial institutions. &nbsp;A repurchase agreement is a contract pursuant to which a Fund, against receipt of securities of at least equal value, agrees to advance a specified sum to the financial institution which in turn agrees to reacquire the securities at a mutually agreed upon time and price. &nbsp;Repurchase agreements, which are usually for periods of one week or less, enable the Funds to invest cash reserves at fixed rates of return. &nbsp;The Funds may enter into repurchase agreements, provided that the their respective custodians always have possession of securities serving as collateral whose market value at least equals the amount of the repurchase obligation. &nbsp;To minimize the risk of loss, the Funds enter into repurchase agreements only with financial institutions considered by the Subadviser to be
creditworthy unde






r guidelines adopted by the Board of Trustees. &nbsp;If an institution enters an insolvency proceeding, the resulting delay in liquidation of the securities serving as collateral could cause the Funds some loss, as well as legal expense, should the value of the securities decline prior to liquidation. &nbsp;The Acquiring Fund, Premium Dividend Fund I and Select Dividend Trust may invest up to 5% of their net assets in repurchase agreements.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>Borrowings</U> &nbsp;(Preferred Dividend Fund and Global Dividend Fund)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The Funds reserve the right to borrow funds to the extent permitted by their investment restrictions. &nbsp;Borrowing is a form of leverage and, in that respect, entails risks comparable to those associated with the issuance of the Preferred Shares. &nbsp;In addition, borrowing could reduce the portion of the Funds&#146; otherwise qualifying dividends that could be designated as qualifying for the Dividends Received Deduction. &nbsp;While a Fund&#146;s borrowings exceed 5% of its net assets, the Fund will not purchase additional portfolio securities.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>Restricted Securities (Direct Placements)</U> &nbsp;(All Funds)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The Acquiring Fund, Premium Dividend Fund I and Select Dividend Trust may invest up to 20% of their net assets in securities purchased in direct placements. &nbsp;Preferred Dividend Fund and Global Dividend Fund may invest up to 5% and 20% of its total assets, respectively, in securities for which there is no readily available secondary market, including securities acquired in private placements, joint ventures and partnerships. &nbsp;Securities obtained by means of direct placement are highly illiquid due to statutory or contractual restrictions on resale. Accordingly, such securities are often referred to as restricted securities. &nbsp;There is usually no readily available market for the resale of restricted securities, which may generally be resold only in a privately negotiated transaction with a limited number of purchasers or in a public offering registered under the Securities Act of 1933. &nbsp;Such
securitie






s are therefore unlike securities that are traded in the open market, which can be expected to be sold immediately if the market is adequate. &nbsp;This lack of liquidity creates special risks. &nbsp;In addition, restricted securities normally are not rated. &nbsp;Direct placements of securities have frequently resulted in higher yields to purchasers and more restrictive covenants to issuers, which may provide greater protection for the purchaser, than comparable registered securities. &nbsp;Because it has averted the expense and delay involved in a public offering of its securities, an issuer is often willing to create more attractive features in its securities issued in direct placements. &nbsp;Also, adverse conditions in the public securities markets may at certain times preclude a public offering of an issuer&#146;s securities.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>Industry and Issuer Concentration</U> &nbsp;(All Funds)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Under normal conditions, the Funds may concentrate their assets in specific industries. &nbsp;The Acquiring Fund, Premium Dividend Fund I and Select Dividend Trust invest more than more than 65% of their total assets in securities issued by companies in the utilities industry. &nbsp;Global Dividend Fund invests at least 25% of its total assets in securities issued by companies in the utilities industry. &nbsp;In addition, each Fund other than Premium Dividend Fund I, may invest up to 25% of its total assets in any one industry with the exception of any industry in which the Fund&#146;s investment policy specifically permits greater concentration. &nbsp;Premium Dividend Fund I may only invest up to 20% of its total assets in any one industry, excluding utilities. &nbsp;Accordingly, the Funds may be subject to the risks of such concentration and, in particular, will be affected by developments in the utilities
industry.






</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><B>Additional Risk Information</B></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Investing in each of the Funds involves certain risks, and each of the Funds are subject to substantially similar risks. &nbsp;Primary risks of investing in the Funds are described in the Proxy/Prospectus Statement. The following is a description of certain of the risks inherent in investing in the Funds, whether as a primary or a secondary risk. &nbsp;The Funds that are subject to each risk described below are identified.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>Risks of Concentration in the Utilities Industries</U> &nbsp;(All Funds)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Risks that are intrinsic to the utility industries include:</P>
<P style="line-height:17.333px; margin-top:6.133px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:6.133px; padding-left:96px; font-size:14.667px"><FONT FACE="Times New Roman">difficulty in obtaining an adequate return on invested capital,</FONT></P>
<P style="line-height:17.333px; margin-top:6.133px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:6.133px; padding-left:96px; font-size:14.667px"><FONT FACE="Times New Roman">difficulty in financing large construction programs during an inflationary period,</FONT></P>
<P style="line-height:17.333px; margin-top:6.133px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:6.133px; padding-left:96px; font-size:14.667px"><FONT FACE="Times New Roman">restrictions on operations and increased cost and delays attributable to environmental considerations and regulation,</FONT></P>
<P style="line-height:17.333px; margin-top:6.133px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:6.133px; padding-left:96px; font-size:14.667px"><FONT FACE="Times New Roman">difficulty in raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,</FONT></P>
<P style="line-height:17.333px; margin-top:6.133px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:6.133px; padding-left:96px; font-size:14.667px"><FONT FACE="Times New Roman">technological innovations that may render existing plants, equipment or products obsolete,</FONT></P>
<P style="line-height:17.333px; margin-top:6.133px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:6.133px; padding-left:96px; font-size:14.667px"><FONT FACE="Times New Roman">the potential impact of natural or man-made disasters,</FONT></P>
<P style="line-height:17.333px; margin-top:6.133px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:6.133px; padding-left:96px; font-size:14.667px"><FONT FACE="Times New Roman">increased costs and reduced availability of certain types of fuel,</FONT></P>
<P style="line-height:17.333px; margin-top:6.133px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:6.133px; padding-left:96px; font-size:14.667px"><FONT FACE="Times New Roman">occasionally reduced availability and high costs of natural gas for resale,</FONT></P>
<P style="line-height:17.333px; margin-top:6.133px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:6.133px; padding-left:96px; font-size:14.667px"><FONT FACE="Times New Roman">the effects of energy conservation,</FONT></P>
<P style="line-height:17.333px; margin-top:6.133px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:6.133px; padding-left:96px; font-size:14.667px"><FONT FACE="Times New Roman">inexperience with and potential losses resulting from a developing deregulatory environment, including losses and regulatory issues in connection with energy trading,</FONT></P>
<P style="line-height:17.333px; margin-top:6.133px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:6.133px; padding-left:96px; font-size:14.667px"><FONT FACE="Times New Roman">the effects of a national energy policy, and</FONT></P>
<P style="line-height:17.333px; margin-top:6.133px; margin-bottom:-17.333px; padding-left:96px; text-indent:-48px; font-family:Wingdings 2; font-size:14.667px"><FONT FACE="Wingdings 2">&#151;</FONT></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:6.133px; padding-left:96px; font-size:14.667px"><FONT FACE="Times New Roman">lengthy delays and greatly increased costs and other problems associated with the design, construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.</FONT></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">There are substantial differences between the regulatory practices and policies of various jurisdictions, and any given regulatory agency may make major shifts in policy from time to time. &nbsp;There is no assurance that regulatory authorities will, in the future, grant rate increases or that such increases will be adequate to permit the payment of dividends on common stocks. &nbsp;Additionally, existing and possible future regulatory legislation may make it even more difficult for these utilities to obtain adequate relief. &nbsp;Certain of the issuers of securities may own or operate nuclear generating facilities. &nbsp;Governmental authorities may from time to time review existing policies and impose additional requirements governing the licensing, construction and operation of nuclear power plants. &nbsp;Prolonged changes in climatic conditions can also have a significant impact on both the revenues of an
electric






 and gas utility as well as the expenses of a utility, particularly a hydro-based electric utility.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Utility companies in the United States and in foreign countries are generally subject to regulation. &nbsp;In the United States, most utility companies are regulated by state and/or federal authorities. &nbsp;Such regulation is intended to ensure appropriate standards of service and adequate capacity to meet public demand. &nbsp;Generally, prices are also regulated in the United States and in foreign countries with the intention of protecting the public while ensuring that the rate of return earned by utility companies is sufficient to allow them to attract capital in order to grow and continue to provide appropriate services. &nbsp;There can be no assurance that such pricing policies or rates of return will continue in the future.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The nature of regulation of the utility industries is evolving both in the United States and in foreign countries. &nbsp;In recent years, changes in regulation in the United States increasingly have allowed utility companies to provide services and products outside their traditional geographic areas and lines of business, creating new areas of competition within the industries. &nbsp;In some instances, utility companies are operating on an unregulated basis. &nbsp;Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to the field of telecommunications, non-regulated providers of utility services have become a significant part of their respective industries.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Foreign utility companies are also subject to regulation, although such regulations may or may not be comparable to those in the United States. &nbsp;Foreign utility companies may be more heavily regulated by their respective governments than utilities in the United States and, as in the United States, generally are required to seek government approval for rate increases. &nbsp;In addition, many foreign utilities use fuels that may cause more pollution than those used in the United States, which may require such utilities to invest in pollution control equipment to meet any proposed pollution restrictions. &nbsp;Foreign regulatory systems vary from country to country and may evolve in ways different from regulation in the United States.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The revenues of domestic and foreign utility companies generally reflect the economic growth and development in the geographic areas in which they do business. &nbsp;The Subadviser takes into account anticipated economic growth rates and other economic developments when selecting securities of utility companies.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>Risks of Concentration in the Electric</U><I><U> </U></I><U>Industry</U> &nbsp;(All Funds)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The electric utility industry consists of companies that are engaged principally in one of more of the following activities: the generation, transmission, sale and distribution of electric energy, although many also provide other energy-related services. &nbsp;Electric utility companies have historically been subject to the risks associated with increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory climate.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The construction and operation of nuclear power facilities are subject to increased scrutiny by, and evolving regulations of, the Nuclear Regulatory Commission and state agencies having comparable jurisdiction. &nbsp;Increased scrutiny might result in higher operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these costs in rate authorizations or the risk that a company may not be permitted to operate or complete construction of a facility. &nbsp;In addition, operators of nuclear power plants may be subject to significant costs for disposal of nuclear fuel and for decommissioning such plants.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The introduction of competition into the industry as a result of deregulation may result in lower revenue, lower credit ratings, increased default risk, and lower electric utility security prices. &nbsp;Such increased competition may also cause long-term contracts, which electric utilities previously entered into to buy power, to become &#147;stranded assets&#148; which have no economic value. &nbsp;Any loss associated with such contracts must be absorbed by ratepayers and investors. &nbsp;In addition, in anticipation of increasing competition, some electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in operating in a deregulated environment. &nbsp;In some instances, such acquisitions have involved significant borrowings, which have burdened the acquirer&#146;s balance sheet. &nbsp;There is no assurance that current deregulation proposals will be
adopted. &nb






sp;However, deregulation in any form could significantly impact the electric utilities industry. &nbsp;Following deregulation of the energy markets in certain states, a number of companies have engaged in energy trading and incurred substantial losses. &nbsp;Certain of these energy trading businesses have been accused of employing improper accounting practices and have been required to make significant restatements of their financial results. &nbsp;In addition, several energy companies have been accused of attempting to manipulate the price and availability of energy in certain states.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>Risks of Concentration in the Telecommunications Industry</U> &nbsp;(All Funds)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The telecommunications industry today includes both traditional telephone companies, with a history of broad market coverage and highly regulated businesses, and cable companies, which began as small, lightly regulated businesses focused on limited markets. &nbsp;The telecommunications segment includes companies that distribute telephone services and provide access to the telephone networks as well as non-regulated activities such as cellular telephone services, paging, data processing, equipment retailing, computer software and hardware services. &nbsp;The presence of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less regulated businesses provide significant investment opportunities with companies which may increase their earnings at faster rates than had been allowed in traditional regulated businesses. &nbsp;Still, increasing competition,
technological i






nnovations and other structural changes could adversely affect the profitability of such utilities and the growth rate of their dividends. &nbsp;Given mergers, the development of new products and potential legislation and enforcement changes, it is likely that both traditional telephone companies and cable companies will soon provide a greatly expanded range of utility services, including two-way video and informational services to both residential, corporate and governmental customers.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>Risks of Concentration in the Gas Industry</U> &nbsp;(All Funds)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The gas industry includes gas transmission companies and gas distribution companies. In the United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which is reducing its regulation of the industry. &nbsp;Many companies have diversified into oil and gas exploration and development, making returns more sensitive to energy prices.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>Risks of Concentration in the Water Industry</U> &nbsp;(All Funds)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Water supply utilities are companies that collect, purify, distribute and sell water. &nbsp;In the United States and around the world the industry is highly fragmented because most of the water utilities are owned by local authorities. &nbsp;Companies in this industry are generally mature and are experiencing little or no per capita volume growth.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">There can be no assurance that the positive developments noted above, including those relating to privatization and changing regulation, will occur or that risk factors other than those noted above will not develop in the future.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><U>Foreign Securities Risk</U> &nbsp;(All Funds)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">Investments in foreign securities offer potential benefits not available from investments solely in securities of domestic issuers but also involve certain risks that are not typically associated with investment in domestic securities. &nbsp;There may be less publicly available information about a foreign issuer than about a domestic issuer. &nbsp;Foreign issuers generally are not subject to accounting, auditing and financial reporting standards comparable to those applicable to domestic issuers. &nbsp;Most foreign securities markets may have substantially less trading volume and are subject to less government supervision than U.S. securities markets, and securities of many foreign issuers may be less liquid and more volatile than securities of comparable domestic issuers. &nbsp;In addition, there is generally less government regulation of securities exchanges, securities dealers, and listed and unlisted
companies in






foreign countries than in the United States. &nbsp;Foreign markets also have different clearance and settlement procedures, and in certain markets, there have been times when settlements have been unable to keep pace with the volume of securities transactions, making it difficult to conduct such transactions. &nbsp;Delays in settlement could result in temporary periods during which a portion of the assets of a Fund is uninvested and no return is earned thereon. &nbsp;Inability of a Fund to make intended security purchases due to settlement problems could cause the Fund to miss attractive investment opportunities. &nbsp;Inability to dispose of portfolio securities due to settlement problems could result either in losses to a Fund due to subsequent declines in value of the portfolio securities or, if the Fund has entered into a contract to sell the securities, could result in possible liability to the purchaser. &nbsp;Costs associated with transactions in foreign securities are generally higher than
costs asso






ciated with transactions in U.S. securities. &nbsp;In addition, with respect to certain foreign countries, there is a possibility of expropriation or confiscatory taxation, imposition of withholding taxes on dividend or interest payments, limitations on the removal of funds or other assets of a Fund and political or social instability or diplomatic developments which could affect investments in those countries. &nbsp;Individual foreign economies may differ favorably or unfavorably from the U.S. economy in such respects as growth of gross national product, rate of inflation, capital reinvestment, resources, self-sufficiency and balance of payments position. &nbsp;The securities markets, values of securities, yields and risks associated with securities markets in different countries may change independently of each other. &nbsp;Dividends paid with respect to foreign securities will not qualify for the Dividends Received Deduction when distributed to shareholders. &nbsp;Certain investments in foreign
securities






 by a Fund may be subject to foreign withholding taxes, which would reduce the total return on such investments and the amounts available for distribution to holders of the Common Shares. &nbsp;The Funds do not expect to qualify for an election that would enable the holders of the Common Shares to use such amounts as credits or deductions against their U.S. Federal income taxes.</P>
<P style="line-height:17.333px; margin-top:14.667px; margin-bottom:3.667px; font-size:14.667px"><U>Risks of Concentration in the Banking Industry</U> &nbsp;(Global Dividend Fund)</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:14.667px; font-size:14.667px">Under normal market conditions Global Dividend Fund invests a portion (although less than 25%) of its total assets in securities issued by domestic and foreign companies engaged in the banking industry, including bank holding companies. &nbsp;Due to Global Dividend Fund&#146;s investments in such industry, Global Dividend Fund will have exposure to the risk factors which are characteristic of such investments. &nbsp;In particular, the value of and investment return on Global Dividend Fund&#146;s shares may be affected by economic or regulatory developments in or related to the banking industry. &nbsp;Sustained increases in interest rates can adversely affect the availability and cost of funds for lending activities of banks, and a deterioration in general economic conditions could increase the exposure of banks to credit losses. &nbsp;The banking industry is also subject to the effects of concentration of
loan po






rtfolios in particular businesses such as real estate, energy, agriculture or high technology-related companies, national and local regulation, and competition within such industry. &nbsp;In addition, Global Dividend Fund&#146;s investments in commercial banks located in several foreign countries are subject to additional risks due to the combination in such banks of commercial banking and diversified securities activities.</P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px"><U>Other Types of Investment Risk</U> &nbsp;(All Funds)</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">The Funds are subject to general risks associated with their investment strategies. &nbsp;These risks are detailed below:</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><I>Correlation Risk.</I> The risk that changes in the value of a hedging instrument will not match those of the asset being hedged (hedging is the use of one investment to offset the effects of another investment). Incomplete correlation can result in unanticipated risks (e.g., short sales, financial futures and options; securities and index options, currency contracts).</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><I>Credit Risk.</I> The risk that the issuer of a security, or the counterparty to a contract, will default or otherwise become unable to honor a financial obligation (e.g., borrowing; reverse repurchase agreements, repurchase agreements, securities lending, non-investment-grade securities, financial futures and options; securities and index options).</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><I>Information Risk.</I> The risk that key information about a security or market is inaccurate or unavailable (e.g., non-investment-grade securities, foreign equities).</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><I>Interest Rate Risk.</I> The risk of market losses attributable to changes in interest rates. With fixed-rate securities, a rise in interest rates typically causes a fall in values, while a fall in rates typically causes a rise in values (e.g., non-investment-grade securities, financial futures and options; securities and index options).</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><I>Leverage Risk.</I> Associated with securities or practices (such as borrowing) that multiply small index or market movements into large changes in value (e.g., borrowing; reverse repurchase agreements, when-issued securities and forward commitments).</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><I>Hedging Risk.</I> When a derivative (a security whose value is based on another security or index) is used as a hedge against an opposite position that the fund also holds, any loss generated by the derivative should be substantially offset by gains on the hedged investment, and vice versa. While hedging can reduce or eliminate losses, it can also reduce or eliminate gains. (e.g., short sales, financial futures and options securities and index options; currency contracts).</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><I>Speculative Risk.</I> To the extent that a derivative is not used as a hedge, the fund is directly exposed to the risks of that derivative. Gains or losses from speculative positions in a derivative may be substantially greater than the derivative&#146;s original cost. (e.g., short sales, financial futures and options securities and index options; currency contracts).</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><I>Liquidity Risk.</I> The risk that certain securities may be difficult or impossible to sell at the time and the price that the seller would like. The seller may have to lower the price, sell other securities instead or forego an investment opportunity, any of which could have a negative effect on fund management or performance (e.g., non-investment-grand securities, short sales, restricted and illiquid securities, financial futures and options securities and index options; currency contracts).</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><I>Management Risk.</I> The risk that a strategy used by a fund&#146;s management may fail to produce the intended result. Common to all investment companies.</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><I>Market Risk.</I> The risk that the market value of a security may move up and down, sometimes rapidly and unpredictably. These fluctuations may cause a security to be worth less than the price originally paid for it, or less than it was worth at an earlier time. Market risk may affect a single issuer, industry, sector of the economy or the market as a whole. Common to all stocks and bonds and the investment companies that invest in them (e.g., short sales, short-term trading, when-issued securities and forward commitments, non-investment-grade securities, foreign equities, financial futures and options; securities and index options restricted and illiquid securities).</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><I>Natural Event Risk.</I> The risk of losses attributable to natural disasters, crop failures and similar events (e.g., foreign equities).</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><I>Opportunity Risk.</I> The risk of missing out on an investment opportunity because the assets necessary to take advantage of it are tied up in less advantageous investments (e.g., short sales, when-issued securities and forward commitments; financial futures and options; securities and index options, currency contracts).</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><I>Political Risk.</I> The risk of losses attributable to government or political actions, from changes in tax or trade statutes to governmental collapse and war (e.g., foreign equities).</P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px"><I>Valuation Risk.</I> The risk that a fund has valued certain of its securities at a higher price than it can sell them for (e.g., non-investment-grade securities, restricted and illiquid securities).</P>
<A NAME="_Toc155700487"></A><P style="line-height:17.333px; margin-top:14.667px; margin-bottom:3.667px; font-size:14.667px"><B>Fundamental Investment Restrictions</B></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The following investment restrictions of each Fund may not be changed without the approval of a majority of a Fund&#146;s outstanding voting securities which, as used in this Statement of Additional Information, means the approval by the lesser of (1) the holders of 67% or more of a Fund&#146;s shares represented at a meeting if more than 50% of a Fund&#146;s outstanding shares are present in person or by proxy at that meeting or (2) more than 50% of a Fund&#146;s outstanding shares. &nbsp;For comparison purposes the fundamental investment restrictions of the Acquiring Fund are compared against the restrictions of the other Acquired Funds and where several Funds share identical restrictions these have been combined:</P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=230.2></TD><TD width=15.733></TD><TD width=152.8></TD><TD width=15.733></TD><TD width=223.933></TD></TR>
<TR><TD valign=bottom width=230.2><P style="line-height:17.333px; margin:0px; font-size:14.667px"><B><U>Acquiring Fund</U></B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=152.8><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B><U>Premium Dividend </U></B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B><U>Fund I and Select </U></B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B><U>Dividend Trust</U></B></P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=223.933><P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B><U>Global Dividend Fund and </U></B></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px" align=center><B><U>Preferred Dividend Fund</U></B></P>
</TD></TR>
<TR><TD valign=top width=230.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">1. Borrow money, provided that the Fund may (i) borrow amounts not exceeding 5% of the value of its total assets (not including the amount borrowed) for temporary purposes and (ii) issue senior securities, as defined in the 1940 Act, to the extent permitted under the 1940 Act.</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="line-height:17.333px; margin:0px; font-size:14.667px">Same</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="line-height:17.333px; margin:0px; font-size:14.667px">1. Borrow money, provided that the Fund may (i) borrow amounts not exceeding <FONT COLOR=#FF0000>
</FONT>15
</FONT>% of the value of its total assets (including the amount borrowed) for temporary
or emergency
</FONT>purposes or for tender offers or otherwise to repurchase its shares and (ii) issue senior securities, as defined in the 1940 Act, to the extent permitted under the 1940 Act.</P>
</TD></TR>

<TR>
<TD>&nbsp;</TD>
</TR>


<TR><TD valign=top width=230.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">2. Pledge, hypothecate, mortgage or otherwise encumber its assets, except to secure borrowings permitted by the preceding paragraph. Collateral arrangements with respect to margin or futures contracts and options are not deemed to be pledges or other encumbrances for purposes of this restriction.</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="line-height:17.333px; margin:0px; font-size:14.667px">Same</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="line-height:17.333px; margin:0px; font-size:14.667px">2. Pledge, hypothecate, mortgage or otherwise encumber its assets, except to secure borrowings

or senior securities

</FONT>permitted by the preceding paragraph. Collateral arrangements with respect to margin,

swap transactions, risk management
options
and when-issued and forward commitment transactions
are not deemed to be pledges or other encumbrances for purposes of this restriction.</P>
</TD></TR>
<TR><TD valign=top width=230.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=230.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">3. Purchase securities on margin, except the Fund may obtain such short-term credits as may be necessary for the clearance of security transactions and may make margin deposits in connection with transactions in options, futures contracts and options on such contracts.</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="line-height:17.333px; margin:0px; font-size:14.667px">Same</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="line-height:17.333px; margin:0px; font-size:14.667px">3. Purchase securities on margin, except the Fund may obtain such short-term credits as may be necessary for the clearance of security transactions and may make margin deposits in connection with transactions in options, [swap transactions and risk management transactions].

</U></FONT>[bracketed text appears in Preferred Dividend Fund only]</P>
</TD></TR>
<TR><TD valign=top width=230.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=230.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">4. Make short sales of securities or maintain a short position for the account of the Fund, unless at all times when a short position is open the Fund owns an equal amount of such securities or owns securities which, without payment of any further consideration, are convertible into or exchangeable for securities of the same issue as, and in equal amounts to, the securities sold short</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="line-height:17.333px; margin:0px; font-size:14.667px">Same</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="line-height:17.333px; margin:0px; font-size:14.667px">Same</P>
</TD></TR>
<TR><TD valign=top width=230.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=230.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">5. Underwrite securities issued by other persons; except to the extent that in connection with the disposition of its portfolio investments it may be deemed to be an underwriter under the federal securities laws.</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="line-height:17.333px; margin:0px; font-size:14.667px">Same</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="line-height:17.333px; margin:0px; font-size:14.667px">Same</P>
</TD></TR>
<TR><TD valign=top width=230.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=230.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">6. Purchase or sell real estate, although the Fund may purchase securities of issuers which deal in real estate, securities which are secured by interests in real estate and securities representing interests in real estate.</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="line-height:17.333px; margin:0px; font-size:14.667px">Same</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="line-height:17.333px; margin:0px; font-size:14.667px">Same</P>
</TD></TR>
<TR><TD valign=top width=230.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=230.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">7. Purchase or sell commodities or commodity contracts, except that the Fund may purchase or sell financial futures contracts and related options.</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="line-height:17.333px; margin:0px; font-size:14.667px">Same</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="line-height:17.333px; margin:0px; font-size:14.667px"></P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px"><BR>
7. Purchase or sell commodities or commodity contracts, except that the Fund may purchase or sell financial futures contracts and related options
[and enter into swap transactions]. [bracketed text appears in Preferred Dividend Fund only

</U></FONT>.</P>
</TD></TR>
<TR><TD valign=top width=230.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=230.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">8. Make loans, except by purchase of debt obligations in which the Fund may invest consistent with its investment policies, by entering into repurchase agreements, or through the lending of its portfolio securities.</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="line-height:17.333px; margin:0px; font-size:14.667px">Same</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="line-height:17.333px; margin:0px; font-size:14.667px">Same</P>
</TD></TR>
<TR><TD valign=top width=230.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=230.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">9. Purchase or retain the securities of any issuer if, to the knowledge of the Fund, those officers and Trustees of the Fund and officers and Directors of the Adviser who each own beneficially more than .50 of 1 % of the securities of that issuer together own more than 5% of such issuer.</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="line-height:17.333px; margin:0px; font-size:14.667px">Same</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="line-height:17.333px; margin:0px; font-size:14.667px">None</P>
</TD></TR>
<TR><TD valign=top width=230.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=230.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">10. Invest in securities of any issuer if, immediately after such investment, more than 5% of the total assets of the Fund (taken at current value) would be invested in the securities of such issuer or acquire more than 10% of the outstanding voting securities of any issuer, provided that this limitation does not apply to obligations issued or guaranteed as to interest and principal by the U.S. Government or its agencies or instrumentalities or to repurchase agreements secured by such obligations and that up to 25% of the Fund&#146;s total assets (at current value) may be invested without regard to this limitation.</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="line-height:17.333px; margin:0px; font-size:14.667px">Same</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="line-height:17.333px; margin:0px; font-size:14.667px">Same</P>
</TD></TR>
<TR><TD valign=top width=230.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=230.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">11. Invest more than 25% of the value of its total assets in the securities of issuers primarily engaged in any one industry except the utilities industry, provided that this limitation does not apply to obligations issued or guaranteed as to interest and principal by the U.S. Government or its agencies or instrumentalities or to repurchase agreements secured by such obligations or to bank money market instruments.</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="line-height:17.333px; margin:0px; font-size:14.667px">Preferred Dividend Fund I:<BR>
Invest more than </FONT>20%
</FONT> of the value of its total assets in the securities of issuers primarily engaged in any one industry except the utilities industry, provided that this limitation does not apply to obligations issued or guaranteed as to interest and principal by the U.S. Government or its agencies or instrumentalities or to repurchase agreements secured by such obligations or to bank money market instruments.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Select Dividend Trust: Same</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="line-height:17.333px; margin:0px; font-size:14.667px">Invest more than 25% of the value of its total assets in the securities of issuers primarily engaged in any one industry

 except the utilities industry [except the utilities industry]
</FONT>[bracketed text appears in Global Dividend Fund only], provided that this limitation does not apply to obligations issued or guaranteed as to interest and principal by the U.S. Government or its agencies or instrumentalities or to repurchase agreements secured by such obligations.
</FONT></P>
</TD></TR>
<TR><TD valign=top width=230.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=230.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">12. Buy or sell oil, gas or other mineral leases, rights or royalty contracts although it may purchase securities of issuers which deal in, represent interests in or are secured by interests in such leases, rights or contracts.</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="line-height:17.333px; margin:0px; font-size:14.667px">Same</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="line-height:17.333px; margin:0px; font-size:14.667px">None</P>
</TD></TR>
<TR><TD valign=top width=230.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=230.2><P style="line-height:17.333px; margin:0px; font-size:14.667px">13. Purchase securities of any issuer for the purpose of exercising control or management, except in connection with a merger, consolidation, acquisition or reorganization.</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=152.8><P style="line-height:17.333px; margin:0px; font-size:14.667px">Same</P>
</TD><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=223.933><P style="line-height:17.333px; margin:0px; font-size:14.667px">None</P>
</TD></TR>
</TABLE>
<P style="line-height:17.333px; margin-top:14.667px; margin-bottom:3.667px; font-size:14.667px"><I>Non-Fundamental Investment Restrictions of Preferred Dividend Fund</I></P>
<P style="line-height:17.333px; margin-top:0px; margin-bottom:14.667px; font-size:14.667px">Preferred Dividend Fund will abide by the following non-fundamental investment restrictions pursuant to certain restrictions set forth in the 1940 Act. &nbsp;In the event of a change in the law liberalizing the following restrictions, such restrictions would be automatically revised in conformity with such change.</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">Preferred Dividend Fund may not:</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">1. Acquire more than 10% of the outstanding voting securities of any insurance company;</P>
<P style="line-height:17.333px; margin:0px; font-size:14.667px">2. Acquire any security of an issuer that, in its most recent fiscal year, derived more than 15% of its gross revenues from activities as a broker, dealer or underwriter, unless (i) immediately after the acquisition of any equity security (limited, at the time of acquisition, to a &#147;margin security&#148; as defined in Regulation T promulgated by the Federal Reserve System) of the issuer, Preferred Dividend Fund owns not more than 5% of the outstanding securities of that class of the issuer&#146;s equity securities; (ii) immediately after the acquisition of any debt security (rated, at the time of acquisition, investment grade by the Board of Trustees), Preferred Dividend Fund owns not more than 10% of the outstanding principal amount of the issuer&#146;s debt securities; and (iii) immediately after any such acquisition, Preferred Dividend Fund has invested not more than 5% of the value of its total assets in securities of the
issuer.</P>
<A NAME="_Toc142448247"></A><A NAME="_Toc155700488"></A><P style="line-height:17.333px; margin-top:14.667px; margin-bottom:3.667px; font-size:14.667px" align=center><B>TRUSTEES AND OFFICERS OF THE FUNDS</B></P>
<A NAME="_Toc142448248"></A><A NAME="_Toc155700489"></A><P style="line-height:17.333px; margin-top:14.667px; margin-bottom:3.667px; font-size:14.667px"><B>General</B></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px">The business of the Funds is managed by each Fund&#146;s Board of Trustees, who elect officers who are responsible for the day-to-day operations of each Fund and who execute policies formulated by the Trustees. &nbsp;The Acquiring Fund and the Acquired Funds share the same Board of Trustees and executive officers. &nbsp;The tables below list the trustees and executive officers of the Funds and their term in office, their principal occupations during the last five years, other directorships held by trustees and their affiliations, if any, either within the John Hancock Fund Complex or elsewhere. &nbsp;The term &#147;Fund Complex&#148; includes each of the investment companies advised by the Adviser as of the date of this Statement of Additional Information. &nbsp;Trustees of the Funds generally serve until resignation, retirement age or until their successors are duly elected and qualified.</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=142.2></TD><TD width=215.867></TD><TD width=95.8></TD><TD width=96.8></TD><TD width=87.733></TD></TR>
<TR><TD style="border:1px solid #000000" valign=bottom width=142.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Name, (Age), Address(1)</P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>and Position with the Funds</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=215.867><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Principal Occupations and other Directorships</P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>During the Past Five Years</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=95.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Trustee Since</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=96.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Number of John </P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Hancock Funds </P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Overseen</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.733><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Other </P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Directorships </P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>held by Director</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=142.2><P style="line-height:13.333px; margin:0px; font-size:10.667px">Charles L. Ladner<BR>
Born: 1938<BR>
Independent Trustee</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=215.867><P style="line-height:13.333px; margin:0px; font-size:10.667px">Chairman and Trustee, Dunwoody Village, Inc. (retirement services) (until 2003); Senior Vice President and Chief Financial Officer, UGI Corporation (public utility holding company) (retired 1998); Vice President and Director for AmeriGas, Inc. (retired 1998); Director of AmeriGas Partners, L.P. (gas distribution) (until 1997); Director, EnergyNorth, Inc. (until 1995); Director, Parks and History Association (since 2001).</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=95.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>1992 (A-D)<BR>
1993 (E)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=96.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>160</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">Trustee of other funds in the Fund Complex</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=142.2><P style="line-height:13.333px; margin:0px; font-size:10.667px">James F. Carlin<BR>
Born: 1940<BR>
Independent Trustee</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=215.867><P style="line-height:13.333px; margin:0px; font-size:10.667px">Director and Treasurer, Alpha Analytical Laboratories &nbsp;(chemical analysis); Part Owner and Treasurer, Lawrence Carlin Insurance Agency, Inc. (since 1995); Part Owner and Vice President, Mone Lawrence Carlin Insurance Agency, Inc. (until 2005); Director/Treasurer, Rizzo Associates (engineering) (until 2000); Chairman and CEO, Carlin Consolidated, Inc. (management/investments); Director/Partner, Proctor Carlin &amp; Co., Inc. (until 1999); Trustee, Massachusetts Health and Education Tax Exempt Trust; Director of the following: Uno Restaurant Corp. (until 2001), Arbella Mutual (insurance) (until 2000), HealthPlan Services, Inc. (until 1999), Flagship Healthcare, Inc. (until 1999), Carlin Insurance Agency, Inc. (until 1999); Chairman, Massachusetts Board of Higher Education (until 1999)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=95.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>1988(A)</P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>1989(B)<BR>
1990(C)<BR>
1992(D)<BR>
1993(E)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=96.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>53</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">Trustee of other funds in the Fund Complex</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=142.2><P style="line-height:13.333px; margin:0px; font-size:10.667px">James R. Boyle*<BR>
Born: 1959<BR>
Non-Independent Trustee</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=215.867><P style="line-height:13.333px; margin:0px; font-size:10.667px">Chairman and Director, John Hancock Advisers, LLC, (the &#147;Adviser&#148;), The Berkeley Financial Group, LLC Non-Independent Trustee (&#147;The Berkeley Group&#148;) (holding company) and John Hancock Funds, LLC. (&#147;John Hancock Funds&#148;) (since 2005); President, John Hancock Annuities; Executive Vice President, John Hancock Life Insurance Company (since 2004); President U.S. Annuities; Senior Vice President, The Manufacturers Life Insurance Company (U.S.A.) (prior to 2004).</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=95.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>2005(A-E)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=96.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>260</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">Trustee of other funds in the Fund Complex</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=142.2><P style="line-height:13.333px; margin:0px; font-size:10.667px">John A. Moore<BR>
Born: 1939<BR>
Independent Trustee</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=215.867><P style="line-height:13.333px; margin:0px; font-size:10.667px">President and Chief Executive Officer, Institute for Evaluating Health Risks, (nonprofit institution) (until 2001); Chief Scientist, Sciences International (health research) (until 2003); Principal, Hollyhouse (consulting) (since 2000); Director, CIIT (nonprofit</P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">research) (since 2002).</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=95.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>2002 (A-E)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=96.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>53</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">Trustee of other funds in the Fund Complex</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=142.2><P style="line-height:13.333px; margin:0px; font-size:10.667px">Patti McGill Peterson+<BR>
Born: 1943 <BR>
Independent Trustee</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=215.867><P style="line-height:13.333px; margin:0px; font-size:10.667px">Executive Director, Council for International Exchange of Scholars and Vice President, Institute of International Education (since 1998); Senior Fellow, Cornell Institute of Public Affairs, Cornell University (until December 1998); Former President of Wells College and St. Lawrence University; Director, Niagara Mohawk Power Corporation (electric utility) (until 2003); Director, Ford Foundation, International Fellowships Program (since 2002); Director, Lois Roth Endowment (since 2002); Director, Council for International Educational Exchange (since 2003).</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=95.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>2002(A-E)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=96.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>53</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">Trustee of other funds in the Fund Complex</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=142.2><P style="line-height:13.333px; margin:0px; font-size:10.667px">Richard P. Chapman Jr.<BR>
Born: 1935<BR>
Independent Trustee</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=215.867><P style="line-height:13.333px; margin:0px; font-size:10.667px">President and Chief Executive Officer, Brookline Bancorp., Inc. &nbsp;(lending) (since 1972); Chairman and Director, Lumber Insurance Co. (insurance) (until 2000); Chairman and Director, Northeast Retirement Services, Inc. (retirement administration) (since 1998).</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=95.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>2005(A-E)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=96.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>53</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">Trustee of other funds in the Fund Complex</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=142.2><P style="line-height:13.333px; margin:0px; font-size:10.667px">Ronald R. Dion+<BR>
Born 1946<BR>
Chairman and Independent Trustee</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=215.867><P style="line-height:13.333px; margin:0px; font-size:10.667px">Chairman and Chief Executive Officer, R. M. Bradley&amp; Co., Inc.; Director, The New England Council and Massachusetts Roundtable; Director, Boston Stock Exchange; Trustee, North Shore Medical Center; Director, BJ&#146;s Wholesale Club, Inc. and a Corporator &nbsp;of the Eastern Bank; Trustee, Emmanuel College; Director, Boston Municipal Research Bureau; Member of the Advisory Board, Carroll Graduate School of Management at Boston College.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=95.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>1998(A-E)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=96.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>53</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">Trustee of other funds in the Fund Complex</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=142.2><P style="line-height:13.333px; margin:0px; font-size:10.667px">Steven R. Pruchansky<BR>
Born: 1944<BR>
Independent Trustee</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=215.867><P style="line-height:13.333px; margin:0px; font-size:10.667px">Chairman and Chief Executive Officer, Greenscapes of Southwest Florida, Inc. (since 2000); Director and President, Greenscapes of Southwest Florida, Inc. (until 2000); Managing Director, JonJames, LLC (real estate) &nbsp;(since 2001); Director, First Signature Bank &amp; Trust Company (until 1991); Director, Mast Realty Trust (until 1994); President, Maxwell Building Corp. (until 1991).</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=95.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>1992(A-D)<BR>
1993(E)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=96.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>53</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">Trustee of other funds in the Fund Complex</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=142.2><P style="line-height:13.333px; margin:0px; font-size:10.667px">William H. Cunningham<BR>
Born: 1944<BR>
Independent Trustee</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=215.867><P style="line-height:13.333px; margin:0px; font-size:10.667px">Former Chancellor, University of Texas System and former President of the University of Texas, Austin, Texas; Chairman and CEO, IBT Technologies (until 2001); Director of the following: Hire.com (until 2004), STC Broadcasting, Inc. and Sunrise Television Corp. (until 2001), Symtx, Inc. (electronic manufacturing) (since 2001), Adorno/Rogers Technology, Inc. (until 2004), Pinnacle Foods Corporation (until 2003), rateGenius (until 2003), Jefferson-Pilot Corporation (diversified life insurance company)(until 2006), New Century Equity Holdings (formerly Billing Concepts) (until 2001), eCertain (until 2001), ClassMap.com (until 2001), Agile Ventures (until 2001), AskRed.com (until 2001), Southwest Airlines, Introgen and Viasystems, Group, Inc. (electronic manufacturer) (until 2003); Advisory Director, Interactive Bridge, Inc. (college
fundraising)






 (until 2001); Advisory Director, Q Investments (until 2003); Advisory Director, JP Morgan Chase Bank (formerly Texas Commerce Bank - Austin)(since 1988), LIN Television (since 2002), WilTel Communications (until 2003) and Hayes Lemmerz International, Inc. (diversified automotive parts supply company) (since 2003)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=95.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>1994(A-E)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=96.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>160</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=87.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">Trustee of other funds in the Fund Complex;</P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">Director, Southwest Airlines;</P>
</TD></TR>
</TABLE>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">(1) Business address for Independent and Non-Independent Trustees is: 601 Congress Street, Boston, Massachusetts 02210.</P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">* &#147;Interested person&#148; (as defined in the 1940 Act) of the Funds and the Adviser. &nbsp;The Non-Independent Trustee holds positions with the Funds&#146; </P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">Adviser, underwriter and/or certain other affiliates.</P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">+ Trustee representing the holders of the preferred shares. </P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">(A) Premium Dividend Fund I</P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">(B) Premium Dividend Fund II</P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">(C) Select Dividend Trust</P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">(D) Global Dividend Fund</P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">(E) Preferred Dividend Fund</P>
<P style="margin-top:13.733px; margin-bottom:0px"><BR>
<BR></P>
<P style="line-height:17.333px; margin-top:13.733px; margin-bottom:0px; font-size:14.667px; page-break-before:always"><B>Principal Officers who are not Trustees</B></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=148.467></TD><TD width=385.8></TD><TD width=89.733></TD></TR>
<TR><TD style="border:1px solid #000000" valign=bottom width=148.467><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Name, (Age), Address(1) and </P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Position with the Funds</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=385.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Principal Occupation(s) during the Past 5 Years</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=89.733><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Officer Since</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=148.467><P style="line-height:13.333px; margin:0px; font-size:10.667px">Keith F. Hartstein<BR>
Born: 1956<BR>
President and Chief Executive Officer</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=385.8><P style="line-height:13.333px; margin:0px; font-size:10.667px">Senior Vice President, Manulife Financial Corporation (since 2004); Director, President and Chief Executive Officer, the Adviser and The Berkeley Group (holding company); Director, President and Chief Executive Officer, John Hancock Funds; Director, President and Chief Executive Officer, Sovereign Asset Management LLC (&#147;Sovereign&#148;); Director, John Hancock Signature Services, Inc.; President, John Hancock Trust, John Hancock Funds II and John Hancock Funds III; Director, Chairman and President, NM Capital Management, Inc. (NM Capital); Chairman, Investment Company Institute Sales Force Marketing Committee (since 2003); Executive Vice President, John Hancock Funds, LLC (until 2005).</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=89.733><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>2005</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=148.467><P style="line-height:13.333px; margin:0px; font-size:10.667px">Gordon Shone<BR>
Born: 1956<BR>
Treasurer</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=385.8><P style="line-height:13.333px; margin:0px; font-size:10.667px">Treasurer, John Hancock Funds (since 2006); John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2005); Vice President and Chief Financial Officer, John Hancock Trust (2003-2005); Senior Vice President, John Hancock Life Insurance Company (U.S.A.) (since 2001); Vice President, John Hancock Investment Management Services, Inc. and John Hancock Advisers, LLC (since 2006), The Manufacturers Life Insurance Company (U.S.A.) (1998 to 2000).</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=89.733><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>2006</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=148.467><P style="line-height:13.333px; margin:0px; font-size:10.667px">Francis V. Knox, Jr.<BR>
Born: 1947<BR>
Chief Compliance Officer</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=385.8><P style="line-height:13.333px; margin:0px; font-size:10.667px">Vice President and Chief Compliance Officer for John Hancock Investment Company, John Hancock Life Insurance Company (U.S.A.), John Hancock Life Insurance Company, John Hancock Trust, John Hancock Funds, John Hancock Funds II and John Hancock Funds III (since 2005); Fidelity Investments - Vice President and Assistant Treasurer, Fidelity Group of Funds (until 2004); Fidelity Investments - Vice President and Ethics &amp; Compliance Officer (until 2001).</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=89.733><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>2005</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=148.467><P style="line-height:13.333px; margin:0px; font-size:10.667px">John G. Vrysen<BR>
Born: 1955<BR>
Chief Financial Officer</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=385.8><P style="line-height:13.333px; margin:0px; font-size:10.667px">Director, Executive Vice President and Chief Financial Officer, the Adviser, Sovereign, the Berkeley Group, John Hancock Trust, John Hancock Funds, John Hancock Funds II and John Hancock Funds III (since 2005);Vice President and General Manager, Fixed Annuities, U.S. Wealth Management (until 2005).Vice President, Operations Manulife Wood Logan 7/00-9/04.</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=89.733><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>2005</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=148.467><P style="line-height:13.333px; margin:0px; font-size:10.667px">Thomas Kinzler<BR>
Born: 1955<BR>
Secretary and Chief Legal Officer</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=385.8><P style="line-height:13.333px; margin:0px; font-size:10.667px">Vice President and Counsel for John Hancock Life Insurance Company (U.S.A.) (since 2006); Secretary and Chief Legal Officer, John Hancock Funds, John Hancock Funds II, John Hancock Funds III and John Hancock Trust (since 2006); Vice President and Associate General Counsel for Massachusetts Mutual Life Insurance Company (1999-2006); Secretary and Chief Legal Counsel for MML Series Investment Fund (2000-2006); Secretary and Chief Legal Counsel for MassMutual Institutional Funds (2000-2004); Secretary and Chief Legal Counsel for MassMutual Select Funds and MassMutual Premier Funds (2004-2006).</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=89.733><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>2006</P>
</TD></TR>
</TABLE>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">(1) Business address for officers is 601 Congress Street, Boston, Massachusetts 02210-2805.</P>
<A NAME="_Toc142448249"></A><A NAME="_Toc155700490"></A><P style="margin-top:13.333px; margin-bottom:3.333px"><B>Board Committees</B></P>
<A NAME="_Toc142448250"></A><P style="margin-top:12.533px; margin-bottom:0px">Each Fund&#146;s Board of Trustees currently has four standing committees (each a &#147;Committee&#148;): the Audit Committee, the Governance Committee, the Contracts/Operations Committee and the Investment Performance Committee. &nbsp;Each Committee is comprised of Independent Trustees who are not &#147;interested persons&#148; as defined in the 1940 Act.</P>
<P style="margin-top:12.533px; margin-bottom:0px">The current membership of each Committee is set forth below.</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD><TD width=159.6></TD></TR>
<TR><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin-top:12.533px; margin-bottom:0px" align=center>Audit</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin-top:12.533px; margin-bottom:0px" align=center>Governance</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin-top:12.533px; margin-bottom:0px" align=center>Contracts/Operations</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=top width=159.6><P style="margin-top:12.533px; margin-bottom:0px" align=center>Investment Performance</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px">Messrs. Chapman, Ladner </P>
<P style="margin:0px">Moore and Ms. Peterson</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px">All Independent Trustees</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px">Messrs. Carlin, </P>
<P style="margin:0px">Cunningham, Dion and </P>
<P style="margin:0px">Pruchansky</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=159.6><P style="margin:0px">All Independent Trustees</P>
</TD></TR>
</TABLE>
<P style="margin-top:12.533px; margin-bottom:0px">Each Committee held five meetings during each Fund&#146;s fiscal year. &nbsp;With respect to each Fund, no Trustee attended fewer than 75% of the aggregate of: (1) the total number of meetings of the Trustees of the Fund; and (2) the total number of meetings held by all Committees of the Trustees on which they served. &nbsp;The Funds hold joint meetings of the Trustees and all Committees.</P>
<P style="margin-top:12.533px; margin-bottom:0px"><I>Audit Committee.</I> &nbsp;All members of each Fund&#146;s Audit Committee are independent under the New York Stock Exchange&#146;s Revised Listing Rules and each member is financially literate with at least one having accounting or financial management expertise. &nbsp;The Board has adopted a written charter for the Audit Committee, which is attached as Attachment 1. &nbsp;The Audit Committee recommends to the full Board the appointment of outside auditors for the Funds, monitors and oversees the audits of the Funds, communicates with both independent auditors and internal auditors on a regular basis and provides a forum for the auditors to report and discuss any matters they deem appropriate at any time. Each Audit Committee reports that it has (i) reviewed and discussed each Fund&#146;s audited financial statements with management; (ii) discussed with the independent auditors the matters relating to the quality of each Fund&#146;s financial
reporting as






 required by SAS 61; (iii) received written disclosures and an independence letter from the independent auditors required by Independent Standards Board Standard No. 1, and discussed with the auditors their independence; and (iv) based on these discussions, recommended to the Board that each Fund&#146;s financial statements be included in each Fund&#146;s annual report for the last fiscal year (see Attachment 2).</P>
<P style="margin-top:12.533px; margin-bottom:0px"><I>Governance Committee.</I> &nbsp;All of the Independent Trustees are members of the Governance Committee. &nbsp;The Governance Committee makes recommendations to the Board on issues related to corporate governance applicable to the Independent Trustees and to the composition and operation of the Board and recommends nominees to serve as members of the Board. &nbsp;Among other duties, the Governance Committee determines the compensation paid to the Independent Trustees. &nbsp;All members of the Governance Committee are independent under the New York Stock Exchange&#146;s Revised Listing Rules and are Independent Trustees. &nbsp;The Board has adopted a written charter for the Governance Committee, which is attached as Attachment 3 to this proxy. &nbsp;The Governance Committee selects and nominates for elections candidates for Independent Trustees. &nbsp;The Trustees who are not Independent Trustees and the Officers of the Fund are nominated and
selected by th




e
 Board.</P>
<P style="margin-top:12.533px; margin-bottom:0px">In reviewing a potential nominee and in evaluating the renomination of current Independent Trustees, the Governance Committee expects to apply the following criteria: (i) the nominee&#146;s reputation for integrity, honesty and adherence to high ethical standards; (ii) the nominee&#146;s business acumen, experience and ability to exercise sound judgments; (iii) a commitment to understand the Fund and the responsibilities of a trustee of an investment company; (iv) a commitment to regularly attend and participate in meetings of the Board and its Committees, (v) the ability to understand potential conflicts of interest involving management of the Fund and to act in the interests of all shareholders; and (vi) the absence of a real or apparent conflict of interest that would impair the nominee&#146;s ability to represent the interests of all the shareholders and to fulfill the responsibilities of an Independent Trustee. The Governance Committee does not
necessari






ly place the same emphasis on each criteria and each nominee may not have each of these qualities.</P>
<P style="margin-top:12.533px; margin-bottom:0px">As long as an existing Independent Trustee continues, in the opinion of the Governance Committee, to satisfy the criteria listed above, the Committee generally would favor the renomination of an existing Trustee rather than a new candidate. &nbsp;Consequently, while the Governance Committee will consider nominees recommended by shareholders to serve as Trustees, the Governance Committee may only act upon such recommendations if there is a vacancy on the Board or the Governance Committee determines that the selection of a new or additional Trustee is in the best interests of the Funds. &nbsp;In the event that a vacancy arises or a change in Board membership is determined to be advisable, the Governance Committee will, in addition to any shareholder recommendations, consider candidates identified by other means, including candidates proposed by members of the Governance Committee. &nbsp;The Governance Committee may retain a consultant to assist the
Committee in






 a search for a qualified candidate.</P>
<P style="margin-top:12.533px; margin-bottom:0px">Any shareholder recommendation must be submitted in compliance with all of the pertinent provisions of Rule 14a-8 under the 1934 Act and a Fund&#146;s by-laws to be considered by the Governance Committee. &nbsp;In evaluating a nominee recommended by a shareholder, the Governance Committee, in addition to the criteria discussed above, may consider the objectives of the shareholder in submitting that nomination and whether such objectives are consistent with the interests of all shareholders. &nbsp;If the Board determines to include a shareholder&#146;s candidate among the slate of its designated nominees, the candidate&#146;s name will be placed on the Fund&#146;s proxy card. &nbsp;If the Board determines not to include such candidate among its designated nominees and the shareholder has satisfied the requirements of Rule 14a-8, the shareholder&#146;s candidate will be treated as a nominee of the shareholder who originally nominated the candidate.
&nbsp;In tha






t case, the candidate will not be named on the proxy card distributed with the Fund&#146;s proxy statement. &nbsp;Each of the nominees for election as Trustee was recommended by the Governance Committee.</P>
<P style="margin-top:12.533px; margin-bottom:0px"><I>Contract/Operations Committee. &nbsp;</I>The Contracts/Operations Committee oversees the initiation, operation and renewal of the various contracts between the Fund and other entities. &nbsp;These contracts include advisory, custodial and transfer agency agreements and arrangements with other service providers.</P>
<P style="margin-top:12.533px; margin-bottom:0px"><I>Investment Performance Committee.</I> &nbsp;The Investment Performance Committee monitors and analyzes the investment performance of the Funds generally, consults with the Adviser as necessary if a Fund is considered to require special attention, and reviews fund peer groups and other comparative standards as necessary.</P>
<A NAME="_Toc155700491"></A><P style="margin-top:13.333px; margin-bottom:3.333px"><B>Trustee Beneficial Ownership of Securities</B></P>
<P style="margin-top:13.333px; margin-bottom:3.333px"><I>Securities of the Funds</I></P>
<P style="margin-top:0px; margin-bottom:25.867px">The following table provides a dollar range indicating each Trustee&#146;s ownership of equity securities of the Funds as well as aggregate holdings of shares of equity securities of all John Hancock funds overseen by the Trustee, as of December 21, 2006.</P>
<P style="margin-top:12.533px; margin-bottom:0px" align=center><B>Trustee Holdings(1)</B></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=136.4></TD><TD width=48.667></TD><TD width=107.067></TD><TD width=66></TD><TD width=110.2></TD><TD width=48.6></TD><TD width=107.067></TD></TR>
<TR><TD valign=top width=136.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=155.733 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Premium Dividend Fund I</P>
</TD><TD valign=top width=176.2 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Premium Dividend Fund II</P>
</TD><TD valign=top width=155.667 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Select Dividend Trust</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=136.4><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Trustee</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=48.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Shares</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Dollar Range</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Shares</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Dollar Range</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=48.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Shares</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Dollar Range</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=624 colspan=7><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Independent Trustees</B></P>
</TD></TR>
<TR><TD valign=top width=136.4><P style="line-height:13.333px; margin:0px; font-size:10.667px">James F. Carlin</P>
</TD><TD valign=top width=48.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>4,150</P>
</TD><TD valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$10,001 &#150; $50,000</P>
</TD><TD valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>1,200</P>
</TD><TD valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$10,001 &#150; $50,000</P>
</TD><TD valign=top width=48.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>1,000</P>
</TD><TD valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$10,001 &#150; $50,000</P>
</TD></TR>
<TR><TD valign=top width=136.4><P style="line-height:13.333px; margin:0px; font-size:10.667px">Richard P. Chapman, Jr.</P>
</TD><TD valign=top width=48.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=48.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD></TR>
<TR><TD valign=top width=136.4><P style="line-height:13.333px; margin:0px; font-size:10.667px">William H. Cunningham</P>
</TD><TD valign=top width=48.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=48.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD></TR>
<TR><TD valign=top width=136.4><P style="line-height:13.333px; margin:0px; font-size:10.667px">Ronald R. Dion</P>
</TD><TD valign=top width=48.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>100</P>
</TD><TD valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=48.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>65</P>
</TD><TD valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD></TR>
<TR><TD valign=top width=136.4><P style="line-height:13.333px; margin:0px; font-size:10.667px">Charles L. Ladner</P>
</TD><TD valign=top width=48.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>390</P>
</TD><TD valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>200</P>
</TD><TD valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=48.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>200</P>
</TD><TD valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD></TR>
<TR><TD valign=top width=136.4><P style="line-height:13.333px; margin:0px; font-size:10.667px">Dr. John A. Moore</P>
</TD><TD valign=top width=48.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>100</P>
</TD><TD valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>100</P>
</TD><TD valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=48.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>100</P>
</TD><TD valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD></TR>
<TR><TD valign=top width=136.4><P style="line-height:13.333px; margin:0px; font-size:10.667px">Patti McGill Peterson</P>
</TD><TD valign=top width=48.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>153</P>
</TD><TD valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>130</P>
</TD><TD valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=48.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>102</P>
</TD><TD valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=136.4><P style="line-height:13.333px; margin:0px; font-size:10.667px">Steven R. Pruchansky</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=48.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>116</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>200</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=48.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>100</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=624 colspan=7><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Non-Independent Trustee</B></P>
</TD></TR>
<TR><TD valign=top width=136.4><P style="line-height:13.333px; margin:0px; font-size:10.667px">James R. Boyle</P>
</TD><TD valign=top width=48.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=48.6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=107.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=151.733></TD><TD width=54.067></TD><TD width=90.333></TD><TD width=66></TD><TD width=110.2></TD><TD width=151.667></TD></TR>
<TR><TD valign=top width=151.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=144.4 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Global Dividend Fund</P>
</TD><TD valign=top width=176.2 colspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Preferred Dividend Fund</P>
</TD><TD valign=top width=151.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>All John Hancock Funds<BR>
Overseen</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=151.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">Trustee</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=54.067><P style="line-height:13.333px; margin:0px; font-size:10.667px">Shares</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=90.333><P style="line-height:13.333px; margin:0px; font-size:10.667px">Dollar Range</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px">Shares</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px">Dollar Range</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=151.667><P style="line-height:13.333px; margin:0px; font-size:10.667px">Dollar Range</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=624 colspan=6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Independent Trustees</B></P>
</TD></TR>
<TR><TD valign=top width=151.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">James F. Carlin</P>
</TD><TD valign=top width=54.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>100</P>
</TD><TD valign=top width=90.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>100</P>
</TD><TD valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=151.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>Over $100,000</P>
</TD></TR>
<TR><TD valign=top width=151.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">Richard P. Chapman, Jr.</P>
</TD><TD valign=top width=54.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=90.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=151.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>Over $100,000</P>
</TD></TR>
<TR><TD valign=top width=151.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">William H. Cunningham</P>
</TD><TD valign=top width=54.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=90.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=151.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>Over $100,000</P>
</TD></TR>
<TR><TD valign=top width=151.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">Ronald R. Dion</P>
</TD><TD valign=top width=54.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>100</P>
</TD><TD valign=top width=90.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>65</P>
</TD><TD valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=151.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>Over $100,000</P>
</TD></TR>
<TR><TD valign=top width=151.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">Charles L. Ladner</P>
</TD><TD valign=top width=54.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>235</P>
</TD><TD valign=top width=90.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>200</P>
</TD><TD valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=151.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>Over $100,000</P>
</TD></TR>
<TR><TD valign=top width=151.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">Dr. John A. Moore</P>
</TD><TD valign=top width=54.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>100</P>
</TD><TD valign=top width=90.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>100</P>
</TD><TD valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=151.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>Over $100,000</P>
</TD></TR>
<TR><TD valign=top width=151.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">Patti McGill Peterson</P>
</TD><TD valign=top width=54.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>108</P>
</TD><TD valign=top width=90.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=151.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>Over $100,000</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=151.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">Steven R. Pruchansky</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=54.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>300</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=90.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>275</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1 &#150; $10,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=151.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>Over $100,000</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=624 colspan=6><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center><B>Non-Independent Trustee</B></P>
</TD></TR>
<TR><TD valign=top width=151.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">James R. Boyle</P>
</TD><TD valign=top width=54.067><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=90.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=66><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=110.2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD><TD valign=top width=151.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>&#151;</P>
</TD></TR>
</TABLE>
<P style="line-height:13.333px; margin-top:7.533px; margin-bottom:0px; font-size:10.667px">(1) The amounts reflect the aggregate dollar range of equity securities beneficially owned by the Trustees in the Funds and in all John Hancock funds overseen by each Trustee. &nbsp;For each Trustee, the amounts reflected include share equivalents of certain John Hancock funds in which the Trustee is deemed to be invested pursuant to the Deferred Compensation Plan for Independent Trustees, as more fully described under &#147;Remuneration of Trustees and Officers.&#148; &nbsp;The information as to beneficial ownership is based on statements furnished to the Funds by the Trustees. &nbsp;Each of the Trustees has all voting and investment powers with respect to the shares indicated. &nbsp;None of the Trustees beneficially owned individually, and the Trustees and executive officers of the Funds as a group did not beneficially own, in excess of one percent of the outstanding shares of any Fund.</P>
<P style="margin-top:12.533px; margin-bottom:0px">The trustees and officers of the Funds do not own one percent or more of any class of any Fund&#146;s securities.</P>
<P style="margin-top:13.333px; margin-bottom:3.333px"><I>Independent Trustees Securities Transactions</I></P>
<P style="margin:0px">None of the Independent Trustees of the Funds, or their immediate family members, has engaged in any transactions with the Funds, any officer of the Funds or any registered investment company or private fund advised by the Adviser or Subadviser or any officer of the Adviser or Subadviser the value of which exceeds $60,000.</P>
<A NAME="_Toc142448251"></A><A NAME="_Toc155700492"></A><P style="margin-top:13.333px; margin-bottom:3.333px"><B>Compensation</B></P>
<P style="margin-top:12.533px; margin-bottom:0px">The following table provides information regarding the compensation paid by the Funds and the other investment companies in the John Hancock fund complex to the Independent Trustees for their services for each Fund&#146;s most recently completed fiscal year. &nbsp;Any non-Independent Trustees and each of the officers of the Funds are interested persons of the Adviser, are compensated by the Adviser and/or its affiliates, and receive no compensation from the Funds for their services.</P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=130.667></TD><TD width=80></TD><TD width=80></TD><TD width=80></TD><TD width=80></TD><TD width=80></TD><TD width=93.333></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=bottom width=130.667><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Trustee</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Premium Dividend Fund I(1)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Premium Dividend Fund II(2)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Select Dividend Trust(3)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Global Dividend Fund(4)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Preferred Dividend(5)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=93.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Total Compensation from Fund and Fund Complex(6)</P>
</TD></TR>
<TR><TD valign=top width=130.667><P style="line-height:13.333px; margin:0px; font-size:10.667px">James F. Carlin</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$ 1,097</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1,418</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1,288</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$873</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$969</P>
</TD><TD valign=bottom width=93.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$5,645</P>
</TD></TR>
<TR><TD valign=top width=130.667><P style="line-height:13.333px; margin:0px; font-size:10.667px">Richard P. Chapman, Jr.*</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1,105</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1,429</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1,292</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$877</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$971</P>
</TD><TD valign=bottom width=93.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$5,674</P>
</TD></TR>
<TR><TD valign=top width=130.667><P style="line-height:13.333px; margin:0px; font-size:10.667px">William H. Cunningham*</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$970</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1,264</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1,194</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$790</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$911</P>
</TD><TD valign=bottom width=93.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$5,129</P>
</TD></TR>
<TR><TD valign=top width=130.667><P style="line-height:13.333px; margin:0px; font-size:10.667px">Ronald R. Dion*</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$686</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$891</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$720</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$496</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$494</P>
</TD><TD valign=bottom width=93.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$3,287</P>
</TD></TR>
<TR><TD valign=top width=130.667><P style="line-height:13.333px; margin:0px; font-size:10.667px">Charles L. Ladner</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$579</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$731</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$768</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$448</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$644</P>
</TD><TD valign=bottom width=93.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$3,170</P>
</TD></TR>
<TR><TD valign=top width=130.667><P style="line-height:13.333px; margin:0px; font-size:10.667px">Dr. John A. Moore*</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1,297</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1,677</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1,447</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1,003</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1,058</P>
</TD><TD valign=bottom width=93.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$6,482</P>
</TD></TR>
<TR><TD valign=top width=130.667><P style="line-height:13.333px; margin:0px; font-size:10.667px">Pattie McGill Peterson</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$570</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$736</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$781</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$458</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$596</P>
</TD><TD valign=bottom width=93.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$3,141</P>
</TD></TR>
<TR><TD valign=top width=130.667><P style="line-height:13.333px; margin:0px; font-size:10.667px">Steven R. Pruchansky*</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$871</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1,139</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$1,092</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$709</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$781</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=93.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$4,592</P>
</TD></TR>
<TR><TD valign=top width=130.667><P style="line-height:13.333px; margin:0px; font-size:10.667px">TOTALS</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$7,175</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$9,285</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$8,582</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$5,654</P>
</TD><TD valign=bottom width=80><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$6,424</P>
</TD><TD valign=bottom width=93.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>$37,120</P>
</TD></TR>
</TABLE>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">(1) Compensation is for fiscal year ended September 30, 2006</P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">(2) Compensation is for fiscal year ended October 31, 2006</P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">(3) Compensation is for fiscal year ended June 30, 2006</P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">(4) Compensation is for fiscal year ended July 31, 2006</P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">(5) Compensation is for fiscal year ended May 31, 2006</P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px">(6) The total compensation paid by the John Hancock fund complex to the Independent Trustees for the calendar year ended December 31, 2006. &nbsp;All the Independent Trustees were Trustees of 53 funds in the John Hancock fund complex were Trustees of funds except Mr. Cunningham and Mr. Ladner who were Trustees of 160 funds.</P>
<P style="line-height:13.333px; margin-top:10px; margin-bottom:0px; font-size:10.667px">*As of September 30, 2006, the value of the aggregate accrued deferred compensation amount from all funds in the John Hancock fund complex for Mr. Chapman was $78,064, Mr. Cunningham was $155,553, Mr. Dion was $511,282, Dr. Moore was $301,295, Mr. Pruchansky was $301,658 and for Mr. Smith was $318,001 under the John Hancock Deferred Compensation Plan for Independent Trustees (the &#147;Plan&#148;). Under the Plan, an Independent Trustee may elect to have deferred fees invested by a Fund in shares of one or more funds in the John Hancock fund complex, and the amount paid to the Trustees under the Plan will be determined based upon the performance of such investments. &nbsp;Deferral of Trustees&#146; fees does not obligate any Fund to retain the services of any Trustee or obligate any Fund to pay any particular level of compensation to the Trustee.</P>
<P style="margin-top:12.533px; margin-bottom:0px">As of December 21, 2006, officers and Trustees of the Fund as a group owned less than 1% of the outstanding shares of the Fund. &nbsp;To the knowledge of each Fund, no persons owned of record or beneficially 5% or more of any class of the Fund&#146;s outstanding shares of the Fund.</P>
<A NAME="_Toc142448252"></A><A NAME="_Toc155700493"></A><P style="margin-top:13.333px; margin-bottom:3.333px" align=center><B>PROXY VOTING POLICIES</B></P>
<P style="margin-top:12.533px; margin-bottom:0px">The Adviser and the Subadviser have jointly adopted Proxy Voting Policies to determine how to vote proxies relating to each Fund&#146;s portfolio securities. &nbsp;These Proxy Voting Policies are incorporated by reference to exhibit 7 of the Acquiring Fund&#146;s annual report filed on Form N-CSR on January 3, 2007. &nbsp;Information regarding how each Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Adviser&#146;s website at http://www.jhfunds.com/proxy and on the Securities and Exchange Commission&#146;s website at http://www.sec.gov.</P>
<A NAME="_Toc142448253"></A><A NAME="_Toc155700494"></A><P style="margin-top:13.333px; margin-bottom:16.667px" align=center>
<B>OWNERSHIP OF SHARES OF THE FUNDS</B></P>
<P style="margin:0px">To the knowledge of each Fund, as of

[

DATE

]

, the following persons owned of record or beneficially 5% or more of the outstanding shares of the Acquiring Fund:</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=148></TD><TD width=212.8></TD><TD width=94.4></TD></TR>
<TR><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=top width=148><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Name</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Address</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=top width=94.4><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Percentage </P>
<P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Ownership</P>
</TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=top width=148><P style="line-height:13.333px; margin:0px; font-size:10.667px">The Commerce Group, Inc.</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=212.8><P style="line-height:13.333px; margin:0px; font-size:10.667px">211 Main Street, Webster, MA 01570</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=94.4><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=right>[ &nbsp;]%</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px">No shares of the Funds, other than seed investments, were outstanding as of that date.</P>
<A NAME="_Toc142448254"></A><A NAME="_Toc155700495"></A><P style="margin-top:13.333px; margin-bottom:3.333px" align=center><B>INVESTMENT ADVISORY AND OTHER SERVICES</B></P>
<A NAME="_Toc142448255"></A><A NAME="_Toc155700496"></A><P style="margin-top:13.333px; margin-bottom:3.333px"><B>Advisory Agreement</B></P>
<P style="margin-top:0px; margin-bottom:13.333px">Each Fund has an investment management contract with John Hancock Advisers, LLC (the &#147;Adviser&#148;), a wholly owned subsidiary of John Hancock Financial Services, Inc., a subsidiary of Manulife Financial Corporation (&#147;MFC&#148;). &nbsp;Founded in 1968, John Hancock Advisers is a wholly owned subsidiary of John Hancock Financial Services, Inc. (a subsidiary of MFC) and managed approximately $28 billion in assets as of March 31, 2006.</P>
<P style="margin:0px">Under the investment management contracts, each Fund pays a monthly management fee to the Adviser at an annual rate based on a percentage of the Fund&#146;s average weekly net asset value and the value attributable to the Fund&#146;s preferred shares. &nbsp;The Proxy Statement/Prospectus has more detailed information regarding each Fund&#146;s advisory fees. &nbsp;The table below indicates the amount each Fund paid to the Adviser during the last three fiscal years for each fund:</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=157.267></TD><TD width=160.4></TD><TD width=160.4></TD><TD width=160.333></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=bottom width=157.267><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Fund</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=160.4><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Fiscal Year / Advisory Fee</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=160.4><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Fiscal Year / Advisory Fee</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=160.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Fiscal Year / Advisory Fee</P>
</TD></TR>
<TR><TD valign=top width=157.267><P style="line-height:13.333px; margin:0px; font-size:10.667px">Premium Dividend Fund II</P>
</TD><TD valign=top width=160.4><P style="line-height:13.333px; margin:0px; font-size:10.667px">10/31/2004: $2,139,989</P>
</TD><TD valign=top width=160.4><P style="line-height:13.333px; margin:0px; font-size:10.667px">10/31/2005: $2,210,655</P>
</TD><TD valign=top width=160.333><P style="line-height:13.333px; margin:0px; font-size:10.667px">10/31/2006: $2,215,621</P>
</TD></TR>
<TR><TD valign=top width=157.267><P style="line-height:13.333px; margin:0px; font-size:10.667px">Premium Dividend Fund I</P>
</TD><TD valign=top width=160.4><P style="line-height:13.333px; margin:0px; font-size:10.667px">09/30/2004: $1,643,299</P>
</TD><TD valign=top width=160.4><P style="line-height:13.333px; margin:0px; font-size:10.667px">09/30/2005: $1,701,707</P>
</TD><TD valign=top width=160.333><P style="line-height:13.333px; margin:0px; font-size:10.667px">09/30/2006: $1,697,138</P>
</TD></TR>
<TR><TD valign=top width=157.267><P style="line-height:13.333px; margin:0px; font-size:10.667px">Select Dividend Trust</P>
</TD><TD valign=top width=160.4><P style="line-height:13.333px; margin:0px; font-size:10.667px">06/30/2004: $1,650,629</P>
</TD><TD valign=top width=160.4><P style="line-height:13.333px; margin:0px; font-size:10.667px">06/30/2005: $1,709,859</P>
</TD><TD valign=top width=160.333><P style="line-height:13.333px; margin:0px; font-size:10.667px">06/30/2006: $1,717,815</P>
</TD></TR>
<TR><TD valign=top width=157.267><P style="line-height:13.333px; margin:0px; font-size:10.667px">Global Dividend Fund</P>
</TD><TD valign=top width=160.4><P style="line-height:13.333px; margin:0px; font-size:10.667px">07/31/2004: $1,345,374</P>
</TD><TD valign=top width=160.4><P style="line-height:13.333px; margin:0px; font-size:10.667px">07/31/2005: $1,403,201</P>
</TD><TD valign=top width=160.333><P style="line-height:13.333px; margin:0px; font-size:10.667px">07/31/2006: $1,393,632</P>
</TD></TR>
<TR><TD valign=top width=157.267><P style="line-height:13.333px; margin:0px; font-size:10.667px">Preferred Dividend Fund</P>
</TD><TD valign=top width=160.4><P style="line-height:13.333px; margin:0px; font-size:10.667px">05/31/2004: $1,199,365</P>
</TD><TD valign=top width=160.4><P style="line-height:13.333px; margin:0px; font-size:10.667px">05/31/2005: $1,224,314</P>
</TD><TD valign=top width=160.333><P style="line-height:13.333px; margin:0px; font-size:10.667px">05/31/2006: $1,231,786</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px">Each Fund has an administrative agreement with the Adviser under which the Adviser oversees the custodial, auditing, valuation, accounting, legal, stock transfer and dividend disbursing services and maintains Fund communications with shareholders. &nbsp;The Funds pay the Adviser a monthly administration fee based on a percentage of the Funds average weekly managed assets. &nbsp;The Proxy Statement/Prospectus has more detailed information regarding the administration fee each Fund&#146; paid to the Adviser. &nbsp;The Funds also reimbursed JHLICo for certain compliance costs, included in the Funds&#146; Statements of Operations.</P>
<P style="margin:0px">Each Fund bears all costs of its organization and operation, including but not limited to expenses of preparing, printing and mailing all shareholders&#146; reports, notices, prospectuses, proxy statements and reports to regulatory agencies; expenses relating to the issuance, registration and qualification of shares; government fees; interest charges; expenses of furnishing to shareholders their account statements; taxes; expenses of redeeming shares; brokerage and other expenses connected with the execution of portfolio securities transactions; expenses pursuant to the Funds plans of distribution; fees and expenses of custodians including those for keeping books and accounts, maintaining a committed line of credit, and calculating the net asset value of shares; fees and expenses of transfer agents and dividend disbursing agents; legal, accounting, financial, management, tax and auditing fees and expenses of the Funds (including an allocable portion of the cost of the
Adviser&#146;s emp






loyees rendering such services to the Funds); the compensation and expenses of Trustees who are not otherwise affiliated with the Fund, the Adviser or any of their affiliates; expenses of Trustees&#146; and shareholders&#146; meetings; trade association memberships; insurance premiums; and any extraordinary expenses.</P>
<P style="margin-top:12.533px; margin-bottom:0px">From time to time, the Adviser may reduce its fee or make other arrangements to limit a Fund&#146;s expenses to a specified percentage of its average daily net assets. The Adviser retains the right to reimpose a fee and recover any other payments to the extent that, at the end of any fiscal year, the Fund&#146;s annual expenses fall below this limit.</P>
<P style="margin-top:12.533px; margin-bottom:0px">Securities held by a Fund may also be held by other funds or investment advisory clients for which the Adviser or its affiliates provide investment advice. &nbsp;Because of different investment objectives or other factors, a particular security may be bought for one or more funds or clients when one or more other funds or clients are selling the same security. &nbsp;If opportunities for purchase or sale of securities by the Adviser for the Fund or for other funds or clients for which the Adviser renders investment advice arise for consideration at or about the same time, transactions in such securities will be made, insofar as feasible, for the respective funds or clients in a manner deemed equitable to all of them. To the extent that transactions on behalf of more than one client of the Adviser or its affiliates may increase the demand for securities being purchased or the supply of securities being sold, there may be an adverse effect on price.</P>
<P style="margin-top:12.533px; margin-bottom:0px">Pursuant to the investment management contracts with each Fund, the Adviser is not liable for any error of judgment or mistake of law or for any loss suffered by a Fund in connection with the matters to which the investment management contract relates, except a loss resulting from willful misfeasance, bad faith or gross negligence on the part of the Adviser in the performance of its duties or from reckless disregard by the Adviser of its obligations and duties under the Advisory Agreement.</P>
<P style="margin-top:12.533px; margin-bottom:0px">Under the investment management contracts, each Fund may use the name &#147;John Hancock&#148; or any name derived from or similar to it only for so long as the investment management contracts or any extension, renewal or amendment thereof remains in effect. &nbsp;If the investment management contracts between the Adviser and a Fund is no longer in effect, the Fund (to the extent that it lawfully can) will cease to use such a name or any other name indicating that it is advised by or otherwise connected with the Adviser. &nbsp;In addition, the Adviser or JHLICo may grant the nonexclusive right to use the name &#147;John Hancock&#148; or any similar name to any other corporation or entity, including but not limited to any investment company of which the JHLICo or any subsidiary or affiliate thereof or any successor to the business of any subsidiary or affiliate thereof shall be the investment adviser.</P>
<P style="margin-top:12.533px; margin-bottom:0px">The Advisory Agreement was approved by all Trustees. &nbsp;The Advisory Agreement will continue in effect from year to year, provided that its continuance is approved annually after its initial two year term both (i) by the holders of a majority of the outstanding voting securities of the Fund or by the Trustees, and (ii) by a majority of the Trustees who are not parties to the Agreement or &#147;interested persons&#148; of any such parties. &nbsp;The Advisory Agreement may be terminated on 60 days written notice by any party or by vote of a majority of the outstanding voting securities of the Fund and will terminate automatically if assigned.</P>
<P style="margin-top:12.533px; margin-bottom:0px"><I>Code of Ethics.</I> Personnel of the Adviser and its affiliates may trade securities for their personal accounts. &nbsp;The Funds also may hold, or may be buying or selling, the same securities. &nbsp;To prevent the Funds from being disadvantaged, the Adviser, Sub-Adviser, principal underwriter and each Fund have adopted a code of ethics which restricts the trading activity of those personnel. &nbsp;The Funds&#146; codes of ethics may be reviewed and copied at the Securities and Exchange Commission&#146;s Public Reference Room in Washington, D.C. &nbsp;Information on the operation of the Public Reference Room may be obtained by calling the Securities and Exchange Commission at 1-202-942-8090. &nbsp;Copies of the Funds&#146; codes of ethics may also be obtained, after paying a duplicating fee, by electronic request to publicinfo@sec.gov, or by writing to the Commission&#146;s Public Reference Section, Washington, D.C. 20549-0102. &nbsp;The
Funds&#146; codes






 of ethics are also available online at the Securities and Exchange Commission website: http://www.sec.gov.</P>
<A NAME="_Toc142448256"></A><A NAME="_Toc155700497"></A><P style="margin-top:13.333px; margin-bottom:16.667px"><B>Subadvisory Agreement</B></P>
<P style="margin:0px">Effective December 31, 2005, the investment management teams of the Adviser were reorganized into MFC Global Investment Management (U.S.), LLC (&#147;MFC Global (U.S.)&#148; or &#147;Subadviser&#148;), a wholly owned indirect subsidiary of John Hancock Life Insurance Company (&#147;JHLICo&#148;), a subsidiary of MFC. <I>&nbsp;</I>MFC Global (U.S.) serves as the subadviser to each Fund and managed approximately $26.6 billion in assets as of November 30, 2006. &nbsp;The Funds are not responsible for payment of subadvisory fees. &nbsp;Prior to January 1, 2006, the Adviser did not pay subadvisory fees for management of the Funds. &nbsp;The chart below indicates the subadvisory fees paid to the Subadviser by the Adviser for the management of each Fund during the last fiscal year:</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0 align=center><TR><TD width=156.8></TD><TD width=160.533></TD></TR>
<TR><TD style="border-bottom:1px solid #000000" valign=bottom width=156.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Fund</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=160.533><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Fiscal Year Ended / Subadvisory Fee</P>
</TD></TR>
<TR><TD valign=top width=156.8><P style="line-height:13.333px; margin:0px; font-size:10.667px">Premium Dividend Fund II</P>
</TD><TD valign=top width=160.533><P style="line-height:13.333px; margin:0px; font-size:10.667px">10/31/2006: $

468,118.42

</P>
</TD></TR>
<TR><TD valign=top width=156.8><P style="line-height:13.333px; margin:0px; font-size:10.667px">Premium Dividend Fund I</P>
</TD><TD valign=top width=160.533><P style="line-height:13.333px; margin:0px; font-size:10.667px">09/30/2006: $

319,765.25

</P>
</TD></TR>
<TR><TD valign=top width=156.8><P style="line-height:13.333px; margin:0px; font-size:10.667px">Select Dividend Trust</P>
</TD><TD valign=top width=160.533><P style="line-height:13.333px; margin:0px; font-size:10.667px">06/30/2006: $

211,073.78

</P>
</TD></TR>
<TR><TD valign=top width=156.8><P style="line-height:13.333px; margin:0px; font-size:10.667px">Global Dividend Fund</P>
</TD><TD valign=top width=160.533><P style="line-height:13.333px; margin:0px; font-size:10.667px">07/31/2006: $

200,538.07

</P>
</TD></TR>
<TR><TD valign=top width=156.8><P style="line-height:13.333px; margin:0px; font-size:10.667px">Preferred Dividend Fund</P>
</TD><TD valign=top width=160.533><P style="line-height:13.333px; margin:0px; font-size:10.667px">05/31/2006: $

126,293.06

</P>
</TD></TR>
</TABLE>
<P style="margin-top:12.533px; margin-bottom:0px">Pursuant to the subadvisory agreement between the Adviser and the Subadviser, the Subadviser will provide services to the Funds, including, without limitation, (i) formulating and implementing continuous investment programs for each Fund consistent with the investment objectives &nbsp;and investment policies set forth in the Funds&#146; registration statements, (ii) selecting broker-dealers to effect all of the Funds&#146; transactions, (iii) maintaining all books and records with respect to each Fund, and (iv) voting proxies relating to securities held by the Funds. &nbsp;The subadvisory agreement sets forth that the Subadviser is not liable for any error of judgment or mistake of law or for any loss suffered by the Adviser or a Fund in connection with the matters to which the investment management contract relates, except a loss resulting from willful misfeasance, bad faith or gross negligence on the part of the Adviser in the performance of its
duties or f






rom reckless disregard by the Subadviser of its obligations and duties under the subadvisory agreement</P>
<P style="margin-top:12.533px; margin-bottom:0px">The subadvisory agreement continues in effect for a period of more than two years only so long as the continuance is specifically approved by the Trustees of the Funds.</P>
<P style="margin-top:12.533px; margin-bottom:0px">A discussion regarding the basis for the approval of the advisory and sub-advisory agreements by each Fund&#146;s Board is available in each Fund&#146;s respective shareholder reports for the most recently completed fiscal year.</P>
<A NAME="_Toc142448257"></A><A NAME="_Toc155700498"></A><P style="margin-top:13.333px; margin-bottom:3.333px"><B>Custodian</B></P>
<P style="margin-top:12.533px; margin-bottom:0px">Portfolio securities of the Fund are held pursuant to a custodian agreement between the Fund and The Bank of New York, One Wall Street, New York, New York 10286. Under the custodian agreement, The Bank of New York is performing custody, portfolio, foreign custody manager and fund accounting services.</P>
<A NAME="_Toc142448258"></A><A NAME="_Toc155700499"></A><P style="margin-top:13.333px; margin-bottom:3.333px"><B>Independent Auditors</B></P>
<P style="margin-top:12.533px; margin-bottom:0px">The independent auditors of the Fund, [ &nbsp;], audit and render an opinion on the Fund&#146;s annual financial statements, and reviews the Fund&#146;s annual federal income tax return.</P>
<A NAME="_Toc142448261"></A><A NAME="_Toc155700500"></A><P style="margin-top:13.333px; margin-bottom:3.333px" align=center><B>PORTFOLIO MANAGERS</B></P>
<A NAME="_Toc142448262"></A><A NAME="_Toc155700501"></A><P style="margin-top:13.333px; margin-bottom:3.333px"><B>Portfolio Managers and Other Accounts Managed.</B></P>
<P style="margin:0px">The portfolio managers of each Fund are Gregory Phelps and Mark Maloney. &nbsp;As of November 30, 2006, each portfolio manager managed the following other accounts:</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=204.733></TD><TD width=145.533></TD><TD width=145.333></TD><TD width=142.8></TD></TR>
<TR><TD style="border:1px solid #000000" valign=bottom width=204.733 rowspan=2><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Portfolio Manager Name</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=433.667 colspan=3><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Other Accounts Managed by the Portfolio Manager<SUP>1</SUP></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=145.533><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Registered Investment Companies (assets)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=145.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Pooled Investment Vehicles (assets)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=142.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>Other Accounts</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=204.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">Gregory Phelps</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=145.533><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>4 ($4.15 billion)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=145.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>2 ($65 million)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=142.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>None</P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=204.733><P style="line-height:13.333px; margin:0px; font-size:10.667px">Mark Maloney</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=145.533><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>4 ($4.15 billion)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=145.333><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>2 ($65 million)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=142.8><P style="line-height:13.333px; margin:0px; font-size:10.667px" align=center>None</P>
</TD></TR>
</TABLE>
<P style="margin-top:0px; margin-bottom:13.333px">(1) The Funds are not included in the number of other accounts managed.</P>
<P style="margin-top:0px; margin-bottom:13.333px">MFC Global (U.S.) does not generally receive a fee based upon the investment performance of the accounts reflected in the table above.</P>
<P style="margin-top:0px; margin-bottom:13.333px"><I>Potential Conflicts of Interest.</I> When a portfolio manager is responsible for the management of more than one account, the potential arises for the portfolio manager to favor one account over another. The principal types of potential conflicts of interest that may arise are discussed below. For the reasons outlined below, MFC Global (U.S.) does not believe that any material conflicts are likely to arise out of a portfolio manager&#146;s responsibility for the management of the fund as well as one or more other accounts. &nbsp;MFC Global (U.S.) has adopted procedures that are intended to monitor compliance with the policies referred to in the following paragraphs. Generally, the risks of such conflicts of interests are increased to the extent that a portfolio manager has a financial incentive to favor one account over another. &nbsp;MFC Global (U.S.) has structured its compensation arrangements in a manner that is intended to limit such potential
for con






flicts of interests. See &#147;Structure of Compensation&#148; below.</P>
<P style="margin-top:0px; margin-bottom:13.333px">A portfolio manager could favor one account over another in allocating new investment opportunities that have limited supply, such as initial public offerings and private placements. If, for example, an initial public offering that was expected to appreciate in value significantly shortly after the offering was allocated to a single account, that account may be expected to have better investment performance than other accounts that did not receive an allocation on the initial public offering. MFC Global (U.S.) has policies that require a portfolio manager to allocate such investment opportunities in an equitable manner and generally to allocate such investments proportionately among all accounts with similar investment objectives.</P>
<P style="margin-top:0px; margin-bottom:13.333px">A portfolio manager could favor one account over another in the order in which trades for the accounts are placed. If a portfolio manager determines to purchase a security for more than one account in an aggregate amount that may influence the market price of the security, accounts that purchased or sold the security first may receive a more favorable price than accounts that made subsequent transactions. The less liquid the market for the security or the greater the percentage that the proposed aggregate purchases or sales represent of average daily trading volume, the greater the potential for accounts that make subsequent purchases or sales to receive a less favorable price. When a portfolio manager intends to trade the same security for more than one account, MFC Global (U.S.)&#146;s policies generally require that such trades be &#147;bunched,&#148; which means that the trades for the individual accounts are aggregated and each account receives
the same






price. There are some types of accounts as to which bunching may not be possible for contractual reasons (such as directed brokerage arrangements). Circumstances may also arise where the trader believes that bunching the orders may not result in the best possible price. Where those accounts or circumstances are involved, MFC Global (U.S.) will place the order in a manner intended to result in as favorable a price as possible for such client.</P>
<P style="margin-top:0px; margin-bottom:13.333px">A portfolio manager could favor an account if the portfolio manager&#146;s compensation is tied to the performance of that account rather than all accounts managed by the portfolio manager. If, for example, the portfolio manager receives a bonus based upon the performance of certain accounts relative to a benchmark while other accounts are disregarded for this purpose, the portfolio manager will have a financial incentive to seek to have the accounts that determine the portfolio manager&#146;s bonus achieve the best possible performance to the possible detriment of other accounts. Similarly, if MFC Global (U.S.) receives a performance-based advisory fee, the portfolio manager may favor that account, whether or not the performance of that account directly determines the portfolio manager&#146;s compensation. The investment performance on specific accounts is not a factor in determining the portfolio manager&#146;s compensation. See &#147;Structure of
Compensat






ion&#148; below. &nbsp;MFC Global (U.S.) &nbsp;receives a performance-based fee with respect to one of the accounts managed by the portfolio managers of Active Bond Fund.</P>
<P style="margin-top:0px; margin-bottom:13.333px">A portfolio manager could favor an account if the portfolio manager has a beneficial interest in the account. For example, if the portfolio manager held an interest in an investment partnership that was one of the accounts managed by the portfolio manager, the portfolio manager would have an economic incentive to favor the account in which the portfolio manager held an interest. &nbsp;MFC Global (U.S.) imposes certain trading restrictions and reporting requirements for accounts in which a portfolio manager or certain family members have a personal interest in order to confirm that such accounts are not favored over other accounts.</P>
<P style="margin:0px">If the different accounts have materially and potentially conflicting investment objectives or strategies, a conflict of interest may arise. For example, if a portfolio manager purchases a security for one account and sells the same security short for another account, such trading pattern may disadvantage either the account that is long or short. In making portfolio manager assignments, MFC Global (U.S.) seeks to avoid such potentially conflicting situations. However, where a portfolio manager is responsible for accounts with differing investment objectives and policies, it is possible that the portfolio manager will conclude that it is in the best interest of one account to sell a portfolio security while another account continues to hold or increase the holding in such security.</P>
<A NAME="_Toc142448263"></A><A NAME="_Toc155700502"></A><P style="margin-top:13.333px; margin-bottom:3.333px"><B>Structure of Compensation</B></P>
<P style="margin-top:0px; margin-bottom:13.333px">MFC Global (U.S.) has adopted a system of compensation for portfolio managers and others involved in the investment process that is applied systematically among investment professionals. &nbsp;At MFC Global (U.S.), the structure of compensation of investment professionals is currently comprised of the following basic components: base salary and an annual investment bonus plan, as well as customary benefits that are offered generally to all full-time employees of MFC Global (U.S.). &nbsp;A limited number of senior portfolio managers, who serve as officers of both MFC Global (U.S.) and its parent company, may also receive options or restricted stock grants of common shares of Manulife Financial. &nbsp;The following describes each component of the compensation package for the individuals identified as a portfolio manager for the fund.</P>
<P style="margin-top:0px; margin-bottom:13.333px"><I>Base salary.</I> Base compensation is fixed and normally reevaluated on an annual basis. &nbsp;MFC Global (U.S.) seeks to set compensation at market rates, taking into account the experience and responsibilities of the investment professional.</P>
<P style="margin-top:0px; margin-bottom:13.333px"><I>Investment Bonus Plan.</I> &nbsp;Only investment professionals are eligible to participate in the Investment Bonus Plan. &nbsp;Under the plan, investment professionals are eligible for an annual bonus. &nbsp;The plan is intended to provide a competitive level of annual bonus compensation that is tied to the investment professional achieving superior investment performance and aligns the financial incentives of MFC Global (U.S.) and the investment professional. &nbsp;Any bonus under the plan is completely discretionary, with a maximum annual bonus that may be well in excess of base salary. &nbsp;While the amount of any bonus is discretionary, the following factors are generally used in determining bonuses under the plan.</P>
<P style="margin-top:0px; margin-bottom:13.333px"><I>Investment Performance:</I> The investment performance of all accounts managed by the investment professional over one and three- year periods is considered. &nbsp;The pre-tax performance of each account is measured relative to an appropriate peer group benchmark (for example a Morningstar large cap growth peer group if the fund invests primarily in large cap stocks with a growth strategy). &nbsp;With respect to fixed income accounts, relative yields are also used to measure performance.</P>
<P style="margin-top:0px; margin-bottom:13.333px"><I>The Profitability of MFC Global (U.S.):</I> The profitability of MFC Global (U.S.) and its parent company are also considered in determining bonus awards, with greater emphasis placed upon the profitability of MFC Global (U.S.).</P>
<P style="margin-top:0px; margin-bottom:13.333px"><I>Non-Investment Performance:</I> The more intangible contributions of an investment professional to MFC Global (U.S.) business, including the investment professional&#146;s support of sales activities, new fund/strategy idea generation, professional growth and development, and management, where applicable, are evaluated in determining the amount of any bonus award.</P>
<P style="margin:0px"><I>Options and Stock Grants.</I> A limited number of senior investment professionals may receive options to purchase shares of Manulife stock. Generally, such option would permit the investment professional to purchase a set amount of stock at the market price on the date of grant. The option can be exercised for a set period (normally a number of years or until termination of employment) and the investment professional would exercise the option if the market value of Manulife stock increases. &nbsp;Some investment professionals may receive restricted stock grants, where the investment professional is entitled to receive the stock at no or nominal cost, provided that the stock is forgone if the investment professional&#146;s employment is terminated prior to a vesting date. </P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px">MFC Global (U.S.) also permits investment professionals to participate on a voluntary basis in a deferred compensation plan, under which the investment professional may elect on an annual basis to defer receipt of a portion of their compensation until retirement. Participation in the plan is voluntary. No component of the compensation arrangements for the investment professionals involves mandatory deferral arrangements.</P>
<P style="margin:0px">While the profitability of MFC Global (U.S.) and the investment performance of the accounts that the investment professionals maintain are factors in determining an investment professional&#146;s overall compensation, the investment professional&#146;s compensation is not linked directly to the net asset value of any fund.</P>
<A NAME="_Toc142448264"></A><A NAME="_Toc155700503"></A><P style="margin-top:13.333px; margin-bottom:3.333px"><B>Ownership of Securities</B></P>
<P style="margin:0px">As of January 5, 2007 the portfolio managers did not own shares any Fund.</P>
<A NAME="_Toc142448265"></A><A NAME="_Toc155700504"></A><P style="margin-top:13.333px; margin-bottom:3.333px" align=center><B>NET ASSET VALUE</B></P>
<P style="margin-top:12.533px; margin-bottom:0px"><I>All Funds</I></P>
<P style="margin-top:12.533px; margin-bottom:0px">The net asset value of the Funds&#146; common stock will be determined at least once each week by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and accumulated and unpaid dividends, including any Additional Dividends) and the aggregate liquidation preference of the outstanding shares of the preferred shares, by the total number of shares of the common stock outstanding.</P>
<P style="margin-top:12.533px; margin-bottom:0px">In valuing the Funds&#146; portfolios, securities listed on an exchange or traded over-the-counter and quoted on the NASDAQ System will be valued at the last sale price on the day of valuation or, if there has been no sale that day, at the last reported bid price, using prices as of the close of trading. &nbsp;Over-the-counter securities not quoted on the NASDAQ System are be valued by the Acquiring Fund, Premium Dividend Fund I and Dividend Select Trust at the <I>current</I> bid price as obtained from two dealers which make markets in such securities or from a pricing service. &nbsp;Such securities are be valued by Preferred Dividend Fund and Global Dividend Fund at the <I>lowest </I>&nbsp;bid price as obtained from two dealers which make markets in such securities or from a pricing service. &nbsp;Securities for which reliable quotations are not readily available and other assets will be valued at their fair value as determined by or under the
direction of t






he Funds&#146; Board of Trustees. &nbsp;Auction preferred stocks have had a consistent history of trading in the secondary market at par value plus accrued dividends. &nbsp;Accordingly, when reliable quotations are not available for auction preferred stocks, they will generally be valued at par plus accrued dividends, although a different value may be assigned due to changes in an issuer&#146;s creditworthiness or market conditions. &nbsp;Money market instruments with remaining maturities of 60 days or less will be valued at amortized cost.</P>
<P style="margin-top:12.533px; margin-bottom:0px"><I>The Acquiring Fund, Premium Dividend Fund I and Dividend Select Trust</I></P>
<P style="margin-top:12.533px; margin-bottom:0px">The market value of the Funds&#146; Eligible Assets will be determined as set forth in the preceding paragraph, except that, for purposes of calculating the Eligible Asset Coverage and the Dividend Coverage / AMPS Basic Maintenance Amount requirement and the Minimum Liquidity Level, (i) Eligible Assets for which reliable quotations are not available will be valued at zero and (ii) Eligible Assets subject to call options written by the Fund will be valued at the lower of market value or the strike price of the option.</P>
<A NAME="_Toc142448266"></A><A NAME="_Toc155700505"></A><P style="margin-top:13.333px; margin-bottom:3.333px" align=center><B>BROKERAGE ALLOCATION</B></P>
<P style="margin-top:12.533px; margin-bottom:0px">Decisions concerning the purchase and sale of portfolio securities and the allocation of brokerage commissions are made by the Adviser pursuant to recommendations made by an investment committee of the Adviser, which consists of officers and directors of the Adviser and affiliates and officers and Trustees who are interested persons of the Fund. Orders for purchases and sales of securities are placed in a manner which, in the opinion of the Adviser, will offer the best price and market for the execution of each such transaction. Purchases from underwriters of portfolio securities may include a commission or commissions paid by the issuer, and transactions with dealers serving as market makers reflect a &#147;spread&#148;. Debt securities are generally traded on a net basis through dealers acting for their own account as principals and not as brokers; no brokerage commissions are payable on these transactions.</P>
<P style="margin-top:12.533px; margin-bottom:0px">In the U.S. Government securities market, securities are generally traded on a &#147;net&#148; basis with dealers acting as principal for their own account without a stated commission, although the price of the security usually includes a profit to the dealer. On occasion, certain money market instruments and agency securities may be purchased directly from the issuer, in which case no commissions or premiums are paid. In other countries, both debt and equity securities are traded on exchanges at fixed commission rates. Commissions on foreign transactions are generally higher than the negotiated commission rates available in the U.S. There is generally less government supervision and regulation of foreign stock exchanges and broker-dealers than in the U.S.</P>
<P style="margin-top:12.533px; margin-bottom:0px">The Fund&#146;s primary policy is to execute all purchases and sales of portfolio instruments at the most favorable prices consistent with best execution, considering all of the costs of the transaction including brokerage commissions. This policy governs the selection of brokers and dealers and the market in which a transaction is executed.</P>
<P style="margin-top:12.533px; margin-bottom:0px">To the extent consistent with the foregoing, the Fund will be governed in the selection of brokers and dealers, and the negotiation of brokerage commission rates and dealer spreads, by the reliability and quality of the services, including primarily the availability and value of research information and, to a lesser extent, statistical assistance furnished to the Adviser and their value and expected contribution to the performance of the Fund.</P>
<P style="margin-top:12.533px; margin-bottom:0px">As permitted by Section 28(e) of the Securities Exchange Act of 1934, the Fund may pay a broker which provides brokerage and research services to the Fund an amount of disclosed commission in excess of the commission which another broker would have charged for effecting that transaction. This practice is subject to a good faith determination by the Board of Trustees that such commission is reasonable in light of the services provided and to such policies as the Board of Trustees may adopt from time to time.</P>
<P style="margin-top:12.533px; margin-bottom:0px">Research services received from broker-dealers supplement the Adviser&#146;s own research (and the research of its affiliates), and may include the following types of information: statistical and background information on the U.S. and foreign economies, industry groups and individual companies; forecasts and interpretations with respect to the U.S. and foreign economies, securities, markets, specific industry groups and individual companies; information on federal, state, local and foreign political developments; portfolio management strategies; performance information on securities, indexes and investment accounts; and information concerning prices of securities. Broker-dealers may communicate such information electronically, orally, in written form or on computer software. Research services may also include the providing of electronic communication of trade information and the providing of custody services, as well as the providing of equipment used
to comm






unicate research information, the providing of specialized consultations with the Adviser&#146;s personnel with respect to computerized systems and data furnished to the Adviser as a component of other research services, the arranging of meetings with management of companies, and the providing of access to consultants who supply research information.</P>
<P style="margin-top:12.533px; margin-bottom:0px">The outside research assistance is useful to the Adviser since the broker-dealers used by the Adviser tend to follow a broader universe of securities and other matters than the Adviser&#146;s staff can follow. In addition, the research provides the Adviser with a diverse perspective on financial markets. Research services provided to the Adviser by broker-dealers are available for the benefit of all accounts managed or advised by the Adviser or by its affiliates. Some broker-dealers may indicate that the provision of research services is dependent upon the generation of certain specified levels of commissions and underwriting concessions by the Adviser&#146;s clients, including the Fund. However, the Fund is not under any obligation to deal with any broker-dealer in the execution of transactions in portfolio securities. In some cases, the research services are available only from the broker-dealer providing them. In other cases, the research services
may be o






btainable from alternative sources in return for cash payments.</P>
<P style="margin-top:12.533px; margin-bottom:0px">The Adviser believes that the research services are beneficial in supplementing the Adviser&#146;s research and analysis and that they improve the quality of the Adviser&#146;s investment advice. It is not possible to place a dollar value on information and services to be received from brokers and dealers, since it is only supplementary to the research efforts of the Adviser. The advisory fee paid by the Fund is not reduced because the Adviser receives such services. However, to the extent that the Adviser would have purchased research services had they not been provided by broker-dealers, the expenses to the Adviser could be considered to have been reduced accordingly. The research information and statistical assistance furnished by brokers and dealers may benefit the Life Company or other advisory clients of the Adviser, and conversely, brokerage commissions and spreads paid by other advisory clients of the Adviser may result in research information
and sta






tistical assistance beneficial to the Fund. The Fund will make no commitment to allocate portfolio transactions upon any prescribed basis.</P>
<P style="margin-top:12.533px; margin-bottom:0px">While the Adviser&#146;s officers, will be primarily responsible for the allocation of the Fund&#146;s brokerage business, the policies and practices of the Adviser in this regard must be consistent with the foregoing and at all times be subject to review by the Trustees.</P>
<P style="margin-top:12.533px; margin-bottom:0px">The Adviser may determine target levels of commission business with various brokers on behalf of its clients (including the Fund) over a certain time period. The target levels will be based upon the following factors, among others: (1) the execution services provided by the broker; and (2) the research services provided by the broker. The Fund&#146;s trades may be executed directly by dealers that sell shares of the John Hancock funds or by other broker-dealers with which such dealers have clearing arrangements, consistent with obtaining best execution and the Conduct Rules of the National Association of Securities Dealers, Inc. and other applicable regulatory requirements. The Adviser will not use a specific formula in connection with any of these considerations to determine the target levels. &nbsp;The Adviser&#146;s indirect parent, the Life Company, is the indirect sole shareholder of Signator Investors, Inc., a broker-dealer (until January 1,
1999, John






Hancock Distributors, Inc.) (&#147;Signator&#148; or &#147;Affiliated Broker&#148;). Pursuant to procedures determined by the Trustees and consistent with the above policy of obtaining best net results, the Fund may execute portfolio transactions with or through the Affiliated Broker.</P>
<P style="margin-top:12.533px; margin-bottom:0px">Signator may act as broker for the Fund on exchange transactions, subject, however, to the general policy of the Fund set forth above and the procedures adopted by the Trustees pursuant to the 1940 Act. Commissions paid to an Affiliated Broker must be at least as favorable as those which the Trustees believe to be contemporaneously charged by other brokers in connection with comparable transactions involving similar securities being purchased or sold. A transaction would not be placed with an Affiliated Broker if the Fund would have to pay a commission rate less favorable than the Affiliated Broker&#146;s contemporaneous charges for comparable transactions for its other most favored, but unaffiliated, customers, except for accounts for which the Affiliated Broker acts as clearing broker for another brokerage firm, and any customers of the Affiliated Broker not comparable to the Fund as determined by a majority of the Trustees who are not
&#147;interested pers






ons&#148; (as defined in the 1940 Act) of the Fund, the Adviser or the Affiliated Broker. Because the Adviser, which is affiliated with the Affiliated Broker, has, as an investment adviser to the Fund, the obligation to provide investment management services, which include elements of research and related investment skills, such research and related skills will not be used by the Affiliated Broker as a basis for negotiating commissions at a rate higher than that determined in accordance with the above criteria.</P>
<P style="margin-top:12.533px; margin-bottom:0px">Other investment advisory clients advised by the Adviser may also invest in the same securities as the Fund. When these clients buy or sell the same securities at substantially the same time, the Adviser may average the transactions as to price and allocate the amount of available investments in a manner which the Adviser believes to be equitable to each client, including the Fund. Because of this, client accounts in a particular style may sometimes not sell or acquire securities as quickly or at the same prices as they might if each were managed and traded individually.</P>
<P style="margin-top:12.533px; margin-bottom:0px">For purchases of equity securities, when a complete order is not filled, a partial allocation will be made to each account pro rata based on the order size. For high demand issues (for example, initial public offerings), shares will be allocated pro rata by account size as well as on the basis of account objective, account size (a small account&#146;s allocation may be increased to provide it with a meaningful position), and the account&#146;s other holdings. In addition, an account&#146;s allocation may be increased if that account&#146;s portfolio manager was responsible for generating the investment idea or the portfolio manager intends to buy more shares in the secondary market. For fixed income accounts, generally securities will be allocated when appropriate among accounts based on account size, except if the accounts have different objectives or if an account is too small to get a meaningful allocation. For new issues, when a complete order is
not fill






ed, a partial allocation will be made to each account pro rata based on the order size. However, if a partial allocation is too small to be meaningful, it may be reallocated based on such factors as account objectives, strategies, duration benchmarks and credit and sector exposure. For example, value funds will likely not participate in initial public offerings as frequently as growth funds. In some instances, this investment procedure may adversely affect the price paid or received by the Fund or the size of the position obtainable for it. On the other hand, to the extent permitted by law, the Adviser may aggregate securities to be sold or purchased for the Fund with those to be sold or purchased for other clients managed by it in order to obtain best execution.</P>
<A NAME="_Toc142448267"></A><A NAME="_Toc155700506"></A><P style="margin-top:13.333px; margin-bottom:13.333px" align=center><B>U.S. FEDERAL INCOME TAX MATTERS</B></P>
<A NAME="_Toc142448271"></A><P style="margin-top:0px; margin-bottom:13.333px">The following is a summary discussion of certain U.S. federal income tax consequences that may be relevant to a shareholder of acquiring, holding and disposing of common shares or preferred shares of a Fund. &nbsp;This discussion only addresses U.S. federal income tax consequences to U.S. shareholders who hold their shares as capital assets and does not address all of the U.S. federal income tax consequences that may be relevant to particular shareholders in light of their individual circumstances. &nbsp;This discussion also does not address the tax consequences to shareholders who are subject to special rules, including, without limitation, financial institutions, insurance companies, dealers in securities or foreign currencies, foreign shareholders, shareholders who hold their shares as or in a hedge against currency risk, a constructive sale, or a conversion transaction, shareholders who are subject to the alternative
minimum ta






x, or tax-exempt or tax-deferred plans, accounts, or entities. &nbsp;In addition, the discussion does not address any state, local, or foreign tax consequences, and it does not address any U.S. federal tax consequences other than U.S. federal income tax consequences. &nbsp;The discussion reflects applicable tax laws of the United States as of the date of this Prospectus, which tax laws may be changed or subject to new interpretations by the courts or the Internal Revenue Service (&#147;IRS&#148;) retroactively or prospectively. &nbsp;No attempt is made to present a detailed explanation of all U.S. federal income tax concerns affecting each Fund and its shareholders, and the discussion set forth herein does not constitute tax advice. &nbsp;Investors are urged to consult their own tax advisers to determine the specific tax consequences to them of investing in a Fund, including the applicable federal, state, local and foreign tax consequences to them and the effect of possible changes in tax laws.</P>
<P style="margin-top:0px; margin-bottom:13.333px">Each Fund intends to elect to be treated and to qualify each year as a &#147;regulated investment company&#148; under Subchapter M of the Code so that it generally will not pay U.S. federal income tax on income and capital gains distributed to shareholders. In order to qualify as a regulated investment company under Subchapter M of the Code, which qualification this discussion assumes, a Fund must, among other things, (i) derive at least 90% of its gross income for each taxable year from (a) dividends, interest, payments with respect to securities loans, gains from the sale or other disposition of stock, securities or foreign currencies, or other income (including gains from options, futures and forward contracts) derived with respect to its business of investing in such stock, securities or currencies and (b) net income derived from interests in certain publicly traded partnerships that are treated as partnerships for U.S. federal income tax purposes
and tha






t derive less than 90% of their gross income for the items described in (a) above (each a &#147;Qualified Publicly Traded Partnership&#148;) (the &#147;90% income test&#148;); and (ii) diversify its holdings so that, at the end of each quarter of each taxable year: (a) at least 50% of the value of the Fund&#146;s total assets is represented by (I) cash and cash items, U.S. government securities, the securities of other regulated investment companies and (II) other securities, with such other securities limited, in respect to any one issuer, to an amount not greater than 5% of the value of the Fund&#146;s total assets and not more than 10% of the outstanding voting securities of such issuer and (b) not more than 25% of the value of the Fund&#146;s total assets is invested in the securities (other than U.S. government securities and the securities of other regulated investment companies) of (I) any one issuer, (II) any two or more issuers that the Fund controls and that are determined to be engaged in
the same






 or similar trades or businesses or related trades or businesses or (III) any one or more Qualified Publicly Traded Partnerships. For purposes of the 90% income test, the character of income earned by certain entities in which a Fund invests that are not treated as corporations for U.S. federal income tax purposes (e.g., partnerships or trusts) will generally pass through to the Fund. Consequently, a Fund may be required to limit its equity investments in such entities that earn fee income, rental income or other nonqualifying income.</P>
<P style="margin-top:0px; margin-bottom:13.333px">If a Fund qualifies as a regulated investment company and, for each taxable year, it distributes to its shareholders an amount equal to or exceeding the sum of (i) 90% of its &#147;investment company taxable income&#148; as that term is defined in the Code (which includes, among other things, dividends, taxable interest, and the excess of any net short-term capital gains over net long-term capital losses, as reduced by certain deductible expenses) without regard to the deduction for dividends paid and (ii) 90% of the excess of its gross tax-exempt interest, if any, over certain disallowed deductions, the Fund generally will be relieved of U.S. federal income tax on any income of a Fund, including &#147;net capital gains&#148; (the excess of net long-term capital gain over net short-term capital loss), distributed to shareholders. However, if a Fund retains any investment company taxable income or net capital gain, it generally will be subject to U.S.
federal






income tax at regular corporate rates on the amount retained. &nbsp;Each Fund intends to distribute at least annually all or substantially all of its investment company taxable income, net tax exempt interest, if any, and net capital gain. &nbsp;If for any taxable year a Fund did not qualify as a regulated investment company, it would be treated as a corporation subject to U.S. federal income tax thereby subjecting any income earned by the Fund to tax at the corporate level at a 35% federal tax rate and, when such income is distributed, to a further tax at the shareholder level. &nbsp;In addition, a Fund could be required to recognize unrealized gains, pay taxes and make distributions (which could be subject to interest charges) before requalifying as a regulated investment company.</P>
<P style="margin-top:0px; margin-bottom:13.333px">In order to avoid incurring a nondeductible 4% federal excise tax obligation, the Code requires that a Fund distribute (or be deemed to have distributed) by December 31 of each calendar year an amount at least equal to the sum of (i) 98% of its ordinary income for such year, (ii) 98% of its capital gain net income (which is the excess of its realized net long-term capital gain over its realized net short-term capital loss), generally computed on the basis of the one-year period ending on October 31 of such year, after reduction by any available capital loss carryforwards and (iii) 100% of any ordinary income and capital gain net income from the prior year (as previously computed) that were not paid out during such year and on which the Fund paid no federal income tax. Under current law, provided that a Fund qualifies as a RIC for federal income tax purposes, the Fund should not be liable for any income, corporate excise or franchise tax in The
Commonwealth of






 Massachusetts.</P>
<P style="margin-top:0px; margin-bottom:13.333px">Although dividends generally will be treated as distributed when paid, any dividend declared by a Fund as of a record date in October, November or December and paid during the following January will be treated for U.S. federal income tax purposes as received by shareholders on December 31 of the calendar year in which it is declared. &nbsp;In addition, certain other distributions made after the close of a taxable year of a Fund may be &#147;spilled back&#148; and treated as paid by the Fund (except for purposes of the 4% excise tax) during such taxable year. In such case, shareholders will be treated as having received such dividends in the taxable year in which the distributions were actually made.</P>
<P style="margin-top:0px; margin-bottom:13.333px">Each holder of common shares of the Funds, other than holders of Preferred Dividend Fund and Premium Dividend Fund II, will automatically have all distributions of dividends and capital gains reinvested by the Plan Agent, unless an election is made to receive cash. &nbsp;Holders of common shares of Preferred Dividend Fund and Premium Dividend Fund II must elect to have all distributions of dividends and capital gains reinvested by the Plan Agent. &nbsp;For U.S. federal income tax purposes, assuming the Fund has sufficient current or accumulated earnings and profits, such distributions generally will be taxable whether a shareholder takes them in cash or they are reinvested pursuant to the Plan in additional shares of the Fund. &nbsp;In general, dividends from investment company taxable income are taxable either as ordinary income or, if so designated by the Fund, as &#147;qualified dividend income&#148; taxable to individual shareholders at a maximum
15% tax






rate (if any), and dividends from net capital gain (if any) that are designated as capital gain dividends are taxable as long-term capital gains for U.S. federal income tax purposes without regard to the length of time the shareholder has held shares of the Fund. &nbsp;A portion of the dividend distributions to individual shareholders may qualify as &#147;qualified dividend income&#148; as that term is defined in Section 1(h)(11) of the Code, qualifying for the maximum 15% tax rate on dividends under the Jobs and Growth Tax Relief Reconciliation Act of 2003 to the extent that such dividends are attributable to qualified dividend income from the Fund&#146;s investments in common and preferred stock of U.S. companies and stock of certain foreign corporations, provided that certain holding period and other requirements are met. &nbsp;Capital gain dividends distributed by a Fund (if any) to individual shareholders generally will qualify for the maximum 15% tax rate under such Act. &nbsp;Absent further
legislation, the maximum 15% tax rate on qualified dividend income and long-term capital gains will cease to apply to taxable years beginning after December 31, 2010. &nbsp;Shareholders receiving distributions in the form of additional shares issued by a Fund will be treated for federal income tax purposes as receiving a distribution in an amount equal to the amount of cash they would have received had they elected to receive cash, except when a Fund distributes newly issued shares, in which case the amount of the distribution will be equal to the fair market value of the shares received, determined as of the distribution date. &nbsp;The basis of such shares will equal the amount of the distribution. &nbsp;The source and U.S. federal income tax status of all distributions will be reported to shareholders annually and shareholders receiving distributions in the form of additional shares of a Fund will receive a report as to the net asset value of those shares.</P>
<P style="margin-top:0px; margin-bottom:13.333px">If a Fund retains any net capital gains for a taxable year, the Fund may designate the retained amount as undistributed capital gains in a notice to shareholders who, if subject to U.S. federal income tax on long-term capital gains, (i) will be required to include in income for U.S. federal income tax purposes, as long-term capital gain, their proportionate shares of such undistributed amount, and (ii) will be entitled to credit their proportionate shares of the tax paid by the Fund on the undistributed amount against their U.S. federal income tax liabilities, if any, and to claim refunds to the extent the credit exceeds such liabilities.</P>
<P style="margin-top:0px; margin-bottom:13.333px">If a Fund acquires any equity interest (under Treasury regulations that may be promulgated in the future, generally including not only stock but also an option to acquire stock such as is inherent in a convertible bond) in certain foreign corporations that receive at least 75% of their annual gross income from passive sources (such as interest, dividends, certain rents and royalties, or capital gains) or that hold at least 50% of their assets in investments producing such passive income (&#147;passive foreign investment companies&#148;), the Fund could be subject to U.S. federal income tax and additional interest charges on &#147;excess distributions&#148; received from such companies or on gain from the disposition of stock in such companies, even if all income or gain actually received by the Fund is timely distributed to its shareholders. The Fund would not be able to pass through to its shareholders any credit or deduction for such a tax. An
election may






generally be available that would ameliorate these adverse tax consequences, but any such election could require the Fund to recognize taxable income or gain (subject to tax distribution requirements) without the concurrent receipt of cash. These investments could also result in the treatment of capital gains from the sale of stock of passive foreign investment companies as ordinary income. Each Fund will monitor and may limit and/or manage its holdings in passive foreign investment companies to limit its tax liability or maximize its return from these investments.</P>
<P style="margin-top:0px; margin-bottom:13.333px">When a Fund utilizes leverage through borrowing or issuing preferred shares, a failure by the Fund to meet the asset coverage requirements imposed by the 1940 Act or by any rating organization that has rated such leverage or additional restrictions that may be imposed by certain lenders on the payment of dividends or distributions potentially could limit or suspend the Fund&#146;s ability to make distributions on its common shares. Such a suspension or limitation could prevent the Fund from distributing at least 90% of its investment company taxable income as is required under the Code and therefore might jeopardize the Fund&#146;s qualification for taxation as a regulated investment company and/or might subject the Fund to the 4% excise tax discussed above. Upon any failure to meet such asset coverage requirements, a Fund may, in its sole discretion, purchase or redeem shares of preferred stock in order to maintain or restore the requisite asset
coverage and






 avoid the adverse consequences to the Fund and its shareholders of failing to satisfy the distribution requirement. There can be no assurance, however, that any such action would achieve these objectives. Each Fund will endeavor to avoid restrictions on its ability to distribute dividends.</P>
<P style="margin-top:0px; margin-bottom:13.333px">If for any taxable year a Fund fails to qualify for treatment as a regulated investment company under the Code, the Fund will incur a regular Federal corporate income tax on its taxable income (including capital gain), irrespective of whether such income has been distributed to shareholders. &nbsp;Distributions to its shareholders for such year would be taxable as ordinary dividends to the extent of the Fund&#146;s current and accumulated earnings and profits, if any. &nbsp;Before requalifying as a regulated investment company for a subsequent taxable year, the Fund would be required to distribute to shareholders any earnings and profits accumulated in the taxable year(s) for which it did not qualify as a regulated investment company.</P>
<P style="margin-top:0px; margin-bottom:13.333px">If a Fund invests in certain pay-in-kind securities, zero coupon securities, deferred interest securities or, in general, any other securities with original issue discount (or with market discount if the Fund elects to include market discount in income currently), the Fund generally must accrue income on such investments for each taxable year, which generally will be prior to the receipt of the corresponding cash payments. However, a Fund must distribute, at least annually, all or substantially all of its investment company taxable income, including such accrued income, to shareholders to qualify as a regulated investment company under the Code and avoid U.S. federal income and excise taxes. Therefore, a Fund may have to dispose of its portfolio securities under disadvantageous circumstances to generate cash, or may have to borrow the cash, to satisfy distribution requirements.</P>
<P style="margin-top:0px; margin-bottom:13.333px">At the time of an investor&#146;s purchase of a Fund&#146;s shares, a portion of the purchase price may be attributable to realized or unrealized appreciation in the Fund&#146;s portfolio or undistributed taxable income of the Fund. Consequently, subsequent distributions by the Fund with respect to these shares from such appreciation or income may be taxable as ordinary income to such investor even if the net asset value of the investor&#146;s shares is, as a result of the distributions, reduced below the investor&#146;s cost for such shares and the distributions economically represent a return of a portion of the investment.</P>
<P style="margin-top:0px; margin-bottom:13.333px">Sales and other dispositions of a Fund&#146;s shares generally are taxable events for shareholders that are subject to tax. &nbsp;Shareholders should consult their own tax advisers with reference to their individual circumstances to determine whether any particular transaction in a Fund&#146;s shares is properly treated as a sale for tax purposes, as the following discussion assumes, and the tax treatment of any gains or losses recognized in such transactions. &nbsp;In general, if shares of a Fund are sold, the shareholder will recognize gain or loss equal to the difference between the amount realized on the sale and the shareholder&#146;s adjusted basis in the shares sold. &nbsp;Such gain or loss generally will be treated as long-term gain or loss if the shares were held for more than one year and otherwise generally will be treated as short-term gain or loss. &nbsp;Any loss recognized by a shareholder upon the sale or other disposition of shares with
a tax






holding period of six months or less generally will be treated as a long-term capital loss to the extent of any amounts treated as distributions of long-term capital gains with respect to such shares. &nbsp;Losses on sales or other dispositions of shares may be disallowed under &#147;wash sale&#148; rules in the event of other investments in a Fund (including those made pursuant to reinvestment of dividends and/or capital gains distributions) within a period of 61 days beginning 30 days before and ending 30 days after a sale or other disposition of shares. &nbsp;In that event, the basis of the replacement shares of the Fund will be increased to reflect the disallowed loss.</P>
<P style="margin-top:0px; margin-bottom:13.333px">Under Treasury regulations, if a shareholder recognizes a loss with respect to shares of $2 million or more for an individual shareholder, or $10 million or more for a corporate shareholder, in any single taxable year (or a greater amount over a combination of years), the shareholder must file with the IRS a disclosure statement on Form 8886. Direct shareholders of portfolio securities are in many cases excepted from this reporting requirement but, under current guidance, shareholders of regulated investment companies are not excepted. The fact that a loss is reportable under these regulations does not affect the legal determination of whether or nor the taxpayer&#146;s treatment of the loss is proper. Shareholders should consult with their tax advisers to determine the applicability of these regulations in light of their individual circumstances.</P>
<P style="margin-top:0px; margin-bottom:13.333px">Options written or purchased and futures contracts entered into by a Fund on certain securities and indices may cause the Fund to recognize gains or losses from marking-to-market even though such options may not have lapsed, been closed out, or exercised, or such futures or forward contracts may not have been performed or closed out. The tax rules applicable to these contracts may affect the characterization of some capital gains and losses recognized by a Fund as long-term or short-term. Additionally, a Fund may be required to recognize gain if an option, futures contract, forward contract, short sale or other transaction that is not subject to the mark-to-market rules is treated as a &#147;constructive sale&#148; of an &#147;appreciated financial position&#148; held by the Fund under Section 1259 of the Code. Any net mark-to-market gains and/or gains from constructive sales may also have to be distributed to satisfy the distribution requirements
referred to






 above even though a Fund may receive no corresponding cash amounts, possibly requiring the Fund to dispose of portfolio securities or borrow to obtain the necessary cash. Losses on certain options, futures or forward contracts and/or offsetting positions (portfolio securities or other positions with respect to which a Fund&#146;s risk of loss is substantially diminished by one or more options, futures or forward contracts) may also be deferred under the tax straddle rules of the Code, which may also affect the characterization of capital gains or losses from straddle positions and certain successor positions as long-term or short-term. Certain tax elections may be available that would enable a Fund to ameliorate some adverse effects of the tax rules described in this paragraph. The tax rules applicable to options, futures, forward contracts and straddles may affect the amount, timing and character of a Fund&#146;s income and gains or losses and hence of its distributions to shareholders.</P>
<P style="margin-top:0px; margin-bottom:13.333px">Dividends of investment company taxable income designated by a Fund and received by corporate shareholders of the Fund will qualify for the Dividends Received Deduction to the extent of the amount of qualifying dividends received by the Fund from domestic corporations for the taxable year. A dividend received by a Fund will not be treated as a qualifying dividend (i) if the stock on which the dividend is paid is considered to be &#147;debt-financed&#148; (generally, acquired with borrowed funds), (ii) if the Fund fails to meet certain holding period requirements for the stock on which the dividend is paid or (iii) to the extent that the Fund is under an obligation (pursuant to a short sale or otherwise) to make related payments with respect to positions in substantially similar or related property. Moreover, the Dividends Received Deduction may be disallowed or reduced if the corporate shareholder fails to satisfy the foregoing requirements with
respect to it






s shares of a Fund or by application of the Code.</P>
<P style="margin-top:0px; margin-bottom:13.333px">The federal income tax treatment of a Fund&#146;s investment in preferred securities or other securities and its transactions involving, among other things, swaps, caps, floors and collars is uncertain and may be subject to recharacterization by the IRS. To the extent the tax treatment of such securities or transactions differs from the tax treatment expected by a Fund, the timing or character of income recognized by the Fund could be affected, and the Fund may be required to purchase or sell securities, or otherwise change its portfolio, in order to comply with the tax rules applicable to regulated investment companies under the Code.</P>
<P style="margin-top:0px; margin-bottom:13.333px">The IRS has taken the position that if a regulated investment company has two or more classes of shares, it must designate distributions made to each class in any year as consisting of no more than such class&#146;s proportionate share of particular types of income, including dividends qualifying for the Dividends Received Deduction (if any) and capital gains. &nbsp;A class&#146;s proportionate share of a particular type of income is determined according to the percentage of total dividends paid by the regulated investment company during the year to such class. &nbsp;Consequently, each Fund other than Premium Dividend Fund I intends to designate distributions made to the common shareholders and the preferred shareholders of particular types of income (including ordinary income, qualified dividend income (if any) and capital gains) in accordance with each such class&#146;s proportionate share of such income.</P>
<P style="margin-top:0px; margin-bottom:13.333px">Dividends (including Additional Dividends, if any) paid on the preferred shares and dividends paid on the common shares (other than capital gains dividends described below) will be eligible for the Dividends Received Deduction to the extent they are designated by a Fund as qualifying for such deduction, except the aggregate<B> </B>amount of dividends which may be designated by a Fund for any year cannot exceed the aggregate<B> </B>amount of dividends received by the Fund in that year for which it would be allowed the Dividends Received Deduction if it were not a regulated investment company (&#147;qualified dividends&#148;).</P>
<P style="margin-top:0px; margin-bottom:13.333px">Under current law, for any taxable year of a Fund, ordinary income dividends paid by the Fund will qualify fully for the Dividends Received Deduction if the DRD qualified dividends received by the Fund are not less than the net income of the Fund exclusive of net capital gains (stated differently, if the income of the Fund other than such dividends or net capital gains does not exceed the expenses of the Fund). &nbsp;Each Fund intends to operate so as to achieve this result, but there can be no assurance that it will be achieved. &nbsp;A Fund&#146;s &#147;net income&#148; includes all dividends, interest and other income and short-term capital gains earned by the Fund on its portfolio holdings, net of the Fund&#146;s expenses. &nbsp;The term &#147;net capital gains&#148; means the excess of net long-term capital gains over net short-term capital losses.</P>
<P style="margin-top:0px; margin-bottom:13.333px">Under Rev. Rul. 89-91, 1989-1 C.B. 226, distributions on the preferred shares and the common shares are required to consist proportionately of each type of income with particular tax characteristics earned by a Fund. &nbsp;Thus, if for a given taxable year, a particular percentage of the total net income of a Fund qualifies for the Dividends Received Deduction, then a uniform percentage of the distributions on the preferred shares and on the common shares of each Fund other than Premium Dividends Fund I will qualify for such deductions. &nbsp;As a Fund established prior to the issuance of Rev. Rul 89-91, Premium Dividends Fund I is not subject to the proportionality requirement of the ruling. &nbsp;Instead, in the case of Premium Dividend Fund I, if the qualified dividends received by the Fund are less than its net income, exclusive of net capital gains, then the Fund will allocate the qualified dividends first to the preferred shares and then to the
common s






hares, <I>provided </I>that Premium Dividend Fund I receives an opinion of counsel that such a preferential allocation is permitted under applicable law. &nbsp;If such an opinion is not received by Premium Dividend Fund I, then the Fund will allocate the qualifying dividends ratably among the common shares and the preferred shares, most likely ratably in proportion to the dividends paid on shares of each. &nbsp;In the event that qualified dividends are allocated ratably between the preferred shares and the common shares of a Fund, some portion of the dividends payable on the preferred shares might not qualify for the Dividends Received Deduction. &nbsp;In such event, the Fund would pay Additional Dividends to maintain the Net After-Tax Return of holders of preferred shares. Payment of any such Additional Dividends on the preferred shares will reduce the amount available for payment of dividends on the common shares.</P>
<P style="margin-top:0px; margin-bottom:13.333px">Based in part on the lack of any present intention on the part of any Fund to redeem or purchase the preferred shares at any time in the future, each Fund believes that under present law its preferred shares will constitute stock of the Fund and distributions with respect to the preferred shares (other than distributions in redemption of the preferred shares that are treated as exchanges under Section 302(b) of the Code) will constitute dividends to the extent of the Fund&#146;s current or accumulated earnings and profits as calculated for U.S. federal income tax purposes. Such dividends generally will be taxable as ordinary income to shareholders (other than qualified dividend income and capital gain dividends). This view relies in part on a published ruling of the IRS stating that certain preferred stock similar in many material respects to the Preferred Shares represents equity. It is possible, however, that the IRS might take a contrary position
asserting






, for example that the preferred shares constitute debt of a Fund. If this position were upheld, the discussion of the treatment of distributions above would not apply. Instead distributions by such Fund to shareholders of preferred shares would constitute interest, whether or not such distributions exceeded the earnings and profits of the Fund, would be included in full in the income of the recipient and would be taxed as ordinary income.</P>
<P style="margin-top:0px; margin-bottom:13.333px">If a Fund retains any net capital gain for a taxable year, the Fund may designate the retained amount as undistributed capital gains in a notice to shareholders who, if subject to U.S. federal income tax on long-term capital gains, (i) will be required to include in income for U.S. federal income tax purposes, as long-term capital gain, their proportionate shares of such undistributed amount, and (ii) will be entitled to credit their proportionate shares of the tax paid by the Fund on the undistributed amount against their U.S. federal income tax liabilities, if any, and to claim refunds to the extent the credit exceeds such liabilities.</P>
<P style="margin-top:0px; margin-bottom:13.333px">Sales, redemptions, and other dispositions of preferred shares generally are taxable events for shareholders that are subject to tax. &nbsp;Shareholders should consult their own tax advisers with reference to their individual circumstances to determine whether any particular transaction in a Fund&#146;s shares (including a redemption of preferred shares) is properly treated as a sale or exchange for tax purposes, as the following discussion assumes, and the tax treatment of any gains or losses recognized in such transactions. &nbsp;In general, if preferred shares are sold, the shareholder will recognize gain or loss equal to the difference between the amount realized on the sale and the shareholder&#146;s adjusted basis in the shares sold. &nbsp;Such gain or loss generally will be treated as long-term gain or loss if the shares were held for more than one year and otherwise generally will be treated as short-term gain or loss. &nbsp;Even if a
redemption of
preferred shares were treated as a sale or exchange, any declared but unpaid dividends distributed to shareholders in connection with the redeemed shares will be taxable to shareholders as dividends as described above.</P>
<P style="margin-top:0px; margin-bottom:13.333px">Any loss recognized by a shareholder upon the sale or other disposition of shares with a tax holding period of six months or less generally will be treated as a long-term capital loss to the extent of any amounts treated as distributions of long-term capital gain with respect to such shares. &nbsp;Losses on sales or other dispositions of shares may be disallowed under &#147;wash sale&#148; rules in the event a shareholder acquires other shares in a Fund (including those acquired pursuant to reinvestment of dividends and/or capital gains distributions) within a period of 61 days beginning 30 days before and ending 30 days after a sale or other disposition of shares.</P>
<P style="margin-top:0px; margin-bottom:13.333px">Each Fund is required in certain circumstances to backup withhold on reportable payments, including dividends, capital gains distributions, and proceeds of sales or other dispositions of a Fund&#146;s shares paid to certain holders of the Fund&#146;s shares who do not furnish the Fund with their correct social security number or other taxpayer identification number and certain other certifications, or who are otherwise subject to backup withholding. &nbsp;Backup withholding is not an additional tax. &nbsp;Any amounts withheld from payments made to a shareholder may be refunded or credited against such shareholder&#146;s U.S. federal income tax liability, if any, provided that the required information is furnished to the IRS.</P>
<P style="margin:0px">The foregoing is a general and abbreviated summary of the provisions of the Code and the Treasury regulations currently in effect as they generally affect the taxation of a Fund and its preferred shareholders. &nbsp;As noted above, these provisions are subject to change by legislative, judicial or administrative action, and any such change may be retroactive. &nbsp;Shareholders are urged to consult their tax advisers regarding specific questions as to U.S. federal, foreign, state, and local income or other taxes.</P>
<A NAME="_Toc155700507"></A><P style="margin-top:13.333px; margin-bottom:16.667px" align=center><B>ADDITIONAL INFORMATION</B></P>
<P style="margin:0px">A Registration Statement on Form N-14, relating to the shares offered hereby, has been filed by the Acquiring Fund with the Securities and Exchange Commission, Washington, D.C. &nbsp;The Joint Proxy Statement/Prospectus and this Statement of Additional Information do not contain all of the information set forth in the Registration Statement, including any exhibits and schedules thereto. &nbsp;For further information with respect to the Acquiring Fund and the shares offered hereby, reference is made to the Registration Statement. &nbsp;Statements contained in the Joint Proxy Statement/Prospectus and this Statement of Additional Information as to the contents of any contract or other document referred to are not necessarily complete and in each instance reference is made to the copy of such contract or other document filed as an exhibit to the Registration Statement, each such statement being qualified in all respects by such reference. &nbsp;A copy of the Registration Statement
may be in






spected without charge at the Commission&#146;s principal office in Washington, D.C., and copies of all or any part thereof may be obtained from the Commission upon the payment of certain fees prescribed by the Commission.</P>
<A NAME="_Toc142448272"></A><A NAME="_Toc155700508"></A><P style="margin-top:13.333px; margin-bottom:3.333px" align=center><B>FINANCIAL STATEMENTS</B></P>
<P style="margin-top:12.533px; margin-bottom:0px">To be incorporated herein by reference, by pre-effective amendment, are:</P>
<P style="margin-top:5.533px; margin-bottom:-16px; padding-left:96px; text-indent:-48px">(i)</P>
<P style="margin-top:0px; margin-bottom:5.533px; padding-left:96px">the audited financial statements of the Acquiring Fund for the fiscal year ended 10/31/2006 are to be incorporated by reference, by pre-effective amendment, to the Acquiring Fund&#146;s annual report filed on Form N-CSR on 01/03/2007;</P>
<P style="margin-top:5.533px; margin-bottom:-16px; padding-left:96px; text-indent:-48px">(ii)</P>
<P style="margin-top:0px; margin-bottom:5.533px; padding-left:96px">the audited financial statements of Premium Dividend Fund I for the fiscal year ended 09/30/2006 are to be incorporated by reference, by pre-effective amendment, to Premium Dividend Fund I&#146;s annual report filed on Form N-CSR on 11/29/2006;</P>
<P style="margin-top:5.533px; margin-bottom:-16px; padding-left:96px; text-indent:-48px">(iii)</P>
<P style="margin-top:0px; margin-bottom:5.533px; padding-left:96px">the audited financial statements of Select Dividend Trust for the fiscal year ended 06/30/2006 are to be incorporated by reference, by pre-effective amendment, to the Select Dividend Trust&#146;s annual report filed on Form N-CSR on 08/29/06;</P>
<P style="margin-top:5.533px; margin-bottom:-16px; padding-left:96px; text-indent:-48px">(iv)</P>
<P style="margin-top:0px; margin-bottom:5.533px; padding-left:96px">the audited financial statements of Global Dividend Fund for the fiscal year ended 07/31/2006 are to be incorporated by reference, by pre-effective amendment, to the Global Dividend Fund&#146;s annual report filed on Form N-CSR on 09/28/2006; and</P>
<P style="margin-top:5.533px; margin-bottom:-16px; padding-left:96px; text-indent:-48px">(v)</P>
<P style="margin-top:0px; margin-bottom:5.533px; padding-left:96px">the audited financial statements of Preferred Dividend Fund for the fiscal year ended 05/31/2006 are to be incorporated by reference, by pre-effective amendment, to the Preferred Dividend Fund&#146;s annual report filed on Form N-CSR on 08/01/2006.</P>
<A NAME="_Toc142448273"></A><A NAME="_Toc155700509"></A><P style="margin-top:13.333px; margin-bottom:3.333px" align=center><B>PRO FORMA FINANCIAL STATEMENTS</B></P>
<P style="margin-top:0px; margin-bottom:38.333px">Set forth in Appendix B hereto are unaudited pro forma financial statements of the Acquiring Fund giving effect to the Reorganization which include: (i) Pro Forma Condensed Statements of Assets and Liabilities at October 31, 2006, (ii) Pro Forma Condensed Statement of Operations for the one year period ended October 31, 2006 and (iii) Pro Forma Portfolio of Investments at October 31, 2006.</P>
<P style="margin-top:12.533px; margin-bottom:0px"><B>APPENDIX A - DESCRIPTION OF RATINGS</B></P>
<P style="margin-top:12.533px; margin-bottom:0px">The ratings of Moody&#146;s Investors Service, Inc. and Standard &amp; Poor&#146;s Ratings Group represent their opinions as to the quality of various debt instruments they undertake to rate. It should be emphasized that ratings are not absolute standards of quality. Consequently, debt instruments with the same maturity, coupon and rating may have different yields while debt instruments of the same maturity and coupon with different ratings may have the same yield.</P>
<P style="margin-top:12.533px; margin-bottom:0px"><B>MOODY&#146;S INVESTORS SERVICE, INC. - PREFERRED SECURITIES RATINGS</B></P>
<P style="margin-top:12.533px; margin-bottom:0px">Aaa: Preferred stocks which are rated &#147;Aaa&#148; are considered to be top quality. This rating indicates good asset protection and the least risk of dividend impairment within the universe of preferred stocks.</P>
<P style="margin-top:12.533px; margin-bottom:0px">Aa: Preferred stocks which are rated &#147;Aa&#148; are considered to be high grade. This rating indicates that there is reasonable assurance that earnings and asset protection will remain relatively well maintained in the foreseeable future.</P>
<P style="margin-top:12.533px; margin-bottom:0px">A: Preferred stocks which are rated &#147;A&#148; are considered to be upper-medium grade. While risks are judged to be somewhat greater than in the &#147;Aaa&#148; and &#147;Aa&#148; classifications, earnings and asset protection are, nevertheless, expected to be maintained at adequate levels.</P>
<P style="margin-top:12.533px; margin-bottom:0px">Baa: Preferred stocks which are rated &#147;Baa&#148; are judged lower-medium grade, neither highly protected nor poorly secured. Earnings and asset protection appear adequate at present but may be questionable over any great length of time.</P>
<P style="margin-top:12.533px; margin-bottom:0px">Ba: Preferred stocks which are rated &#147;Ba&#148; are considered to have speculative elements and their future cannot be considered well assured. Earnings and asset protection may be very moderate and not well safeguarded during adverse periods. Uncertainty of position characterizes preferred stocks in this class.</P>
<P style="margin-top:12.533px; margin-bottom:0px"><B>MOODY&#146;S INVESTORS SERVICE, INC. - BOND RATINGS</B></P>
<P style="margin-top:12.533px; margin-bottom:0px">Aaa: Bonds which are rated &#147;Aaa&#148; are judged to be of the best quality. They carry the smallest degree of investment risk and are generally referred to as &#147;gilt edge.&#148; Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issues.</P>
<P style="margin-top:12.533px; margin-bottom:0px">Aa: Bonds which are rated &#147;Aa&#148; are judged to be of high quality by all standards. Together with the &#147;Aaa&#148; group they comprise what are generally known as high grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in &#147;Aaa&#148; securities or fluctuations of protective elements may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than in Aaa securities.</P>
<P style="margin-top:12.533px; margin-bottom:0px">A: Bonds which are rated &#147;A&#148; possess many favorable investment attributes and are to be considered as upper medium grade obligations. Factors giving security to principal and interest are considered adequate but elements may be present which suggest a susceptibility to impairment at some time in the future.</P>
<P style="margin-top:12.533px; margin-bottom:0px">Baa: Bonds which are rated &#147;Baa&#148; are considered as medium grade obligations, i.e., they are neither highly protected nor poorly secured. Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well.</P>
<P style="margin-top:12.533px; margin-bottom:0px">Ba: Bonds which are rated &#147;Ba&#148; are judged to have speculative elements; their future cannot be considered as well assured. Often the protection of interest and principal payments may be very moderate and thereby not well safeguarded during both good and bad times over the future. Uncertainty of position characterizes bonds in this class.</P>
<P style="margin-top:12.533px; margin-bottom:0px">B: Bonds which are rated &#147;B&#148; generally lack the characteristics of desirable investment. Assurance of interest and principal payments or of maintenance of other terms of the contract over any long period of time may be small.</P>
<P style="margin-top:12.533px; margin-bottom:0px">Caa: Bonds which are rated &#147;Caa&#148; are of poor standing. Such issues may be in default or there may be present elements of danger with respect to principal or interest.</P>
<P style="margin-top:12.533px; margin-bottom:0px">Ca: Bonds which are rated &#147;Ca&#148; represented obligations which are speculative in a high degree. Such issues are often in default or have other marked shortcomings.</P>
<P style="margin-top:12.533px; margin-bottom:0px"><B>STANDARD &amp; POOR&#146;S RATINGS GROUP - PREFERRED SECURITIES RATINGS</B></P>
<P style="margin-top:12.533px; margin-bottom:0px">AAA: This is the highest rating that may be assigned to a preferred stock issue and indicates an extremely strong capacity to pay the preferred stock obligations.</P>
<P style="margin-top:12.533px; margin-bottom:0px">AA: A preferred stock issue rated &#147;AA&#148; also qualifies as a high quality fixed income security. The capacity to pay preferred stock obligations is very strong, although not as overwhelming as for issues rated &#147;AAA.&#148;</P>
<P style="margin-top:12.533px; margin-bottom:0px">A: An issue rated &#147;A&#148; is backed by a sound capacity to pay the preferred stock obligations, although it is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions.</P>
<P style="margin-top:12.533px; margin-bottom:0px">BBB: An issue rated &#147;BBB&#148; is regarded as backed by an adequate capacity to pay the preferred stock obligations. Although it normally exhibits adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to make payments for preferred stock in this category for issues in the &#147;A&#148; category.</P>
<P style="margin-top:12.533px; margin-bottom:0px">BB: An issue rated &#147;BB&#148; is regarded, on balance, as predominantly speculative with respect to the issuer&#146;s capacity to pay the preferred stock obligation. While such issues will likely have some quality and protective characteristics, there are outweighed by large uncertainties or major risk exposures to adverse conditions.</P>
<P style="margin-top:12.533px; margin-bottom:0px"><B>STANDARD &amp; POOR&#146;S RATINGS GROUP - BOND RATINGS</B></P>
<P style="margin-top:12.533px; margin-bottom:0px">AAA: Debt rated &#147;AAA&#148; has the highest rating assigned by Standard &amp; Poor&#146;s. Capacity to pay interest and repay principal is extremely strong.</P>
<P style="margin-top:12.533px; margin-bottom:0px">AA: Debt rated &#147;AA&#148; has a very strong capacity to pay interest and repay principal and differs from the highest rated issues only in small degree.</P>
<P style="margin-top:12.533px; margin-bottom:0px">A: Debt rated A has a strong capacity to pay interest and repay principal, although it is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher rated categories.</P>
<P style="margin-top:12.533px; margin-bottom:0px">BBB: Debt rated &#147;BBB&#148; is regarded as having an adequate capacity to pay interest and repay principal. Whereas it normally exhibits adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for debt in this category than in higher rated categories.</P>
<P style="margin-top:12.533px; margin-bottom:0px">BB, B: Debt rated &#147;BB,&#148; and &#147;B&#148; is regarded, on balance, as predominantly speculative with respect to capacity to pay interest and repay principal in accordance with the terms of the obligation. &#147;BB&#148; indicates the lowest degree of speculation and &#147;CC&#148; the highest degree of speculation. While such debt will likely have some quality and protective characteristics, these are outweighed by large uncertainties or major risk exposures to adverse conditions.</P>
<P style="margin-top:12.533px; margin-bottom:0px">CCC: Debt rated &#147;CCC&#148; has a currently identifiable vulnerability to default, and is dependent upon favorable business, financial, and economic conditions to meet timely payment of interest and repayment of principal. In the event of adverse business, financial or economic conditions, it is not likely to have the capacity to pay interest and repay principal. The &#147;CCC&#148; rating category is also used for debt subordinated to senior debt that is assigned an actual or implied &#147;B&#148; or &#147;B-&#148; rating.</P>
<P style="margin-top:12.533px; margin-bottom:0px">CC: The rating &#147;CC&#148; is typically applied to debt subordinated to senior debt that is assigned an actual or implied &#147;CCC&#148; rating.</P>









<P style="margin-top:12.533px; margin-bottom:0px"><B>
APPENDIX B &#150; PRO FORMA FINANCIAL STATEMENTS</B></P>
<P style="margin:0px"><BR></P>


<P style="margin:0px"><BR></P>
<P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT FACE="Arial"><B>John Hancock Patriot Premium Dividend Fund II</B></FONT></P>
<P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>Pro-forma Statement of Assets and Liabilities 10-31-2006</B></P>
<P style="margin:0px; font-family:Arial"><B>(Unaudited)</B></P>
<P style="margin:0px; padding-bottom:4px; border-bottom:1px solid #000000"><BR></P>
<P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">The following unaudited pro forma combined Statement of Assets, Liabilities and Capital has been derived from the Statement of Assets, Liabilities and Capital of John Hancock Patriot Premium Dividend Fund II, &nbsp;&nbsp;&nbsp;</P>
<P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">John Hancock Patriot Premium Dividend Fund I, John Hancock Patriot Global Dividend Fund, John Hancock Patriot Preferred Dividend Fund, and John Hancock Select Dividend Trust as of October 31, 2006,</P>
<P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">and such information has been adjusted to give effect to the Reorganization as if the Reorganization had occurred on October 31, 2006. The pro forma Combined Statement of Assets, Liabilities</P>
<P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">and Capital is presented for informational purposes only and does not purport to be indicative of the financial conditions that actually would have resulted if the Reorganization had occurred on October 31, 2006. </P>
<P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">The pro forma Combined Statement of Assets, Liabilities and Capital should be read in conjunction with the funds' financial statements and related notes thereto which are to be included in the Proxy Statement and Prospectus.</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=15.733></TD><TD width=17.667></TD><TD width=19.533></TD><TD width=16.8></TD><TD width=49></TD><TD width=55.2></TD><TD width=57.6></TD><TD width=161.4></TD><TD width=2.067></TD><TD width=136></TD><TD width=1.8></TD><TD width=126.8></TD><TD width=0.8></TD><TD width=1.867></TD><TD width=133.467></TD><TD width=4.267></TD><TD width=129></TD><TD width=2.733></TD><TD width=128.2></TD><TD width=1.867></TD><TD width=1.533></TD><TD width=107.2></TD><TD width=1.6></TD><TD width=1.067></TD><TD width=117.933></TD><TD width=0.533></TD><TD width=2.067></TD><TD width=15.733></TD><TD width=15.733></TD><TD width=15.733></TD></TR>
<TR><TD width=52.933 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD width=121 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=219 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=139.867 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Patriot Premium</P>
</TD><TD valign=bottom width=129.467 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Patriot Premium</P>
</TD><TD valign=bottom width=133.467><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Patriot Select</P>
</TD><TD valign=bottom width=133.267 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Patriot Global</P>
</TD><TD valign=bottom width=134.333 colspan=4><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Patriot Preferred</P>
</TD><TD valign=bottom width=107.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=123.2 colspan=5><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PRO-FORMA</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=52.933 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD width=121 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=219 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=139.867 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Dividend Fund &nbsp;I (PDF)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=129.467 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Dividend Fund &nbsp;II &nbsp;(PDT)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=133.467><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Dividend Trust &nbsp;(DIV)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=133.267 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Dividend Fund &nbsp;(PGD)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=134.333 colspan=4><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Dividend Fund (PPF)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=107.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ADJUSTMENTS</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=123.2 colspan=5><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COMBINED</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=1340.933 colspan=30><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>Assets:</B></P>
</TD></TR>
<TR><TD valign=bottom width=231.533 colspan=7><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">Investments at value</P>
</TD><TD valign=bottom width=163.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=128.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136.133 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130.067 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=123.2 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">(cost - $203,174,590, $261,221,869, $208,528,480,</P>
</TD><TD valign=bottom width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=128.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136.133 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130.067 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=123.2 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">$168,729,018, and $150,672,574, respectively)</P>
</TD><TD valign=bottom width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;223,246,005&nbsp;</P>
</TD><TD valign=bottom width=128.6 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;291,580,205&nbsp;</P>
</TD><TD valign=bottom width=136.133 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;223,912,194&nbsp;</P>
</TD><TD valign=bottom width=136 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;180,835,631&nbsp;</P>
</TD><TD valign=bottom width=130.067 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;156,000,132&nbsp;</P>
</TD><TD valign=bottom width=108.733 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=bottom width=123.2 colspan=5><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,075,574,167&nbsp;</FONT></P>
</TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=69.733 colspan=4><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000>Cash</FONT></P>
</TD><TD valign=bottom width=161.8 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=163.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;512&nbsp;</P>
</TD><TD valign=bottom width=128.6 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;549&nbsp;</P>
</TD><TD valign=bottom width=136.133 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;833&nbsp;</P>
</TD><TD valign=bottom width=136 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;552&nbsp;</P>
</TD><TD valign=bottom width=130.067 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;826&nbsp;</P>
</TD><TD valign=bottom width=108.733 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </FONT></P>
</TD><TD valign=bottom width=123.2 colspan=5><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,272&nbsp;</P>
</TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000>Receivable for investments sold</FONT></P>
</TD><TD valign=bottom width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;578,411&nbsp;</P>
</TD><TD valign=bottom width=128.6 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,682,651&nbsp;</P>
</TD><TD valign=bottom width=136.133 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;315,497&nbsp;</P>
</TD><TD valign=bottom width=130.067 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=bottom width=108.733 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </FONT></P>
</TD><TD valign=bottom width=123.2 colspan=5><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,576,559&nbsp;</P>
</TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000>Dividends and interest receivable</FONT></P>
</TD><TD valign=bottom width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;975,196&nbsp;</P>
</TD><TD valign=bottom width=128.6 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,128,257&nbsp;</P>
</TD><TD valign=bottom width=136.133 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;849,947&nbsp;</P>
</TD><TD valign=bottom width=136 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;646,120&nbsp;</P>
</TD><TD valign=bottom width=130.067 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;431,701&nbsp;</P>
</TD><TD valign=bottom width=108.733 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </FONT></P>
</TD><TD valign=bottom width=123.2 colspan=5><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,031,221&nbsp;</P>
</TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=231.533 colspan=7><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000>Other assets</FONT></P>
</TD><TD valign=bottom width=163.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29,294&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=128.6 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38,225&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=136.133 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29,963&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=136 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24,035&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=130.067 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,752&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=108.733 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </FONT></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=123.2 colspan=5><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;142,269&nbsp;</P>
</TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>


<TR><TD valign=bottom width=69.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=161.8 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=163.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000>Total Assets</FONT></P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>224,829,418&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=128.6 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>294,429,887&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=136.133 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>224,792,937&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=136 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>181,821,835&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=130.067 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>156,453,411&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=108.733 colspan=2><P style="margin:0px; font-family:Arial; font-size:10.667px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=123.2 colspan=5><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,082,327,488&nbsp;</FONT></P>
</TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=1340.933 colspan=30><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000><B>Liabilities:</B></FONT></P>
</TD></TR>
<TR><TD valign=bottom width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">Payable for investments purchased</P>
</TD><TD valign=bottom width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=128.6 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=136.133 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=136 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=128.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=110.6 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </FONT></P>
</TD><TD valign=bottom width=123.2 colspan=5><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </P>
</TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=231.533 colspan=7><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000>Dividend payable</FONT></P>
</TD><TD valign=bottom width=163.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=128.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136.133 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=128.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=110.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=123.2 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=231.533 colspan=7><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">Payable to affiliates</P>
</TD><TD valign=bottom width=163.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=128.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136.133 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=128.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=110.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=123.2 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=231.533 colspan=7><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management Fees</P>
</TD><TD valign=bottom width=163.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;162,515&nbsp;</P>
</TD><TD valign=bottom width=128.6 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;211,687&nbsp;</P>
</TD><TD valign=bottom width=136.133 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;155,512&nbsp;</P>
</TD><TD valign=bottom width=136 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;125,698&nbsp;</P>
</TD><TD valign=bottom width=128.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;108,587&nbsp;</P>
</TD><TD valign=bottom width=110.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=123.2 colspan=5><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;763,999&nbsp;</FONT></P>
</TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=231.533 colspan=7><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></P>
</TD><TD valign=bottom width=163.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19,465&nbsp;</P>
</TD><TD valign=bottom width=128.6 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,731&nbsp;</P>
</TD><TD valign=bottom width=136.133 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29,159&nbsp;</P>
</TD><TD valign=bottom width=136 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23,568&nbsp;</P>
</TD><TD valign=bottom width=128.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,351&nbsp;</P>
</TD><TD valign=bottom width=110.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=123.2 colspan=5><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;121,274&nbsp;</FONT></P>
</TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000>Other payables and accrued expenses</FONT></P>
</TD><TD valign=bottom width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;225,248&nbsp;</P>
</TD><TD valign=bottom width=128.6 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;236,610&nbsp;</P>
</TD><TD valign=bottom width=136.133 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;199,294&nbsp;</P>
</TD><TD valign=bottom width=136 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;327,112&nbsp;</P>
</TD><TD valign=bottom width=128.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;203,668&nbsp;</P>
</TD><TD valign=bottom width=110.6 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </FONT></P>
</TD><TD valign=bottom width=123.2 colspan=5><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,191,932&nbsp;</P>
</TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=69.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=161.8 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=163.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000>Total Liabilities</FONT></P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>407,228&nbsp;</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=128.6 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>477,028&nbsp;</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=136.133 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>383,965&nbsp;</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=136 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>476,378&nbsp;</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=128.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>332,606&nbsp;</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=110.6 colspan=3><P style="margin:0px; font-family:Arial; font-size:10.667px">&nbsp;</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=123.2 colspan=5><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,077,205&nbsp;</FONT></P>
</TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=69.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=161.8 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=163.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=128.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136.133 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=128.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=110.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=123.2 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000>Dutch Auction Rate Transferable Securities Series A</FONT></P>
</TD><TD valign=bottom width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>68,580,036&nbsp;</P>
</TD><TD valign=bottom width=128.6 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>50,199,235&nbsp;</P>
</TD><TD valign=bottom width=136.133 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>60,210,448&nbsp;</P>
</TD><TD valign=bottom width=128.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=110.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=123.2 colspan=5><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;178,989,719&nbsp;</FONT></P>
</TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=231.533 colspan=7><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000>DARTS Series B</FONT></P>
</TD><TD valign=bottom width=163.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=128.6 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>50,155,208&nbsp;</P>
</TD><TD valign=bottom width=136.133 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=128.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=110.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=123.2 colspan=5><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;50,155,208&nbsp;</FONT></P>
</TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000>Auction Market Preferred Shares (AMPS)</FONT></P>
</TD><TD valign=bottom width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=128.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136.133 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>70,053,092&nbsp;</P>
</TD><TD valign=bottom width=136 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=128.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=110.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=123.2 colspan=5><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70,053,092&nbsp;</FONT></P>
</TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000>Auction Rate Preferred Shares (ARPS)</FONT></P>
</TD><TD valign=bottom width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=128.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136.133 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=128.2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>52,721,025&nbsp;</P>
</TD><TD valign=bottom width=110.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=123.2 colspan=5><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52,721,025&nbsp;</FONT></P>
</TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=69.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=161.8 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=163.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=128.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136.133 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=128.2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=110.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=123.2 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=31.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=1340.933 colspan=30><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000><B>Net Assets:</B></FONT></P>
</TD></TR>
<TR><TD valign=bottom width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">Common shares capital paid-in</P>
</TD><TD valign=bottom width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;143,176,686&nbsp;</P>
</TD><TD valign=bottom width=128.6 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;168,307,245&nbsp;</P>
</TD><TD valign=bottom width=136.133 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;143,161,777&nbsp;</P>
</TD><TD valign=bottom width=136 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;113,165,469&nbsp;</P>
</TD><TD valign=bottom width=130.067 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99,436,059&nbsp;</P>
</TD><TD valign=bottom width=110.333 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</FONT></P>
</TD><TD valign=bottom width=119 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;667,247,236&nbsp;</P>
</TD><TD valign=bottom width=34.067 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000>Accumulated net realized gain/(loss) on investments </FONT></P>
</TD><TD valign=bottom width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7,503,117)</P>
</TD><TD valign=bottom width=128.6 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5,599,691)</P>
</TD><TD valign=bottom width=136.133 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4,247,937)</P>
</TD><TD valign=bottom width=136 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4,395,767)</P>
</TD><TD valign=bottom width=130.067 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(457,776)</P>
</TD><TD valign=bottom width=110.333 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>(906,061)(A)</FONT></P>
</TD><TD valign=bottom width=119 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23,110,349)</P>
</TD><TD valign=bottom width=34.067 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000>Net unrealized appreciation of investments</FONT></P>
</TD><TD valign=bottom width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>20,071,415&nbsp;</P>
</TD><TD valign=bottom width=128.6 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>30,358,336&nbsp;</P>
</TD><TD valign=bottom width=136.133 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>15,383,715&nbsp;</P>
</TD><TD valign=bottom width=136 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>12,106,614&nbsp;</P>
</TD><TD valign=bottom width=130.067 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>5,327,558&nbsp;</P>
</TD><TD valign=bottom width=110.333 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=119 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83,247,638&nbsp;</FONT></P>
</TD><TD valign=bottom width=34.067 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000>Accumulated net investment income</FONT></P>
</TD><TD valign=bottom width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;97,170&nbsp;</P>
</TD><TD valign=bottom width=128.6 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;532,526&nbsp;</P>
</TD><TD valign=bottom width=136.133 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58,325&nbsp;</P>
</TD><TD valign=bottom width=136 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;258,693&nbsp;</P>
</TD><TD valign=bottom width=130.067 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=bottom width=110.333 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(414,188)&nbsp;(B)</FONT></P>
</TD><TD valign=bottom width=119 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;532,526&nbsp;</P>
</TD><TD valign=bottom width=34.067 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000>Distributions in execess of net investment Income</FONT></P>
</TD><TD valign=bottom width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=bottom width=128.6 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=bottom width=136.133 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=136 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=bottom width=130.067 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(906,061)</P>
</TD><TD valign=bottom width=110.333 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;906,061&nbsp;(A)</FONT></P>
</TD><TD valign=bottom width=119 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=bottom width=34.067 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=69.733 colspan=4><P style="margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000>&nbsp;</FONT></P>
</TD><TD valign=bottom width=161.8 colspan=3><P style="margin:0px; font-family:Arial; font-size:10.667px">&nbsp;</P>
</TD><TD valign=bottom width=163.467 colspan=2><P style="margin:0px; font-family:Arial; font-size:10.667px">&nbsp;</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;155,842,154&nbsp;</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=128.6 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;193,598,416&nbsp;</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=136.133 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;154,355,880&nbsp;</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=136 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;121,135,009&nbsp;</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=130.067 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;103,399,780&nbsp;</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=110.333 colspan=3><P style="margin:0px; font-family:Arial; font-size:10.667px">&nbsp;</P>
</TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=119 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;727,917,051&nbsp;</FONT></P>
</TD><TD valign=bottom width=34.067 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000><B>Net Assets applicable to common shares</B></FONT></P>
</TD><TD valign=bottom width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=129.4 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=139.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=131.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109.867 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=167.733 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>Patriot Premium Dividend Fund II</B></P>
</TD><TD valign=bottom width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=bottom width=129.4 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;193,598,416&nbsp;</P>
</TD><TD valign=bottom width=139.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=131.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109.867 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;534,732,823&nbsp;(C)</P>
</TD>


<TD valign=bottom width=123.2 colspan=5><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;727,917,051&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>Patriot Premium Dividend Fund I</B></P>
</TD><TD valign=top width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;155,842,154&nbsp;</P>
</TD><TD valign=top width=129.4 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=top width=139.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109.867 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(155,842,154)&nbsp;(C)</P>
</TD><TD valign=top width=167.733 colspan=6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
</TD></TR>
<TR><TD valign=top width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000>
<B>Patriot Global Dividend Fund </B></FONT></P>
</TD><TD valign=top width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=129.4 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>-&nbsp;</P>
</TD><TD valign=top width=139.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.733 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;121,135,009&nbsp;</P>
</TD><TD valign=top width=131.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109.867 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(121,135,009)&nbsp;(C)</P>
</TD><TD valign=top width=167.733 colspan=6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
</TD></TR>
<TR><TD valign=bottom width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000><B>Patriot Prefered Dividend Fund</B></FONT></P>
</TD><TD valign=bottom width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=129.4 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=139.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=131.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.6 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;103,399,780&nbsp;</P>
</TD><TD valign=top width=109.867 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(103,399,780)&nbsp;(C)</P>
</TD><TD valign=top width=167.733 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>Patriot Select Dividend Trust</B></P>
</TD><TD valign=top width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=129.4 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>-&nbsp;</P>
</TD><TD valign=top width=139.6 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;154,355,880&nbsp;</P>
</TD><TD valign=top width=131.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109.867 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(154,355,880)&nbsp;(C)</P>
</TD><TD valign=top width=167.733 colspan=6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
</TD></TR>
<TR><TD style="border-bottom:4px double #000000" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=85.333 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=276.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=136><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=129.4 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=139.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=131.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=131.6 colspan=3>
<P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=109.867 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=167.733 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=118.733 colspan=5><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000><B>Shares outstanding</B></FONT></P>
</TD><TD valign=top width=276.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=129.4 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=139.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109.867 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=167.733 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>Patriot Premium Dividend Fund II</B></P>
</TD><TD valign=top width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=129.4 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>15,046,539&nbsp;</P>
</TD><TD valign=top width=139.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109.867 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,904,864&nbsp;(C)</P>
</TD><TD valign=top width=167.733 colspan=6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;56,606,168&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>Patriot Premium Dividend Fund I</B></P>
</TD><TD valign=top width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>15,292,571&nbsp;</P>
</TD><TD valign=top width=129.4 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=139.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109.867 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15,292,571)&nbsp;(C)</P>
</TD><TD valign=top width=167.733 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>Patriot Global Dividend Fund </B></P>
</TD><TD valign=top width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=129.4 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>-&nbsp;</P>
</TD><TD valign=top width=139.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.733 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,344,700&nbsp;</P>
</TD><TD valign=top width=131.6 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=top width=109.867 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8,344,700)&nbsp;(C)</P>
</TD><TD valign=top width=167.733 colspan=6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
</TD></TR>
<TR><TD valign=top width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000><B>Patriot Prefered Dividend Fund</B></FONT></P>
</TD><TD valign=top width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=129.4 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=139.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.6 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>7,257,200&nbsp;</P>
</TD><TD valign=top width=109.867 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7,257,200)&nbsp;(C)</P>
</TD><TD valign=top width=167.733 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>Patriot Select Dividend Trust</B></P>
</TD><TD valign=top width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=129.4 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=139.6 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>10,010,393&nbsp;(C)</P>
</TD><TD valign=top width=131.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109.867 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10,010,393)&nbsp;(C)</P>
</TD><TD valign=top width=167.733 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="border-bottom:4px double #000000" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=85.333 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=276.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=136><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=129.4 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=139.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=131.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=131.6 colspan=3>
<P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=109.867 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=167.733 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>Net Asset value per common share</B></P>
</TD><TD valign=top width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=129.4 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=139.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109.867 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=167.733 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>Patriot Premium Dividend Fund II</B></P>
</TD><TD valign=top width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=129.4 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.87&nbsp;</P>
</TD><TD valign=top width=139.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109.867 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</FONT></P>
</TD><TD valign=top width=167.733 colspan=6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right><FONT COLOR=#000000>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.86 </FONT></P>
</TD></TR>
<TR><TD valign=top width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>Patriot Premium Dividend Fund I</B></P>
</TD><TD valign=top width=136><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.19&nbsp;</P>
</TD><TD valign=top width=129.4 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=139.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109.867 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</FONT></P>
</TD><TD valign=top width=167.733 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000><B>Patriot Global Dividend Fund </B></FONT></P>
</TD><TD valign=top width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=129.4 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=139.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.733 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.52&nbsp;</P>
</TD><TD valign=top width=131.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109.867 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</FONT></P>
</TD><TD valign=top width=167.733 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000><B>Patriot Prefered Dividend Fund</B></FONT></P>
</TD><TD valign=top width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=129.4 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=139.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.6 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.25&nbsp;</P>
</TD><TD valign=top width=109.867 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</FONT></P>
</TD><TD valign=top width=167.733 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=395 colspan=9><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT COLOR=#000000><B>Patriot Select Dividend Trust</B></FONT></P>
</TD><TD valign=top width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=129.4 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=139.6 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.42&nbsp;</P>
</TD><TD valign=top width=131.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109.867 colspan=3><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px; color:#0000FF" align=right><FONT COLOR=#0000FF>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</FONT></P>
</TD><TD valign=top width=167.733 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="border-bottom:4px double #000000" valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=85.333 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=276.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=136><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=129.4 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=139.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=131.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=131.6 colspan=3>
<P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=109.867 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=top width=167.733 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=15.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=17.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=85.333 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=276.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=136><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=129.4 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=139.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=131.6 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=109.867 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=167.733 colspan=6><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:16px"><BR></P>
<P style="margin-top:0px; margin-bottom:16px"><BR>
<BR></P>
<P Align=center style="margin:0px">  See Notes to Pro-Forma Statements<BR></P>
<P style="margin:0px"><BR></P>

<br>
<br>
<br>
<HR>
<P style="line-height:17.333px; margin:0px; font-family:Courier New; font-size:14.667px"><B>John Hancock Patriot Premium Dividend Fund II</B></P>
<P style="line-height:17.333px; margin:0px; font-family:Courier New; font-size:14.667px">John Hancock Patriot Select Dividend Trust</P>
<P style="line-height:17.333px; margin:0px; font-family:Courier New; font-size:14.667px">John Hancock Patriot Global Dividend Fund</P>
<P style="line-height:17.333px; margin:0px; font-family:Courier New; font-size:14.667px">John Hancock Patriot Preferred Dividend Fund</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Courier New">NOTES TO THE OCTOBER 31, 2006 PRO FORMA FINANCIAL STATEMENTS (UNAUDITED)</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Courier New">BASIS OF COMBINATION. The accompanying Pro Forma Combined Schedule of Portfolio Investments and Statements of Assets and Liabilities as of October 31, 2006 and the unaudited Pro Forma Combined Statements of Operations for the year ended October 31, 2006, are intended to present the financial condition and related results of operations of John Hancock Patriot Premium Dividend Fund II as if the reorganization with John Hancock Patriot Premium Dividend Fund I, John Hancock Patriot Select Dividend Trust, John Hancock Patriot Global Dividend Fund, and John Hancock Patriot Preferred Dividend Fund, collectively &#147;the Funds&#148;), had been consummated at October 31, 2005. Under generally accepted accounting principles in the United States of America (&quot;GAAP&quot;), John Hancock Patriot Premium Dividend Fund II will be the surviving entity for accounting purposes.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Courier New">These statements have been derived from the books and records of each Portfolio utilized in calculating daily net asset value at October 31, 2006. The Pro Forma financial statements have been adjusted to reflect the anticipated fee arrangements for the surviving entity and do not reflect the expenses of each of these Portfolios in carrying out their obligations under the Agreement and Plan of Reorganization. If approved by shareholders, the each reorganization is expected to occur as of the close of regularly scheduled trading on the New York Stock Exchange on the day after the next regularly scheduled auction date for each Preferred share class.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Courier New">The Pro Forma Combining Schedule of Portfolio Investments, Statements of Assets and Liabilities and Statements of Operations should be read in conjunction with the historical financial statements of John Hancock Premium Dividend Fund I, John Hancock Patriot Premium Dividend Fund II, John Hancock Patriot Select Dividend Fund,John Hancock Patriot Global Dividend Fund, and John Hancock Patriot Preferred Dividend Fund, incorporated by reference in the Statement of Additional Information.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Courier New">The pro forma adjustments to these pro forma financial statement are comprised of:</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Courier New">(A) Adjustment to reflect the reclassification of Distributions in excess of net investment income to Accumulated net realized gain prior to reorganization. </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Courier New">(B) Adjustment to reflect the distribution of Accumulated net investment income prior to reorganization.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Courier New">(C) Adjustment to reflect the transfer of assets of each acquired fund to the acquiring fund, and the issuance of common shares by the acquiring fund equal to the value of each of the acquired funds upon reorganization. </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Courier New">(D) Adjustment to reflect the increase in Investment Management Fees upon reorganization.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Courier New">(E) Adjustment to reflect the change in Administration fees upon reorganization.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Courier New">(F) Adjustment to reflect the reduction in expense upon reorganization primarily due to the economies of scale.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Courier New">(G) Adjustment to reflect the reduction in the Federal Excise tax paid by the Funds.</P>
<P style="margin:0px; font-family:Courier New">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0px; font-family:Courier New">2. SIGNIFICANT ACCOUNTING POLICIES. The policies described below are followed by the Trust in the preparation of the financial statements. The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results may differ from these estimates.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Courier New">Valuation of Investments</P>
<P style="margin:0px; font-family:Courier New">Securities in the Fund&#146;s portfolio are valued on the basis of market quotations, valuations provided by independent pricing services or at fair value as determined in good faith in accordance with procedures approved by the Trustees. Short-term debt investments that have a remaining maturity of 60 days or less may be valued at amortized cost, which approximates market value. The Funds determine the net asset value of the common shares each business day. </P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Courier New">FEDERAL INCOME TAXES. The Funds&#146; policy is to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and to distribute substantially all of its taxable income to its shareholders. Accordingly, no federal income tax provision is required. Each Fund of the Trust is treated as a separate taxpayer for federal income tax purposes.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Courier New">The unaudited pro forma financial statements should be read in conjunction with the separate financial statements as follows which are incorporated into by reference in the Statement of Additional Information to this proxy statement and prospectus:</P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=139.2></TD><TD width=152.067></TD><TD width=171.933></TD><TD width=127.2></TD></TR>
<TR><TD style="border:1px solid #000000" valign=top width=139.2><P style="margin:0px; font-family:Courier New">John Hancock Patriot Premium Dividend Fund I</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=152.067><P style="margin:0px; font-family:Courier New">Semi-Annual Report dated March 31, 2006 (Unaudited)</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=171.933><P style="margin:0px; font-family:Courier New">Annual Report dated </P>
<P style="margin:0px; font-family:Courier New">September 30, 2006</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=127.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=139.2><P style="margin:0px; font-family:Courier New"><B>John Hancock Patriot Premium Dividend Fund II</B></P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=152.067><P style="margin:0px; font-family:Courier New">Semi-Annual Report dated April 30, 2006 (Unaudited)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=171.933><P style="margin:0px; font-family:Courier New">Annual Report dated </P>
<P style="margin:0px; font-family:Courier New">October 31, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=127.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=139.2><P style="margin:0px; font-family:Courier New">John Hancock Patriot Select Dividend Trust</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=152.067><P style="margin:0px; font-family:Courier New">Semi-Annual Report dated December 31, 2005 (Unaudited)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=171.933><P style="margin:0px; font-family:Courier New">Annual Report dated June 30, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=127.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=139.2><P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Courier New">John Hancock Patriot Global Dividend Fund</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=152.067><P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Courier New">Semi-Annual Report dated January 31, 2006 (Unaudited)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=171.933><P style="margin:0px"><BR></P>
<P style="margin:0px; font-family:Courier New">Annual Report dated July 31, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=127.2><P style="margin:0px"><BR></P>
</TD></TR>
<TR><TD style="border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=139.2><P style="margin:0px; font-family:Courier New">John Hancock Patriot Preferred Dividend Fund</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=152.067><P style="margin:0px; font-family:Courier New">Semi-Annual Report dated November 30, 2005 (Unaudited)</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=171.933><P style="margin:0px; font-family:Courier New">Annual Report </P>
<P style="margin:0px; font-family:Courier New">dated May 31, 2006</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=top width=127.2><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<br>
<HR>

<P style="margin:0px"><BR></P>
<P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT FACE="Arial"><B>John Hancock Patriot Premium Dividend Fund II</B></FONT></P>
<P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>Pro-forma Statement of Operations</B></P>
<P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>For the twelve month period ended October 31, 2006</B></P>
<P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>(Unaudited)</B></P>
<P style="margin:0px; font-family:Arial">&nbsp;</P>
<P style="margin:0px"><BR></P>
<P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">The following unaudited pro forma combined Statement of Operations has been derived from the Statement of Operations of John Hancock Patriot Premium Dividend Fund II, &nbsp;&nbsp;&nbsp;</P>
<P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">John Hancock Patriot Premium Dividend Fund I, John Hancock Patriot Global Dividend Fund, John Hancock Patriot Preferred Dividend Fund, and John Hancock Select Dividend Trust as of October 31, 2006,</P>
<P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">and such information has been adjusted to give effect to the Reorganization as if the Reorganization had occurred on October 31, 2006. The pro forma Combined Statement of Operations </P>
<P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">is presented for informational purposes only and does not purport to be indicative of the financial conditions that actually would have resulted if the Reorganization had occurred on October 31, 2006. </P>
<P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">The pro forma Combined Statement of Operations should be read in conjunction with the funds' financial statements and related notes thereto which are to be included in the Proxy Statement and Prospectus.</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=181.133></TD><TD width=97.733></TD><TD width=127.8></TD><TD width=104.6></TD><TD width=112.667></TD><TD width=103.333></TD><TD width=103.333></TD><TD width=103.333></TD><TD width=107.333></TD><TD width=36.4></TD><TD width=169.733></TD><TD width=15.733></TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>ADJUSTED</P>
</TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Patriot Premium</P>
</TD><TD valign=top width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Patriot Premium</P>
</TD><TD valign=top width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Patriot Select</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Patriot Global</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Patriot Preferred</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>PRO-FORMA</P>
</TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>PRO-FORMA</P>
</TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Dividend Fund I (PDF)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Dividend Fund &nbsp;II</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Dividend Trust (DIV)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Dividend Fund (PGD)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>Dvidend Fund (PPF)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>COMBINED</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>ADJUSTMENTS(1)</P>
</TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=center>COMBINED</P>
</TD></TR>
<TR><TD valign=top width=181.133><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>Investment Income:</B></P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=181.133><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">Dividends</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,469,617&nbsp;</P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,960,496&nbsp;</P>
</TD><TD valign=top width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,315,084&nbsp;</P>
</TD><TD valign=top width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,073,021&nbsp;</P>
</TD><TD valign=top width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,463,739&nbsp;</P>
</TD><TD valign=top width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>$ &nbsp;60,281,957&nbsp;</P>
</TD><TD valign=top width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>$ -&nbsp;</P>
</TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60,281,957&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=181.133><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">Interest</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>271,660&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>335,606&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>267,949&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>222,372&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>166,608&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,264,195&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,264,195&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>12,741,277&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>16,296,102&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>12,583,033&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>10,295,393&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>9,630,347&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61,546,152&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61,546,152&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=181.133><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">Expenses:</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; padding-left:7.8px; font-family:Arial; font-size:10.667px">Investment management fees</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>1,708,266&nbsp;</P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>2,215,621&nbsp;</P>
</TD><TD valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>1,698,418&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>1,393,458&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>1,218,994&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,234,757&nbsp;</P>
</TD><TD valign=bottom width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,549&nbsp;</P>
</TD><TD valign=top width=36.4><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">(D)</P>
</TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,255,306&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; padding-left:7.8px; font-family:Arial; font-size:10.667px">Administration fees</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>214,241&nbsp;</P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>280,899&nbsp;</P>
</TD><TD valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>318,454&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>261,273&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>228,561&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,303,428&nbsp;</P>
</TD><TD valign=bottom width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(267,828)</P>
</TD><TD valign=top width=36.4><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">(E)</P>
</TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,035,600&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; padding-left:7.8px; font-family:Arial; font-size:10.667px">Compliance fees</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>3,522&nbsp;</P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>3,451&nbsp;</P>
</TD><TD valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>3,478&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>2,767&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>2,438&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,656&nbsp;</P>
</TD><TD valign=bottom width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,656&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; padding-left:7.8px; font-family:Arial; font-size:10.667px">Auction fees</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>171,250&nbsp;</P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>268,472&nbsp;</P>
</TD><TD valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>190,568&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>152,084&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>133,071&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;915,445&nbsp;</P>
</TD><TD valign=bottom width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;915,445&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; padding-left:7.8px; font-family:Arial; font-size:10.667px">Custodian fees</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>44,908&nbsp;</P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>52,777&nbsp;</P>
</TD><TD valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>44,388&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>39,192&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>35,051&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;216,316&nbsp;</P>
</TD><TD valign=bottom width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(54,079)</P>
</TD><TD valign=top width=36.4><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">(F)</P>
</TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;162,237&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; padding-left:7.8px; font-family:Arial; font-size:10.667px">Printing</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>57,098&nbsp;</P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>47,379&nbsp;</P>
</TD><TD valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>46,550&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>38,991&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>39,500&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;229,518&nbsp;</P>
</TD><TD valign=bottom width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(57,380)</P>
</TD><TD valign=top width=36.4><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">(F)</P>
</TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;172,139&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; padding-left:7.8px; font-family:Arial; font-size:10.667px">Transfer agent fees</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>49,328&nbsp;</P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>43,033&nbsp;</P>
</TD><TD valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>41,392&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>33,892&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>38,517&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;206,162&nbsp;</P>
</TD><TD valign=bottom width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(141,613)</P>
</TD><TD valign=top width=36.4><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">(F)</P>
</TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64,550&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; padding-left:7.8px; font-family:Arial; font-size:10.667px">Professional fees</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>39,920&nbsp;</P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>39,501&nbsp;</P>
</TD><TD valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>34,912&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>33,898&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>34,790&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;183,021&nbsp;</P>
</TD><TD valign=bottom width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(109,813)</P>
</TD><TD valign=top width=36.4><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">(F)</P>
</TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;73,208&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; padding-left:7.8px; font-family:Arial; font-size:10.667px">Blue Sky fees</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>23,825&nbsp;</P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>23,825&nbsp;</P>
</TD><TD valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>23,825&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>23,750&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>23,825&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;119,050&nbsp;</P>
</TD><TD valign=bottom width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(59,525)</P>
</TD><TD valign=top width=36.4><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">(F)</P>
</TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;59,525&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; padding-left:7.8px; font-family:Arial; font-size:10.667px">Trustees' fees</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>10,133&nbsp;</P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>14,487&nbsp;</P>
</TD><TD valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>10,591&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>9,050&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>8,457&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52,718&nbsp;</P>
</TD><TD valign=bottom width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52,718&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; padding-left:7.8px; font-family:Arial; font-size:10.667px">Interest</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>978&nbsp;</P>
</TD><TD valign=bottom width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>0&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;978&nbsp;</P>
</TD><TD valign=bottom width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;978&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; padding-left:7.8px; font-family:Arial; font-size:10.667px">Miscellaneous</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>18,256&nbsp;</P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>24,087&nbsp;</P>
</TD><TD valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>21,995&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>16,550&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>11,454&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;92,342&nbsp;</P>
</TD><TD valign=bottom width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(55,405)</P>
</TD><TD valign=top width=36.4><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">(F)</P>
</TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36,937&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; padding-left:7.8px; font-family:Arial; font-size:10.667px">Federal Excise</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>5,667&nbsp;</P>
</TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>38,505&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>125,774&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;169,946&nbsp;</P>
</TD><TD valign=bottom width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(169,946)</P>
</TD><TD valign=top width=36.4><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">(G)</P>
</TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"
align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; padding-left:60px; font-family:Arial; font-size:10.667px">Total Expenses</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>2,346,414&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>3,014,510&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>2,434,571&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>2,043,410&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>1,900,432&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>11,739,337&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>(895,039)</P>
</TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>10,844,298&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; padding-left:60px; font-family:Arial; font-size:10.667px">Less Expense Reductions </P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; padding-left:60px; font-family:Arial; font-size:10.667px">Net Expenses</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>2,346,414&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>3,014,510&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>2,434,571&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>2,043,410&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>1,900,432&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>11,739,337&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>(895,039)</P>
</TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,844,298&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; padding-left:60px; font-family:Arial; font-size:10.667px">Net Investment loss</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>10,394,863&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>13,281,592&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>10,148,462&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>8,251,983&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>7,729,915&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>49,806,815&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>895,039&nbsp;</P>
</TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>50,701,854&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=181.133><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>REALIZED AND UNREALIZED GAIN (LOSS)</B></P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=181.133><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized gain (loss) on:</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=181.133><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,758,663)</P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(319,381)</P>
</TD><TD valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4,074,075)</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;662,515&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;258,775&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6,230,829)</P>
</TD><TD valign=bottom width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=bottom width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6,230,829)</P>
</TD></TR>
<TR><TD valign=top width=181.133><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in net unrealized appreciation (depreciation) of:</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=181.133><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,998,763&nbsp;</P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16,940,149&nbsp;</P>
</TD><TD valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16,420,848&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,136,966&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,910,249&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60,406,975&nbsp;</P>
</TD><TD valign=bottom width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=bottom width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60,406,975&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=181.133><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>Net realized and unrealized gain/loss</B></P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,240,100&nbsp;</B></P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16,620,768&nbsp;</B></P>
</TD><TD valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,346,773&nbsp;</B></P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,799,481&nbsp;</B></P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,169,024&nbsp;</B></P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54,176,146&nbsp;</P>
</TD><TD valign=bottom width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</B></P>
</TD><TD valign=bottom width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=169.733><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;54,176,146&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">Distributions to DARTS Series A</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,573,907)</P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,881,075)</P>
</TD><TD valign=bottom width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">Distributions to DARTS Series B</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,887,807)</P>
</TD><TD valign=bottom width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">Distributions to DARTS </P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=bottom width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,273,487)</P>
</TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4,454,982)</P>
</TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4,454,982)</P>
</TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">Distributions to ARPS</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=bottom width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,887,807)</P>
</TD><TD valign=top width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>-&nbsp;</P>
</TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,887,807)</P>
</TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px">Distributions to AMPS</P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,622,847)</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</P>
</TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,273,487)</P>
</TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,273,487)</P>
</TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,978,776)</P>
</TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,978,776)</P>
</TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,622,847)</P>
</TD><TD style="border-bottom:1px solid #000000" valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,622,847)</P>
</TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>Increase (Decrease) in net assets resulting from operations</B></P>
</TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,061,056&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26,133,478&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19,872,388&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14,777,977&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,920,163&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>144,941,208&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=107.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;895,039&nbsp;</P>
</TD><TD valign=bottom width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=169.733><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>145,836,247&nbsp;</P>
</TD><TD valign=bottom width=15.733><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=181.133><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>Average Net Assets </B></P>
</TD><TD valign=top width=97.733><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right><B>1,035,599,634</B></P>
</TD><TD valign=bottom width=127.8><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>145,740,892&nbsp;</P>
</TD><TD valign=bottom width=104.6><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>180,423,689&nbsp;</P>
</TD><TD valign=bottom width=112.667><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>144,378,541&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>114,182,244&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right>99,874,267&nbsp;</P>
</TD><TD valign=bottom width=103.333><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right><B>684,599,633&nbsp;</B></P>
</TD><TD valign=bottom width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=185.467 colspan=2><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px" align=right><B>684,599,633&nbsp;</B></P>
</TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=top width=181.133><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=97.733><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=127.8><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=104.6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=112.667><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=103.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=107.333><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=36.4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=top width=185.467 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
</TABLE>
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<TABLE style="font-size:13.333px" cellspacing=0><TR><TD width=315.867></TD><TD width=49.067></TD><TD width=2.667></TD><TD width=72.533></TD><TD width=7.4></TD><TD width=51.333></TD><TD width=51.333></TD><TD width=22.8></TD><TD width=40.333></TD><TD width=2.6></TD><TD width=22.733></TD><TD width=21></TD><TD width=14.4></TD><TD width=13.933></TD><TD width=4.467></TD><TD width=21.133></TD><TD width=55.067></TD><TD width=3.733></TD><TD width=16.467></TD><TD width=10.667></TD><TD width=65.867></TD><TD width=3.4></TD><TD width=26.6></TD><TD width=24.8></TD><TD width=51.2></TD><TD width=2.267></TD><TD width=9.133></TD><TD width=42.667></TD><TD width=8.067></TD><TD width=21.4></TD><TD width=70.267></TD><TD width=32.333></TD><TD width=4.133></TD><TD width=15.333></TD><TD width=15.333></TD><TD width=45.133></TD><TD width=14.067></TD><TD width=26.067></TD><TD width=48.4></TD><TD width=14.067></TD><TD width=42.4></TD><TD width=37.533></TD><TD width=94.867></TD></TR>
<TR><TD valign=bottom width=375.867><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><FONT FACE="Arial"><B>John Hancock Patriot Premium Dividend Fund II</B></FONT></P>
</TD><TD valign=bottom width=49.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=75.2 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=175.8 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=97.667 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=85.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.867 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=76 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=99.733 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.133 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=85.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=104.867 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=132.4 colspan=2>
<P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>Schedule of Investments</B></P>
</TD><TD valign=bottom width=49.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=75.2 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=175.8 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=97.667 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=85.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.867 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=76 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=99.733 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.133 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=85.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=104.867 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=132.4 colspan=2><P
style="font-size:2p
t">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:13.333px; margin:0px; font-family:Arial; font-size:10.667px"><B>October 31, 2006 (unaudited)</B></P>
</TD><TD valign=bottom width=49.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=75.2 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=175.8 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=97.667 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=85.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.867 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=76 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=99.733 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.133 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=85.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=104.867 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=132.4 colspan=2><P
style="font-size:2p


t">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=49.067><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=75.2 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=175.8 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=97.667 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=85.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=95.867 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=76 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=54.067 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=99.733 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=67.133 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=85.267 colspan=3><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=104.867 colspan=3><P
style="font-size:2pt">&nbsp;


</P></TD><TD valign=bottom width=132.4 colspan=2><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD style="background-color:#CCFFCC; border-left:1px solid #000000; border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>% of Net<BR>
Assets</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=182.6 colspan=4><P style="line-height:normal; margin:0px; padding-left:-6px; font-family:Arial; font-size:9.333px">Patriot Premium Dividend Fund I</P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=218.467 colspan=10><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=center>Patriot Premium Dividend Fund II</P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=205 colspan=9><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=center>Patriot Select Dividend Trust</P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=183.867 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=center>Patriot Global Dividend Fund</P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=182.533 colspan=8><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=center>Patriot Preferred Dividend Fund</P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=174.8 colspan=3><P style="line-height:12px; margin:0px; padding-left:-4.8px; font-family:Arial; font-size:9.333px" align=center>Patriot Premium Dividend Fund II<BR>
Combined</P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC; border-left:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Issuer</B></P>
</TD><TD style="background-color:#CCFFCC; border-left:1px solid #000000; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=center><B>Shares</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=center><B>Value</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=center><B>Shares</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=center><B>Value</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=center><B>Shares</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=center><B>Value</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=center><B>Shares</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=center><B>Value</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=center><B>Shares</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=center><B>Value</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=center><B>Shares</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=center><B>Value</B></P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>COMMON STOCKS</B></P>
</TD><TD width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Electric Utilities &nbsp;&nbsp;</B></P>
</TD><TD width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>3.16%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">FPL Group, Inc.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,020,000</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,020,000</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,020,000</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>60,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,060,000</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Pinnacle West Capital Corp.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>37,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,768,970</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>40,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,912,400</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>30,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,434,300</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>107,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,115,670</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Progress Energy, Inc.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>72,500</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,335,000</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>99,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,554,000</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>84,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,864,000</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>48,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,208,000</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>303,500</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>13,961,000</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Progress Energy, Inc. (Contingent Value Obligation) </P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>69,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>21,390</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>176,250</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>54,638</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,200</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>35,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>10,850</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>37,500</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>11,625</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>337,750</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>104,703</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Southern Co.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>728,000</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>728,000</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,145,360</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>7,541,038</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,324,500</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,946,850</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>11,625</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>22,969,373</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Gas Utilities &nbsp;&nbsp;</B></P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>2.66%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">National Fuel Gas Co.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>59,850</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,238,390</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>86,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,216,400</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>56,150</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,100,010</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>202,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>7,554,800</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Peoples Energy Corp.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>58,400</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,551,496</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>70,200</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,067,038</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>57,750</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,523,098</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>56,450</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,466,301</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>28,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,223,320</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>270,800</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>11,831,252</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,789,886</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,283,438</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,623,108</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,466,301</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,223,320</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>19,386,052</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Integrated Telecommunication Services &nbsp;&nbsp;</B></P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>2.64%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">AT&amp;T, Inc.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>97,850</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,351,363</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>102,350</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,505,488</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>97,700</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,346,225</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>94,850</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,248,613</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>22,550</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>772,338</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>415,300</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>14,224,025</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Verizon Communications, Inc.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>33,100</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,224,700</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>40,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,480,000</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>33,150</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,226,550</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>29,650</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,097,050</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>135,900</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,028,300</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,576,063</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,985,488</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,572,775</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,345,663</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>772,338</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>19,252,325</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Multi-Utilities &amp; Unregulated Power &nbsp;&nbsp;</B></P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>41.49%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Alliant Energy Corp.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>144,380</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,536,973</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>182,900</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>7,014,215</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>148,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,675,800</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>118,420</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,541,407</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>52,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,994,200</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>645,700</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>24,762,595</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Ameren Corp.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>45,900</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,483,190</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>80,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,328,000</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>85,400</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,620,140</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>30,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,623,000</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>241,300</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>13,054,330</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">CH Energy Group, Inc.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>151,050</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>7,857,621</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>198,800</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>10,341,576</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>151,250</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>7,868,025</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>120,900</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,289,218</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>622,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>32,356,440</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Consolidated Edison, Inc.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>32,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,547,200</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>78,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,771,300</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>45,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,175,750</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>155,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>7,494,250</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Dominion Resources, Inc.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>64,300</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,207,657</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>79,700</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,454,903</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>51,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,130,490</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>47,500</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,847,025</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>27,500</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,227,225</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>270,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>21,867,300</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">DTE Energy Co.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>126,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,724,180</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>193,500</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>8,790,705</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>155,900</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>7,082,537</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>116,900</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,310,767</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>30,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,362,900</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>622,300</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>28,271,089</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Duke Energy Corp.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>84,650</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,678,326</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>165,200</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,226,928</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>53,410</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,689,892</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>134,250</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,247,670</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>437,510</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>13,842,816</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Energy East Corp.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>257,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,247,670</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>320,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>7,779,200</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>242,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,883,020</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>194,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,716,140</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,013,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>24,626,030</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">KeySpan Corp.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>158,250</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,421,785</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>236,250</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>9,587,025</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>183,650</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>7,452,517</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>131,600</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,340,328</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>91,550</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,715,099</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>801,300</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>32,516,754</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">NiSource, Inc.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>87,450</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,034,962</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>158,050</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,677,824</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>117,700</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,738,879</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>82,400</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,917,448</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>46,400</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,079,728</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>492,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>11,448,840</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">NSTAR</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>350,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>12,176,500</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>276,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>9,602,040</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>188,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,540,520</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>158,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,496,820</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>100,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,479,000</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,072,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>37,294,880</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">OGE Energy Corp.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>137,632</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,309,843</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>96,092</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,707,229</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>233,724</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>9,017,072</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">SCANA Corp.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>21,700</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>867,132</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>28,400</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,134,864</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>21,700</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>867,132</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>17,700</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>707,292</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>15,500</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>619,380</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>105,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,195,800</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">TECO Energy, Inc.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>173,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,852,770</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>196,750</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,244,408</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>176,750</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,914,608</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>140,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,308,600</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>62,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,022,380</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>748,500</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>12,342,765</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Vectren Corp.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>30,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>871,800</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>30,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>871,800</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>60,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,743,600</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">WPS Resources Corp.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>30,400</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,617,584</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>55,400</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,947,834</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>51,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,713,710</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>60,400</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,213,884</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>197,200</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>10,493,012</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Xcel Energy, Inc.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>164,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,619,480</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>228,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,031,960</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>169,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,729,830</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>136,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,001,520</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>59,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,302,130</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>756,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>16,684,920</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>66,873,030</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>95,114,424</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>70,661,879</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>52,561,119</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>16,802,042</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>302,012,493</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Oil &amp; Gas Storage &amp; Transportation</B></P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>1.16%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Kinder Morgan, Inc.</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,102,000</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,102,000</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,102,000</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,102,000</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>80,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>8,408,000</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="margin:0px; font-family:Arial; font-size:9.333px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=130 colspan=6><P style="margin:0px; font-family:Arial; font-size:9.333px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="margin:0px; font-family:Arial; font-size:9.333px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="margin:0px; font-family:Arial; font-size:9.333px" align=right>&nbsp;</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=94.867><P style="margin:0px; font-family:Arial; font-size:9.333px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>TOTAL COMMON STOCKS</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>51.11%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;84,486,338 </P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;116,026,387 </P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;88,284,262 </P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64,421,932 </P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18,809,325 </P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;372,028,243 </P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">($311,001,723)</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P
style="font-siz


e:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Agricultural Products &nbsp;&nbsp;</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>2.53%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Ocean Spray Cranberries, Inc., 6.25%, Ser A</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>35,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,878,750</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>44,250</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,639,563</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>40,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,290,000</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>45,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,701,250</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>60,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,935,000</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>224,250</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>18,444,563</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Consumer Finance &nbsp;&nbsp;</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>3.49%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">CIT Group, Inc., 6.35%, Ser A</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>520,400</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>520,400</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>520,400</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>520,400</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>60,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,561,200</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>140,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,642,800</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">HSBC Finance Corp., 6.36% Depositary Shares, Ser B</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>35,600</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>923,464</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>35,600</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>923,464</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">SLM Corp., 6.97%, Ser A</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>13,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>693,550</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>92,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,908,200</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>92,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,908,200</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>92,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,908,200</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>101,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,388,350</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>390,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,806,500</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,213,950</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,428,600</P>
</TD><TD width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,428,600</P>
</TD><TD width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,428,600</P>
</TD><TD width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>7,873,014</P>
</TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>25,372,764</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Diversified Banks &nbsp;&nbsp;</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>4.53%</B></P>
</TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Bank of America Corp., 6.75%, Depositary Shares, Ser VI</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>170,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,401,300</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>260,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,731,400</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>220,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,695,800</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>170,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,401,300</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>140,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,624,600</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>960,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>24,854,400</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">HSBC Holdings Plc, 6.20%, Ser A</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>25,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>628,500</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>25,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>628,500</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Royal Bank of Scotland Group Plc, 5.75%, Ser L (United Kingdom)</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>65,200</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,566,756</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>140,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,364,200</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>28,200</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>677,646</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>80,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,922,400</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>313,400</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>7,531,002</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,596,556</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>10,095,600</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,695,800</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,078,946</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,547,000</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>33,013,902</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Diversified Chemicals</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>0.40%</B></P>
</TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">DuPont (E.I.) de Nemours &amp; Co., $4.50, Ser B</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>33,900</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,881,500</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>33,900</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,881,500</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Electric Utilities &nbsp;&nbsp;</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>30.29%</B></P>
</TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Alabama Power Co., 5.20%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>240,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,829,600</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>262,475</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,375,518</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>240,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,829,600</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>222,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,392,380</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>251,400</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,106,506</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,215,875</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>29,533,604</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Boston Edison Co., 4.25%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>58,152</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,623,084</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>64,157</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,100,482</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>122,309</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>9,723,566</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Boston Edison Co., 4.78%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>25,558</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,281,052</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>67,342</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,010,274</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>19,380</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,729,665</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>112,280</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>10,020,990</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Carolina Power &amp; Light Co., $4.20</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>41,151</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,325,515</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>41,151</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,325,515</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Carolina Power &amp; Light Co., $5.44</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>11,382</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,098,363</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>11,382</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,098,363</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Central Illinois Light Co., 4.64%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>7,460</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>560,899</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>7,460</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>560,899</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Central Maine Power Co., 4.75%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>11,015</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>944,536</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>11,015</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>944,536</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Connecticut Light &amp; Power Co., 3.90%, Ser 1949</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>27,255</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>940,298</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>27,255</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>940,298</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Delmarva Power &amp; Light Co., 3.70%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>13,109</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>900,835</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>13,109</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>900,835</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Duquesne Light Co., 6.50%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>105,900</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,310,885</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>107,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,366,050</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>107,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,366,050</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>100,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,015,000</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>100,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,015,000</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>519,900</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>26,072,985</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Entergy Arkansas, Inc., 6.45%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>50,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,273,440</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>50,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,273,440</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>100,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,546,880</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>50,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,273,440</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>100,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,546,880</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>350,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>8,914,080</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Entergy Mississippi, Inc., 6.25%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>150,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,731,250</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>153,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,805,875</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>104,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,587,000</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>120,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,985,000</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>140,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,482,500</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>667,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>16,591,625</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">FPC Capital I, 7.10%, Ser A</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>150,400</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,823,168</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>150,400</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,823,168</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Georgia Power Co., 6.00%, Ser R</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>213,800</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,327,896</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>54,900</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,368,108</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>268,700</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,696,004</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Great Plains Energy, Inc., 4.50%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>12,510</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,029,573</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>12,510</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,029,573</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Great Plains Energy, Inc., 8.00%, Conv</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>99,900</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,497,500</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>99,900</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,497,500</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">HECO Capital Trust III, 6.50%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>107,900</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,699,658</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>37,500</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>938,250</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>145,400</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,637,908</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Interstate Power &amp; Light Co., 7.10%, Ser C</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>25,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>675,000</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>76,500</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,065,500</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>25,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>675,000</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>25,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>675,000</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>32,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>864,000</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>183,500</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,954,500</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Interstate Power &amp; Light Co., 8.375%, Ser B</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>25,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>806,250</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>25,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>806,250</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>46,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,483,500</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>36,800</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,186,800</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>132,800</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,282,800</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Massachusetts Electric Co., 4.76%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,166</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>562,841</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,166</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>562,841</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Monongahela Power Co., $6.28, Ser D</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>24,931</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,406,622</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>24,931</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,406,622</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">PPL Electric Utilities Corp., 4.40%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>29,790</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,465,123</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>29,790</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,465,123</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">PPL Electric Utilities Corp., 4.60%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,917</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>349,347</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,917</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>349,347</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">PPL Electric Utilities Corp., 6.25%, Depositary Shares</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>200,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,118,760</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>200,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,118,760</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>200,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,118,760</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>200,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,118,760</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>200,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,118,760</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,000,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>25,593,800</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">PPL Energy Supply LLC, 7.00%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>70,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,794,800</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>50,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,282,000</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>50,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,282,000</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>50,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,282,000</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>50,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,282,000</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>270,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,922,800</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Public Service Electric &amp; Gas Co., 4.30%, Ser C</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>8,280</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>670,680</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>8,280</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>670,680</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Southern California Edison Co., 6.00%, Ser C</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>18,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,823,063</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>18,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,823,063</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>18,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,823,063</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>12,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,215,376</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>14,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,417,938</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>80,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>8,102,504</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Southern California Edison Co., 6.125%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>35,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,553,596</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>35,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,553,596</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>35,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,553,596</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>40,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,061,252</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>50,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,076,565</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>195,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>19,798,604</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Union Electric Co., $3.70</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>12,262</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>961,034</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>12,262</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>961,034</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Virginia Electric &amp; Power Co., $6.98</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>35,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,659,688</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>10,500</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,097,906</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>45,500</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,757,594</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Virginia Electric &amp; Power Co., $7.05</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>10,200</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,067,175</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>10,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,046,250</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>10,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,046,250</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>30,200</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,159,675</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Wisconsin Public Service Corp., 6.76%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>35,883</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,709,405</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>7,500</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>775,313</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,095</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>630,071</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>49,478</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,114,788</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Xcel Energy, Inc., $4.08, Ser B</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>8,610</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>716,783</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>8,610</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>716,783</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Xcel Energy, Inc., $4.11, Ser D</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>24,921</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,887,766</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>8,770</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>664,328</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>33,691</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,552,093</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Xcel Energy, Inc., $4.16, Ser E</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>9,410</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>785,735</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>9,410</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>785,735</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>56,173,543</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>60,565,328</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>38,285,399</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>31,213,581</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>34,230,919</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>220,468,769</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Gas Utilities &nbsp;&nbsp;</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>3.84%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Southern Union Co., 7.55%, Ser A</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>201,100</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,252,732</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>239,700</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,260,964</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>226,300</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,910,956</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>128,700</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,361,644</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>201,400</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,260,568</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>997,200</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>26,046,864</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Southwest Gas Capital II, 7.70%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>72,300</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,881,246</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>72,300</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,881,246</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,252,732</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,260,964</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,910,956</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,361,644</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>7,141,814</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>27,928,110</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Integrated Telecommunication Services &nbsp;&nbsp;</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>0.55%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Telephone &amp; Data Systems, Inc., 6.625%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>101,900</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,527,120</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>19,300</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>478,640</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>40,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>992,000</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>161,200</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,997,760</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="margin:0px; font-family:Arial; font-size:9.333px">&nbsp;</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="margin:0px; font-family:Arial; font-size:9.333px">&nbsp;</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000" valign=bottom width=94.867><P style="margin:0px; font-family:Arial; font-size:9.333px">&nbsp;</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Investment Banking &amp; Brokerage &nbsp;&nbsp;</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>12.64%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Bear Stearns Cos., Inc. (The), 5.49%, Depositary Shares, Ser G</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>25,200</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,183,140</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>50,650</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,378,018</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>140,200</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,582,390</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>56,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,629,200</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>272,050</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>12,772,748</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Bear Stearns Cos., Inc. (The), 5.72%, Depositary Shares, Ser F</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>102,460</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,097,385</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>95,300</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,741,175</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>91,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,527,250</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>40,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,990,000</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>328,760</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>16,355,810</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Bear Stearns Cos., Inc. (The), 6.15%, Depositary Shares, Ser E</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>84,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,222,680</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>23,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,156,210</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>100,600</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,057,162</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>207,600</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>10,436,052</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Goldman Sachs Group, Inc., 6.20%, Ser B</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>513,000</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>513,000</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>513,000</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>513,000</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>47,800</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,226,070</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>127,800</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,278,070</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Lehman Brothers Holdings, Inc., 5.67%, Depositary Shares, Ser D</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>102,700</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,427,695</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>124,800</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,595,680</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>125,600</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,637,960</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>145,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>7,663,250</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>48,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,536,800</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>546,100</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>28,861,385</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Lehman Brothers Holdings, Inc., 5.94%, Depositary Shares, Ser C</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>90,400</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,610,400</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>53,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,703,000</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>13,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>663,000</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>28,100</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,433,100</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>102,500</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,227,500</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>287,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>14,637,000</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Merrill Lynch &amp; Co., Inc., 6.375%, Depositary Shares, Ser 3</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>30,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>780,600</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>26,900</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>699,938</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>25,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>650,500</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>30,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>780,600</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>105,150</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,736,003</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>217,050</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,647,641</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>17,612,220</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>21,853,491</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>16,203,060</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>17,546,400</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>18,773,535</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>91,988,706</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Multi-Line Insurance &nbsp;&nbsp;</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>3.64%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">MetLife, Inc., 6.50%, Ser B</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>115,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,990,000</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>215,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,590,000</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>215,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,590,000</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>215,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,590,000</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>260,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,760,000</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,020,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>26,520,000</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Multi-Utilities &amp; Unregulated Power &nbsp;&nbsp;</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>12.84%</B></P>
</TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Baltimore Gas &amp; Electric Co., 6.70%, Ser 1993</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,250</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,107,899</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,250</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,107,899</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Baltimore Gas &amp; Electric Co., 6.99%, Ser 1995</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>34,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,553,000</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>30,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,135,000</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>40,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,180,000</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>10,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,045,000</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,090,000</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>134,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>14,003,000</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">BGE Capital Trust II, 6.20%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>205,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,028,650</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>205,300</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,036,009</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>200,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,906,000</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>610,300</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>14,970,659</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">PNM Resources, Inc., 6.75%, Conv</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>98,049</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,869,113</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>67,896</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,371,715</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>66,055</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,280,291</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>38,110</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,892,543</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>270,110</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>13,413,663</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">PSEG Funding Trust II, 8.75%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>71,400</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,874,964</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>36,300</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>953,238</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>30,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>787,800</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>137,700</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,616,002</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Public Service Electric &amp; Gas Co., 4.08%, Ser A</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>392,500</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>392,500</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Public Service Electric &amp; Gas Co., 4.18%, Ser B</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>13,677</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,100,999</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>40,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,220,000</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>53,677</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,320,999</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Public Service Electric &amp; Gas Co., 6.92%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>26,800</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,839,125</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>47,998</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,084,788</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>30,627</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,244,548</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>7,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>741,563</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>19,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,012,813</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>131,425</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>13,922,836</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">SEMPRA Energy, $4.36</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>19,250</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,559,250</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>19,250</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,559,250</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>38,500</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,118,500</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">SEMPRA Energy, $4.75, Ser 53</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,305</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>543,806</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,305</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>543,806</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>12,610</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,087,613</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">South Carolina Electric &amp; Gas Co., 6.52%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>55,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,546,409</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>55,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,546,409</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>55,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,546,409</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>55,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,546,409</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>220,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>22,185,636</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">TECO Capital Trust I, 8.50%</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>12,501</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>323,776</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>12,501</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>323,776</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>24,035,037</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>27,878,376</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>24,213,542</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>12,445,514</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,890,613</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>93,463,082</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Oil &amp; Gas Exploration &amp; Production &nbsp;&nbsp;</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>10.68%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Anadarko Petroleum Corp., 5.46%, Depositary Shares, Ser B</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,900,626</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,900,626</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,900,626</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>34,567</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,284,947</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>94,567</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>8,986,825</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Apache Corp., 5.68%, Depositary Shares, Ser B</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>26,700</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,639,129</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>51,500</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,090,456</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>48,174</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,761,701</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>48,075</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,751,916</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>62,200</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,148,084</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>236,649</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>23,391,286</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Devon Energy Corp., 6.49%, Ser A</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>50,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,081,250</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>50,645</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,146,798</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>53,500</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,436,938</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>50,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,081,250</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>63,500</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,453,188</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>267,645</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>27,199,423</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Nexen, Inc., 7.35% (Canada)</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>205,500</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,229,975</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>112,300</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,858,035</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>95,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,417,750</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>100,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,545,000</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>200,400</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,100,180</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>713,200</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>18,150,940</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>12,950,354</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>14,995,915</P>
</TD><TD width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>14,517,015</P>
</TD><TD width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>14,278,792</P>
</TD><TD width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>20,986,399</P>
</TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>77,728,475</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Other Diversified Financial Services &nbsp;&nbsp;</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>3.73%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Citigroup, Inc., 6.213%, Depositary Shares, Ser G</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>96,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,020,800</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>44,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,301,200</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>52,000</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,719,600</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>192,000</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>10,041,600</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Citigroup, Inc., 6.231%, Depositary Shares, Ser H</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>56,400</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,877,528</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>86,100</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,392,822</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>85,200</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,346,904</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>88,700</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,525,474</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>316,400</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>16,142,728</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Citigroup, Inc., 6.365%, Depositary Shares, Ser F</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>18,900</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>966,735</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>18,900</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>966,735</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>8,865,063</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,694,022</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,346,904</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>7,245,074</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>27,151,063</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Regional Banks &nbsp;&nbsp;</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>5.46%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Abbey National Plc, 7.375%, Depositary Shares, Ser B (United Kingdom)</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>29,700</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>770,418</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>29,700</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>770,418</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>29,700</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>770,418</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>29,700</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>770,418</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>29,700</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>770,418</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>148,500</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,852,090</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">HSBC USA, Inc., $2.8575</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>50,700</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,485,887</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>95,900</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,702,102</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>108,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,295,380</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>108,650</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,327,251</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>131,700</P>
</TD><TD valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>6,457,422</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>494,950</P>
</TD><TD valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>24,268,042</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Sovereign Bancorp, Inc., 7.30%, Depositary Shares, Ser C</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>90,000</P>
</TD><TD valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,438,100</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>90,000</P>
</TD><TD valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,438,100</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>90,000</P>
</TD><TD valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,438,100</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>90,000</P>
</TD><TD valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>2,438,100</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>70,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,896,300</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>430,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>11,648,700</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>5,694,405</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>7,910,620</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>8,503,898</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-top:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>8,535,769</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>9,124,140</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>39,768,832</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Trucking &nbsp;</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>1.37%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">AMERCO, 8.50%, Ser A</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>55,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,411,300</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>155,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>3,977,300</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>180,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,618,800</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>390,000</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>10,007,400</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>TOTAL PREFERRED STOCKS</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>95.99%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;137,924,667 </P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;174,494,818 </P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;134,810,933 </P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;115,504,699 </P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;135,999,808 </P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;698,734,925 </P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">($676,513,809)</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P
style="font-siz


e:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-left:1px solid #000000; border-top:1px solid #000000; border-right:1px solid #000000" valign=bottom width=182.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Patriot Premium Dividend Fund I</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000" valign=bottom width=218.467 colspan=10><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Patriot Premium Dividend Fund II</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000" valign=bottom width=205 colspan=9><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Patriot Select Dividend Fund</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000" valign=bottom width=183.867 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Patriot Global Dividend Fund</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000" valign=bottom width=182.533 colspan=8><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Patriot Preferred Dividend Fund</P>
</TD><TD style="border-top:1px solid #000000; border-right:1px solid #000000" valign=bottom width=174.8 colspan=3><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Patriot Premium Dividend Fund II </P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-left:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=79.933 colspan=2><P style="margin:0px; font-family:Arial; font-size:9.333px">&nbsp;</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="margin:0px; font-family:Arial; font-size:9.333px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=88.467 colspan=4><P style="margin:0px; font-family:Arial; font-size:9.333px">&nbsp;</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="margin:0px; font-family:Arial; font-size:9.333px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=96.733 colspan=4><P style="margin:0px; font-family:Arial; font-size:9.333px">&nbsp;</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="margin:0px; font-family:Arial; font-size:9.333px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=81.267 colspan=4><P style="margin:0px; font-family:Arial; font-size:9.333px">&nbsp;</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="margin:0px; font-family:Arial; font-size:9.333px">&nbsp;</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=79.933 colspan=4><P style="margin:0px; font-family:Arial; font-size:9.333px">&nbsp;</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="margin:0px; font-family:Arial; font-size:9.333px">&nbsp;</P>
</TD><TD style="border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=174.8 colspan=3><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=center>Combined</P>
</TD></TR>
<TR><TD width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD style="background-color:#CCFFCC; border-left:1px solid #000000; border-top:1px solid #000000; border-right:1px solid #000000" valign=bottom width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>% of Net</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000" width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>Par value</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000" width=102.667 colspan=2><P style="margin:0px; font-family:Arial; font-size:9.333px" align=right><B>&nbsp;</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000" width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>Par value</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000" width=130 colspan=6><P style="margin:0px; font-family:Arial; font-size:9.333px" align=right><B>&nbsp;</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000" width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>Par value</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000" width=108.267 colspan=5><P style="margin:0px; font-family:Arial; font-size:9.333px" align=right><B>&nbsp;</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000" width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>Par value</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000" width=102.6 colspan=2><P style="margin:0px; font-family:Arial; font-size:9.333px" align=right><B>&nbsp;</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000" width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>Par value</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000" width=102.6 colspan=4><P style="margin:0px; font-family:Arial; font-size:9.333px" align=right><B>&nbsp;</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000" width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>Par value</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000" width=94.867><P style="margin:0px; font-family:Arial; font-size:9.333px" align=right><B>&nbsp;</B></P>
</TD></TR>
<TR><TD style="background-color:#CCFFCC; border:1px solid #000000" width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Issuer, maturity date</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" valign=bottom width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Assets</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>(000's omitted)</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>Value</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>(000's omitted)</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>Value</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>(000's omitted)</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>Value</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>(000's omitted)</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>Value</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>(000's omitted)</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>Value</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>(000's omitted)</B></P>
</TD><TD style="background-color:#CCFFCC; border-right:1px solid #000000; border-bottom:1px solid #000000" width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>Value</B></P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>SHORT-TERM INVESTMENTS</B></P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P
style="font-siz


e:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>Commercial Paper &nbsp;&nbsp;</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>0.66%</B></P>
</TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">Chevron Texaco Corp., 11-01-06</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>835</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>835,000</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,059</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,059,000</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>817</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>817,000</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>909</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>909,000</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,191</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>1,191,000</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,811</P>
</TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right>4,811,000</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>TOTAL SHORT-TERM INVESTMENTS</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>0.66%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;835,000 </P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,059,000 </P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;817,000 </P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;909,000 </P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,191,000 </P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1.333px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,811,000 </P>
</TD></TR>
<TR><TD width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">(Cost $4,811,000)</P>
</TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P
style="font-siz


e:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P
style="font-siz


e:2pt">&nbsp;</P></TD><TD valign=bottom width=94.867><P style="font-size:2pt">&nbsp;</P></TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>TOTAL INVESTMENTS</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>147.76%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;223,246,005 </P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><A NAME="RANGE!K213"></A><TD style="border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;291,580,205 </P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;223,912,194 </P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;180,835,631 </P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;156,000,132 </P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;1,075,574,168 </P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>OTHER ASSETS AND LIABILITIES, NET</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>0.58%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,176,185 </P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><A NAME="RANGE!K214"></A><TD style="border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,372,654 </P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;443,686 </P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;509,826 </P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;120,673 </P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,208,835 </P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>FUND PREFERRED SHARES, AT VALUE</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>-48.34%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(68,580,036)</P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(100,354,443)</P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(70,000,000)</P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(60,210,448)</P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(52,721,025)</P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:1px solid #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;(351,865,952)</P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px"><B>TOTAL NET ASSETS</B></P>
</TD><TD width=51.733 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px" align=right><B>100.00%</B></P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=102.667 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;155,842,154 </P>
</TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=130 colspan=6><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;193,598,416 </P>
</TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=108.267 colspan=5><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;154,355,880 </P>
</TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=102.6 colspan=2><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;121,135,009 </P>
</TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=102.6 colspan=4><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;103,399,780 </P>
</TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD style="border-bottom:4px double #000000" valign=bottom width=94.867><P style="line-height:12px; margin:0px; font-family:Arial; font-size:9.333px">&nbsp;$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;727,917,051 </P>
</TD></TR>
<TR><TD valign=bottom width=315.867><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=51.733 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.667 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=88.467 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=130 colspan=6><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=96.733 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=108.267 colspan=5><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=81.267 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=2><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=102.6 colspan=4><P style="font-size:2pt">&nbsp;</P></TD><TD valign=bottom width=79.933 colspan=2>
</TABLE>

<P style="margin-top:12.533px; margin-bottom:0px"><BR>
<BR></P>

<DIV STYLE="page-break-after:always"></DIV>









<P style="margin-top:0px; margin-bottom:26.667px" align=center><B>PART C</B></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=center><B>OTHER INFORMATION</B></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=justify><B><U>Item 15.</U> &nbsp;<U>Indemnification.</U></B></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=justify><I>Agreement and Declaration of Trust</I></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=justify>
     Article VI, Section 2 of the Registrant&#146;s Agreement and Declaration of
Trust (the  &#147;Trust&#148;)  states,  in relevant part,  that the Trust shall
indemnify  each of its  Trustees  and  officers and any person who serves at the
Trust's  request as a director,  officer or trustee of another  organization  in
which  the  Trust has any  interest  as a  shareholder,  creditor  or  otherwise
(hereinafter  referred to, together with such  person&#146;s  heirs,  executors,
administrators or other legal representatives,  as a &#147;Covered Person&#148;)
against all liabilities and expenses,  including but not limited to amounts paid
in  satisfaction  of judgments,  in compromise  or as fines and  penalties,  and
counsel fees,  reasonably  incurred or paid by such Covered Person in connection
with any action, suit or other proceeding, whether civil or criminal, before any
court or administrative or legislative body, in which such Covered Person may be
or may have been involved as a party or otherwise or with which he may be or may
have  been  threatened,  while in office  or  thereafter,  by reason of being or
having been such a Covered Person, except with respect to any matter as to which
such Covered Person shall have been finally adjudicated in any such action, suit
or other proceeding (i) not to have acted in good faith in the reasonable belief
that his action was in the best interests of the Trust,  or (ii) to be liable to
the Trust or its Shareholders by reason of willful misfeasance, bad faith, gross
negligence  or reckless  disregard of the duties  involved in the conduct of his
office.</P>

<P style="margin-top:0px; margin-bottom:13.333px" align=justify><I>Amended and Restated By-Laws</I></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=justify>
     Article IX,  Section  6.4 of the  Registrant&#146;s  Amended  and  Restated
By-Laws states, in relevant part, the Trust shall indemnify each of its Trustees
and  officers  and any  person  who  serves  at the  Trust&#146;s  request  as a
director,  officer or trustee of another organization in which the Trust has any
interest as a  shareholder,  creditor or  otherwise  (hereinafter  referred  to,
together with such  person&#146;s  heirs,  executors,  administrators  or, other
legal representatives,  as a &#147;Covered Person&#148;) against all liabilities
and  expenses,  including  but not limited to amounts  paid in  satisfaction  of
judgments, in compromise or as fines and penalties, and counsel fees, reasonably
incurred or paid by such Covered Person in connection  with any action,  suit or
other proceeding,  whether civil or criminal, before any court or administrative
or  legislative  body,  in which  such  Covered  Person  may be or may have been
involved  as a party or  otherwise  or with  which  he may be or may  have  been
threatened,  while in office or  thereafter,  by reason of being or having  been
such a Covered  Person,  except  with  respect  to any  matter as to which  such
Covered Person shall have been finally  adjudicated in any such action,  suit or
other  proceeding (i) not to have acted in good faith in the  reasonable  belief
that his action was in the best interests of the Trust,  or (ii) to be liable to
the Trust or its shareholders by reason of willful misfeasance, bad faith, gross
negligence  or reckless  disregard of the duties  involved in the conduct of his
office.  &nbsp;Expenses,  including  counsel fees but excluding  amounts paid in
satisfaction of judgments, in compromise,  or as fines or penalties, so incurred
by any such  Covered  Person  shall be paid  from  time to time by the  Trust in
advance of a final decision on the merits in any such action, suit or proceeding
upon receipt of an  undertaking  by or on behalf of such Covered Person to repay
amounts so paid if it is ultimately determined








 that indemnification of such expenses is not authorized under this Article; provided, however, that either (i) such Covered Person shall have provided appropriate security for his undertaking, (ii) the Trust shall be insured against losses arising from any such advance payments, or (iii) either a majority of a quorum of Trustees who are neither &#147;interested persons&#148; of the Trust as the quoted phrase is defined in the Investment Company Act of 1940 (or who have been exempted from being &#147;interested persons&#148; by any rule, regulation or order of the Securities and Exchange Commission) nor parties to the action, suit or other proceeding in question and against whom no other action, suit or proceeding on the same or similar grounds is then or has been pending or threatened (such quorum of such Trustees being referred to hereinafter as the &#147;Disinterested Trustees&#148;), or an independent legal counsel in a written opinion, shall have determined, based on a review of readily available facts

















(as opposed to a full trial-type inquiry), that there is reason to believe that such Covered Person ultimately will be found entitled to indemnification under this Article. </P>
<P style="margin-top:0px; margin-bottom:13.333px" align=justify><B><U>Item 16.</U> &nbsp;<U>Exhibits.</U></B></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(1)(a)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Agreement and Declaration of Trust of Premium Dividend Fund II, dated September 26, 1989*</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(1)(b) </P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Amended and Restated Declaration of Trust of Premium Dividend Fund II, dated December 12 1989*</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(1)(c)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Amendment to the Agreement and Declaration of Trust, dated September 13, 1994*</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(1)(d)</P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:48px" align=justify>Instrument Fixing the Number of Trustees and Appointed Individual to Fill Vacancy, dated December 7, </P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:624px" align=justify>1999*</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(1)(e)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Amendment to the Agreement and Declaration of Trust, dated June 24, 2005 (1) </P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(2)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Amended and Restated By-Laws of Premium Dividend Fund II *</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(3) </P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>None</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(4)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Form of Agreement and Plan of Reorganization+ </P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(5)(a)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Specimen share certificate for common shares of the Registrant*</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(5)(b)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Specimen share certificate for Dutch Action Rate Transferable Securities Series C of the Registrant*</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(5)(c)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Specimen share certificate for Dutch Action Rate Transferable Securities Series D of the Registrant*</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(5)(d)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Specimen share certificate for Dutch Action Rate Transferable Securities Series E of the Registrant*</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(5)(e)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Specimen share certificate for Dutch Action Rate Transferable Securities Series F of the Registrant*</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(6)(a) </P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Investment Advisory Agreement between the Registrant and John Hancock Advisers, Inc., dated May 6, 1992*</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:46.667px; text-indent:-46.667px" align=justify>(6)(b)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:46.667px" align=justify>Sub-Advisory Agreement among John Hancock Advisers, LLC, Sovereign Asset Management LLC, and the Registrant, dated December 31, 2005*</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(7)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Not applicable</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(8)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Not applicable</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(9)(a)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Custody Agreement between the Registrant and The Bank of New York, dated as of September 10, 2001*</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(9)(b)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Amendment to the Custody Agreement, dated as of January 9, 2003* </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(9)(c)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Schedule II to the Custody Agreement, as of August 1, 2006*</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(10)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Not applicable</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(11)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Opinion and consent of K&amp;L Gates as to legality of securities being registered by Registrant**</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(12)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Opinion as to tax matters and consent***</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(13)(a)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Transfer Agency Services Agreement between Registrant and Mellon Investor Services, dated as of June 1, 2002*</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(13)(b)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Amended Transfer Agency Services Agreement between Registrant and Mellon Investor Services dated July 1, 2005*</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(13)(c)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Auction Agency Agreement between Registrant and Manufacturers Hanover Trust Company (Series A and B), dated as of December 21, 1989*</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(13)(d)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Broker-Dealer Agreement between Bankers Trust Company and J.P. Morgan, dated as of June 26, 2001* </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(13)(e) </P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Amendment to the Broker-Dealer Agreement, dated December 27, 2005* </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(13)(f)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Broker-Dealer Agreement between Deutsche Bank Trust Company Americas and Jefferies &amp; Co., dated as of April 7, 2003*</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(13)(g)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Form of Letter of Representations**</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(13)(h) </P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Administration Agreement between Premium Dividend Fund II and John Hancock Advisers, Inc., dated May 6, 1992*</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(13)(i)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Amendment No. 1 to the Administration Agreement, dated December 8, 1992* </P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(14)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Consent of Independent Registered Public Accounting Firms**</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(15)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Not applicable</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(16)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Power of Attorney*</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(17)(a)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Form of Proxy Card of the Registrant*</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:46.667px; text-indent:-46.667px" align=justify>(17)(b)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:46.667px" align=justify>Form of Proxy Card for John Hancock Patriot Premium Dividend Fund I, John Hancock Patriot Select Dividend Trust, John Hancock Patriot Global Dividend Fund and John Hancock Patriot Preferred Dividend Fund*</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>17(c)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Combined Code of Ethics of John Hancock Advisers, LLC, Sovereign Asset Management Co., each open-end and closed-end fund advised by John Hancock Advisers, LLC and John Hancock Funds, LLC. (2)</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>17(d)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Dividend Reinvestment Plan of the Registrant* </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>17(e)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Proxy Voting Policies of John Hancock Advisers, LLC and Sovereign Asset Management Corporation (2)</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(1)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Previously filed electronically with Form NSAR-A (File No. 811-05908) on June 28, 2006, accession number 0001010521-06-000508.</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(2)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Previously filed electronically with Form N-CSR (File No. 811-05908) on January 3, 2007, accession number 0000928816-07-000011.</P>

<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>+</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Filed herewith as Exhibit A to the Proxy Statement and Prospectus included as Part A of this Registration Statement.</P>

<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>*</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Filed herewith</P>

<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>**</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>To be filed by pre-effective amendment</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>***</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>To be filed by post-effective amendment</P>
<P style="margin-top:0px; margin-bottom:13.333px" align=justify><B><U>Item 17.</U> &nbsp;<U>Undertakings.</U></B></P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(1)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>The undersigned registrant agrees that prior to any public reoffering of the securities registered through the use of a prospectus which is a part of this Registration Statement by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c) under the Securities Act of 1933, as amended (the &#147;1933 Act&#148;), the reoffering prospectus will contain the information called for by the applicable registration form for reofferings by persons who may be deemed underwriters, in addition to the information called for by the other items of the applicable form.</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(2)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>The undersigned registrant agrees that every prospectus that is filed under paragraph (1) above will be filed as a part of an amendment to the registration statement and will not be used until the amendment is effective, and that, in determining any liability under the 1933 Act, each post-effective amendment shall be deemed to be a new Registration Statement for the securities offered therein, and the offering of the securities at that time shall be deemed to be the initial bona fide offering of them.</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(3)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>The undersigned registrant agrees that a final form of the Opinion and Consent of Kirkpatrick &amp; Lockhart Preston Gates Ellis LLP regarding certain tax matters and consequences to shareholders discussed in the Combined Proxy Statement and Prospectus will be filed in a post-effective amendment to this registration statement.</P>
<P style="margin-top:0px; margin-bottom:13.333px" align=justify><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=center><B>NOTICE</B></P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>A copy of the Amended and Restated Agreement and Declaration of Trust of John Hancock Patriot Premium Dividend Fund II, as amended, is on file with the Secretary of State of the Commonwealth of Massachusetts and notice is hereby given that this instrument is executed on behalf of the Registrant by an officer of the Registrant as an officer and not individually and that the obligations of or arising out of this instrument are not binding upon any of the Trustees, officers or shareholders individually, but are binding only upon the assets and property of the Registrant.</P>
<P style="margin-top:0px; margin-bottom:26.667px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:26.667px" align=justify><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:26.667px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=center><B>SIGNATURES</B></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=justify>Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Boston and Commonwealth of Massachusetts on the 5th day of January, 2007.</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:240px" align=justify>John Hancock Patriot Premium Dividend Fund II</P>
<P style="margin:0px; text-indent:240px" align=justify>By:&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Keith F. Hartstein*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>
<P style="margin:0px; text-indent:266.867px; font-family:SERIF" align=justify><FONT FACE="SERIF">Keith F. Hartstein</FONT></P>
<P style="margin:0px; text-indent:266.867px" align=justify><FONT FACE="Times New Roman">President and Chief Executive Officer</FONT></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:13.333px" align=justify>As required by the Securities Act of 1933, as amended, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify><U>Signature</U></P>
<P style="margin-top:0px; margin-bottom:-16px; text-indent:240px" align=justify><U>Title</U></P>
<P style="margin:0px; text-indent:432px" align=justify><U>Date</U></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px; text-indent:-240px; font-family:SERIF" align=justify><FONT FACE="SERIF"><U>&nbsp;/s/ Keith F. Hartstein*</U></FONT> </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px" align=justify><FONT FACE="Times New Roman">President and</FONT></P>
<P style="margin:0px; padding-left:240px; text-indent:192px" align=justify>January 5, 2007</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px; text-indent:-240px; font-family:SERIF" align=justify><FONT FACE="SERIF">Keith F. Hartstein</FONT></P>
<P style="margin:0px; padding-left:240px" align=justify><FONT FACE="Times New Roman">Chief Executive Officer</FONT></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px; text-indent:-240px; font-family:SERIF" align=justify><FONT FACE="SERIF"><U>/s/ Gordon Shone</U></FONT><FONT FACE="Times New Roman"></FONT> </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px" align=justify>Executive Vice President and</P>
<P style="margin:0px; padding-left:240px; text-indent:192px" align=justify>January 5, 2007</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>Gordon Shone</P>
<P style="margin:0px; text-indent:240px" align=justify>Chief Financial Officer</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px; text-indent:-240px; font-family:SERIF" align=justify><FONT FACE="SERIF"><U>/s/ Ronald R. Dion*</U></FONT><FONT FACE="Times New Roman"></FONT> </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px" align=justify><FONT FACE="Times New Roman">Chairman </FONT></P>
<P style="margin:0px; padding-left:240px; text-indent:192px" align=justify>January 5, 2007</P>
<P style="margin:0px" align=justify>Ronald R. Dion</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px; text-indent:-240px; font-family:SERIF" align=justify><FONT FACE="SERIF"><U>/s/ James R. Boyle*</U></FONT><FONT FACE="Times New Roman"></FONT> </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px; font-family:SERIF" align=justify>T<FONT FACE="Times New Roman">rustee</FONT></P>
<P style="margin:0px; padding-left:240px; text-indent:192px" align=justify><FONT FACE="Times New Roman">January 5, 2007</FONT></P>
<P style="margin:0px" align=justify>James R. Boyle</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px; text-indent:-240px; font-family:SERIF" align=justify><FONT FACE="SERIF"><U>/s/ James F. Carlin*</U></FONT><FONT FACE="Times New Roman"></FONT> </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px" align=justify><FONT FACE="Times New Roman">Trustee</FONT></P>
<P style="margin:0px; padding-left:240px; text-indent:192px" align=justify>January 5, 2007</P>
<P style="margin:0px" align=justify>James F. Carlin</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px; text-indent:-240px; font-family:SERIF" align=justify><FONT FACE="SERIF"><U>/s/ Richard P. Chapman, Jr.*</U></FONT><FONT FACE="Times New Roman"></FONT> </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px" align=justify><FONT FACE="Times New Roman">Trustee</FONT></P>
<P style="margin:0px; padding-left:240px; text-indent:192px" align=justify>January 5, 2007</P>
<P style="margin:0px" align=justify>Richard P. Chapman, Jr.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px; text-indent:-240px; font-family:SERIF" align=justify><FONT FACE="SERIF"><U>/s/ William H. Cunningham*</U></FONT><FONT FACE="Times New Roman"></FONT> </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px" align=justify><FONT FACE="Times New Roman">Trustee</FONT></P>
<P style="margin:0px; padding-left:240px; text-indent:192px" align=justify>January 5, 2007</P>
<P style="margin:0px" align=justify>William H. Cunningham</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px; text-indent:-240px; font-family:SERIF" align=justify><FONT FACE="SERIF"><U>/s/ Charles L. Ladner*</U></FONT><FONT FACE="Times New Roman"></FONT> </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px" align=justify><FONT FACE="Times New Roman">Trustee</FONT></P>
<P style="margin:0px; padding-left:240px; text-indent:192px" align=justify>January 5, 2007</P>
<P style="margin:0px" align=justify>Charles L. Ladner</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px; text-indent:-240px; font-family:SERIF" align=justify><FONT FACE="SERIF"><U>/s/ Dr. John A. Moore*</U></FONT><FONT FACE="Times New Roman"></FONT> </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px" align=justify><FONT FACE="Times New Roman">Trustee</FONT></P>
<P style="margin:0px; padding-left:240px; text-indent:192px" align=justify>January 5, 2007</P>
<P style="margin:0px" align=justify>Dr. John A. Moore</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px; text-indent:-240px; font-family:SERIF" align=justify><FONT FACE="SERIF"><U>/s/ Patti McGill Peterson*</U></FONT><FONT FACE="Times New Roman"></FONT> </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px" align=justify><FONT FACE="Times New Roman">Trustee</FONT></P>
<P style="margin:0px; padding-left:240px; text-indent:192px" align=justify>January 5, 2007</P>
<P style="margin:0px" align=justify>Patti McGill Peterson</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:240px; text-indent:-240px; font-family:SERIF" align=justify><FONT FACE="SERIF"><U>/s/ Steven R. Pruchansky*</U></FONT><FONT FACE="Times New Roman"></FONT> </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:193.333px; text-indent:46.667px" align=justify><FONT FACE="Times New Roman">Trustee</FONT></P>
<P style="margin:0px; padding-left:193.333px; text-indent:238.667px" align=justify>January 5, 2007</P>
<P style="margin:0px" align=justify>Steven R. Pruchansky</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>* By:</P>
<P style="margin:0px; text-indent:48px" align=justify><U>/s/ Genevieve Pluhowski</U></P>
<P style="margin:0px; text-indent:48px" align=justify>Genevieve Pluhowski</P>
<P style="margin:0px; text-indent:48px" align=justify>(Attorney-in-Fact), under </P>
<P style="margin:0px; text-indent:48px" align=justify>Power of Attorney dated</P>
<P style="margin:0px; text-indent:48px" align=justify>September 12, 2006</P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><BR>
<BR></P>
<P style="margin:0px"><BR></P>
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<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px" align=center><U>Exhibit Index</U></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(1)(a)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Agreement and Declaration of Trust of Premium Dividend Fund II</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(1)(b) </P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Amended and Restated Declaration of Trust of Premium Dividend Fund II</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(1)(c)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Amendment to the Agreement and Declaration of Trust, dated September 13, 1994</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(1)(d)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Instrument Fixing the Number of Trustees and Appointed Individual to Fill Vacancy</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(2)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Amended and Restated By-Laws of Premium Dividend Fund II </P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(5)(a)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Specimen share certificate for common shares of the Registrant</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(5)(b)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Specimen share certificate for Dutch Action Rate Transferable Securities Series C of the Registrant</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(5)(c)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Specimen share certificate for Dutch Action Rate Transferable Securities Series D of the Registrant</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(5)(d)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Specimen share certificate for Dutch Action Rate Transferable Securities Series E of the Registrant</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(5)(e)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Specimen share certificate for Dutch Action Rate Transferable Securities Series F of the Registrant</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(6)(a) </P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Investment Advisory Agreement between the Registrant and John Hancock Advisers, Inc</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:46.667px; text-indent:-46.667px" align=justify>(6)(b)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:46.667px" align=justify>Sub-Advisory Agreement among John Hancock Advisers, LLC, Sovereign Asset Management LLC, and the Registrant</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(9)(a)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Custody Agreement between the Registrant and The Bank of New York, dated as of September 10, 2001 </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(9)(b)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Amendment to the Custody Agreement, dated as of January 9, 2003</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(9)(c)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Schedule II to the Custody Agreement, as of August 1, 2006*</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(13)(a)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Transfer Agency Services Agreement between Registrant and Mellon Investor Services</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(13)(b)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Amended Transfer Agency Services Agreement between Registrant and Mellon Investor </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(13)(c)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Auction Agency Agreement between Registrant and Manufacturers Hanover Trust Company (Series A and B)</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(13)(d)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Broker-Dealer Agreement between Bankers Trust Company and J.P. Morgan </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(13)(e) </P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Amendment to the Broker-Dealer Agreement </P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(13)(f)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Broker-Dealer Agreement between Deutsche Bank Trust Company Americas and Jefferies &amp; Co</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(13)(h) </P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Administration Agreement between Premium Dividend Fund II and John Hancock Advisers, Inc.</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>(13)(i)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Amendment No. 1 to the Administration Agreement </P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(16)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Power of Attorney</P>
<P style="margin-top:0px; margin-bottom:-16px" align=justify>(17)(a)</P>
<P style="margin-top:0px; margin-bottom:13.333px; text-indent:48px" align=justify>Form of Proxy Card of the Registrant</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:46.667px; text-indent:-46.667px" align=justify>(17)(b)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:46.667px" align=justify>Form of Proxy Card for John Hancock Patriot Premium Dividend Fund I, John Hancock Patriot Select Dividend Trust, John Hancock Patriot Global Dividend Fund and John Hancock Patriot Preferred Dividend Fund</P>
<P style="margin-top:0px; margin-bottom:-16px; padding-left:48px; text-indent:-48px" align=justify>17(d)</P>
<P style="margin-top:0px; margin-bottom:13.333px; padding-left:48px" align=justify>Dividend Reinvestment Plan of the Registrant </P>
<P style="margin-top:0px; margin-bottom:13.333px" align=justify><BR>
<BR></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR></P>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>declarationtrust.txt
<DESCRIPTION>EXHIBIT 99.1(A)
<TEXT>
















_______________________________________________________________________________

                      AGREEMENT AND DECLARATION OF TRUST OF

                        PATRIOT PREMIUM DIVIDEND FUND II
_______________________________________________________________________________

                            Dated: September 26, 1989
<PAGE>

                          AGREEMENT AND DECLARATION OF
                    TRUST OF PATRIOT PREMIUM DIVIDEND FUND II

       This AGREEMENT AND DECLARATION OF TRUST, made at Boston, Massachusetts
this 26th day of September, 1989, by and between James T. Barrett, an individual
residing in Boston, Massachusetts (the "SETTLOR"), and the Trustee whose
signature is set forth below (the "INITIAL TRUSTEE"),

                         W I T N E S S E T H  T H A T:
                         -------------------  --------

        WHEREAS, the Settlor proposes to deliver to the Initial Trustee the sum
of one hundred dollars ($100.00) lawful money of the United States of America in
trust hereunder and to authorize the Initial Trustee and all other individuals
acting as Trustees hereunder to employ such funds, and any other funds coming
into their hands or the hands of their successors or successor as such Trustees,
to carry on the business of an investment company and as such of buying,
selling, investing or otherwise dealing in and with stocks, bonds, debentures,
warrants and other securities and interests therein, financial futures
contracts, or options with respect to securities or financial futures contracts,
and such other and further investment media and other property as the Trustees
may deem advisable, which are not prohibited by law or the terms of this
Declaration; and

        WHEREAS, the Initial Trustee is willing to accept such sum, together
with any and all additions thereto and the income or increments thereon, upon
the terms, conditions and trusts hereinafter set forth; and

        WHEREAS, the beneficial interest in the assets held by the Trustees
shall be divided into transferable Shares, all in accordance with the provisions
hereinafter set forth; and

        WHEREAS, it is desired that the trust established hereby be managed and
operated as a trust with transferable shares under the laws of Massachusetts, of
the type commonly known as a Massachusetts business trust, in accordance with
the provisions hereinafter set forth;

        NOW, THEREFORE, the Initial Trustee, for himself and his successors as
Trustees, hereby declares, and agrees with the Settlor, for himself and for all
persons who shall hereafter become holders of Shares, that the Trustees will
hold the sum delivered to them upon the execution hereof, and all, other and
further cash, securities and other property of every type and description which
they may in any way acquire in their capacity as such Trustees, together with
the income therefrom and the proceeds thereof, IN TRUST NEVERTHELESS, to manage
and dispose of the same for the benefit of the holders from time to time of the
Shares being issued and to be issued hereunder and in the manner and subject to
the provisions hereof, to wit:

<PAGE>

                                   ARTICLE I

                                   THE TRUST

        Section 1.1. NAME; USE OF NAME.

             (a) TRUST NAME. The name of the Trust shall be "Patriot Premium
Dividend Fund II", and so far as may be practicable the Trustees shall conduct
the Trust's activities, execute all documents and sue or be sued under that
name, which name (and the word "Trust" wherever used in this Declaration of
Trust, except where the context otherwise requires) shall refer to the Trustees
in their capacity as Trustees, and not individually or personally, and shall not
refer to the officers, agents or employees of the Trust or of such Trustees, or
to the Shareholders. If the Trustees determine that the use of such name is not
practicable, legal or convenient at any time or in any jurisdiction, or if the
Trust is required to discontinue the use of such name, then the Trustees may use
such other designation or adopt such other name for the Trust as they deem
proper, and the Trust may hold property and conduct its activities under such
other designation or name.

             (b) USE OF THE NAME "PATRIOT". The Patriot Group, Inc., a
Massachusetts corporation ("Patriot Group"), has consented to the use by the
Trust of the identifying name "Patriot", which is a property right of Patriot
Group, in the name of the Trust. Such consent is conditioned upon the Trust's
employment of Patriot Advisers, Inc., a wholly owned subsidiary of Patriot
Group, as investment adviser to the Trust. As between Patriot Group and the
Trust, Patriot Group shall control the use of such name insofar as the name of
the Trust contains the identifying name "Patriot". Patriot Group may from time
to time use the identifying name "Patriot" in other connections and for other
purposes, including without limitation in the names of other investment
companies, corporations or businesses that it may manage, advise, sponsor or
own, or in which it may have a financial interest. Patriot Group may require the
Trust to cease using the identifying name "Patriot" in the name of the Trust if
the Trust ceases to employ Patriot Advisers, Inc., or an affiliate thereof, as
investment adviser.

        Section 1.2. OFFICES; RESIDENT AGENT. The Trust shall have an office in
Boston, Massachusetts, unless changed by the Trustees to another location in
Massachusetts or elsewhere, but such office need not be the sole or principal
office of the Trust. The Trust may have such other offices or places of business
as the Trustees may from time to time determine to be necessary or expedient.
The Trustees may appoint, and from time to time replace, a resident agent for
the Trust in The Commonwealth of Massachussetts.

        Section 1.3. NATURE OF TRUST. The Trust shall be a trust with
transferable shares under the laws of The Commonwealth. of Massachusetts, of the
type referred to in Section 1 of Chapter 182 of the Massachusetts General Laws
and commonly known as a Massachusetts business trust. The Trust is not intended
to be, shall not be deemed to be and shall not be treated as, a general
partnership, limited partnership, joint venture, corporation or joint stock
company. The Shareholders shall be beneficiaries and their relationship to the
Trustees shall be solely in that capacity in accordance with the rights
conferred upon them hereunder.

                                       2
<PAGE>


        Section 1.4. DEFINITIONS. As used in this Declaration of Trust, the
following terms shall have the meanings set forth below unless the context
thereof otherwise requires:

        "BY-LAWS" means the By-Laws of the Trust, as amended from time to time.

        "CLASS" or "CLASS OF SHARES" refers to the division of Shares into two
or more Classes as provided in Article III, Section 3.1 hereof.

        "COMMON SHARES" means the Fund's common shares of beneficial interest.

        "COMMISSION" means the Securities and Exchange Commission.

        "CONTRACTING PARTY" has the meaning designated in Section 4.5 hereof.

        "DECLARATION" and "DECLARATION OF TRUST" means this Agreement and
Declaration of Trust and all amendments or modifications thereof as from time to
time in effect.

        "INITIAL TRUSTEE" has the meaning designated in the preamble hereto.

        "MAJORITY OF THE TRUSTEES" means a majority of the Trustees in office at
the time in question. At any time at which there shall be only one Trustee in
office, such phrase shall mean such Trustee.

        "1940 ACT" means the Investment Company Act of 1940 and the rules and
regulations thereunder, both as amended from time to time, and any order or
orders thereunder which may from time to time be applicable to the Trust.

        "SERIES" or "SERIES OF SHARES" refers to the division of Shares
..representing any Class into two or more Series as provided in Article III,
Section 3.1 hereof.

        "SERIES A DARTS" means the Trust's Dutch Auction Rate Transferable
Securities Preferred Stock Series A.

        "SETTLOR" has the meaning designated in the preamble hereto.
"Shareholder" means a record owner of Shares.

        "SHARES" means the transferable units of interest into which the
beneficial interest in the Trust shall be divided from time to time, or if more
than one Class or Series of Shares is authorized by the Trustees, the equal
proportionate transferable units into which each Class or Series of Shares shall
be divided from time to time.

        "TRUST" means the Massachusetts business trust established by this
Agreement and Declaration of Trust, as amended from time to time.

        "TRUSTEES" means, collectively, the Initial Trustee, so long as he shall
continue in office, and all other individuals who at the time in question have
been duly elected or appointed as Trustees of the Trust in accordance with the
provisions hereof and who have qualified and are then in office. At any time at


                                       3
<PAGE>

which there shall be only one Trustee in office, such term shall mean such
single Trustee.

                                   ARTICLE II

                              PURPOSE OF THE TRUST

       The purpose of the Trust is to provide investors a managed investment
primarily in securities, debt instruments and other instruments and rights of a
financial character.

                                   ARTICLE III

                          SHARES OF BENEFICIAL INTEREST

        Section 3.1. DIVISION OF BENEFICIAL INTEREST. The beneficial interest in
the Trust shall at all times be divided into an unlimited number of Shares
without par value. Subject to the provisions of the Declaration of Trust and the
By-Laws regarding the powers, preferences or special or relative rights or
privileges of any outstanding Class or Series of Shares, the Trustees may divide
the Shares into two or more Classes and each such Class into one or more Series,
Shares of each such Class or Series having such provisions, including without
limitation, preferences or special or relative rights or privileges (including
conversion rights, if any) as the Trustees may determine and as shall be set
forth in the By-Laws. The number of Shares of any such Class or Series
authorized shall be unlimited, except as the By-Laws may otherwise provide. The
Trustees may from time to time divide or combine the Shares of any class or
Series into a greater or lesser number without thereby changing the
proportionate beneficial interest in the Class or Series.

        Section 3.2. OWNERSHIP OF SHARES. The ownership of Shares shall be
recorded on the books of the Trust or of a transfer or similar agent. No
certificates evidencing the ownership of Shares shall be issued except as
specifically provided otherwise herein or as the Trustees may otherwise
determine from time to time and the Trustees shall have the power to call
outstanding Share certificates and replace them with book entries. The Trustees
may make such rules as they consider appropriate for the issuance of share
certificates, the transfer of Shares and similar matters. The record books of
the Trust as kept by the Trust or any transfer or similar agent, as the case may
be, shall be conclusive as to who are the Shareholders of each Class or Series
and as to the number of Shares of each Class or Series held from time to time by
each Shareholder.

        Section 3.3. INVESTMENT IN THE TRUST. The Trustees may accept
investments in the Trust from such persons and on such terms and for such
consideration, which may consist of cash or tangible or intangible property or a
combination thereof, as they are the By-Laws from time to time authorize.

        Section 3.4. NO PREEMPTIVE RIGHTS. Shareholders shall have no preemptive
or other right to subscribe to any additional Shares or other securities issued
by the Trust.

                                       4
<PAGE>

        Section 3.5. STATUS OF SHARES; LIMITATION OF PERSONAL LIABILITY. Shares
shall be deemed to be personal property, giving only the rights provided in this
Declaration of Trust or the By-Laws. Every Shareholder by virtue of having
become a Shareholder shall be held to have expressly assented and agreed to the
terms of this Declaration of Trust and the By-Laws and to have become a party
hereto. The death of a Shareholder during the continuance of the Trust shall not
operate to terminate the Trust nor to entitle the representative of any deceased
Shareholder to an accounting or to take any action in court or elsewhere against
the Trust or the Trustees, but only to the rights of said decedent under this
Declaration of Trust. Ownership of Shares shall not entitle the Shareholder to
any title in or to the whole or any part of the Trust property or any right to
call for a partition or division of the same or for an accounting, nor shall the
ownership of Shares constitute the Shareholders partners. Neither the Trust nor
the Trustees, nor any officer, employee or agent of the Trust shall have any
power to bind personally any Shareholder nor, except as specifically Provided
herein, to cal. upon any sum of money or assessment whatsoever other than such
as the Shareholder may at any time TD personally agree to Pay.

        Section 3.6. CONSIDERATION FOR SHARES. The Trustees may issue Shares of
any Series for such consideration and on such terms as they may determine (or
for no consideration if pursuant to a Share dividend or split up), all without
action or approval of the Shareholders. All Shares when so issued on the terms
determined by the Trustees shall be fully paid and non-assessable.

                                   ARTICLE IV

                                    TRUSTEES

        Section 4.1. NUMBER, DESIGNATION, ELECTION, TERM, ETC.

             (a) NUMBER. Except as otherwise provided herein or in the By-Laws,
a majority of the Trustees may increase or decrease the number of Trustees. No
decrease in the number of Trustees shall have the effect of removing any Trustee
from office prior to the expiration of his term, but the number of Trustees may
be decreased in conjunction with the removal of a Trustee pursuant to subsection
(d) of this Section 4.1.

             (b) ELECTION AND TERM. The Trustees shall be elected by the
Shareholders at a meeting called and held for that purpose for the terms and to
the classes as provided in this Declaration. Subject to the 1940 Act and except
as otherwise provided herein or in the By-Laws, the Trustees shall have the
power to set and alter the terms of office of the Trustees, and at any time to
lengthen or shorten their own terms or make their terms of unlimited duration,
to appoint their own successors and, pursuant to subsection (e) of this Section
4.1, to fill vacancies; provided, that a Trustee or Trustees shall be elected by
the Shareholders at any such time or times such action is required under this
Declaration of Trust, the By-Laws or the 1940 Act; and provided, further that
after the initial election of Trustees by the Shareholders, the term of office
of any incumbent Trustee shall continue (unless specifically provided otherwise
herein or in the By-Laws) until the termination of this Trust or his earlier
death, resignation, retirement, bankruptcy, adjudicated incompetency, or other

                                       5
<PAGE>

incapacity or removal, or if not so terminated, until the appointment or
election of such Trustee's successor in office has become effective.

        (c) CLASS. The Board of Trustees shall be divided into three Classes,
each Class to consist, as nearly as may be, of one third of the number of
Trustees then constituting the whole Board of Trustees. The Trustees shall be
elected to each Class as provided in the By-Laws. The term of office of those
Trustees elected to the first Class shall expire on the first anniversary of the
initial election of Trustees following the initial Public offering of Shares.
The term of office of the Trustees elected to the second Class shall expire one
year thereafter on the second anniversary of the initial election. The term of
office of the Trustees elected to the third Class shall expire two years
thereafter on the third anniversary of the initial election. At each succeeding
annual election, the Trustees elected to succeed those whose terms expire shall
be elected for a full term of three years.

        (d) RESIGNATION, RETIREMENT AND REMOVAL. Any Trustee may resign his
trust or retire as a Trustee, by a written instrument signed by him and
delivered to the other Trustees or to any officer of the Trust, and such
resignation or retirement shall take effect upon such delivery or upon such
later date as is specified in such instrument. At any meeting called for the
purpose, a Trustee elected (i) by the holders of the Series A DARTS may be
removed from his office during his term, with or without cause, but only by
action of the holders of at least 50% of the outstanding Series A DARTS, voting
separately as a Class and (ii) by the holders of the Common Shares may be
removed from his office during his term, but only for cause and only by action
of the holders of at least 75% of the outstanding Common Shares, voting
separately as a class.

        (e) VACANCIES. Any vacancy or anticipated vacancy resulting from any
reason, including without limitation the death, resignation, retirement; removal
or incapacity of any of the Trustees, or an increase in the number of Trustees,
may (but unless required by the 1940 Act need not) be filled by a Majority of
the Trustees, subject to the provisions of this Declaration of Trust, the
By-Laws and the 1940 Act; provided, that if there shall be no Trustees in
office, such vacancy or vacancies shall be filled by the Shareholders. Any such
appointment or election shall take effect immediately, except that an
appointment or election in anticipation of a vacancy to occur by reason of
retirement, resignation or increase in the number of Trustees to be effective at
a later date shall become effective only at or after the effective date of said
retirement, resignation or increase in the number of Trustees.

        (f) EFFECT OF DEATH, RESIGNATION, ETC. The death, resignation,
retirement, removal or incapacity of the Trustees, or any one of them, shall not
operate to annul or terminate the Trust or to revoke or terminate any existing
agency or contract created or entered into pursuant to the terms of this
Declaration of Trust. Whenever a vacancy shall occur, until such vacancy is
filled, the Trustees in office, regardless of their number, shall have all the
powers granted to the Trustees and shall discharge all the duties imposed upon
the Trustees by this Declaration.

                                       6
<PAGE>

        (g) NO ACCOUNTING. Except to the extent required by the 1940 Act or
under circumstances which would justify his removal for cause, no individual
ceasing to be a Trustee (nor the estate of any such individual) shall be
required to rake an accounting to the Shareholders or remaining Trustees upon
such cessation.

        Section 4.2. POWERS. Subject to the provisions of this Declaration of
Trust, the business of the Trust shall be managed by the Trustees, and they
shall have all powers necessary or convenient to carry out that responsibility.
Without limiting the foregoing, the Trustees may adopt By-Laws not inconsistent
with this Declaration of Trust providing for the conduct of the business and
affairs of the Trust and, subject to Section 7.4 hereof, may amend and repeal
them to the extent that such By-Laws do not reserve that right to the
Shareholders of one or more Classes or Series; they may select, and from time to
time change, the fiscal year of the Trust; they may as they consider appropriate
elect and remove officers, appoint and terminate agents and consultants, and
hire and terminate employees, any one or more of the foregoing of whom may be a
Trustee, and may provide for the compensation of all of the foregoing; they may
appoint from their-own number, and terminate, any one or more committees
consisting of one or more Trustees, including without implied limitation an
executive committee, which may, when the Trustees are not in session and subject
to the 1940 Act, exercise some or all of the power and authority of the Trustees
as the Trustees may determine; they may employ one or more custodians of the
assets of the Trust and may authorize any such custodian to employ
sub-custodians or agents and to deposit all or any part of such assets in a
system or systems for the central handling of securities; they may retain
investment advisers, administrative agents, transfer agents, dividend disbursing
agents, accounting agents or shareholder servicing agents, or any of the
foregoing; they may provide for the distribution of securities issued by the
Trust through one or more underwriters, distributors or otherwise; they may set
record dates or times for the determination of Shareholders entitled to
participate in, benefit from or act with respect to various matters; and in
general they may delegate to any officer of the Trust, to any committee of the
Trustees, and to any employee, agent or consultant of the Trust such authority,
powers, functions and duties as they consider desirable or appropriate for the
conduct of the business and affairs of the Trust, including, without implied
limitation, the power and authority to act in the name of the Trust and of the
Trustees, to sign documents and to act as attorney-in-fact for the Trustees.

       Without limiting the foregoing and to the extent not inconsistent with
the 1940 Act or other applicable law, the Trustees shall have power and
authority:

             (i) to invest and reinvest cash and other property, and to hold
       cash uninvested;

             (ii) to sell, exchange, lend, mortgage, hypothecate, write options
       on, lease, grant security interests in, negotiate, convey, transfer or
       otherwise dispose of and trade in the assets of the Trust;

             (iii) to vote or give assent or exercise any rights of ownership
       with respect to stock or other securities or property; and to receive
       powers of attorney from, and to execute and deliver proxies or powers of


                                       7
<PAGE>

       attorney to such person or persons as the Trustees shall deem proper,
       receiving from or granting to such person or persons such power and
       discretion with relation to securities or property as the Trustees shall
       deem proper;

             (iv) to exercise powers and rights of subscription or otherwise
       which in any manner arise out of ownership of securities;

             (v) to hold any security or property in a form not indicating any
       trust, whether in bearer, unregistered or other negotiable form, or in
       the name of the Trustees, or in the name of a custodian, sub-custodian or
       other depositary or a nominee or nominees, or otherwise;

             (vi) to consent to or participate in any plan for the
       reorganization, consolidation or merger of any corporation or issuer, any
       security of which is or was held in the Trust; to consent to any
       contract, lease, mortgage, purchase or sale of property by any such
       corporation or issuer; and to pay calls or subscriptions with respect to
       any security held in the Trust;

             (vii) to join with other security holders in acting through a
       committee, depositary, voting trustee or otherwise, and in that
       connection to deposit any security with, or transfer any security to, any
       such committee, depositary or trustee, and to delegate to them such power
       and authority with relation to any security (whether or not so deposited
       or transferred) as the Trustees shall deem proper, and to agree to pay,
       and to pay, such portion of the expenses and compensation of such
       committee, depositary or trustee as the Trustees shall deem proper;

             (viii) to compromise, arbitrate or otherwise adjust claims in favor
       of or against the Trust for any matter in controversy, including but not
       limited to claims for taxes;

             (ix) to enter into joint ventures, general or limited partnerships
       and any other combinations or associations;

             (x) to borrow funds;

             (xi) to endorse or guarantee the payment of any notes or other
       obligations of any person; to make contracts of guaranty or surety ship,
       or otherwise assume liability for payment thereof; and to mortgage or
       pledge the Trust property or any part thereof to secure any part of or
       all such obligations;

             (xii) to purchase and pay for entirely out of the Trust property
       such insurance as they may deem necessary or appropriate for the conduct
       of the business of the Trust, including without limitation insurance
       policies insuring the assets of the Trust, or payment of distributions
       and principal on its portfolio investments, and insurance policies
       insuring the Shareholders, Trustees, officers, employees, agents,
       investment advisers, underwriters, or other independent contractors, of


                                       8
<PAGE>

       the Trust individually against all claims and liabilities of every nature
       arising by reason of holding or having held any such office or position,
       or by reason of any action alleged to have been taken or omitted by any
       such person in any such capacity, including any action taken or omitted
       that may be determined to constitute negligence, whether or not the Trust
       would have the power to indemnify any such person against such liability;

             (xiii) to pay pensions for faithful, service, as deemed appropriate
       by the Trustees, and to adopt, establish and carry out pension, profit-
       sharing, share bonus, share purchase, savings, thrift and other
       retirement, incentive and benefit plans, trusts and provisions, including
       the purchasing of life insurance and annuity contracts as a means of
       providing such retirement and other benefits, for any or all of the
       Trustees, officers, employees and agents of the Trust;

             (xiv) to the extent necessary or appropriate to give effect to
       preferences, special or relative rights and privileges of any Class or
       Series of Shares, to allocate assets, liabilities, income and expenses of
       the Shares or to apportion the same among two or more Classes or Series;

             (xv) to enter into, make and perform all such obligations,
       contracts, agreements and undertakings of every kind and description,
       with any person or persons, as the Trustees shall in their discretion
       deem expedient in the conduct of the business of the Trust, for such
       terms as they shall see fit, whether or not extending beyond the term of
       office of the Trustees, or beyond the possible expiration of the Trust;
       and to amend, extend, release or cancel any such obligations, contracts,
       agreements or understandings; and to execute, acknowledge, deliver and,
       record all written instruments which they may deem necessary or expedient
       in the exercise of their powers; and

             (xvi) to do all such other acts and things and to conduct, operate,
       carry on and engage in such other lawful businesses or business
       activities as they shall in their sole and absolute discretion consider
       to be incidental to the business of the Trust as an investment company,
       and to exercise all powers which they shall in their discretion consider
       necessary, useful or appropriate to carry on the business of the Trust,
       to promote any of the purposes for which the Trust is formed, whether or
       not such things are specifically mentioned herein, in order to protect or
       promote the interests of the Trust or otherwise to carry out the
       provisions of this Declaration.

       The Trustees shall not in any way be bound or limited by any present or
future law or custom concerning investments by trustees, nor shall the Trustees
be limited to investing in obligations maturing before the possible termination
of the Trust. The Trustees shall not be required to obtain a court order to deal
with any assets of the Trust or take any other actions hereunder.

       Except as otherwise provided herein or from time to time in the By-Laws,
any action to be taken by the Trustees may be taken by a majority of the


                                       9
<PAGE>

Trustees present at a meeting of Trustees (a quorum being present), within or
without Massachusetts, or by written consent of a Majority of the Trustees. Any
meeting of Trustees may be held by means of a telephone conference call or other
communications facility and participation by such means shall (except to the
extent required otherwise by the 1940 Act) constitute presence in person at such
meeting.

        Section 4.3. PAYMENT OF TRUST EXPENSES; COMPENSATION OF TRUSTEES. The
Trustees are authorized to pay or to cause to be paid out of the assets of the
Trust, all expenses, fees, charges, taxes and liabilities incurred or arising in
connection with the Trust, or in connection with the management thereof,
including, but not limited to, the Trustees' compensation and such expenses and
charges for the services of the Trust's officers, employees, investment adviser,
underwriter, auditor, counsel, custodian, sub-custodian, transfer agent,
dividend disbursing agent, shareholder servicing agent, and such other agents or
independent contractors and such other expenses and charges, as the Trustees may
deem necessary or proper to incur. Without limiting the generality of any other
provision hereof, the Trustees shall be entitled to reasonable compensation from
the Trust for their services as Trustees and may fix the amount of such
compensation.

        Section 4.4. OWNERSHIP OF TRUST ASSETS. Title to all or the assets of
the Trust shall at all times be considered as vested in the Trustees.

        Section 4.5. CERTAIN CONTRACTS. Subject to compliance with the
provisions of the 1940 Act, but notwithstanding any limitations of present and
future law or custom concerning delegation of powers by trustees generally, the
Trustees may, at any time and from time to time and without limiting the
generality of their powers and authority otherwise set forth herein, enter into
one or more contracts with any one or more corporations, trusts, associations,
partnerships, limited partnerships, other type of organizations, or individuals
(a "Contracting Party"), to provide for the performance and assumption of some
or all of the following services, duties and responsibilities to, for or on
behalf of the Trust or the Trustees, and to provide for the performance and
assumption of such other services, duties and responsibilities in addition to
those set forth below as the Trustees may deem appropriate:

             (i) subject to the general supervision of the Trustees and in
       conformity with the stated policies of the Trustees with respect to the
       investments of the Trust, to manage such investments, to make investment
       decisions with respect thereto, and to place purchase and sale orders for
       portfolio transactions relating to such investments;

             (ii) subject to the general supervision of the Trustees and in
       conformity with any policies of the Trustees with respect to the
       operations of the Trust, to supervise all or any part of the operations
       of the Trust and to provide all or any part of the administrative and
       clerical personnel, office space, and office equipment and services
       appropriate for the efficient administration and operation of the Trust;

                                       10
<PAGE>

             (iii) to distribute the Shares or other securities issued by the
       Trust, to be principal underwriter of such Shares or securities, or to
       act as agent of the Trust in the sale of such Shares or securities and
       the acceptance or rejection of orders for the purchase thereof;

             (iv) to act as depositary for and to maintain custody of the
       property of the Trust and accounting records in connection therewith;

             (v) to maintain records of ownership of outstanding Shares, the
       issuance and redemption and the transfer thereof, and to disburse any
       dividends declared by the Trustees and in accordance with the policies of
       the Trustees and the instructions of any particular Shareholder to
       reinvest any such dividends; and

             (vi) to handle all or any part of the accounting responsibilities,
       when her with respect to the Trust's properties, Shareholder or
       otherwise.

       The same person may be a Contracting Party for some or all of the
services, duties and responsibilities to, for and of the Trust or the Trustees,
and the contracts with respect thereto may contain such terms interpretive of or
in addition to the delineation of the services, duties and responsibilities
provided for, including provisions that are consistent with the 1940 Act
relating to the standard of care and the rights to indemnification of the
Contracting Party and others, as the Trustees may determine. Nothing herein
shall preclude, prevent or limit the Trust or a Contracting Party from entering
into sub-contractual arrangements relative to any of the matters referred to in
this Section 4.5.

       The fact that:

             (1) any of the Shareholders, Trustees or officers of the Trust is a
       shareholder, director, officer, partner, trustee, employee, investment
       adviser, principal underwriter or distributor, or agent of or for any
       Contracting Party or of or for any parent or affiliate of any Contracting
       Party, or that any Contracting Party or any parent or affiliate thereof
       is a Shareholder or has an interest in the Trust, or that

             (2) any Contracting Party may have a contract providing for the
       rendering of any similar services to one or more other corporations,
       trusts, associations, partnerships, limited partnerships or other
       organizations, or have other businesses or interests, shall not affect
       the validity of any such contract or disqualify any Shareholder, Trustee
       or officer of the Trust from voting upon or executing the same or create
       any liability or accountability to the Trust or to the Shareholders.



                                       11
<PAGE>

                                    ARTICLE V

                    SHAREHOLDERS' VOTING POWERS AND MEETINGS

        Section 5.1. VOTING POWERS. Subject to the voting powers of one or more
Classes or Series of Shares as set forth in this Declaration of Trust or in the
By-Laws, Shareholders shall have power to vote only (i) for the election of
Trustees as provided herein, (ii) for the removal of Trustees as provided
herein, (iii) with respect to any matter as to which shareholder action is
required by the 1940 Act, ( iv) with, respect to any voluntary liquidation,
dissolution, winding up, merger or consolidation or sale of all or substantially
a1l of the assets of the Trust to the extent and as provided herein, (v) with
respect to any amendment of this Declaration of Trust or the By-Laws to the
extent and as provided herein or therein as the case may be, (vi) to the same
extent as the stockholders of a Massachusetts business corporation as to whether
or not a court action, proceeding or claim should or should not be brought or
maintained derivatively or as a Class action on behalf of the Trust or the
Shareholders, and (vii) with respect to such additional matters as may be
required by the 1940 Act, this Declaration of Trust, the By-Laws, or any
registration with the Securities and Exchange Commission (or any successor
agency) or any state, or as the Trustees may consider necessary or desirable. On
any matter required or permitted to be voted on by the Shareholders, all Shares
then entitled to vote shall be voted in the aggregate as a single Class without
regard to Class or Series, except (i) when required by this Declaration of
Trust, the By-Laws or by the 1940 Act, or when the Trustees shall have
determined that any matter to be submitted to a vote of the Shareholders affects
the rights or interests of the Shareholders of one or more Classes or Series
materially differently, Shares shall be voted by individual Class or Series; and
(ii) when the Trustees shall have determined that the matter affects only the
interests of one or more Classes or Series, then only the Shareholders of such
Class or Classes or Series shall be entitled to vote thereon. Each Share shall
be entitled to one vote as to any matter on which it is entitled to vote and
each fractional Share shall be entitled `to a proportionate fractional vote.
There shall be no cumulative voting in the election of Trustees. Shares may be
voted in person or by proxy. A proxy with respect to Shares held in the name of
two or more persons shall be valid if executed by any one of them unless at or
prior to exercise of the proxy the Trust receives a specific written notice to
the contrary from any one of them. A proxy purporting to be executed by or on
behalf of a Shareholder shall be deemed valid unless challenged at or prior to
its exercise and the burden of proving invalidity shall rest on the challenger.
Until Shares are issued, the Trustees may exercise all rights of Shareholders
and may take any action required by law, this Declaration of Trust or the
By-Laws to be taken by Shareholders.

        Section 5.2. MEETINGS. Meetings of the Shareholders may be called by the
Trustees from time to time for the purpose of taking action upon any matter
requiring the vote or authority of the Shareholders as herein provided, or upon
any other matter deemed by the Trustees to be necessary or desirable. Except as
otherwise provided in the By--Laws, written notice of any meeting of
Shareholders shall be given or caused to be given by the Trustees by mailing
such notice at least seven days before such meeting, postage prepaid, stating
the time, place and purpose of the meeting, to each Shareholder entitled to vote
at such meeting at the Shareholder's address as it appears on the records of the
Trust. If the Trustees shall fail to call or give notice of any meeting of
Shareholders for a period of 30 days after written application by Shareholders
holding at least 25% of the then outstanding Shares entitled to vote at such
meeting requesting that a meeting be called for a purpose requiring action by
the Shareholders as provided herein or in the By-Laws, then Shareholders holding
at least 25% of the


                                       12
<PAGE>

then outstanding Shares entitled to vote at such meeting may call and give
notice of such meeting, and thereupon the meeting shall be held in the manner
provided for herein in case of call thereof by the Trustees. Notice of a meeting
need not be given to any Shareholder if a written waiver of notice, executed by
him before or after the meeting, is filed with the records of the meeting, or to
any Shareholder who attends the meeting without protesting prior thereto or at
its commencement the lack of notice to him.

        Section 5.3. RECORD DATES. For the purpose of determining the
Shareholders who are entitled to vote or act at any meeting or any adjournment
thereof, or who are entitled to participate in any dividend or distribution, or
for the purpose of any other action, the Trustees may from time to time close
the transfer books for such period, not exceeding 30 days (except at or in
connection with the termination of the Trust), as the Trustees may determine; or
without closing the transfer books the Trustees may fix a reasonable date and
time prior to the date of any meeting of Shareholders or other action as the
date and time of record for the determination of Shareholders entitled to vote
at such meeting or any adjournment thereof or to be treated as Shareholders of
record for purposes of such other action, and any Shareholder who was a
Shareholder at the date and time so fixed shall be entitled to vote at such
meeting or any adjournment thereof or to be treated as a Shareholder of record
for purposes of such other action, even though he has since that date and time
disposed of his Shares, and no Shareholder becoming such after that date and
time shall be so entitled to vote at such meeting or any adjournment thereof or
to be treated as a Shareholder of record for purposes of such other action.

        Section 5.4. QUORUM AND REQUIRED VOTE. A majority of the Shares entitled
to vote shall be a quorum for the transaction of business at a Shareholders'
meeting, except that where the By- Laws so require or the Trustees provide that
holders of any Class or Classes or Series shall vote as a Class or Classes or
Series, then a majority of the aggregate number of Shares of that Class or
Classes or Series entitled to vote shall be necessary to constitute a quorum for
the transaction of business by that Class or Series. Any lesser number shall be
sufficient for adjournments. Any adjourned session or sessions may be held
within a reasonable time after the date set for the original meeting without the
necessity of further notice. Except when a different vote is required by any
provision of time By-Laws or this Declaration Trust or, when such a different is
not specifica1ly provided in this Declaration of Trust or the By-Laws, the
Trustees shall in their discretion require a different vote or the vote of a
majority or different percentage of the Shares of one or more particular Classes
or Series, a majority of the Shares voted shall decide any question and a
plurality shall elect a Trustee.

        Section 5.5. ACTION BY WRITTEN CONSENT. Any action taken by Shareholders
may be taken without a meeting if a majority of Shareholders entitled to vote on
the matter (or such different proportion thereof as shall be required by any
express provision of this Declaration of Trust or the By-Laws or as shall be
permitted by the Trustees) consent to the action in writing and such written
consents are filed with the records of the meetings of Shareholders. Such
consent shall be treated for all purposes as a vote taken at a meeting of
Shareholders.

                                       13
<PAGE>

        Section 5.6. INSPECTION OF RECORDS. The records of the Trust shall be
open to inspection by Shareholders to the same extent as is permitted
stockholders of a Massachusetts business corporation under the Massachusetts
Business Corporation Law.

        Section 5.7. ADDITIONAL PROVISIONS. The By-Laws may include further
provisions for Shareholders' votes and meetings and related matters.

                                   ARTICLE VI

                    LIMITATION OF LIABILITY; INDEMNIFICATION

        Section 6.1. TRUSTEES, SHAREHOLDERS, ETC. NOT PERSONALLY LIABLE; NOTICE.
All persons extending credit to, contracting with or having any claim against
the Trust shall look only to the assets of the Trust for payment under such
credit, contract or claim, and neither the Shareholders nor the Trustees, nor
any of the Trust's officers, employees or agents, whether past, present or
future, shall be personally liable therefor. Every note, bond, contract,
instrument, certificate or undertaking and every other act or thing whatsoever
executed or done by or on behalf of the Trust or the Trustees or any of them in
connection with the Trust shall be conclusively deemed to have been executed or
done only in or with respect to their or his capacity as Trustees or Trustee,
and such Trustees or Trustee shall not be personally liable thereon.
Notwithstanding the foregoing, nothing in this Declaration of Trust shall
protect any Trustee against any liability to which such Trustee would otherwise
be subject by reason of willful misfeasance, bad faith, gross negligence or
reckless disregard of the duties involved in the conduct of the office of
Trustee.

        Every note, bond, contract, instrument, certificate or undertaking made
or issued by the Trustees or by any officer or officers shall give notice that
this Declaration of Trust is on file with the Secretary of The Commonwealth of
Massachusetts and shall recite that the same was executed or made by or on
behalf of the Trust or by them as Trustee or Trustees or as officer or officers
and not individually and that the obligations of such instrument are not binding
upon any of them or the Shareholders individually but are binding only upon the
assets and property of the Trust, and may contain such further recital as he or
they may deem appropriate, but the omission thereof shall not operate to bind
any Trustee or Trustees or officer or officers or Shareholder or Shareholders
individually.

        Section 6.2. TRUSTEES' GOOD FAITH ACTION; EXPERT ADVICE; NO BOND OR
SURETY. The exercise by the Trustees of their powers and discretion hereunder
shall be binding upon everyone interested. A Trustee shall be liable for his own
willful misfeasance, bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of the office of Trustee, and for nothing else,
and shall not be liable for errors of judgment or mistakes of fact or law.
Subject to the foregoing, (i) the Trustees shall not be responsible or liable in
any event for any neglect or wrongdoing of any officer, agent, employee,
consultant or Contracting Party, nor shall any Trustee be responsible for the
act or omission of any other Trustee; (ii) the Trustees may take advice of
counsel or other experts with respect to the meaning and operation of this
Declaration of Trust, and shall be under no liability for any act or omission in

                                       14
<PAGE>

accordance with such advice or for failing to follow such advice; and (iii) in
discharging their duties, the Trustees, when acting in good faith, shall be
entitled to rely upon the books of account of the Trust and upon written reports
made to the Trustees by any officer appointed by them, any independent
accountant, and (with respect to the subject matter of the contract involved)
any officer, partner or responsible employee of a Contracting Party. The
Trustees shall not be required to give any bond as such, nor any surety or any
other security if a bond is required.

        Section 6.3. APPARENT AUTHORITY OF THE TRUSTEES. No person dealing with
the Trustees shall be bound to make any inquiry concerning the validity of any
transaction made or to be made by the Trustees or to see to the application of
any payments made or property transferred to the Trust or upon its order.

        Section 6.4. INDEMNIFICATION OF TRUSTEES, OFFICERS, ETC. The Trust shall
indemnify each of its Trustees and officers and any person who serves at the
Trust's request as a director, officer or trustee of another organization in
which the Trust has any interest as a shareholder, creditor or otherwise
(hereinafter referred to, together with such person's heirs, executors,
administrators or other legal representatives, as a "Covered Person" ) against
all liabilities and expenses, including but not limited to amounts paid in
satisfaction of judgments, in compromise or as fines and penalties, and counsel
fees, reasonably incurred or paid by such Covered Person in connection with any
action, suit or other proceeding, whether civil or criminal, before any court or
administrative or legislative body, in which such Covered Person may be or may
have been involved as a party or otherwise or with which he may be or may have
been threatened, while in office or thereafter, by reason of being or having
been such a Covered Person, except with respect to any matter as to which such
Covered Person shall have been finally adjudicated in any such action, suit or
other proceeding (i) not to have acted in good faith in the reasonable belief
that his action was in the best interests of the Trust, or (ii) to be liable to
the Trust or its Shareholders by reason of willful misfeasance, bad faith, gross
negligence or reckless disregard of the duties involved in the conduct of his
office.

        Section 6.5. INDEMNIFICATION NOT EXCLUSIVE, ETC. The right of
indemnification provided by this Article shall not be exclusive of or affect any
other rights to which any Covered Person may be entitled. Nothing contained in
this Article shall affect any rights to indemnification to which personnel of
the Trust, other than Trustees or officers, and other persons may be entitled by
contract or otherwise under law, nor the power of the Trust to purchase and
maintain liability insurance on behalf of any such person.

        Section 6.6. INDEMNIFICATION OF SHAREHOLDERS. If any Shareholder or
former Shareholder shall be held to be personally liable solely by reason of
being or having been a Shareholder and not because of such Shareholder's acts or
omissions or for some other reason, the Shareholder or former Shareholder (or
his/her heirs, executors, administrators or other legal representatives, or in
the case of a corporation or other entity, its corporate or other general
successor) shall be entitled to be held harmless from and indemnified against
all, loss and expense arising from such liability.

                                       15
<PAGE>

                                  ARTICLE VII

                                 MISCELLANEOUS

        Section 7.1. DURATION AND TERMINATION. Unless terminated as herein
provided, the Trust shall continue without limitation of time. The Trust may not
be terminated unless authorized at a meeting of Shareholders called for the
purpose, by the vote of (x) the holders of at least 67% of the Shares of the
Series A DARTS then outstanding and (y) the holders of at least 67% of the
Common Shares then outstanding, each voting as a separate Class provided,
however, if such termination is recommended by two- thirds of the total number
of Trustees the, office, the vote of (x) the holders of at least 67% of the
Shares of the Series A DARTS then outstanding and (y) the holders of at least
67% of the Common Shares then outstanding, each voting as a separate Class,
shall be sufficient authorization. Subject to the provisions of the Declaration
of Trust and By-Laws regarding the powers, preferences or special or relative
rights or privileges of any Class or Series of Shares, the Trust may also be
terminated by the Trustees by written notice to the Shareholders. Upon
termination of the Trust, after paying or otherwise providing for all charges,
taxes, expenses and liabilities, whether due or accrued or anticipated, the
Trust shall in accordance with such procedures as the Trustees consider
appropriate reduce the remaining assets to distributable form in cash,
securities or other property, or any combination thereof, and distribute the
proceeds to the Shareholders, ratably according to the number of Shares held by
the several Shareholders on the date of termination, except to the extent
otherwise required or permitted by the relative preferences, rights and
privileges of any Classes or Series of Shares, provided that any distribution to
the Shareholders of a particular Class or Series of Shares shall be made to such
Shareholders pro rata in proportion to the number of Shares of such Class or
Series held by each of them.

        Section 7.2. REORGANIZATION. The Trust may not merge or consolidate with
any other corporation, association, trust or other organization, or sell, lease
or exchange all or substantially all of its assets, including its good will, and
thereafter be terminated, unless authorized at a meeting of Shareholders called
for the purpose, by the vote of (x) the holders of at least 67% of the Shares of
the Series A DARTS then outstanding and (y) the holders of at least 67% of the
Common Shares then outstanding, each voting as a separate Class provided,
however, if such termination is recommended by two-thirds of the total number of
Trustees then in office, the vote of (x) the holders of at least 50% of the
Shares of the Series A DARTS then outstanding and (y) the holders of at least
50% of the Common Shares then outstanding, each voting as a separate Class,
shall be sufficient authorization. Nothing contained herein shall be construed
as requiring approval of Shareholders for any sale of assets in the ordinary
course of business of the Trust.

        Section 7.3. CONVERSION. The Trust may not be converted from a
"closed-end company" to an "open- end company" as those terms are defined in the
1940 Act unless authorized at a meeting of Shareholders called for the purpose,
by the vote of (x) the holders of at least 75% of the number of the Series A
DARTS then outstanding and (y) the holders of at least 75% of the Common Shares
then outstanding, each voting as a separate Class provided, however, if such
conversion is recommended by 66 2/3% of the total number of Trustees then in

                                       16
<PAGE>

office, the vote of (x) the holders of at least 75% of the number of the Series
A DARTS then outstanding and (v) share holders of at least 50% of the Common
Stock, S then outstanding, each voting as a separate Class, shall be sufficient
authorization. Upon the adopt All of such proposal and related amendment by the
Trust's Shareholders as provided above, the Trust shall, upon complying with any
requirements of the 1940 Act and state law, become an "open-end" investment
company. Such affirmative vote or consent shall be in addition to the vote or
consent of the holders of the Shares otherwise required by law, the By-Laws or
any agreement between the Trust and any national securities exchange.

        Section 7.4. Amendments, etc. All. rights granted to the Shareholders
under this Declaration of Trust are granted subject to the reservation of the
right to amend this Declaration of Trust as herein provided, except that no
amendment shall repeal or adversely affect the limitation on personal liability
of any Shareholder or Trustee, or the prohibition of assessment upon the
Shareholders except as herein provided, without the express consent of each
Shareholder or Trustee involved. Subject to the foregoing, this Declaration of
Trust may be amended at any time by the Trustees, except that the Trustees may
not amend this Declaration of Trust to eliminate the rights of Shareholders of
any Class or Series to vote on any amendment of this Declaration of Trust or the
By-Laws or alter or amend the percentage of Shareholders required to approve any
amendment or action which requires a Shareholder vote unless under this
Declaration of Trust or the By- Laws an equivalent percentage of the
Shareholders has authorized such an .amendment of the Declaration of Trust or
By-Laws and the Trustees may not take any action that they would otherwise not
be entitled to take without the vote of the Shareholders of any Class or Series
of Shares pursuant to any provision of this Declaration of Trust or the By-Laws.
Any amendment which adversely affects the holders of one or more Classes or
Series of Shares shall require a vote of the Shareholders holding a majority of
the Shares so adversely affected and entitled to vote thereon and no vote of
Shareholders not so adversely affected shall be required, except that any
amendment of any provision of

       (i)   Section 7.1, 7.2 or this subclause (i) of Section 7.4 of Article
             VII shall require a vote of the Shareholders holding 67%, or

       (ii)  Section 4.1(c) or Section 4.1(d) (ii) of Article IV, Section, 5.4
             of Article V, Section 7.3 of Article VII or this subclause (ii) of
             Section 7.4 of Article VII shall require the vote of the
             Shareholders holding 75%,

of the Shares of each Class and Series entitled to vote thereon. Amendments
having the purpose of changing the name of the Trust or of supplying any
omission, curing any ambiguity or curing, correcting or supplementing any
defective or inconsistent provision contained herein shall not require
authorization by Shareholder vote.

        Section 7.5 FILING OF COPIES. The original or a copy of this instrument
and of each amendment hereto shall be kept at the principal office of the Trust
where it may be inspected by any Shareholder. A copy of this instrument and of
each amendment hereto shall be filed by the Trust with the Secretary of State of
The


                                       17
<PAGE>

Commonwealth of Massachusetts and with the City Clerk of the City of Boston, as
well as with any other governmental office where such filings may from time to
time be required, but the failure to make any such filing shall not impair the
effectiveness of this instrument or any such amendment. Anyone dealing with the
Trust may rely on a certificate by an officer of the Trust as to whether or not
any such amendments have been made, as to the identities of the Trustees and
officers, and as to matters in connection with the Trust hereunder, and, with
the same effect as if it were the original, may rely on a copy certified by an
officer of the Trust to be a copy of this instrument or of any such amendments.

        Section 7.6. APPLICABLE LAW. This Declaration of Trust is made in The
Commonwealth of Massachusetts, and it is created under and is to be governed by
and construed and administered according to the laws of said Commonwealth.

        Section 7.7. REFERENCES; GENDER; HEADINGS; COUNTERPARTS. In this
instrument and in any amendment, references to this instrument, and all
expressions like "herein", "hereof", and "hereunder" shall be deemed to refer to
this instrument as a whole as the same may be amended or affected by any such
amendments. The masculine gender shall include the feminine and neuter genders.
Headings are placed herein for convenience of reference only and shall not be
taken as a part hereof or control or affect the meaning, construction or effect
of this instrument. This instrument may be executed in any number of
counterparts each of which shall be deemed an original.

                                       18
<PAGE>

        IN WITNESS WHEREOF, the undersigned has hereunto set his hand and seal,
for himself and his assigns, and has thereby accepted the trusteeship as the
Initial Trustee of Patriot Premium Dividend Fund II hereby granted and agreed to
the provisions hereof, all as or the day and year first above written.

                                       /s/ W. Lee H. Dunham
                                       ---------------------
                                       W. Lee H. Dunham


       The undersigned Settlor of Patriot Premium Dividend Fund II hereby
accepts, approves and authorizes the foregoing Agreement and Declaration of
Trust of Patriot Premium Dividend Fund II.

                                       /s/ James T. Barrett
                                       -------------------------
                                       James T. Barrett


Dated: September 26, 1989



Address of Trust:

Patriot Premium Dividend Fund II
211 Congress Street
Boston, MA   02110


Address of Trustee:

W. Lee H. Dunham, Esq.
Sullivan & Worcester
One Post Office Square
Boston, MA  02109

                                       19
<PAGE>

                                 ACKNOWLEDGMENTS



                           M A S S A C H U S E T T S

Suffolk, ss.                                        Boston, September 26, 1989


       Then personally appeared the above named W. Lee H. Dunham and
acknowledged the foregoing instrument to be his free act and deed.

       Before me,

                                        /s/ Julianne M. Ells
                                        --------------------
                                        Notary Public
                                        My commission expires: 12/11/92



                           M A S S A C H U S E T T S

Suffolk, ss.                                        Boston, September 26, 1989


       Then personally appeared the above named James T. Barrett and
acknowledged the foregoing instrument to be his free act and deed.

       Before me,

                                        /s/ Julianne M. Ells
                                        --------------------
                                        Notary Public
                                        My commission expires: 12/11/92



                                       20
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>amendedandrestateddot.txt
<DESCRIPTION>EXHIBIT 99.1(B)
<TEXT>

           ___________________________________________________________

                              AMENDED AND RESTATED

                      AGREEMENT AND DECLARATION OF TRUST OF

                        PATRIOT PREMIUM DIVIDEND FUND II

           ___________________________________________________________

                            Dated: December 12, 1989

<PAGE>

                              AMENDED AND RESTATED
                       AGREEMENT AND DECLARATION OF TRUST
                                       OF
                        PATRIOT PREMIUM DIVIDEND FUND II


      This CONSENT TO AMENDMENT AND RESTATEMENT (the "Consent"), given on and as
of this 12th day of December, 1989, by the Trustees whose signatures are set
forth below,

                          W I T N E S S E T H  T H A T:
                          ----------------------------

      WHEREAS, the Agreement and Declaration of Trust (the "Declaration") of
Patriot Premium Dividend Fund II (the "Trust"), a trust with transferable shares
under the laws of Massachusetts, was signed and delivered by James T. Barrett of
Boston, Massachusetts, as settlor (the "Settlor"), and W. Lee H. Dunham of
Belmont, Massachusetts, as Trustee (the "Initial Trustee"), on September 26,
1989, at One Post Office Square, City of Boston, in the County of Suffolk and
Commonwealth of Massachusetts, and thereafter filed in the offices of the
Secretary of The Commonwealth of Massachusetts and the Clerk of the City of
Boston; and

      WHEREAS, Section 7.4 of the Declaration provides certain procedures for
the amendment thereof; and

      WHEREAS, the number of Trustees in office is six (6); and

      WHEREAS, the Trustees have determined that it is desirable and in the best
interest of the Trust and its shareholders that the Declaration be amended and
restated as herein provided, and such amendment and restatement has been
consented to and approved by the holder of all of the outstanding shares of
beneficial interest of the Trust,

      NOW, THEREFORE, the undersigned, being at least a Majority of the Trustees
of the Trust, do hereby consent, pursuant to Section 7.4 of the Declaration,
that the Declaration be amended and restated, and hereby declare, for the
benefit of all persons who are now, or who shall hereafter become, holders of
shares of beneficial interest of the Trust, of any series, that the Trustees
will hold the sum delivered to the Initial Trustee upon his execution of the
Declaration, and all other and further cash, securities and other property of
every type and description which they may in any way acquire in their capacity
as such Trustees, together with the income therefrom and the proceeds thereof;
IN TRUST NEVERTHELESS, to manage and dispose of the same for the benefit of the
holders from time to time of the shares of beneficial interest of the several
series being issued and to be issued hereunder and in the manner and subject to
the provision thereof, to wit:

<PAGE>

                                    ARTICLE I

                                    THE TRUST

      Section 1.1.      Name; Use of Name.
                        -----------------

      (a) TRUST NAME. The name of the Trust shall be "Patriot Premium Dividend
Fund II", and so far as may be practicable the Trustees shall conduct the
Trust's activities, execute all documents and sue or be sued under that name,
which name (and the word "Trust" wherever used in this Declaration of Trust,
except where the context otherwise requires) shall refer to the Trustees in
their capacity as Trustees, and not individually or personally, and shall not
refer to the officers, agents or employees of the Trust or of such Trustees, or
to the Shareholders. If the Trustees determine that the use of such name is not
practicable, legal or convenient at any time or in any jurisdiction, or if the
Trust is required to discontinue the use of such name, then the Trustees may use
such other designation or adopt such other name for the Trust as they deem
proper, and the Trust may hold property and conduct its activities under such
other designation or name.

      (b) USE OF THE NAME "PATRIOT". The Patriot Group, Inc., a Massachusetts
corporation ("Patriot Group"), has consented to the use by the Trust of the
identifying name "Patriot", which is a property right of Patriot Group, in the
name of the Trust. Such consent is conditioned upon the Trust's employment of
Patriot Advisers, Inc., a wholly owned subsidiary of Patriot Group, as
investment adviser to the Trust. As between Patriot Group and the Trust, Patriot
Group shall control the use of such name insofar as the name of the Trust
contains the identifying name "Patriot". Patriot Group may from time to time use
the identifying name "Patriot" in other connections and for other purposes,
including without limitation in the names of other investment companies,
corporations or businesses that it may manage, advise, sponsor or own, or in
which it may have a financial interest. Patriot Group may require the Trust to
cease using the identifying name "Patriot" in the name of the Trust if the Trust
ceases to employ Patriot Advisers, Inc., or an affiliate thereof, as investment
adviser.

      Section 1.2. OFFICES; RESIDENT AGENT. The Trust shall have an office in
Boston, Massachusetts, unless changed by the Trustees to another location in
Massachusetts or elsewhere, but such office need not be the sole or principal
office of the Trust. The Trust may have such other offices or places of business
as the Trustees may from time to time determine to be necessary or expedient.
The Trustees may appoint, and from time to time replace, a resident agent for
the Trust in The Commonwealth of Massachusetts.

      Section 1.3. NATURE OF TRUST. The Trust shall be a trust with transferable
shares under the laws of The Commonwealth of Massachusetts, of the type referred
to in Section 1 of Chapter 182 of the Massachusetts General Laws and commonly
known as a Massachusetts business trust. The Trust is not intended to be, shall
not be deemed to be and shall not be treated as, a general partnership, limited
partnership, joint venture, corporation or joint stock company. The Shareholders
shall be beneficiaries and their relationship to the Trustees shall be solely in
that capacity in accordance with the rights conferred upon them hereunder.

                                     - 2 -
<PAGE>

      Section 1.4. DEFINITIONS. As used in this Declaration of Trust, the
following terms shall have the meanings set forth below unless the context
thereof otherwise requires:

      "BY-LAWS" means the By-Laws of the Trust, as amended from time to time.

      "CLASS" or "CLASS OF SHARES" refer to the division of Shares into two or
more Classes as provided in Article III, Section 3.1 hereof.

      "COMMON SHARES" means the Fund's common shares of beneficial interest.

      "COMMISSION" means the Securities and Exchange Commission.

      "CONTRACTING PARTY" has the meaning designated in Section 4.5 hereof.

      "DARTS" means the Trust's Dutch Auction Rate Transferable Securities
Preferred Stock, Series A and B.

      "DECLARATION" and "DECLARATION OF TRUST" mean this Agreement and
Declaration of Trust and all amendments or modifications thereof as from time to
time in effect.

      "INITIAL TRUSTEE" has the meaning designated in the preamble hereto.

      "MAJORITY OF THE TRUSTEES" means a majority of the Trustees in office at
the time in question. At any time at which there shall be only one Trustee in
office, such phrase shall mean such Trustee.

      "1940 ACT" means the Investment Company Act of 1940 and the rules and
regulations thereunder, both as amended from time to time, and any order or
orders thereunder which may from time to time be applicable to the Trust.

      "SERIES" or "SERIES OF SHARES" refers to the division of Shares
representing any Class into two or more Series as provided in Article III,
Section 3.1 hereof.

      "SETTLOR" has the meaning designated in the preamble hereto.

      "SHAREHOLDER" means a record owner of Shares.

      "SHARES" means the transferable units of interest into which the
beneficial interest in the Trust shall be divided from time to time, or if more
than one Class or Series of Shares is authorized by the Trustees, the equal
proportionate transferable units into which each Class or Series of Shares shall
be divided from time to time.

      "TRUST" means the Massachusetts business trust established by this
Agreement and Declaration of Trust, as amended from time to time.

      "TRUSTEES" means, collectively, the Initial Trustee, so long as he shall
continue in office, and all other individuals who at the time in question have
been duly elected or appointed as Trustees of the Trust in accordance with the

                                     - 3 -
<PAGE>

provisions hereof and who have qualified and are then in office. At any time at
which there shall be only one Trustee in office, such term shall mean such
single Trustee.

                                   ARTICLE II

                              PURPOSE OF THE TRUST

      The purpose of the Trust is to provide investors a managed investment
primarily in securities, debt instruments and other instruments and rights of a
financial character.

                                  ARTICLE III

                          SHARES OF BENEFICIAL INTEREST

      Section 3.1. DIVISION OF BENEFICIAL INTEREST. The beneficial interest in
the Trust shall at all times be divided into an unlimited number of Shares
without par value. Subject to the provisions of the Declaration of Trust and the
By-Laws regarding the powers, preferences or special or relative rights or
privileges of any outstanding Class or Series of Shares, the Trustees may divide
the Shares into two or more Classes and each such Class into one or more Series,
Shares of each such Class or Series having such provisions, including without
limitation, preferences or special or relative rights or privileges (including
conversion rights, if any) as the Trustees may determine and as shall be set
forth in the By-Laws. The number of Shares of any such Class or Series
authorized shall be unlimited, except as the By-Laws may otherwise provide. The
Trustees may from time to time divide or combine the Shares of any Class or
Series into a greater or lesser number without thereby changing the
proportionate beneficial interest in the Class or Series.

      Section 3.2. OWNERSHIP OF SHARES. The ownership of Shares shall be
recorded on the books of the Trust or of a transfer or similar agent. No
certificates evidencing the ownership of Shares shall be issued except as
specifically provided otherwise herein or as the Trustees may otherwise
determine from time to time and the Trustees shall have the power to call
outstanding Share certificates and replace them with book entries. The Trustees
may make such rules as they consider appropriate for the issuance of share
certificates, the transfer of Shares and similar matters. The record books of
the Trust as kept by the Trust or any transfer or similar agent, as the case may
be, shall be conclusive as to who are the Shareholders of each Class or Series
and as to the number of Shares of each Class or Series held from time to time by
each Shareholder.

      Section 3.3. INVESTMENT IN THE TRUST. The Trustees may accept investments
in the Trust from such persons and on such terms and for such consideration,
which may consist of cash or tangible or intangible property or a combination
thereof, as they or the By-Laws from time to time authorize.

      Section 3.4. NO PREEMPTIVE RIGHTS. Shareholders shall have no preemptive
or other right to subscribe for any additional Shares or other securities issued
by the Trust.

      Section 3.5. STATUS OF SHARES; LIMITATION OF PERSONAL LIABILITY. Shares
shall be deemed to be personal property, giving only the rights provided in this

                                     - 4 -
<PAGE>

Declaration of Trust or the By-Laws. Every Shareholder by virtue of having
become a Shareholder shall be held to have expressly assented and agreed to the
terms of this Declaration of Trust and the By-Laws and to have become a party
hereto. The death of a Shareholder during the continuance of the Trust shall not
operate to terminate the Trust nor to entitle the representative of any deceased
Shareholder to an accounting or to take any action in court or elsewhere against
the Trust or the Trustees, but only to the rights of said decedent under this
Declaration of Trust. Ownership of Shares shall not entitle the Shareholder to
any title in or to the whole or any part of the Trust property or any right to
call for a partition or division of the same or for an accounting; nor shall the
ownership of Shares constitute the Shareholders partners. Neither the Trust nor
the Trustees, nor any officer, employee or agent of the Trust shall have any
power to bind personally any Shareholder nor, except as specifically provided
herein, to call upon any sum of money or assessment whatsoever other than such
as the Shareholder may at any time personally agree to pay.

      Section 3.6. CONSIDERATION FOR SHARES. The Trustees may issue Shares of
any Series for such consideration and on such terms as they may determine (or
for no consideration if pursuant to a Share dividend or split up), all without
action or approval of the Shareholders. All Shares when so issued on the terms
determined by the Trustees shall be fully paid and non-assessable.

                                   ARTICLE IV

                                    TRUSTEES

      Section 4.1. NUMBER, DESIGNATION, ELECTION, TERM, ETC.

      (a) NUMBER. Except as otherwise provided herein or in the By-Laws, a
majority of the Trustees may increase or decrease the number of Trustees. No
decrease in the number of Trustees shall have the effect of removing any Trustee
from office prior to the expiration of his term, but the number of Trustees may
be decreased in conjunction with the removal of a Trustee pursuant to subsection
(d) of this Section 4.1.

      (b) ELECTION AND TERM. The Trustees shall be elected by the Shareholders
at a meeting called and held for that purpose for the terms and to the classes
as provided in this Declaration. Subject to the 1940 Act and except as otherwise
provided herein or in the By-Laws, the Trustees shall have the power to set and
alter the terms of office of the Trustees, and at any time to lengthen or
shorten their own terms or make their terms of unlimited duration, to appoint
their own successors and, pursuant to subsection (e) of this Section 4.1, to
fill vacancies; PROVIDED, that a Trustee or Trustees shall be elected by the
Shareholders at any such time or times such action is required under this
Declaration of Trust, the By-Laws or the 1940 Act; and PROVIDED, FURTHER, that
after the initial election of Trustees by the Shareholders, the term of office
of any incumbent Trustee shall continue (unless specifically provided otherwise
herein or in the By-Laws) until the termination of this Trust or his earlier
death, resignation, retirement, bankruptcy, adjudicated incompetency, or other
incapacity or removal, or if not so terminated, until the appointment or
election of such Trustee's successor in office has become effective.

      (c) CLASS. The Board of Trustees shall be divided into three Classes, each
Class to consist, as nearly as may be, of one-third of the number of Trustees

                                     - 5 -
<PAGE>

then constituting the whole Board of Trustees. The Trustees shall be elected to
each Class as provided in the By-Laws. The term of office of those Trustees
elected to the first Class shall expire on the first anniversary of the initial
election of Trustees following the initial public offering of Shares. The term
of office of the Trustees elected to the second Class shall expire one year
thereafter on the second anniversary of the initial election. The term of office
of the Trustees elected to the third Class shall expire two years thereafter on
the third anniversary of the initial election. At each succeeding annual
election, the Trustees elected to succeed those whose terms expire shall be
elected for a full term of three years.

      (d) RESIGNATION, RETIREMENT AND REMOVAL. Any Trustee may resign his trust
or retire as a Trustee, by a written instrument signed by him and delivered to
the other Trustees or to any officer of the Trust, and such resignation or
retirement shall take effect upon such delivery or upon such later date as is
specified in such instrument. At any meeting called for the purpose, a Trustee
elected (i) by the holders of the DARTS may be removed from his office during
his term, with or without cause, but only by action of the holders of at least a
majority of the outstanding DARTS, voting separately as a Class and (ii) by the
holders of the Common Shares may be removed from his office during his term, but
only for cause and only by action of the holders of at least 75% of the
outstanding Common Shares, voting separately as a class; PROVIDED, however, that
if termination of a Trustee elected by holders of the Common Shares is
recommended by two-thirds of the total number of Trustees then in office elected
by the holders of the Common Shares, the vote of the holders of a majority of
the Common Shares then outstanding shall be sufficient authorization.

      (e) VACANCIES. Any vacancy or anticipated vacancy resulting from any
reason, including without limitation the death, resignation, retirement, removal
or incapacity of any of the Trustees, or an increase in the number of Trustees,
may (but unless required by the 1940 Act need not) be filled by a Majority of
the Trustees, subject to the provisions of this Declaration of Trust, the
By-Laws and the 1940 Act; PROVIDED, that if there shall be no Trustees in
office, such vacancy or vacancies shall be filled by the Shareholders. Any such
appointment or election shall take effect immediately; except that an
appointment or election in anticipation of a vacancy to occur by reason of
retirement, resignation or increase in the number of Trustees to be effective at
a later date shall become effective only at or after the effective date of said
retirement, resignation or increase in the number of Trustees.

      (f) EFFECT OF DEATH, RESIGNATION, ETC. The death, resignation, retirement,
removal or incapacity of the Trustees, or any one of them, shall not operate to
annul or terminate the Trust or to revoke or terminate any existing agency or
contract created or entered into pursuant to the terms of this Declaration of
Trust. Whenever a vacancy shall occur, until such vacancy is filled, the
Trustees in office, regardless of their number, shall have all the powers
granted to the Trustees and shall discharge all the duties imposed upon the
Trustees by this Declaration.

      (g) NO ACCOUNTING. Except to the extent required by the 1940 Act or under
circumstances which would justify his removal for cause, no individual ceasing
to be a Trustee (nor the estate of any such individual) shall be required to
make an accounting to the Shareholders or remaining Trustees upon such
cessation.

                                     - 6 -
<PAGE>

      Section 4.2. POWERS. Subject to the provisions of this Declaration of
Trust, the business of the Trust shall be managed by the Trustees, and they
shall have all powers necessary or convenient to carry out that responsibility.
Without limiting the foregoing, the Trustees may adopt By-Laws not inconsistent
with this Declaration of Trust providing for the conduct of the business and
affairs of the Trust and, subject to Section 7.4 hereof, may amend and repeal
them to the extent that such By-Laws do not reserve that right to the
Shareholders of one or more Classes or Series; they may select, and from time to
time change, the fiscal year of the Trust; they may as they consider appropriate
elect and remove officers, appoint and terminate agents and consultants, and
hire and terminate employees, any one or more of the foregoing of whom may be a
Trustee, and may provide for the compensation of all of the foregoing; they may
appoint from their own number, and terminate, any one or more committees
consisting of one or more Trustees, including without implied limitation an
executive committee, which may, when the Trustees are not in session and subject
to the 1940 Act, exercise some or all of the power and authority of the Trustees
as the Trustees may determine; they may employ one or more custodians of the
assets of the Trust and may authorize any such custodian to employ
sub-custodians or agents and to deposit all or any part of such assets in a
system or systems for the central handling of securities; they may retain
investment advisers, administrative agents, transfer agents, dividend disbursing
agents, accounting agents or shareholder servicing agents, or any of the
foregoing; they may provide for the distribution of securities issued by the
Trust through one or more underwriters, distributors or otherwise; they may set
record dates or times for the determination of Shareholders entitled to
participate in, benefit from or act with respect to various matters; and in
general they may delegate to any officer of the Trust, to any committee of the
Trustees, and to any employee, agent or consultant of the Trust such authority,
powers, functions and duties as they consider desirable or appropriate for the
conduct of the business and affairs of the Trust, including, without implied
limitation, the power and authority to act in the name of the Trust and of the
Trustees, to sign documents and to act as attorney-in-fact for the Trustees.

      Without limiting the foregoing and to the extent not inconsistent with the
1940 Act or other applicable law, the Trustees shall have power and authority:

           (i) to invest and reinvest cash and other property, and to hold cash
      uninvested;

           (ii) to sell, exchange, lend, pledge, mortgage, hypothecate, write
      options on, lease, grant security interests in, negotiate, convey,
      transfer or otherwise dispose of and trade in the assets of the Trust;

           (iii) to vote or give assent or exercise any rights of ownership with
      respect to stock or other securities or property; and to receive powers of
      attorney from, and to execute and deliver proxies or powers of attorney to
      such person or persons as the Trustees shall deem proper, receiving from
      or granting to such person or persons such power and discretion with
      relation to securities or property as the Trustees shall deem proper;

           (iv) to exercise powers and rights of subscription or otherwise which
      in any manner arise out of ownership of securities;

                                     - 7 -
<PAGE>

           (v) to hold any security or property in a form not indicating any
      trust, whether in bearer, unregistered or other negotiable form, or in the
      name of the Trustees, or in the name of a custodian, sub-custodian or
      other depositary or a nominee or nominees, or otherwise;

           (vi) to consent to or participate in any plan for the reorganization,
      consolidation or merger of any corporation or issuer, any security of
      which is or was held in the Trust; to consent to any contract, lease,
      mortgage, purchase or sale of property by any such corporation or issuer;
      and to pay calls or subscriptions with respect to any security held in the
      Trust;

           (vii) to join with other security holders in acting through a
      committee, depositary, voting trustee or otherwise, and in that connection
      to deposit any security with, or transfer any security to, any such
      committee, depositary or trustee, and to delegate to them such power and
      authority with relation to any security (whether or not so deposited or
      transferred) as the Trustees shall deem proper, and to agree to pay, and
      to pay, such portion of the expenses and compensation of such committee,
      depositary or trustee as the Trustees shall deem proper;

           (viii) to compromise, arbitrate or otherwise adjust claims in favor
      of or against the Trust for any matter in controversy, including but not
      limited to claims for taxes;

           (ix) to enter into joint ventures, general or limited partnerships
      and any other combinations or associations;

           (x) to borrow funds;

           (xi) to endorse or guarantee the payment of any notes or other
      obligations of any person; to make contracts of guaranty or suretyship, or
      otherwise assume liability for payment thereof; and to mortgage or pledge
      the Trust property or any part thereof to secure any part of or all such
      obligations;

           (xii) to purchase and pay for entirely out of the Trust property such
      insurance as they may deem necessary or appropriate for the conduct of the
      business of the Trust, including without limitation insurance policies
      insuring the assets of the Trust, or payment of distributions and
      principal on its portfolio investments, and insurance policies insuring
      the Shareholders, Trustees, officers, employees, agents, investment
      advisers, underwriters, or other independent contractors, of the Trust
      individually against all claims and liabilities of every nature arising by
      reason of holding or having held any such office or position, or by reason
      of any action alleged to have been taken or omitted by any such person in
      any such capacity, including any action taken or omitted that may be
      determined to constitute negligence, whether or not the Trust would have
      the power to indemnify any such person against such liability;

           (xiii) to pay pensions for faithful service, as deemed appropriate by
      the Trustees, and to adopt, establish and carry out pension,
      profit-sharing, share bonus, share purchase, savings, thrift and other
      retirement, incentive and benefit plans, trusts and provisions, including

                                     - 8 -
<PAGE>


      the purchasing of life insurance and annuity contracts as a means of
      providing such retirement and other benefits, for any or all of the
      Trustees, officers, employees and agents of the Trust;

           (xiv) to the extent necessary or appropriate to give effect to
      preferences, special or relative rights and privileges of any Class or
      Series of Shares, to allocate assets, liabilities, income and expenses of
      the Shares or to apportion the same among two or more Classes or Series;

           (xv) to enter into, make and perform all such obligations, contracts,
      agreements and undertakings of every kind and description, with any person
      or persons, as the Trustees shall in their discretion deem expedient in
      the conduct of the business of the Trust, for such terms as they shall see
      fit, whether or not extending beyond the term of office of the Trustees,
      or beyond the possible expiration of the Trust; and to amend, extend,
      release or cancel any such obligations, contracts, agreements or
      understandings; and to execute, acknowledge, deliver and record all
      written instruments which they may deem necessary or expedient in the
      exercise of their powers; and

           (xvi) to do all such other acts and things and to conduct, operate,
      carry on and engage in such other lawful businesses or business activities
      as they shall in their sole and absolute discretion consider to be
      incidental to the business of the Trust as an investment company, and to
      exercise all powers which they shall in their discretion consider
      necessary, useful or appropriate to carry on the business of the Trust, to
      promote any of the purposes for which the Trust is formed, whether or not
      such things are specifically mentioned herein, in order to protect or
      promote the interests of the Trust or otherwise to carry out the
      provisions of this Declaration.

      The Trustees shall not in any way be bound or limited by any present or
future law or custom concerning investments by trustees, nor shall the Trustees
be limited to investing in obligations maturing before the possible termination
of the Trust. The Trustees shall not be required to obtain a court order to deal
with any assets of the Trust or take any other actions hereunder.

      Except as otherwise provided herein or from time to time in the By-Laws,
any action to be taken by the Trustees may be taken by a majority of the
Trustees present at a meeting of Trustees (a quorum being present), within or
without Massachusetts, or by written consent of a Majority of the Trustees. Any
meeting of Trustees may be held by means of a telephone conference call or other
communications facility and participation by such means shall (except to the
extent required otherwise by the 1940 Act) constitute presence in person at such
meeting.

      Section 4.3. PAYMENT OF TRUST EXPENSES; COMPENSATION OF TRUSTEES. The
Trustees are authorized to pay or to cause to be paid out of the assets of the
Trust, all expenses, fees, charges, taxes and liabilities incurred or arising in
connection with the Trust, or in connection with the management thereof,
including, but not limited to, the Trustees' compensation and such expenses and
charges for the services of the Trust's officers, employees, investment adviser,
underwriter, auditor, counsel, custodian, sub-custodian, transfer agent,
dividend disbursing agent, shareholder servicing agent, and such other agents or
independent contractors and such other expenses and charges, as the Trustees may
deem necessary or proper to incur. Without limiting the generality of any other

                                     - 9 -
<PAGE>

provision hereof, the Trustees shall be entitled to reasonable compensation from
the Trust for their services as Trustees and may fix the amount of such
compensation.

      Section 4.4. OWNERSHIP OF TRUST ASSETS. Title to all of the assets of the
Trust shall at all times be considered as vested in the Trustees.

      Section 4.5. CERTAIN CONTRACTS. Subject to compliance with the provisions
of the 1940 Act, but notwithstanding any limitations of present and future law
or custom concerning delegation of powers by trustees generally, the Trustees
may, at any time and from time to time and without limiting the generality of
their powers and authority otherwise set forth herein, enter into one or more
contracts with any one or more corporations, trusts, associations, partnerships,
limited partnerships, other type of organizations, or individuals (a
"CONTRACTING PARTY"), to provide for the performance and assumption of some or
all of the following services, duties and responsibilities to, for or on behalf
of the Trust or the Trustees, and to provide for the performance and assumption
of such other services, duties and responsibilities in addition to those set
forth below as the Trustees may deem appropriate:

           (i) subject to the general supervision of the Trustees and in
      conformity with the stated policies of the Trustees with respect to the
      investments of the Trust, to manage such investments, to make investment
      decisions with respect thereto, and to place purchase and sale orders for
      portfolio transactions relating to such investments;

           (ii) subject to the general supervision of the Trustees and in
      conformity with any policies of the Trustees with respect to the
      operations of the Trust, to supervise all or any part of the operations of
      the Trust and to provide all or any part of the administrative and
      clerical personnel, office space, and office equipment and services
      appropriate for the efficient administration and operation of the Trust;

           (iii) to distribute the Shares or other securities issued by the
      Trust, to be principal underwriter of such Shares or securities, or to act
      as agent of the Trust in the sale of such Shares or securities and the
      acceptance or rejection of orders for the purchase thereof;

           (iv) to act as depositary for and to maintain custody of the property
      of the Trust and accounting records in connection therewith;

           (v) to maintain records of ownership of outstanding Shares, the
      issuance and redemption and the transfer thereof, and to disburse any
      dividends declared by the Trustees and in accordance with the policies of
      the Trustees and the instructions of any particular Shareholder to
      reinvest any such dividends; and

           (vi) to handle all or any part of the accounting responsibilities,
      whether with respect to the Trust's properties, Shareholders or otherwise.

      The same person may be a Contracting Party for some or all of the
services, duties and responsibilities to, for and of the Trust or the Trustees,
and the contracts with respect thereto may contain such terms interpretive of or

                                     - 10 -
<PAGE>

in addition to the delineation of the services, duties and responsibilities
provided for, including provisions that are consistent with the 1940 Act
relating to the standard of care and the rights to indemnification of the
Contracting Party and others, as the Trustees may determine. Nothing herein
shall preclude, prevent or limit the Trust or a Contracting Party from entering
into sub-contractual arrangements relative to any of the matters referred to in
this Section 4.5.

      The fact that:

           (1) any of the Shareholders, Trustees or officers of the Trust is a
      shareholder, director, officer, partner, trustee, employee, investment
      adviser, principal underwriter or distributor, or agent of or for any
      Contracting Party or of or for any parent or affiliate of any Contracting
      Party, or that any Contracting Party or any parent or affiliate thereof is
      a Shareholder or has an interest in the Trust; or that

           (2) any Contracting Party may have a contract providing for the
      rendering of any similar services to one or more other corporations,
      trusts, associations, partnerships, limited partnerships or other
      organizations, or have other businesses or interests, shall not affect the
      validity of any such contract or disqualify any Shareholder, Trustee or
      officer of the Trust from voting upon or executing the same or create any
      liability or accountability to the Trust or to the Shareholders.

                                   ARTICLE V

                    SHAREHOLDERS' VOTING POWERS AND MEETINGS

      Section 5.1. VOTING POWERS. Subject to the voting powers of one or more
Classes or Series of Shares as set forth in this Declaration of Trust or in the
By-Laws, Shareholders shall have power to vote only (i) for the election of
Trustees as provided herein, (ii) for the removal of Trustees as provided
herein, (iii) with respect to any matter as to which shareholder action is
required by the 1940 Act, (iv) with respect to any voluntary liquidation,
dissolution, winding up, merger or consolidation or sale of all or substantially
all of the assets of the Trust to the extent and as provided herein, (v) with
respect to any amendment of this Declaration of Trust or the By-Laws to the
extent and as provided herein or therein as the case may be, (vi) to the same
extent as the stockholders of a Massachusetts business corporation as to whether
or not a court action, proceeding or claim should or should not be brought or
maintained derivatively or as a Class action on behalf of the Trust or the
Shareholders, and (vii) with respect to such additional matters as may be
required by the 1940 Act, this Declaration of Trust, the By-Laws, or any
registration with the Securities and Exchange Commission (or any successor
agency) or any state, or as the Trustees may consider necessary or desirable. On
any matter required or permitted to be voted on by the Shareholders, all Shares
then entitled to vote shall be voted in the aggregate as a single Class without
regard to Class or Series, except (i) when required by this Declaration of
Trust, the By-Laws or by the 1940 Act, or when the Trustees shall have
determined that any matter to be submitted to a vote of the Shareholders affects
the rights or interests of the Shareholders of one or more Classes or Series
materially differently, Shares shall be voted by individual Class or Series; and
(ii) when the Trustees shall have determined that the matter affects only the
interests of one or more Classes or Series, then only the Shareholders of such
Class or Classes or Series shall be entitled to vote thereon. Each Share shall

                                     - 11 -
<PAGE>

be entitled to one vote as to any matter on which it is entitled to vote and
each fractional Share shall be entitled to a proportionate fractional vote.
There shall be no cumulative voting in the election of Trustees. Shares may be
voted in person or by proxy. A proxy with respect to Shares held in the name of
two or more persons shall be valid if executed by any one of them unless at or
prior to exercise of the proxy the Trust receives a specific written notice to
the contrary from any one of them. A proxy purporting to be executed by or on
behalf of a Shareholder shall be deemed valid unless challenged at or prior to
its exercise and the burden of proving invalidity shall rest on the challenger.
Until Shares are issued, the Trustees may exercise all rights of Shareholders
and may take any action required by law, this Declaration of Trust or the
By-Laws to be taken by Shareholders.

      Section 5.2. MEETINGS. Meetings of the Shareholders may be called by the
Trustees from time to time for the purpose of taking action upon any matter
requiring the vote or authority of the Shareholders as herein provided, or upon
any other matter deemed by the Trustees to be necessary or desirable. Except as
otherwise provided in the By-Laws, written notice of any meeting of Shareholders
shall be given or caused to be given by the Trustees by mailing such notice at
least seven days before such meeting, postage prepaid, stating the time, place
and purpose of the meeting, to each Shareholder entitled to vote at such meeting
at the Shareholder's address as it appears on the records of the Trust. If the
Trustees shall fail to call or give notice of any meeting of Shareholders for a
period of 30 days after written application by Shareholders holding at least 25%
of the then outstanding Shares entitled to vote at such meeting requesting that
a meeting be called for a purpose requiring action by the Shareholders as
provided herein or in the By-Laws, then Shareholders holding at least 25% of the
then outstanding Shares entitled to vote at such meeting may call and give
notice of such meeting, and thereupon the meeting shall be held in the manner
provided for herein in case of call thereof by the Trustees. Notice of a meeting
need not be given to any Shareholder if a written waiver of notice, executed by
him before or after the meeting, is filed with the records of the meeting, or to
any Shareholder who attends the meeting without protesting prior thereto or at
its commencement the lack of notice to him.

      Section 5.3. RECORD DATES. For the purpose of determining the Shareholders
who are entitled to vote or act at any meeting or any adjournment thereof, or
who are entitled to participate in any dividend or distribution, or for the
purpose of any other action, the Trustees may from time to time close the
transfer books for such period, not exceeding 30 days (except at or in
connection with the termination of the Trust), as the Trustees may determine; or
without closing the transfer books the Trustees may fix a reasonable date and
time prior to the date of any meeting of Shareholders or other action as the
date and time of record for the determination of Shareholders entitled to vote
at such meeting or any adjournment thereof or to be treated as Shareholders of
record for purposes of such other action, and any Shareholder who was a
Shareholder at the date and time so fixed shall be entitled to vote at such
meeting or any adjournment thereof or to be treated as a Shareholder of record
for purposes of such other action, even though he has since that date and time
disposed of his Shares, and no Shareholder becoming such after that date and
time shall be so entitled to vote at such meeting or any adjournment thereof or
to be treated as a Shareholder of record for purposes of such other action.

      Section 5.4. QUORUM AND REQUIRED VOTE. A majority of the Shares entitled
to vote shall be a quorum for the transaction of business at a Shareholders'

                                     - 12 -
<PAGE>

meeting, except that where the By-Laws so require or the Trustees provide that
holders of any Class or Classes or Series shall vote as a Class or Classes or
Series, then a majority of the aggregate number of Shares of that Class or
Classes or Series entitled to vote shall be necessary to constitute a quorum for
the transaction of business by that Class or Series. Any lesser number shall be
sufficient for adjournments. Any adjourned session or sessions may be held
within a reasonable time after the date set for the original meeting without the
necessity of further notice. Except when a different vote is required by any
provision of the By-Laws or this Declaration of Trust or, when such a different
vote is not specifically provided in this Declaration of Trust or the By-Laws,
the Trustees shall in their discretion require a different vote or the vote of a
majority or different percentage of the Shares of one or more particular Classes
or Series, a majority of the Shares voted shall decide any question and a
plurality shall elect a Trustee.

      Section 5.5. ACTION BY WRITTEN CONSENT. Any action taken by Shareholders
may be taken without a meeting if a majority of Shareholders entitled to vote on
the matter (or such different proportion thereof as shall be required by any
express provision of this Declaration of Trust or the By-Laws or as shall be
permitted by the Trustees) consent to the action in writing and such written
consents are filed with the records of the meetings of Shareholders. Such
consent shall be treated for all purposes as a vote taken at a meeting of
Shareholders.

      Section 5.6. INSPECTION OF RECORDS. The records of the Trust shall be open
to inspection by Shareholders to the same extent as is permitted stockholders of
a Massachusetts business corporation under the Massachusetts Business
Corporation Law.

      Section 5.7. ADDITIONAL PROVISIONS. The By-Laws may include further
provisions for Shareholders' votes and meetings and related matters.

                                   ARTICLE VI

                    LIMITATION OF LIABILITY; INDEMNIFICATION

      Section 6.1. TRUSTEES, SHAREHOLDERS, ETC. NOT PERSONALLY LIABLE; NOTICE.
All persons extending credit to, contracting with or having any claim against
the Trust shall look only to the assets of the Trust for payment under such
credit, contract or claim, and neither the Shareholders nor the Trustees, nor
any of the Trust's officers, employees or agents, whether past, present or
future, shall be personally liable therefor. Every note, bond, contract,
instrument, certificate or undertaking and every other act or thing whatsoever
executed or done by or on behalf of the Trust or the Trustees or any of them in
connection with the Trust shall be conclusively deemed to have been executed or
done only in or with respect to their or his capacity as Trustees or Trustee,
and such Trustees or Trustee shall not be personally liable thereon.
Notwithstanding the foregoing, nothing in this Declaration of Trust shall
protect any Trustee against any liability to which such Trustee would otherwise
be subject by reason of willful misfeasance, bad faith, gross negligence or
reckless disregard of the duties involved in the conduct of the office of
Trustee.

      Every note, bond, contract, instrument, certificate or undertaking made or
issued by the Trustees or by any officer or officers shall give notice that this
Declaration of Trust is on file with the Secretary of The Commonwealth of
Massachusetts and shall recite that the same was executed or made by or on
behalf of the Trust or by them as Trustee or Trustees or as officer or officers

                                     - 13 -
<PAGE>

and not individually and that the obligations of such instrument are not binding
upon any of them or the Shareholders individually but are binding only upon the
assets and property of the Trust, and may contain such further recital as he or
they may deem appropriate, but the omission thereof shall not operate to bind
any Trustee or Trustees or officer or officers or Shareholder or Shareholders
individually.

      Section 6.2. TRUSTEES' GOOD FAITH ACTION; EXPERT ADVICE; NO BOND OR
SURETY. The exercise by the Trustees of their powers and discretion hereunder
shall be binding upon everyone interested. A Trustee shall be liable for his own
willful misfeasance, bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of the office of Trustee, and for nothing else,
and shall not be liable for errors of judgment or mistakes of fact or law.
Subject to the foregoing, (i) the Trustees shall not be responsible or liable in
any event for any neglect or wrongdoing of any officer, agent, employee,
consultant or Contracting Party, nor shall any Trustee be responsible for the
act or omission of any other Trustee; (ii) the Trustees may take advice of
counsel or other experts with respect to the meaning and operation of this
Declaration of Trust, and shall be under no liability for any act or omission in
accordance with such advice or for failing to follow such advice; and (iii) in
discharging their duties, the Trustees, when acting in good faith, shall be
entitled to rely upon the books of account of the Trust and upon written reports
made to the Trustees by any officer appointed by them, any independent
accountant, and (with respect to the subject matter of the contract involved)
any officer, partner or responsible employee of a Contracting Party. The
Trustees shall not be required to give any bond as such, nor any surety or any
other security if a bond is required. Section 6.3. APPARENT AUTHORITY OF THE
TRUSTEES. No person dealing with the Trustees shall be bound to make any inquiry
concerning the validity of any transaction made or to be made by the Trustees or
to see to the application of any payments made or property transferred to the
Trust or upon its order.

      Section 6.4. INDEMNIFICATION OF TRUSTEES, OFFICERS, ETC. The Trust shall
indemnify each of its Trustees and officers and any person who serves at the
Trust's request as a director, officer or trustee of another organization in
which the Trust has any interest as a shareholder, creditor or otherwise
(hereinafter referred to, together with such person's heirs, executors,
administrators or other legal representatives, as a "COVERED PERSON") against
all liabilities and expenses, including but not limited to amounts paid in
satisfaction of judgments, in compromise or as fines and penalties, and counsel
fees, reasonably incurred or paid by such Covered Person in connection with any
action, suit or other proceeding, whether civil or criminal, before any court or
administrative or legislative body, in which such Covered Person may be or may
have been involved as a party or otherwise or with which he may be or may have
been threatened, while in office or thereafter, by reason of being or having
been such a Covered Person, except with respect to any matter as to which such
Covered Person shall have been finally adjudicated in any such action, suit or
other proceeding (i) not to have acted in good faith in the reasonable belief
that his action was in the best interests of the Trust, or (ii) to be liable to
the Trust or its Shareholders by reason of willful misfeasance, bad faith, gross
negligence or reckless disregard of the duties involved in the conduct of his
office.

      Section 6.5. INDEMNIFICATION NOT EXCLUSIVE, ETC. The right of
indemnification provided by this Article shall not be exclusive of or affect any
other rights to which any Covered Person may be entitled. Nothing contained in

                                     - 14 -
<PAGE>

this Article shall affect any rights to indemnification to which personnel of
the Trust, other than Trustees or officers, and other persons may be entitled by
contract or otherwise under law, nor the power of the Trust to purchase and
maintain liability insurance on behalf of any such person.

      Section 6.6. INDEMNIFICATION OF SHAREHOLDERS. If any Shareholder or former
Shareholder shall be held to be personally liable solely by reason of being or
having been a Shareholder and not because of such Shareholder's acts or
omissions or for some other reason, the Shareholder or former Shareholder (or
his/her heirs, executors, administrators or other legal representatives, or in
the case of a corporation or other entity, its corporate or other general
successor) shall be entitled to be held harmless from and indemnified against
all loss and expense arising from such liability.

                                  ARTICLE VII

                                  MISCELLANEOUS

      Section 7.1. DURATION AND TERMINATION. Unless terminated as herein
provided, the Trust shall continue without limitation of time. The Trust may not
be terminated unless authorized at a meeting of Shareholders called for the
purpose, by the vote of (x) the holders of at least 67% of the Shares of the
DARTS then outstanding and (y) the holders of at least 67% of the Common Shares
then outstanding, each voting as a separate Class provided, however, if such
termination is recommended by two-thirds of the total number of Trustees then in
office, the vote of (x) the holders of at least a majority of the Shares of the
DARTS then outstanding and (y) the holders of at least a majority of the Common
Shares then outstanding, each voting as a separate Class, shall be sufficient
authorization. Subject to the provisions of the Declaration of Trust and By-Laws
regarding the powers, preferences or special or relative rights or privileges of
any Class or Series of Shares, the Trust may also be terminated by the Trustees
by written notice to the Shareholders. Upon termination of the Trust, after
paying or otherwise providing for all charges, taxes, expenses and liabilities,
whether due or accrued or anticipated, the Trust shall in accordance with such
procedures as the Trustees consider appropriate reduce the remaining assets to
distributable form in cash, securities or other property, or any combination
thereof, and distribute the proceeds to the Shareholders, ratably according to
the number of Shares held by the several Shareholders on the date of
termination, except to the extent otherwise required or permitted by the
relative preferences, rights and privileges of any Classes or Series of Shares,
PROVIDED that any distribution to the Shareholders of a particular Class or
Series of Shares shall be made to such Shareholders pro rata in proportion to
the number of Shares of such Class or Series held by each of them.

      Section 7.2. REORGANIZATION. The Trust may not merge or consolidate with
any other corporation, association, trust or other organization, or sell, lease
or exchange all or substantially all of its assets, including its good will, and
thereafter be terminated, unless authorized at a meeting of Shareholders called
for the purpose, by the vote of (x) the holders of at least 67% of the Shares of
the DARTS then outstanding and (y) the holders of at least 67% of the Common
Shares then outstanding, each voting as a separate Class provided, however, if
such termination is recommended by two-thirds of the total number of Trustees
then in office, the vote of (x) the holders of at least a majority of the Shares
of the DARTS then outstanding and (y) the holders of at least a majority of the

                                     - 15 -
<PAGE>

Common Shares then outstanding, each voting as a separate Class, shall be
sufficient authorization. Nothing contained herein shall be construed as
requiring approval of Shareholders for any sale of assets in the ordinary course
of business of the Trust.

      Section 7.3. CONVERSION. The Trust may not be converted from a "closed-end
company" to an "open-end company" as those terms are defined in the 1940 Act
unless authorized at a meeting of Shareholders called for the purpose, by the
vote of (x) the holders of at least 75% of the number of the DARTS then
outstanding and (y) the holders of at least 75% of the Common Shares then
outstanding, each voting as a separate Class provided, however, if such
conversion is recommended by two-thirds of the total number of Trustees then in
office, the vote of (x) the holders of at least a majority of the number of the
DARTS then outstanding and (y) the holders of at least a majority of the Common
Shares then outstanding, each voting as a separate Class, shall be sufficient
authorization. Upon the adoption of such proposal and related amendments by the
Trust's Shareholders as provided above, the Trust shall, upon complying with any
requirements of the 1940 Act and state law, become an "open-end" investment
company. Such affirmative vote or consent shall be in addition to the vote or
consent of the holders of the Shares otherwise required by law, the By-Laws or
any agreement between the Trust and any national securities exchange.

      Section 7.4. AMENDMENTS, ETC. All rights granted to the Shareholders under
this Declaration of Trust are granted subject to the reservation of the right to
amend this Declaration of Trust as herein provided, except that no amendment
shall repeal or adversely affect the limitation on personal liability of any
Shareholder or Trustee, or the prohibition of assessment upon the Shareholders
except as herein provided, without the express consent of each Shareholder or
Trustee involved. Subject to the foregoing, this Declaration of Trust may be
amended at any time by the Trustees, except that the Trustees may not amend this
Declaration of Trust to eliminate the rights of Shareholders of any Class or
Series to vote on any amendment of this Declaration of Trust or the By-Laws or
alter or amend the percentage of voting shares required to approve any amendment
or action which requires a Shareholder vote under this Declaration of Trust or
the By-Laws unless an equivalent vote has authorized such an amendment of the
Declaration of Trust or By-Laws. Any amendment which adversely affects the
holders of one or more Classes or Series of Shares shall require a vote of the
Shareholders holding a majority of the Shares of each Class or Series so
adversely affected and entitled to vote thereon and no vote of Shareholders of
any Class or Series not so adversely affected shall be required, except that any
amendment of any provision of

           (i)    Section 7.1, 7.2 or this subclause (i) of Section 7.4 of
      Article VII shall require a vote of the Shareholders holding 67%,
      regardless of the percentage of Trustees recommending such amendment, or

           (ii)   Section 4.1(c) or Section 4.1(d) (ii) of Article IV, Section
      5.4 of Article V, Section 7.3 of Article VII; or this subclause (ii) of
      Section 7.4 of Article VII shall require the vote of the Shareholders
      holding 75%, regardless of the percentage of Trustees recommending such
      amendment,

of the Shares of each Class or Series entitled to vote thereon. Amendments
having the purpose of changing the name of the Trust or of supplying any
omission, curing any ambiguity or curing, correcting or supplementing any

                                     - 16 -
<PAGE>

defective or inconsistent provision contained herein shall not require
authorization by Shareholder vote.

      Section 7.5. FILING OF COPIES. The original or a copy of this instrument
and of each amendment hereto shall be kept at the principal office of the Trust
where it may be inspected by any Shareholder. A copy of this instrument and of
each amendment hereto shall be filed by the Trust with the Secretary of State of
The Commonwealth of Massachusetts and with the City Clerk of the City of Boston,
as well as with any other governmental office where such filings may from time
to time be required, but the failure to make any such filing shall not impair
the effectiveness of this instrument or any such amendment. Anyone dealing with
the Trust may rely on a certificate by an officer of the Trust as to whether or
not any such amendments have been made, as to the identities of the Trustees and
officers, and as to matters in connection with the Trust hereunder, and, with
the same effect as if it were the original, may rely on a copy certified by an
officer of the Trust to be a copy of this instrument or of any such amendments.

      Section 7.6. APPLICABLE LAW. This Declaration of Trust is made in The
Commonwealth of Massachusetts, and it is created under and is to be governed by
and construed and administered according to the laws of said Commonwealth.

      Section 7.7. REFERENCES; GENDER; HEADINGS; COUNTERPARTS. In this
instrument and in any amendment, references to this instrument, and all
expressions like "herein", "hereof", and "hereunder" shall be deemed to refer to
this instrument as a whole as the same may be amended or affected by any such
amendments. The masculine gender shall include the feminine and neuter genders.
Headings are placed herein for convenience of reference only and shall not be
taken as a part hereof or control or affect the meaning, construction or effect
of this instrument. This instrument may be executed in any number of
counterparts each of which shall be deemed an original.

                                     - 17 -
<PAGE>

      IN WITNESS WHEREOF, the undersigned have hereunto set their hands and all
as of the day and year first above written.

                                        /s/ Walter M. Cabot, Jr.
                                        ----------------------------------------
                                        Walter M. Cabot, Jr., Trustee



                                        /s/ James J. Puzinas
                                        ----------------------------------------
                                        James J. Puzinas, Trustee



                                        /s/ Lawrence A. Bianchi
                                        ----------------------------------------
                                        Lawrence A. Bianchi, Trustee



                                        ----------------------------------------
                                        James F. Carlin, Trustee



                                        ----------------------------------------
                                        Harold R. Hiser, Jr., Trustee



                                        ----------------------------------------
                                        Peter W. Walcott, Trustee

                                     - 18 -
<PAGE>


      IN WITNESS WHEREOF, the undersigned have hereunto set their hands and all
as of the day and year first above written.


                                        ----------------------------------------
                                        Walter M. Cabot, Jr., Trustee




                                        ----------------------------------------
                                        James J. Puzinas, Trustee




                                        ----------------------------------------
                                        Lawrence A. Bianchi, Trustee




                                        /s/ James F. Carlin
                                        ----------------------------------------
                                        James F. Carlin, Trustee




                                        ----------------------------------------
                                        Harold R. Hiser, Jr., Trustee




                                        ----------------------------------------
                                        Peter W. Walcott, Trustee

                                     - 19 -
<PAGE>

      IN WITNESS WHEREOF, the undersigned have hereunto set their hands and all
as of the day and year first above written.


                                        ----------------------------------------
                                        Walter M. Cabot, Jr., Trustee




                                        ----------------------------------------
                                        James J. Puzinas, Trustee




                                        ----------------------------------------
                                        Lawrence A. Bianchi, Trustee




                                        ----------------------------------------
                                        James F. Carlin, Trustee




                                        /s/ Harold R. Hiser, Jr.
                                        ----------------------------------------
                                        Harold R. Hiser, Jr., Trustee




                                        ----------------------------------------
                                        Peter W. Walcott, Trustee

                                     - 20 -
<PAGE>

      IN WITNESS WHEREOF, the undersigned have hereunto set their hands and all
as of the day and year first above written.


                                        ----------------------------------------
                                        Walter M. Cabot, Jr., Trustee




                                        ----------------------------------------
                                        James J. Puzinas, Trustee




                                        ----------------------------------------
                                        Lawrence A. Bianchi, Trustee




                                        ----------------------------------------
                                        James F. Carlin, Trustee




                                        ----------------------------------------
                                        Harold R. Hiser, Jr., Trustee




                                        /s/ Peter W. Walcott
                                        ----------------------------------------
                                        Peter W. Walcott, Trustee

                                     - 21 -
<PAGE>

                              SHAREHOLDER'S CONSENT
                              ---------------------


      The undersigned, Patriot Advisers, Inc., a Massachusetts corporation,
being the holder of all of the issued and outstanding shares of beneficial
interest of the Trust established by the foregoing instrument, does hereby
consent to and approve the foregoing amendment and restatement of the Agreement
and Declaration of Trust of such Trust.

      IN WITNESS WHEREOF, Patriot Advisers, Inc. has caused these presents to be
signed in its corporate name by its officer thereunto duly authorized.


                                        PATRIOT ADVISERS, INC.



December 11, 1989                       By: /s/ Walter M. Cabot, Jr.
                                            ------------------------------------
                                                Walter M. Cabot, Jr.
                                                President

                                     - 22 -
<PAGE>

                                 ACKNOWLEDGMENTS
                                 ---------------



COMMONWEALTH OF MASSACHUSETTS   )
COUNTY OF SUFFOLK               )     , ss.

      On this 12th day of December, 1989, before me personally came Walter M.
Cabot, Jr., to me known, and known to me to be the person described in and who
executed the foregoing Consent as Trustee, as stated therein, and he
acknowledged that he executed the same as his free act and deed, and that he is
a Trustee now in office of the Trust established by the foregoing instrument.

                                        /s/ Mary V. Lomasney
                                        ----------------------------------------
                                        Notary Public
                                        My commission expires:  8/22/91

<PAGE>

COMMONWEALTH OF MASSACHUSETTS   )
COUNTY OF SUFFOLK               )     , ss.

      On this 11th day of December, 1989, before me personally came James J.
Puzinas, to me known, and known to me to be the person described in and who
executed the foregoing Consent as Trustee, as stated therein, and he
acknowledged that he executed the same as his free act and deed, and that he is
a Trustee now in office of the Trust established by the foregoing instrument.

                                        /s/ Mary V. Lomasney
                                        ----------------------------------------
                                        Notary Public
                                        My commission expires:  8/22/91

<PAGE>

                                 ACKNOWLEDGMENTS
                                 ---------------



COMMONWEALTH OF MASSACHUSETTS   )
COUNTY OF SUFFOLK               )     , ss.

      On this 11th day of December, 1989, before me personally came Lawrence A.
Bianchi, to me known, and known to me to be the person described in and who
executed the foregoing Consent as Trustee, as stated therein, and he
acknowledged that he executed the same as his free act and deed, and that he is
a Trustee now in office of the Trust established by the foregoing instrument.

                                        /s/ Mary V. Lomasney
                                        ----------------------------------------
                                        Notary Public
                                        My commission expires: 8/22/91

<PAGE>

COMMONWEALTH OF MASSACHUSETTS   )
COUNTY OF SUFFOLK               )     , ss.

      On this 11th day of December, 1989, before me personally came James F.
Carlin, to me known, and known to me to be the person described in and who
executed the foregoing Consent as Trustee, as stated therein, and he
acknowledged that he executed the same as his free act and deed, and that he is
a Trustee now in office of the Trust established by the foregoing instrument.

                                        /s/ EDWARD C. PERVAN
                                        ----------------------------------------
                                        Notary Public
                                        My commission expires:  January 19, 1990

<PAGE>

                                 ACKNOWLEDGMENTS
                                 ---------------



COMMONWEALTH OF MASSACHUSETTS   )
COUNTY OF SUFFOLK               )     , ss.

      On this 11th day of December, 1989, before me personally came Harold R.
Hiser, Jr., to me known, and known to me to be the person described in and who
executed the foregoing Consent as Trustee, as stated therein, and he
acknowledged that he executed the same as his free act and deed, and that he is
a Trustee now in office of the Trust established by the foregoing instrument.

                                        /s/ Carole A. Bauer
                                        ----------------------------------------
                                        Notary Public
                                        My commission expires:
                                            CAROLE A. BAUER
                                            NOTARY PUBLIC OF NEW JERSEY
                                            My Commission Expires Sept. 11, 1992

<PAGE>

COMMONWEALTH OF MASSACHUSETTS   )
COUNTY OF MIDDLESEX             )     ,  ss.

      On this 13 day of December, 1989, before me personally came Peter W.
Walcott, to me known, and known to me to be the person described in and who
executed the foregoing Consent as Trustee, as stated therein, and he
acknowledged that he executed the same as his free act and deed, and that he is
a Trustee now in office of the Trust established by the foregoing instrument.

                                        /s/ PATRICIA ANN POWERS
                                        ----------------------------------------
                                        Notary Public
                                        My commission expires:   9/24/93



                           The address of the trust is
                               211 Congress Street
                                Boston, MA 02110

                         The address of the trustees is
                               211 Congress Street
                                Boston, MA 02110

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>4
<FILENAME>instchangingname.txt
<DESCRIPTION>EXHIBIT 99.1(C)
<TEXT>
                        PATRIOT PREMIUM DIVIDEND FUND II


                      INSTRUMENT CHANGING NAME OF THE TRUST
                      -------------------------------------

The Trustees of Patriot Premium Dividend Fund II (the "Trust"), hereby amend the
Trust's Declaration of Trust, dated 09/26/89 as amended and restated 12/12/89 ,
to the extent necessary to reflect the change of the name of Patriot Premium
Dividend Fund II to John Hancock Patriot Premium Dividend Fund II, effective
January 2, 1995.


IN WITNESS WHEREOF, the Trustees of the Trust have executed this Instrument on
the 13th day of September 1994.



/s/ Edward J. Boudreau, Jr.                          /s/ Charles L. Ladner
- ---------------------------                          --------------------------
Edward J. Boudreau, Jr.                              Charles L. Ladner

/s/ Thomas W.L. Cameron                              /s/ Patricia P. McCarter
- ---------------------------                          --------------------------
Thomas W.L. Cameron                                  Patricia P. McCarter

/s/ James F. Carlin                                  /s/ Steven R. Pruchansky
- ---------------------------                          --------------------------
James F. Carlin                                      Steven R. Pruchansky

                                                     /s/ Richard S. Scipione
- ---------------------------                          --------------------------
Charles F. Fretz                                     Richard S. Scipione

/s/ Harold R. Hiser, Jr.                             /s/ Norman H. Smith
- ---------------------------                          --------------------------
Harold R. Hiser, Jr.                                 Norman H. Smith

                                                     /s/ John P. Toolan
- ---------------------------                          --------------------------
Alonzo R. Horsey                                     John P. Toolan



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>5
<FILENAME>instfixingapptingfillvacancy.txt
<DESCRIPTION>EXHIBIT 99.1(D)
<TEXT>
                  JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II

                  INSTRUMENT FIXING THE NUMBER OF TRUSTEES AND
                  --------------------------------------------
                      APPOINTING INDIVIDUAL TO FILL VACANCY
                      -------------------------------------

     The  undersigned,  constituting  a majority of the Trustees of John Hancock
     Patriot  Premium  Dividend  Fund II, a  Massachusetts  business  trust (the
     '"Trust"),  acting  pursuant to Section  2.12 of the  Amended and  Restated
     Declaration  of Trust dated December 12, 1989, as amended from time to time
     (the "Declaration of Trust"), do hereby:

     (a)  fix the number of Trustees at fourteen (14);

     (b)  appoint  Maureen R. Ford to fill the  vacancy  thereby  created,  such
          appointment  to become  effective  upon Ms. Ford  accepting in writing
          such  appointment  and  agreeing  to be  bound  by  the  terms  of the
          Declaration of Trust.

     IN WITNESS WHEREOF,  the undersigned have executed this instrument this 7th
     day of December, 1999.

________________________                             /s/ Charles L. Ladner
Edward J. Boudreau, Jr.                              --------------------------
                                                     Charles L. Ladner

________________________                             /s/ Leo E. Linbeck, Jr.
Stephen L. Brown                                     --------------------------
                                                     Leo E. Linbeck, Jr.

/s/ James F. Carlin                                  /s/ Steven R. Pruchansky
- ------------------------                             ------------------------
James F. Carlin                                      Steven R. Pruchansky


/s/ William H. Cunningham                            /s/ Richard S. Scipione
- ------------------------                             ------------------------
William H. Cunningham                                Richard S. Scipione


/s/ Ronald R. Dion                                   /s/ Norman H. Smith
- ------------------------                             ------------------------
Ronald R. Dion                                       Norman H. Smith

/s/ Harold R. Hiser, Jr.                             /s/ John P. Toolan
- ------------------------                             ------------------------
Harold R. Hiser, Jr.                                 John P. Toolan

/s/ Anne C. Hodsdon
- -------------------
Anne C. Hodsdon

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>6
<FILENAME>amended-bylaws.txt
<DESCRIPTION>EXHIBIT 99.2
<TEXT>










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

                              AMENDED AND RESTATED

                                   BY-LAWS OF

                        PATRIOT PREMIUM DIVIDEND FUND II

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



                            Dated: September 6, 1990

          As Amended: December 19,     1994 (Section 4.6.; Section 4.6A.)

          As Amended: November 19,     1996 (Section 2.5.)

          As Amended: March 8, 2005 (Article IV, Sections 6.2, 6.3 and 6.9)



<PAGE>


                                TABLE OF CONTENTS
                                                                           Page

ARTICLE I    Meetings of Shareholders.........................................1

   Section 1.1. Meetings......................................................1
   Section 1.2. Annual Meetings...............................................1
   Section 1.3. Special Meetings..............................................1
   Section 1.4. Notice of Meetings............................................3
   Section 1.5. Presiding Officer; Secretary..................................4
   Section 1.6. Voting........................................................4
   Section 1.7. Proxies.......................................................4
   Section 1.8. Nominations and Proposals by Shareholders.....................5
   Section 1.9. Abstentions and Broker Non-Votes..............................7
   Section 1.10. Inspectors...................................................7
   Section 1.11. Inspection of Records........................................7
   Section 1.12. Quorum.......................................................8
   Section 1.13. Action at Meeting............................................8
   Section 1.14. Action without Meeting.......................................8

ARTICLE II   Trustees and Trustees' Meetings..................................8

   Section 2.1. Number of Trustees............................................8
   Section 2.2. Meetings......................................................8
   Section 2.3. Quorum; Voting................................................9
   Section 2.4. Organization..................................................9
   Section 2.5. Consent of Trustees in Lieu of a Meeting......................9

ARTICLE III  Committees.......................................................9

   Section 3.1. Executive Committee...........................................9
   Section 3.2. Other Committees.............................................10
   Section 3.3. General......................................................10

ARTICLE IV   Officers, Agents and Employees..................................10

   Section 4.1. General Provisions...........................................11
   Section 4.2. Election, Term of Office and Qualifications..................11
   Section 4.3. Removal......................................................11
   Section 4.4. Powers and Duties of the Chairman............................11
   Section 4.5. Powers and Duties of the Vice Chairman.......................11
   Section 4.6. Powers and Duties of the President...........................11
   Section 4.7. Powers and Duties of Vice Presidents.........................11
   Section 4.8. Powers and Duties of the Treasurer...........................12
   Section 4.9. Powers and Duties of the Secretary...........................12
   Section 4.10. Powers and Duties of Assistant Treasurers...................12
   Section 4.11. Powers and Duties of Assistant Secretaries..................12

                                       i

<PAGE>


   Section 4.12. Compensation of Officers and Trustees and
                  Members of the Advisory Board..............................12

ARTICLE V     Shares of Beneficial Interest..................................12

   Section 5.1. Share Certificates...........................................12
   Section 5.2. Transfers of Pledged Shares..................................13
   Section 5.3. Regulations..................................................13
   Section 5.4. Lost, Destroyed or Mutilated Certificates....................13

ARTICLE VI    Terms of Preferred Stock.......................................14

   Section 6.1. Designation..................................................14
   Section 6.2. Definitions..................................................14
   Section 6.3. Eligible Asset Coverage and Dividend Coverage................28
   Section 6.4. Dividends....................................................38
   Section 6.5. Liquidation Rights...........................................45
   Section 6.6. Redemption...................................................46
   Section 6.7. Voting Rights................................................51
   Section 6.8. Other Restrictions...........................................54
   Section 6.9. Auction Procedures...........................................54

ARTICLE VII   Terms of Common Shares.........................................67

   Section 7.1. Designation..................................................67
   Section 7.2. Common Shares................................................67

ARTICLE VIII  Net Asset Value................................................69

ARTICLE IX    Limitation of Liability; Indemnification.......................69

   Section 9.1. Liability; Notice............................................69
   Section 9.2. Trustees' Good Faith Action; Expert Advice;
                 No Bond or Surety...........................................70
   Section 9.3. Apparent Authority of the Trustees...........................70
   Section 9.4. Indemnification of Trustees, Officers, Etc...................70
   Section 9.5. Compromise Payment...........................................71
   Section 9.6. Indemnification Not Exclusive, Etc...........................72
   Section 9.7. Indemnification of Shareholders..............................72

ARTICLE X     Seal...........................................................72

ARTICLE XI    Fiscal Year....................................................72

ARTICLE XII   Custodian......................................................72

ARTICLE XIII  Execution of Instruments.......................................73

ARTICLE XIV   Independent Public Accountants.................................73

ARTICLE XV    Amendments.....................................................73

                                       ii

<PAGE>


                              AMENDED AND RESTATED

                                   BY-LAWS OF

                        PATRIOT PREMIUM DIVIDEND FUND II

         The undersigned for the purpose of amending the BY-LAWS of Patriot
Premium Dividend Fund II (the "By-Laws"), a trust with transferable shares
established under the laws of The Commonwealth of Massachusetts (the "Trust")
pursuant to an Agreement and Declaration of Trust (the "Declaration") made the
26th day of September, 1989, as amended, and filed in the office of the
Secretary of the Commonwealth of Massachusetts. Capitalized terms used but not
defined in these By-Laws have the meanings ascribed to them in the Declaration.

                                   ARTICLE I

                            MEETINGS OF SHAREHOLDERS
                            ------------------------

         SECTION 1.1. MEETINGS. Meetings of the shareholders of the Trust shall
be held whenever called by the Trustees, provided for by the Declaration,
required by the 1940 Act or as otherwise provided pursuant to Section 6.7(d)
below. Notice of shareholders' meetings shall be given as provided in the
Declaration or as provided in Section 6.7(d) below.

         SECTION 1.2. ANNUAL MEETINGS. Annual meetings of the Shareholders of
the Trust or a Series or Class thereof shall be held on such date and at such
place within or without the Commonwealth of Massachusetts as the Trustees shall
designate.

         SECTION 1.3. SPECIAL MEETINGS.

               (a) Special meetings of the Shareholders may be called at any
         time by the Chairman, the President or the Trustees. Subject to
         subsection (c) of this Section 1.3, a special meeting of Shareholders
         shall also be called by the Secretary of the Trust upon the written
         request of the Shareholders entitled to cast not less than a majority
         of all the votes entitled to be cast at such meeting.

               (b) Any Shareholder of record seeking to have Shareholders
         request a special meeting shall, by sending written notice to the
         Secretary (the "Record Date Request Notice") by registered mail, return
         receipt requested, request the Trustees to fix a record date to
         determine the Shareholders entitled to request a special meeting (the
         "Requested Record Date"). The Record Date Request Notice shall set
         forth the purpose of the meeting and the matters proposed to be acted
         on at it, shall be signed by one or more Shareholders of record as of
         the date of signature (or their duly authorized agents), shall bear the
         date of signature of each such Shareholder (or other agent) and shall
         set forth all information relating to each such Shareholder that must
         be disclosed in solicitations of proxies for election of trustees in an
         election contest (even if an election contest is not involved), or is
         otherwise required, in each case pursuant to Regulation 14A under the
         Securities Exchange Act of 1934, as amended (the "Exchange Act"), and
         Rule 14a-11 thereunder. Upon receiving the Record Date Request Notice,
         the Trustees may fix a Requested Record Date. The Requested Record Date
         shall not precede and shall not be more than ten (10) days after the

<PAGE>

         close of business on the date on which the resolution fixing the
         Requested Record Date is adopted by the Trustees. If the Trustees,
         within thirty (30) days after the date on which a valid Record Date
         Request Notice is received, fails to adopt a resolution fixing the
         Requested Record Date and make a public announcement of such Requested
         Record Date, the Requested Record Date shall be the close of business
         on the 30th day after the date on which the Record Date Request Notice
         is received by the Secretary.

               (c) In order for any Shareholder to request a special meeting,
         one or more written requests for a special meeting signed by
         Shareholders of record (or their duly authorized agents) as of the
         Requested Record Date entitled to cast not less than the percentage of
         outstanding shares specified in the Declaration (the "Special Meeting
         Percentage") of all of the votes entitled to be cast at such meeting
         (the "Special Meeting Request") shall be delivered to the Secretary. In
         addition, the Special Meeting Request shall set forth the purpose of
         the meeting and the matters proposed to be acted on at it (which shall
         be limited to the matters set forth in the Record Date Request Notice
         received by the Secretary), shall bear the date of signature of each
         such Shareholder (or other agent) signing the Special Meeting Request,
         shall set forth the name and address, as they appear in the Trust's
         books, of each Shareholder signing such request (or on whose behalf the
         Special Meeting Request is signed) and the class and number of shares
         of the Trust which are owned of record and beneficially by each such
         Shareholder, shall be sent to the Secretary by registered mail, return
         receipt requested, and shall be received by the Secretary within sixty
         (60) days after the Request Record Date. Any requesting Shareholder may
         revoke his, her or its request for a special meeting at any time by
         written revocation delivered to the Secretary.

               (d) The Secretary shall inform the requesting Shareholders of the
         reasonably estimated cost of preparing and mailing the notice of
         meeting (including the Trust's proxy materials). The Secretary shall
         not be required to call a special meeting upon Shareholder request and
         such meeting shall not be held unless, in addition to the documents
         required by paragraphs (b) and (c) of this Section 1.3, the Secretary
         receives payment of such reasonably estimated cost prior to the mailing
         of any notice of the meeting.

               (e) Except as provided in the next sentence, any special meeting
         shall be held at such place, date and time as may be designated by the
         President, Chairman or Trustees, whoever has called the meeting. In the
         case of any special meeting called by the Secretary upon the request of
         Shareholders (a "Shareholder Requested Meeting"), such meeting shall be
         held at such place, date and time as may be designated by the Trustees;
         PROVIDED, however, that the date of any Shareholder Requested Meeting
         shall be not more than ninety (90) days after the record date for such
         meeting (the "Meeting Record Date"); and PROVIDED FURTHER that if the
         Trustees fail to designate, within thirty (30) days after the date that
         a valid Special Meeting Request is actually received by the Secretary
         (the "Delivery Date"), a date and time for a Shareholder Requested
         Meeting, then such meeting shall be held at 2:00 p.m. Eastern Time on
         the 90th day after the date the request for such meeting is actually
         received by the Trust or, if such 90th day is not a Business Day (as
         defined below), on the first preceding Business Day; and PROVIDED
         FURTHER that in the event that the Trustees fail to designate a place


                                       2
<PAGE>


         for a Shareholder Requested Meeting within thirty (30) days after the
         Delivery Date, then such meeting shall be held at the principal
         executive offices of the Trust. In fixing a date for any special
         meeting, the President, Chairman or Trustees may consider such factors
         as he, she, or they deem(s) relevant within the good faith exercise of
         business judgment, including, without limitation, the nature of the
         matters to be considered, the facts and circumstances surrounding any
         request for a meeting and any plan of the Trustees to call an annual
         meeting or a special meeting. In the case of any Shareholder Requested
         Meeting, if the Trustees fail to fix a Meeting Record Date that is a
         date within thirty (30) days after the Delivery Date, then the close of
         business on the 30th day after the Delivery Date shall be the Meeting
         Record Date.

               (f) If at any time as a result of written revocations of requests
         for the special meeting, Shareholders of record (or their duly
         authorized agents) as of the Request Record Date entitled to cast less
         than the Special Meeting Percentage shall have delivered and not
         revoked requests for a special meeting, the Secretary may refrain from
         mailing the notice of the meeting or, if the notice of the meeting has
         been mailed, the Secretary may revoke the notice of the meeting at any
         time before ten (10) days prior to the meeting if the Secretary has
         first sent to all other requesting Shareholders written notice of such
         revocation and of intention to revoke the notice of the meeting. Any
         request for a special meeting received after a revocation by the
         Secretary of a notice of a meeting shall be considered a request for a
         new special meeting.

               (g) The Chairman, the President or the Trustees may appoint
         regionally or nationally recognized independent inspectors of elections
         to act as the agent of the Trust for the purpose of promptly performing
         a ministerial review of the validity of any purported Special Meeting
         Request received by the Secretary. For the purpose of permitting the
         inspectors to perform such review, no such request shall be deemed to
         have been delivered to the Secretary until the earlier of (i) five (5)
         Business Days after receipt by the Secretary of such request and (ii)
         such date as the independent inspectors certify to the Trust that the
         valid requests received by the Secretary represent at least the Special
         Meeting Percentage of the issued and outstanding shares of stock that
         would be entitled to vote at such meeting. Nothing contained in this
         paragraph (g) shall in any way be construed to suggest or imply that
         the Trust or any Shareholder shall not be entitled to contest the
         validity of any request, whether during or after such five (5) Business
         Day period, or to take any other action (including, without limitation,
         the commencement, prosecution or defense of any litigation with respect
         thereto, and the seeking of injunctive relief in such litigation).

         SECTION 1.4. NOTICE OF MEETINGS. Notice of all meetings of the
Shareholders, stating the time, place and purposes of the meeting, shall be
given by the Trustees by mail or telegraphic means to each Shareholder at his
address as recorded on the register of the Trust mailed at least seven (7) days
before the meeting, PROVIDED, HOWEVER, that notice of a meeting need not be
given to a Shareholder to whom such notice need not be given under the proxy
rules of the Commission under the 1940 Act and the Securities Exchange Act of
1934, as amended. Any adjourned meeting may be held as adjourned without further
notice. No notice need be given to any Shareholder who shall have failed to
inform the Trust of his current address or if a written waiver of notice,


                                       3
<PAGE>

executed before or after the meeting by the Shareholder or his attorney
thereunto authorized, is filed with the records of the meeting.

         SECTION 1.5. PRESIDING OFFICER; SECRETARY. The Chairman of the Board of
Trustees of the Fund shall preside at each Shareholders' meeting as chairman of
the meeting, or in the absence of the Chairman, the Trustees present at the
meeting shall elect one of their number as chairman of the meeting. Unless
otherwise provided by the Trustees, the Secretary of the Fund shall be the
secretary of all meetings of Shareholders and shall record the minutes thereof.

         SECTION 1.6. VOTING. At each meeting of shareholders, except as
otherwise provided by the Declaration, every holder of record of shares entitled
to vote shall be entitled to a number of votes equal to the number of shares
registered in his name on the share register of the Trust on the record date of
the meeting and which are outstanding at the time such vote is taken.
Shareholders may vote by proxy and the form of any such proxy may be prescribed
from time to time by the Trustees. At all meetings of the shareholders, votes
shall be taken by ballot for all matters which are binding upon the Trustees. On
other matters, votes of shareholders need not be taken by ballot unless
otherwise provided in the Declaration or by vote of the Trustees, or as required
by the 1940 Act, but the chairman of the meeting may in his discretion authorize
any matter to be voted upon by ballot.

         SECTION 1.7. PROXIES. At any meeting of Shareholders, any holder of
Shares entitled to vote thereat may vote by proxy, provided that no proxy shall
be voted at any meeting unless it shall have been placed on file with the
Secretary, or with such other officer or agent of the Trust as the Secretary may
direct, for verification prior to the time at which such vote shall be taken. A
proxy shall be deemed signed if the shareholder's name is placed on the proxy
(whether by manual signature, typewriting or telegraphic transmission) by the
Shareholder or the Shareholder's attorney-in-fact. Proxies may be solicited in
the name of one or more Trustees or one or more of the officers of the Trust.
Only Shareholders of record shall be entitled to vote. Each whole share shall be
entitled to one vote as to any matter on which it is entitled by the Declaration
of Trust to vote and fractional shares shall be entitled to a proportionate
fractional vote. When any Share is held jointly by several persons, any one of
them may vote at any meeting in person or by proxy in respect of such Share, but
if more than one of them shall be present at such meeting in person or by proxy,
and such joint owners or their proxies so present disagree as to any vote to be
cast, such vote shall not be received in respect of such Share. A proxy,
including a photographic or similar reproduction thereof and a telegram,
cablegram, wireless or similar transmission thereof, purporting to be executed
by or on behalf of a Shareholder shall be deemed valid unless challenged at or
prior to its exercise, and the burden of proving invalidity shall rest on the
challenger. If the holder of any such Share is a minor or a person of unsound
mind, and subject to guardianship or the legal control of any other person as
regards the charge or management of such Share, he may vote by his guardian or
such other person appointed or having such control, and such vote may be given
in person or by proxy. The placing of a Shareholder's name on a proxy pursuant
to telephonic or electronically transmitted instructions obtained pursuant to
procedures reasonably designed to verify that such instructions have been
authorized by such Shareholder shall constitute execution of such proxy by or on
behalf of such shareholder.


                                       4
<PAGE>


         SECTION 1.8.  NOMINATIONS AND PROPOSALS BY SHAREHOLDERS.

               (a) ANNUAL MEETINGS OF SHAREHOLDERS. Nominations of persons for
         election as a Trustee and the proposal of business to be considered by
         the Shareholders may be made at an annual meeting of Shareholders (i)
         pursuant to the Trust's notice of meeting, (ii) by or at the direction
         of the Trustees or (iii) by any Shareholder of the Trust who was a
         Shareholder of record both at the time of giving of notice provided for
         in this Section 1.8(a) and at the time of the annual meeting, who is
         entitled to vote at the meeting and who complied with the notice
         procedures set forth in this Section 1.8(a). For nominations for
         election to the Trustees or other business to be properly brought
         before an annual meeting by a Shareholder pursuant to this Section
         1.8(a), the Shareholder must have given timely notice thereof in
         writing to the Secretary of the Trust and such other business must
         otherwise be a proper matter for action by Shareholders. To be timely,
         a Shareholder's notice must be delivered to the Secretary at the
         principal executive office of the Trust by not later than the close of
         business on the 90th day prior to the first anniversary of the date of
         mailing of the notice for the preceding year's annual meeting nor
         earlier than the close of business on the 120th day prior to the first
         anniversary of the date of mailing of the notice for the preceding
         year's annual meeting; provided, however, that in the event that the
         date of the mailing of the notice for the annual meeting is advanced or
         delayed by more than thirty (30) days from the anniversary date of the
         mailing of the notice for the preceding year's annual meeting, notice
         by the Shareholder to be timely must be so delivered not earlier than
         the close of business on the 120th day prior to the date of mailing of
         the notice for such annual meeting and not later than the close of
         business on the later of the 90th day prior to the date of mailing of
         the notice for such annual meeting or the 10th day following the day on
         which public announcement of the date of mailing of the notice for such
         meeting is first made by the Trust. Notwithstanding anything in the
         immediately preceding sentence of this Section 1.8(a) to the contrary,
         a Shareholder's notice with respect to the annual meeting of
         Shareholders to be held in 2003 only shall be timely if it is delivered
         to the Secretary at the principal executive office of the Trust by a
         date which is the later of either January 30, 2003 or the date which
         would otherwise be determined in accordance with the provisions of the
         preceding sentence of this Section 1.8(a). In no event shall the public
         announcement of a postponement of the mailing of the notice for such
         annual meeting or of an adjournment or postponement of an annual
         meeting to a later date or time commence a new time period for the
         giving of a Shareholder's notice as described above. A Shareholder's
         notice to be proper must set forth (i) as to each person whom the
         Shareholder proposes to nominate for election or reelection as a
         trustee (A) the name, age, business address and residence address of
         such person, (B) the class and number of shares of stock of the Trust
         that are beneficially owned or owned of record by such person and (C)
         all other information relating to such person that is required to be
         disclosed in solicitations of proxies for election of trustees in an
         election contest, or is otherwise required, in each case pursuant to
         Regulation 14A (or any successor provision) under the Exchange Act
         (including such person's written consent to being named in the proxy
         statement as a nominee and to serving as a trustee if elected); (ii) as
         to any other business that the Shareholder proposes to bring before the
         meeting, a description of the business desired to be brought before the
         meeting, the reasons for conducting such business at the meeting and
         any material interest in such business of such Shareholder (including
         any anticipated benefit to the Shareholder therefrom) and of each


                                       5
<PAGE>


         beneficial owner, if any, on whose behalf the proposal is made; and
         (iii) as to the Shareholder giving the notice and each beneficial
         owner, if any, on whose behalf the nomination or proposal is made, (x)
         the name and address of such Shareholder, as they appear on the Trust's
         stock ledger and current name and address, if different, and of such
         beneficial owner, and (y) the class and number of shares of stock of
         the Trust which are owned beneficially and of record by such
         Shareholder and such beneficial owner. Notwithstanding anything in this
         Section 1.8(a) to the contrary, in the event that the number of
         trustees to be elected to the Board of Trustees is increased and there
         is no public announcement by the Trust of such action or specifying the
         size of the increased Trustees at least one hundred (100) days prior to
         the first anniversary of the date of mailing of the notice for the
         preceding year's annual meeting, a Shareholder's notice required by
         this Section 1.8(a) shall also be considered timely, but only with
         respect to nominees for any new positions created by such increase, if
         the notice is delivered to the Secretary at the principal executive
         offices of the Trust not later than the close of business on the 10th
         day immediately following the day on which such public announcement is
         first made by the Trust.

               (b) SPECIAL MEETINGS OF SHAREHOLDERS. Only such business shall be
         conducted at a special meeting of Shareholders as shall have been
         brought before the meeting pursuant to the Trust's notice of meeting.
         Nominations of persons for election to the Trustees may be made at a
         special meeting of Shareholders at which trustees are to be elected (i)
         pursuant to the Trust's notice of meeting, (ii) by or at the direction
         of the Trustees or (iii) provided that the Trustees have determined
         that trustees shall be elected at such special meeting, by any
         Shareholder of the Trust who is a Shareholder of record both at the
         time of giving of notice provided for in this Section 1.8(b) and at the
         time of the special meeting, who is entitled to vote at the meeting and
         who complied with the notice procedures set forth in this Section
         1.8(b). In the event the Trust calls a special meeting of Shareholders
         for the purpose of electing one or more Trustees, any such Shareholder
         may nominate a person or persons (as the case may be) for election to
         such position as specified in the Trust's notice of meeting, if the
         Shareholder's notice containing the information required by this
         Section 1.8(b) shall have been delivered to the Secretary at the
         principal executive offices of the Trust not earlier than the close of
         business on the 120th day prior to such special meeting and not later
         than the close of business on the later of the 90th day prior to such
         special meeting or the 10th day following the day on which public
         announcement is first made of the date of the special meeting and the
         nominees proposed by the Trustees to be elected at such meeting. In no
         event shall the public announcement of a postponement or adjournment of
         a special meeting to a later date or time commence a new time period
         for the giving of a Shareholder's notice as described above.

               (c) GENERAL. Only such persons who are nominated in accordance
         with the procedures set forth in this Section 1.8 shall be eligible to
         serve as trustee, and only such business shall be conducted at a
         meeting of Shareholders as shall have been brought before the meeting
         in accordance with the procedures set forth in this Section 1.8. The
         chairman of the meeting shall have the power and duty to determine
         whether a nomination or any other business proposed to be brought
         before the meeting was made or proposed, as the case may be, in
         accordance with the procedures set forth in this Section 1.8 and, if


                                       6
<PAGE>


         any proposed nomination or other business is not in compliance with
         this Section 1.8, to declare that such nomination or proposal shall be
         disregarded. For purposes of this Section 1.8, (a) the "date of mailing
         of the notice" shall mean the date of the proxy statement for the
         solicitation of proxies for election of trustees and (b) "public
         announcement" shall mean disclosure (i) in a press release either
         transmitted to the principal securities exchange on which Shares of the
         Trust's common stock are traded or reported by a recognized news
         service or (ii) in a document publicly filed by the Trust with the
         Commission.

               (d) COMPLIANCE WITH STATE AND FEDERAL LAW. Notwithstanding the
         foregoing provisions of this Section 1.8, a Shareholder shall also
         comply with all applicable requirements of state law and of the
         Exchange Act and the rules and regulations thereunder with respect to
         the matters set forth in this Section 1.8. Nothing in this Section 1.8
         shall be deemed to affect any right of a Shareholder to request
         inclusion of a proposal in, nor the right of the Trust to omit a
         proposal from, the Trust's proxy statement pursuant to Rule 14a-8 (or
         any successor provision) under the Exchange Act.

         SECTION 1.9. ABSTENTIONS AND BROKER NON-VOTES. Outstanding Shares
represented in person or by proxy (including Shares which abstain or do not vote
with respect to one or more of any proposals presented for Shareholder approval)
will be counted for purposes of determining whether a quorum is present at a
meeting. Abstentions will be treated as Shares that are present and entitled to
vote for purposes of determining the number of Shares that are present and
entitled to vote with respect to any particular proposal, but will not be
counted as a vote in favor of such proposal. If a broker or nominee holding
Shares in "street name" indicates on the proxy that it does not have
discretionary authority to vote as to a particular proposal, those Shares will
not be considered as present and entitled to vote with respect to such proposal.
For avoidance of any doubt, Broker Non-Votes shall not include preferred shares
which the broker is permitted to proportionately vote in accordance with
applicable law or rules of a national securities exchange. Except as otherwise
provided by law, Broker Non-Votes will be treated as present and entitled to
vote for purposes of determining the number of Shares that are present and
entitled to vote with respect to such proposal, but will not be counted as a
vote cast on such proposal.

         SECTION 1.10. INSPECTORS. At any meeting of shareholders, the chairman
of the meeting may appoint one or more inspectors of election or balloting to
supervise the voting at such meeting or any adjournment thereof. If inspectors
are not so appointed, the chairman of the meeting may, and on the request of any
shareholder present or represented and entitled to vote shall, appoint one or
more inspectors for such purpose. Each inspector, before entering upon the
discharge of his duties, shall take and sign an oath faithfully to execute the
duties of inspector of election or balloting, as the case may be, at such
meeting with strict impartiality and according to the best of his ability. If
appointed, inspectors shall take charge of the polls and, when the vote is
completed, shall make a certificate of the result of the vote taken and of such
other facts as may be required by law.

         SECTION 1.11. INSPECTION OF RECORDS. The records of the Trust shall be
open to inspection by Shareholders to the same extent as is permitted
shareholders of a Massachusetts business corporation.


                                       7
<PAGE>


         SECTION 1.12. QUORUM. Except as otherwise provided by law, the Trust's
Declaration of Trust or these By-laws, the holders of a majority of the Shares
issued and outstanding and entitled to vote at the meeting, present in person,
present by means of remote communication in a manner, if any, authorized by the
Board of Trustees in its sole discretion, or represented by proxy, shall
constitute a quorum for the transaction of business. A quorum, once established
at a meeting, shall not be broken by the withdrawal of enough votes to leave
less than a quorum.

         SECTION 1.13. ACTION AT MEETING. When a quorum is present at any
meeting, any matter other than the election of Trustees to be voted upon by the
Shareholders at such meeting shall be decided by the vote of the holders of
Shares having a majority of the votes cast by the holders of all of the Shares
present or represented and voting on such matter (or if there are two or more
classes of shares entitled to vote as separate classes, then in the case of each
such class, the holders of a majority of the shares of that class present or
represented and voting on such matter), except when a different vote is required
by law, the Trust's Declaration of Trust or these By-laws. When a quorum is
present at any meeting, any election by Shareholders of Trustees shall be
determined by a plurality of the votes cast by the Shareholders entitled to vote
on the election.

         SECTION 1.14. ACTION WITHOUT MEETING. For as long as there are under
one hundred fifty (150) shareholders, any action which may be taken by
Shareholders may be taken without a meeting if a majority of Outstanding Shares
entitled to vote on the matter (or such larger proportion thereof as shall be
required by law, the Declaration of Trust, or the By-laws) consent to the action
in writing and the written consents are filed with the records of the meetings
of Shareholders. Such consents shall be treated for all purposes as a vote taken
at a meeting of Shareholders.

                                   ARTICLE II

                         TRUSTEES AND TRUSTEES' MEETINGS

         SECTION 2.1. NUMBER OF TRUSTEES. There shall initially be one Trustee,
and, subject to Section 6.7(c) hereof, the number of Trustees shall thereafter
be such number as shall be fixed from time to time by a majority of the
Trustees. No decrease in the number of Trustees shall have the effect of
removing any Trustee from office prior to the expiration of his term, but the
number of Trustees may be decreased in conjunction with the removal of a Trustee
pursuant to Section 6.7(c) hereof.

         SECTION 2.2. MEETINGS. Trustees' meetings may be held at any place,
within or without Massachusetts, as the Trustees may from time to time determine
or as shall be specified in the notice of any such meeting. Regular meetings of
the Trustees may be held at such times as may be determined by the Trustees.
Special meetings of the Trustees may be held at any time when called by the
President or two or more Trustees, upon written notice delivered to each
Trustee, either personally or by telephone or any standard form of
telecommunications, at least 24 hours before the time at which such meeting is
to be held, or by first-class mail, postage prepaid, addressed to him at his
residence or usual place of business, at least five days before the day on which
such meeting is to be held. Notice of any special meeting of the Trustees need
not be given to any Trustee who shall, either before or after the meeting, sign
a written waiver of notice which is filed with the records of the meeting or who


                                       8
<PAGE>


shall attend such meeting. Except as otherwise specifically required by the
Declaration, these By-Laws, or by law, a notice or waiver of notice of any
meeting need not state the purposes of such meeting.

         SECTION 2.3. QUORUM; VOTING. A majority of the Trustees shall be
present in person at any meeting of the Trustees in order to constitute a quorum
for the transaction of business at such meeting, and except as otherwise
expressly required by the Declaration, these By-Laws, the 1940 Act, or other
applicable statute, the act of a majority of the Trustees present at any meeting
at which a quorum is present shall be the act of the Trustees; PROVIDED,
HOWEVER, that the approval of any contract with an investment adviser or
principal underwriter (as defined in the 1940 Act) which the Trust enters into
or any renewal or amendment thereof, the approval of the fidelity bond required
by the 1940 Act, and the selection of the Trust's independent public accountants
shall require the affirmative vote of a majority of the Trustees who are not
interested persons (as defined in the 1940 Act) of the Trust or, in the case of
such contract, any party to such contract. In the absence of a quorum at any
meeting of the Trustees, a majority of the Trustees present thereat may adjourn
the meeting to another time and place until a quorum shall be present thereat.
Notice of the time and place of any such adjourned meeting shall be given to the
Trustees who were not present at the time of the adjournment and, unless such
time and place were announced at the meeting at which adjournment was taken, to
the other Trustees. At any adjourned meeting at which a quorum is present, any
business may be transacted at the meeting as originally called.

         SECTION 2.4. ORGANIZATION. The President shall act as chairman of and
preside at each meeting of the Trustees. In the absence or inability of the
President to preside at a meeting, a majority of the Trustees present may
designate another Trustee who shall act as chairman of the meeting and preside
thereat. The Secretary (or, in his absence or inability to act, any person
appointed by the chairman of the meeting) shall act as secretary of the meeting
and keep the minutes thereof.

         SECTION 2.5. CONSENT OF TRUSTEES IN LIEU OF A MEETING. Subject to the
provisions of the 1940 Act, any action required or permitted to be taken at any
meeting of the Trustees or by any committee thereof may be taken without a
meeting if a majority of the Trustees or committee, as the case may be, consent
to the action in writing, and the written consents are filed with the minutes of
the Trustees or committee.

                                  ARTICLE III

                                   COMMITTEES
                                   ----------

         SECTION 3.1. EXECUTIVE COMMITTEE. The Trustees may, by resolution
adopted by a majority of the Trustees, designate an Executive Committee
consisting of two or more Trustees, which committee shall have and may exercise
all the powers and authority of the Trustees with respect to all matters OTHER
THAN:

               (i) The submission to shareholders of any action requiring
         authorization of shareholders pursuant to the Declaration;

                                       9

<PAGE>


               (ii) the filing of vacancies in the office of Trustees;

               (iii) the fixing of compensation of the Trustees for serving as
         Trustees or on any committee of the Trustees, including the Executive
         Committee;

               (iv) the approval or termination of any contract with an
         investment adviser or principal underwriter (as defined in the 1940
         Act) or the taking of any other action required by the 1940 Act to be
         taken by the Trustees;

               (v) the amendment or repeal of the Declaration or these By-Laws
         or the adoption of new By-Laws;

               (vi) the amendment or repeal of any resolution of the Trustees
         which by its terms may be amended or repealed only by the Trustees; and

               (vii) the issuance of shares or other securities of the Trust.

         The Executive Committee shall keep written minutes of its proceedings
and shall report such minutes to the Trustees. All such proceedings shall be
subject to revision or alteration by the Trustees; PROVIDED, HOWEVER, that third
parties shall not be prejudiced by such revision or alteration.

         SECTION 3.2. OTHER COMMITTEES. The Trustees may from time to time, by
resolution adopted by a majority of the Trustees, designate one or more other
committees of the Trustees, each such committee to consist of one or more
Trustees and to have such powers and duties as the Trustees may, by resolution,
prescribe.

         SECTION 3.3. GENERAL. A majority of the members of any committee shall
be present in person at any meeting of such committee in order to constitute a
quorum for the transaction of business at such meeting, and the act of a
majority present shall be the act of such committee; any member of any committee
shall be deemed to be present in person if such member participates in the
meeting by conference telephone call or other communication facility. The
Trustees may designate a chairman of any committee and such chairman or any two
members of any committee may fix the time and place of its meetings unless the
Trustees shall otherwise provide. In the absence or disqualification of any
member of any committee, the member or members thereof present at any meeting
and not disqualified from voting, whether or not he or they constitute a quorum,
may unanimously appoint another Trustee to act at the meeting in the place of
any such absent or disqualified member. The Trustees shall have the power at any
time to change the membership of any committee, to fill all vacancies, to
designate alternate members, to replace any absent or disqualified member, or to
dissolve any such committee.

                                   ARTICLE IV

                         OFFICERS, AGENTS AND EMPLOYEES
                         ------------------------------

                                    OFFICERS


                                       10
<PAGE>


         SECTION 4.1. GENERAL PROVISIONS. The officers of the Trust shall be a
President, a Treasurer and a Secretary, who shall be elected by the Trustees.
The Trustees may elect or appoint such other officers or agents as the business
of the Trust may require, including one or more Vice Presidents, one or more
Assistant Secretaries, and one or more Assistant Treasurers. The Trustees may
delegate to any officer or committee the power to appoint any subordinate
officers or agents.

         SECTION 4.2. ELECTION, TERM OF OFFICE AND QUALIFICATIONS. The officers
of the Trust and any Series thereof shall be elected by the Trustees. Except as
provided in Sections 4.3 and 4.4 of this Article IV, each officer elected by the
Trustees shall hold office at the pleasure of the Trustees. Any two or more
offices may be held by the same person. The Chairman of the Board shall be
selected from among the Trustees and may hold such office only so long as he/she
continues to be a Trustee. Any Trustee or officer may be but need not be a
Shareholder of the Trust.

         SECTION 4.3. REMOVAL. The Trustees, at any regular or special meeting
of the Trustees, may remove any officer with or without cause, by a vote of a
majority of the Trustees then in office. Any officer or agent appointed by an
officer or committee may be removed with or without cause by such appointing
officer or committee.

         SECTION 4.4. POWERS AND DUTIES OF THE CHAIRMAN. The Chairman shall
preside at the meetings of the Shareholders and of the Trustees. He may call
meetings of the Trustees and of any committee thereof whenever he deems it
necessary.

         SECTION 4.5. POWERS AND DUTIES OF THE VICE CHAIRMAN. The Trustees may,
but need not, appoint one or more Vice Chairman of the Trust. The Vice Chairman
shall perform such duties as may be assigned to him or her from time to time by
the Trustees or the Chairman.

         SECTION 4.6. POWERS AND DUTIES OF THE PRESIDENT. The President shall be
the chief executive officer of the Trust and shall preside at all meetings of
the Trustees and Shareholders in the absence of the Chairman. Subject to the
control of the Trustees and to the control of any Committees of the Trustees,
within their respective spheres as provided by the Trustees, he shall at all
times exercise general supervision over the business and policies of the Trust.
He shall have the power to employ attorneys and counsel for the Trust or any
Series or Class thereof and to employ such subordinate officers, agents, clerks
and employees as he may find necessary to transact the business of the Trust or
any Series or Class thereof. He shall also have the power to grant, issue,
execute or sign such powers of attorney, proxies or other documents as may be
deemed advisable or necessary in furtherance of the interests of the Trust or
any Series thereof. The President shall have such other powers and duties, as
from time to time may be conferred upon or assigned to him by the Trustees.

         SECTION 4.7. POWERS AND DUTIES OF VICE PRESIDENTS. In the absence or
disability of the President, the Vice President or, if there be more than one
Vice President, any Vice President designated by the Trustees, shall perform all
the duties and may exercise any of the powers of the President, subject to the
control of the Trustees. Each Vice President shall perform such other duties as
may be assigned to him from time to time by the Trustees and the President.


                                       11
<PAGE>


         SECTION 4.8. POWERS AND DUTIES OF THE TREASURER. The Treasurer shall be
the principal financial and accounting officer of the Trust. He shall deliver
all funds of the Trust or any Series or Class thereof which may come into his
hands to such Custodian as the Trustees may employ. He shall render a statement
of condition of the finances of the Trust or any Series or Class thereof to the
Trustees as often as they shall require the same and he shall in general perform
all the duties incident to the office of a Treasurer and such other duties as
from time to time may be assigned to him by the Trustees. The Treasurer shall
give a bond for the faithful discharge of his duties, if required so to do by
the Trustees, in such sum and with such surety or sureties as the Trustees shall
require.

         SECTION 4.9. POWERS AND DUTIES OF THE SECRETARY. The Secretary shall
keep the minutes of all meetings of the Trustees and of the Shareholders in
proper books provided for that purpose; he shall have custody of the seal of the
Trust; he shall have charge of the Share transfer books, lists and records
unless the same are in the charge of a transfer agent. He shall attend to the
giving and serving of all notices by the Trust in accordance with the provisions
of these By-laws and as required by law; and subject to these By-laws, he shall
in general perform all duties incident to the office of Secretary and such other
duties as from time to time may be assigned to him by the Trustees.

         SECTION 4.10. POWERS AND DUTIES OF ASSISTANT TREASURERS. In the absence
or disability of the Treasurer, any officer designated by the Trustees shall
perform all the duties, and may exercise any of the powers, of the Treasurer.
Each officer shall perform such other duties as from time to time may be
assigned to him by the Trustees. Each officer performing the duties and
exercising the powers of the Treasurer, if any, and any Assistant Treasurer,
shall give a bond for the faithful discharge of his duties, if required so to do
by the Trustees, in such sum and with such surety or sureties as the Trustees
shall require.

         SECTION 4.11. POWERS AND DUTIES OF ASSISTANT SECRETARIES. In the
absence or disability of the Secretary, any Assistant Secretary designated by
the Trustees shall perform all the duties, and may exercise any of the powers,
of the Secretary. Each Assistant Secretary shall perform such other duties as
from time to time may be assigned to him by the Trustees.

         SECTION 4.12. COMPENSATION OF OFFICERS AND TRUSTEES AND MEMBERS OF THE
ADVISORY BOARD. Subject to any applicable provisions of the Declaration of
Trust, the compensation of the officers and Trustees and members of an advisory
board shall be fixed from time to time by the Trustees or, in the case of
officers, by any Committee or officer upon whom such power may be conferred by
the Trustees. No officer shall be prevented from receiving such compensation as
such officer by reason of the fact that he is also a Trustee.

                                   ARTICLE V

                          SHARES OF BENEFICIAL INTEREST
                          -----------------------------

         SECTION 5.1. SHARE CERTIFICATES. The Trustees may issue shares either
in certificated or uncertificated form, and if they have issued shares in
certificated form, they may, by written notice to the holders of such shares,
require the surrender of their certificates to the Trust for cancellation, which
surrender and cancellation shall not affect the ownership of such shares. For


                                       12
<PAGE>


any shares issued without certificates, the Trust or its transfer agent may
either issue receipts therefor or may keep accounts upon the books of the Trust
for the record holders of such shares, who shall in either case be deemed, for
all purposes hereunder, to be the holders of such shares as if they had received
certificates therefor and shall be held to have expressly assented and agreed to
the terms hereof and of the Declaration. For any shares for which the Trustees
shall issue certificates, each holder of such shares shall be entitled to a
certificate stating the number of shares owned by him in such form as shall be
prescribed from time to time by the Trustees. The certificates representing
shares shall be signed by the President or a Vice-President and by the Secretary
or an Assistant Secretary, or the Treasurer or an Assistant Treasurer, and
sealed with the seal of the Trust. Any or all of the signatures or the seal of
the Trust on the certificate may be a facsimile. In case any officer, transfer
agent or registrar who has signed or whose facsimile signature has been placed
upon a certificate shall have ceased to be such officer, transfer agent or
registrar before such certificate shall be issued, it may be issued by the Trust
with the same effect as if such officer, transfer agent or registrar were still
in office at the date of issue.

         SECTION 5.2. TRANSFERS OF PLEDGED SHARES. Unless otherwise provided
herein, a pledgee of shares pledged as collateral security shall be entitled to
a new certificate in his name as pledgee, in the case of certificated shares, or
to be registered as the holder in pledge of such shares in the case of
uncertificated shares; PROVIDED, that the instrument of pledge substantially
describes the debt or duty that is intended to be secured thereby. Any such new
certificate shall express on its face that it is held as collateral security,
and the name of the pledgor shall be stated thereon, and any such registration
of uncertificated shares shall be in a form which indicates that the registered
holder holds such shares in pledge. After such issue or registration, and unless
and until such pledge is released, such pledgee and his successors and assigns
shall alone be entitled to the rights of a shareholder, and entitled to vote
such shares.

         SECTION 5.3. REGULATIONS. The Trustees may make such additional rules
and regulations, not inconsistent with these By-Laws, as they may deem expedient
concerning the issue, transfer and registration of certificates for shares of
the Trust. They may appoint, or authorize any officer or officers to appoint,
one or more transfer agents or one or more transfer clerks and one or more
registrars and may require all certificates for shares to bear the signature or
signatures of any of them.

         SECTION 5.4. LOST, DESTROYED OR MUTILATED CERTIFICATES. The holder of
any certificates representing shares of the Trust shall immediately notify the
Trust of any loss, destruction or mutilation of such certificate, and the Trust
may issue a new certificate in the place of any certificate theretofore issued
by it which the owner thereof shall allege to have been lost or destroyed or
which shall have been mutilated, and the Trustees may, in their discretion,
require such owner or his legal representative to give to the Trust a bond in
such sum, limited or unlimited, and in such form and with such surety or
sureties, as the Trustees in their absolute discretion shall determine, to
indemnify the Trust against any claim that may be made against it on account of
the alleged loss or destruction of any such certificate or issuance of a new
certificate.


                                       13
<PAGE>


                                   ARTICLE VI

                            TERMS OF PREFERRED STOCK
                            ------------------------

         SECTION 6.1. DESIGNATION. A class of 1196 shares of preferred stock,
without par value, liquidation preference of $100,000 per share plus accumulated
but unpaid dividends (including Additional Dividends), if any thereon (whether
or not earned or declared), is hereby designated "Dutch Auction Rate
Transferable SecuritiesSM Preferred Stock" (the "DARTS"SM ). The DARTS shall be
issued in two series: 598 shares designated as Dutch Auction Rate Transferable
Securities Preferred Stock, Series A (the "Series A DARTS") and 598 shares
designated as Dutch Auction Rate Transferable Securities Preferred Stock, Series
B (the "Series B DARTS") Each share of the Series A DARTS shall be identical and
equal in all respects to every other share of the Series A DARTS, each share of
the Series B DARTS shall be identical and equal in all respects to every other
share of the Series B DARTS, and the shares of the Series A DARTS and the Series
B DARTS shall, except as expressly provided in this Article VI, be identical and
equal in all respects. No fractional shares of DARTS shall be issued.

         SECTION 6.2. DEFINITIONS.

      Unless the context or use indicates another or different meaning, the
following terms shall have the following meanings, whether used in the singular
or plural:

               (a) "Accountants' Certificate" has the meaning specified in
         Section 6.3(d) below.

               (b) "Additional Dividends" has the meaning specified in Section
         6.4(d)(i) below.

               (c) "Applicable Rate" has the meaning specified in Section
         6.4(c)(i) below.

               (d) "Auction" means each periodic operation of the Auction
         Procedures.

               (e) "Auction Date" has the meaning specified in Section 6.9
         (a)(iii) below.

               (f) "Auction Procedures" means the procedures set forth in
         Section 6.9 below.

               (g) "Board of Trustees" means the Board of Trustees of the Trust.

               (h) "Business Day" means a day on which the New York Stock
         Exchange, Inc. is open for trading and which is not a day on which
         commercial banks in The City of New York are authorized by law to
         close.

               (i) "Certificate of Dividend Coverage" has the meaning specified
         in Section 6.3(c)(i) below.

               (j) "Certificate of Eligible Asset Coverage" has the meaning
         specified in Section 6.3(c)(i) below.


                                       14
<PAGE>


               (k) "Certificate of 1940 Act Asset Coverage" has the meaning
         specified in Section 6.3(c)(i) below.

               (l) "Commercial Paper Dealers" means Salomon Brothers Inc. and
         Smith Barney, Harris Upham & Co. Incorporated, or in lieu of either,
         their respective affiliates or successors, provided that such entity is
         then a commercial paper dealer.

               (m) "Common Shares Paying Agent" means State Street Bank and
         Trust Company unless and until another bank or trust company has been
         appointed as Common Shares Paying Agent by a resolution of the Board of
         Trustees, and thereafter such substitute bank or trust company. (n)
         "Confirmation Date" has the meaning specified in Section 6.3(d) below.

               (n) "Confirmation Date" has the meaning specified in Section
         6.3(d) below.

               (o) "Coverage Value" of each Moody's Eligible Asset, each S&P
         Eligible Asset and each Dividend Coverage Asset is computed as follows:

                   (i) cash shall be valued at 100% of the face value thereof;

                   (ii) each demand deposit and each repurchase obligation
               maturing in no more than one Business Day from the date of
               determination shall be valued at 100% of the face value thereof
               plus accrued interest thereon, if any, to the date of
               determination;

                   (iii) each Short-Term Money Market Instrument (other than a
               demand deposit or repurchase obligation referred to in subclause
               (ii) above) shall be valued at the amount obtained by dividing
               the Market Value thereof by the applicable Discount Factor;

                   (iv) commercial paper (other than commercial paper which is a
               Short-Term Money Market Instrument) having a rating of "P-1" from
               Moody's or "A-1+," "A-1" or "A-2" from Standard & Poor's shall be
               valued at the amount obtained by dividing the Market Value
               thereof by the applicable Discount Factor;

                   (v) each common stock shall be valued at the amount obtained
               by dividing the Market Value thereof by the applicable Discount
               Factor; and

                   (vi) each preferred stock shall be valued at the amount
               obtained by dividing the Market Value thereof by the Applicable
               Discount Factor.

The calculation of Coverage Value may be made on bases other than those set
forth above if the relevant Rating Agency has advised the Trust in writing that
the revised calculation of Coverage Value would not adversely affect its
then-current rating of the DARTS. If other assets become includible as Moody's
Eligible Assets or S&P Eligible Assets as provided in Sections 6.3(a) or 6.3(b)
below, respectively, the Coverage Values of such assets shall be determined in
accordance with procedures established in consultation with the relevant Rating
Agency with a view to maintaining its then-current rating of the DARTS.


                                       15
<PAGE>


               (p) "DARTS Paying Agent" means Manufacturers Hanover Trust
         Company unless and until another bank or trust company has been
         appointed as DARTS Paying Agent by a resolution of the Board of
         Trustees and thereafter such substitute bank or trust company.

               (q) "Date of Original Issue" means the date on which the Trust
         originally issues the DARTS.

               (r) "Discount Factor" means, with respect to an Eligible Asset
         specified below, the following applicable number;

Type of Eligible Asset                                                  Discount
                                                                         Factor
Short-Term Money Market Instruments with maturity dates prior to
  the next Dividend Payment Date...................................       1.10
Other Short-Term Money Market Instruments..........................       1.15

Commercial paper (other than commercial paper which is a
  Short-Term Money Market Instrument) that is rated:

   "P-1" by Moody's or "A-1" or "A-1+" by Standard & Poor's........       1.60
   "A-2" by Standard & Poor's......................................       1.65

Common Stocks:

Issued by utilities whose senior debt securities are rated at least
  "A" by Moody's or Standard & Poor's..............................       2.05
Issued by utilities whose senior debt securities are rated "Baa" by
  Moody's or "BBB" by Standard Poor's..............................       2.15
   Issued by others................................................       2.60

Preferred stocks:

  Moody's

                             TAXABLE PREFERRED STOCK
MOODY'S RATING                   DISCOUNT FACTOR        COLLATERAL ADVANCED

Aaa                                   150%                      67%
Aa                                    155%                      65%
A                                     160%                      63%
Baa                                   165%                      61%
Ba                                    196%                      51%
B                                     216%                      46%
Below B and Unrated                   250%                      40%

The Discount Factor for Dividends Received Deduction ("DRD") eligible preferred
stock shall be (a) for investment grade DRD eligible preferred stock, 165%; (B
for non-investment grade DRD eligible preferred stock, 216%.


                                       16
<PAGE>


The Discount Factor for preferred securities shall also apply to non-cumulativ
preferred stocks, except that the Discount Factor shall be multiplied by a
factor of 110% for purposes of calculating the Discount Value of such
non-cumulative securities.

The Discount Factor applied to Rule 144A securities for Rule 144A securities
whose terms include rights to registration under the Securities Act within one
year and Rule 144A securities which do not have registration rights within one
year will be 120% and 130%, respectively, of the Discount Factor which would
apply were the securities registered under the Securities Act.

Defensive Securities

   Moody's

      U.S. Treasuries with remaining terms to maturity of:

          1 year or less ..................................                 1.07
          2 years or less..................................                 1.13
          3 years or less .................................                 1.18
          4 years or less .................................                 1.23
          5 years or less .................................                 1.28
          7 years or less..................................                 1.35
          10 years or less.................................                 1.42
          15 years or less ................................                 1.47
          20 years or less.................................                 1.53
          30 years or less.................................                 1.54

      U.S. Treasury Strips with remaining terms to maturity of:

          1 year or less...................................                 1.08
          2 years or less..................................                 1.16
          3 years or less..................................                 1.23
          4 years or less..................................                 1.30
          5 years or less..................................                 1.37
          7 years or less..................................                 1.51
          10 years or less.................................                 1.69
          15 years or less.................................                 1.99
          20 years or less.................................                 2.28
          30 years or less.................................                 2.56

   Standard & Poor's
      U.S. Treasuries with remaining terms to maturity of:

          One year or less ................................                 1.03
          Five-years or less ..............................                 1.11


                                       17
<PAGE>


          Ten years or less ...............................                 1.12
          Fifteen years or less............................                 1.14
          Thirty years or less ............................                 1.20

   Corporate and utility bonds
      Moody's

        Corporate and utility bonds rated Aaa with remaining terms to maturity
            of:

          1 year or less ..................................                 1.14
          2 years or less .................................                 1.21
          3 years or less .................................                 1.26
          4 years or less..................................                 1.32
          5 years or less..................................                 1.38
          7 years or less .................................                 1.47
          10 years or less.................................                 1.55
          15 years or less.................................                 1.62
          20 years or less.................................                 1.69
          30 years or less ................................                 1.71

        Corporate and utility bonds rated Aa with remaining terms to maturity
of:

          1 year or less...................................                 1.19
          2 years or less .................................                 1.26
          3 years or less .................................                 1.32
          4 years or less .................................                 1.38
          5 years or less .................................                 1.44
          7 years or less..................................                 1.54
          10 years or less.................................                 1.63
          15 years or less.................................                 1.69
          20 years or less.................................                 1.77
          30 years or less.................................                 1.79

        Corporate and utility bonds rated A with remaining terms to maturity of:

          1 year or less...................................                 1.24
          2 years or less..................................                 1.32
          3 years or less..................................                 1.38
          4 years or less..................................                 1.45
          5 years or less .................................                 1.51
          7 years or less..................................                 1.61
          10 years or less.................................                 1.70
          15 years or less.................................                 1.77
          20 years or less.................................                 1.85
          30 years or less.................................                 1.87


                                       18
<PAGE>


        Utility bonds rated Baa with remaining terms to maturity of:

          1 year or less ..................................                 1.30
          2 years or less .................................                 1.38
          3 years or less..................................                 1.44
          4 years or less..................................                 1.51
          5 years or less .................................                 1.57
          7 years or less .................................                 1.68
          10 years or less ................................                 1.77
          15 years or less.................................                 1.85
          20 years or less ................................                 1.94
          30 years or less ................................                 1.95

      Standard & Poor's Corporate bonds rated at least:

          A................................................                 1.52

        Utility Bonds rated at least

          A................................................                 1.65

      By resolution of the Board of Trustees and without amending the By-Laws of
the Trust or otherwise submitting such resolution for shareholder approval, (i)
Discount Factors may be changed from those set forth above and (ii) additional
Discount Factors may be established for other Eligible Assets if, in each case,
the relevant Rating Agency has advised the Trust in writing that such change or
addition would not adversely affect its then-current rating of the DARTS,
provided that the Trust shall cause to be made available a written statement
setting forth the Discount Factors, as changed or as supplemented, for
inspection by the Holders at the principal executive office of the Trust.

          (s) "Dividend Coverage is met" means, as of any date of determination,
      that (i) the aggregate Coverage Value of the Dividend Coverage Assets for
      the DARTS owned by the Trust as of such date of determination equals or
      exceeds the sum of (A) the Dividend Coverage Amount for the DARTS and (B)
      the amount of all liabilities (including, without limitation, declared and
      unpaid dividends (and Additional Dividends, if any), interest expense and
      operating expenses payable, amounts payable to the Trust Company, the
      DARTS Paying Agent and the Common Shares Paying Agent and obligations
      under any Reverse Repurchase Agreement) that would appear on the date of
      determination on the face of the Trust's statement of assets and
      liabilities and are payable on or prior to any Dividend Payment Date for
      the DARTS occurring within thirty days.

          (t) Dividend Coverage Amount for the DARTS as of any date of
      determination, means the sum of, over each share of Series A DARTS and
      Series B DARTS on which the next following Dividend Payment Date occurs
      within thirty days, that number which is the product of:


                                       19
<PAGE>


               (i) 100,000,

               (ii) the Applicable Rate in effect on such share, and

               (iii) a fraction, the numerator of which is the number of days in
          the Dividend Period ending on the next following Dividend Payment Date
          for such share (determined by including the first day thereof but
          excluding the last day thereof) and the denominator of which is 360.

          (u) "Dividend Coverage Assets", for the DARTS as of any date of
      determination, means (i) cash (including, for this purpose, receivables
      for securities sold and, to the extent permitted by Standard & Poor's,
      dividends receivable on S&P Eligible Assets, in each case not later than
      noon on the Business Day immediately preceding the next Dividend Payment
      Date for the applicable series), and (ii) Short-Term Money Market
      Instruments which are S&P Eligible Assets with maturity dates not later
      than noon on the Business Day immediately preceding the applicable
      Dividend Payment Date.

          (v) "Dividend Coverage Cure Date" means the second Business Day
      following a Dividend Coverage Evaluation Date with respect to which the
      Dividend Coverage is not met.

          (w) "`Dividend Coverage Evaluation Date" means (i) the Date of
      Original Issue, (ii) each thirtieth day preceding a Dividend Payment Date
      for the Series A DARTS (or, if such day is not a Business day, the first
      Business Day preceding such thirtieth day) and (iii) each thirtieth day
      preceding a Dividend Payment Date for the Series B DARTS (or, if such day
      is not a Business Day, the first Business Day preceding such thirtieth
      day).

          (x) "Dividend Payment Date" has the meaning specified in Section
      6.4(b)(i) below and shall mean each Additional Dividend Payment Date
      specified in Section 6.4(d)(v) below.

          (y) "Dividend Period" has the meaning specified in Section
      6.4(c)(i)(A) below.

          (z) "Dividend Period Days" has the meaning specified in Section
      6.4(b)(i) below.

          (aa) "Dividends Received Deduction" has the meaning specified in
      Section 6.4(b)(i) below.

          (bb) "Eligible Assets" means Moody's Eligible Assets and/or S&P
      Eligible Assets, as the case may be.

          (cc) "Eligible Asset Coverage is met" means, as of any date of
      determination, that (i) the aggregate Net Coverage Value of the Moody's
      Eligible Assets owned by the Trust as of the date of determination equals
      or exceeds the Eligible Asset Coverage Amount for the Moody's Eligible
      Assets and (ii) the aggregate Net Coverage Value of the S&P Eligible
      Assets owned by the Trust as of the date of determination equals or


                                       20
<PAGE>


      exceeds  the Eligible Asset Coverage Amount for the S&P Eligible Assets.

          (dd) "Eligible Asset Coverage Amount," as of any date of
      determination, means the sum of (i) an amount equal to the product of (A)
      $100,000 times (B) the number of shares of the DARTS then outstanding,
      (ii) accumulated and unpaid dividends on the DARTS to the date of
      determination" (excluding any declared and unpaid dividends reflected in
      the determination of Net Coverage Value), (iii) the Projected Dividend
      Amount for the Series A DARTS, (iv) the Projected Dividend Amount for the
      Series B DARTS and (v) an amount equal to the amount of Additional
      Dividends (the "Current Additional Dividend Amount") that would be payable
      to the DARTS holders assuming that, at the end of the Fund's fiscal year
      (I) the amount of net capital gains and (II) the amount by which the net
      income of the Fund, excluding net capital gains, then exceeds the
      dividends received by the Fund that qualify for the Dividends Received
      Deduction (the sum of I and II, the "Non-DRD Qualifying Amount") would be
      the then-current amounts. The Current Additional Dividend Amount shall be
      calculated as the product of (A) 0.27 and (B) the Non-DRD Qualifying
      Amount and (C) the quotient of (X) the amount of the distributions paid to
      the DARTS Holders as dividends during (and that are attributable to) the
      current fiscal year ("Current DARTS Dividends") and (Y) the sum of (*)
      Current DARTS Dividends and (#) the amount of the distributions paid to
      the holders of the Common Shares as dividends during the current fiscal
      year; provided, however, that if either the percentage of dividends
      excluded from taxation pursuant to the Dividends Received Deduction or the
      maximum federal tax rate applicable to corporations changes, the method of
      calculating the amount of the Current Additional Dividend Amount shall be
      revised to reflect the effect of such changes on the amount that the Fund
      would be obligated to pay as Additional Dividends; provided, however,
      that, in the event the amount of liabilities used in the calculation of
      the Net Coverage Value includes any redemption price payable with respect
      to shares of the DARTS called or being called for redemption, the number
      of shares of the DARTS outstanding, for purposes of subclause (B) above,
      shall not include the number of such shares called or being called for
      redemption.

          (ee) "Eligible Asset Cure Date" means (i) the fifth Business Day
      following an Eligible Asset Evaluation Date as to which an Accountants'
      Certificate is not required to be delivered or (ii) the second Business
      Day following a Confirmation Date with respect to which the Trust has not
      delivered to the DARTS Paying Agent an Accountants' Certificate confirming
      the Certificate of Eligible Asset Coverage relating to the immediately
      preceding Eligible Asset Evaluation Date.

          (ff) "Eligible Asset Evaluation Date" means (i) the Date of Original
      Issue, (ii) each succeeding Wednesday following the Date of Original Issue
      (or, if such day is not a Business Day, the first Business Day following
      such Wednesday and (iii) the Business Day preceding the day on which an
      Additional Dividend is declared.

          (gg) "Holder" means an individual or entity in whose name an
      outstanding share of the DARTS is registered on the Shares Books.


                                       21
<PAGE>


          (hh) "Independent Accountants" means the Trust's independent certified
      public accountants, which shall be a nationally recognized accounting
      firm.

          (ii) "Initial Dividend Payment Date" has the meaning specified in
      Section 6.4(b)(i) below.

          (jj) "Market Value" means (i) with respect to an investment which is
      listed on an exchange or traded over-the-counter and quoted on the NASDAQ
      System, the last sale price on the day of valuation (using prices as of
      the close of trading) or, if there has been no sale that day, the last bid
      price reported on the day of valuation or the last bid price reported as
      of the close of business on the preceding Business Day, (ii) with respect
      to an investment which is not listed on an exchange or quoted on the
      NASDAQ System, the lower of the bid prices, as of the close of business on
      the Business Day immediately preceding the date of determination, quoted
      (at least one of such quotes being in writing) to the Trust by two or more
      nationally recognized securities dealers making a market in such
      investment at the time. By resolution of the Board of Trustees and without
      amending the By-Laws of the Trust, the calculation of Market Values may be
      made on bases other than those set forth above if the relevant Rating
      Agency has advised the Trust in writing that the revised method of
      calculation of Market Values would not adversely affect its then-current
      rating of the DARTS, provided that the Trust shall cause to be made
      available a written statement setting forth such revised method for
      inspection by the Holders at the principal executive office of the Trust.

          (kk) "Maximum Applicable Rate" has the meaning specified in Section
      6.9(a)(xii) below.

          (ll) "Minimum Holding Period" has the meaning specified in Section
      6.4(b)(i) below.

          (mm) "Moody's" means Moody's Investors Service, Inc. or any successor
      thereto.

          (nn) "Moody's Eligible Assets" has the meaning specified in Section
      6.3(a) below.

          (oo) "NASDAQ System" means the electronic inter-dealer quotation
      system operated by NASDAQ, Inc., a subsidiary of the National Association
      of Securities Dealers, Inc.

          (pp) "Net After-Tax Return" means, with respect to any dividend paid
      on the DARTS, the amount of such dividend less the federal corporate
      income tax to which such dividend would be subject, giving effect to the
      actual or assumed (as the case may be) amount of such dividend effectively
      designated under Section 854 of the Code as eligible for the Dividends
      Received Deduction. For this purpose, in the case of any dividend (i) the
      applicable income tax rate shall be assumed to be the highest marginal
      federal income tax rate applicable to corporations under the law in effect
      at the time of the payment of such dividend if received by a domestic
      corporation reporting taxable income based on a calendar year,
      disregarding any alternative minimum tax and (ii) assuming the full amount


                                       22
<PAGE>


      of such dividend were effectively designated under Section 854 of the Code
      as eligible for Dividends Received Deduction, the holder receiving such
      dividend shall be assumed to be entitled to the Dividends Received
      Deduction with respect to such dividend in an amount equal to the maximum
      amount provided in Section 243(a)(1) of the Code (or any successor
      provision) as in effect at the time of payment of such dividend. The
      highest marginal federal income tax rate for corporations currently is 34%
      and the maximum amount provided in Section 243(a)(1) of the Code currently
      is 70%.

          (qq) "Net Capital Gains" means the excess of the Corporation's net
      long-term capital gains over its net short-term capital losses.

          (rr) "Net Coverage Value" of the Trust's Eligible Assets means the
      difference of (A) the aggregate Coverage Value, as determined pursuant to
      the definition thereof, of the Moody's Eligible Assets or the S&P Eligible
      Assets, as the case may be, minus (B) the amount of all liabilities
      (including, without limitation, declared and unpaid dividends (including
      Additional Dividends, if any), interest expense and operating expenses
      expected to accrue during the next three months, amounts payable to the
      Trust Company, the DARTS Paying Agent and the Common Shares Paying Agent
      and obligations under any Reverse Repurchase Agreement) that would appear
      on the date of determination on the face of the Trust's statement of
      assets and liabilities, provided that for purposes of this subclause (B),
      such operating expenses shall not be less than $200,000 and such
      liabilities shall also include the redemption price payable with respect
      to the shares of the DARTS, if any, that are covered by a Notice of
      Redemption sent prior to, or being sent on, the date of such
      determination.

          (ss) "Net Income" means all dividends, interest and other income
      earned and short term capital gains realized by the Trust on its portfolio
      holdings, net of the Trust's expenses.

          (tt) "1940 Act" means the Investment Company Act of 1940, as amended.

          (uu) "1940 Act Asset Coverage is met" means, as of any date of
      determination, that the ratio of the value of the Trust's total assets,
      less all liabilities and indebtedness not representing senior securities
      (as defined in the 1940 Act), to the aggregate amount of senior securities
      representing indebtedness of the Trust plus the aggregate of the
      liquidation preference of the DARTS is at least 200%.

          (vv) "1940 Act Cure Date" means the 1940 Act Evaluation Date next
      following a 1940 Act Evaluation Date with respect to which the 1940 Act
      Asset Coverage is not met.

          (ww) "1940 Act Evaluation Date" means the Business Day immediately
      preceding each dividend declaration date for the Common Shares or the last
      Business Day of each calendar month.

          (xx) "Normal Dividend Payment Date" has the meaning specified in
      Section 6.4(b)(i) below.


                                       23
<PAGE>


          (yy) "Notice of Redemption" has the meaning specified in Section
      6.6(c)(ii) below.

          (zz) "Projected Dividend Amount" for the Series A DARTS or Series B
      DARTS (the "applicable series") as of any Eligible Asset Evaluation Date,
      means the amount of dividends, based on the number of shares of the
      applicable series outstanding on such Eligible Asset Evaluation Date,
      projected to accumulate on such shares from such Eligible Asset Evaluation
      Date until the 63rd day, as specified below, after such Eligible Asset
      Evaluation Date, at the following rates:

               (i) except as provided in clauses (iii) and (iv) of this
          paragraph (zz), if such Eligible Asset Evaluation Date is the Date of
          Original Issue or a Dividend Payment Date for the applicable series,
          (A) for the period beginning on such Eligible Asset Evaluation Date
          and ending on the first following Dividend Payment Date for the
          applicable series, the Applicable Rate for the applicable series in
          effect on such valuation date, and (B) for the period beginning on
          such first following Dividend Payment Date and ending on the 63rd day
          following such valuation date, the product of 2.18 (for purposes of
          determining the Eligible Asset Coverage Amount for the Moody's
          Eligible Assets) or 2.58 (for purposes of determining the Eligible
          Asset Coverage Amount for the S&P Eligible Asset) and (1) the Maximum
          Applicable Rate for the related Auction Date on a day, selected by the
          Fund, within three Business Days of the Date of Original Issue (if
          such Eligible Asset Evaluation Date is the Date of Original Issue or
          (2) the Maximum Applicable Rate on the last occurring Auction Date for
          the applicable series (if such Eligible Asset Evaluation Date is a
          Dividend Payment Date);

               (ii) except as provided in clauses (iii) and (iv) of this
          paragraph (zz), if such Eligible Asset Evaluation Date is not the Date
          of Original Issue or a Dividend Payment Date for the applicable
          series, (A) for the period beginning on such Eligible Asset Evaluation
          Date and ending on the first following Dividend Payment Date for the
          applicable series, the Applicable Rate for the applicable series in
          effect on such valuation date, (B) for the period beginning on such
          first following Dividend Payment Date and ending on the second
          following Dividend Payment Date for the applicable series the product
          of 2.22 (in the case of the Series A DARTS) or 2.28 (in the case of
          the Series B DARTS) and (1) the Maximum Rate on such Eligible Asset
          Evaluation Date (if such valuation date is the Eligible Asset
          Evaluation Date first following the Date of Original Issue) or (2) the
          Maximum Applicable Rate on the last occurring Auction Date for either
          series (if such valuation date is any other valuation date), and (C)
          in the case of an Eligible Asset Evaluation Date for the Series A
          DARTS immediately preceding a Dividend Payment Date for the Series A
          DARTS, for the period beginning on the second following Dividend
          Payment Date and ending on the 63rd day following such Eligible Asset
          Evaluation Date, the product of 3.35 and the Maximum Applicable Rate
          on the last occurring Auction Date for the Series B DARTS;

               (iii) for the Series B DARTS, if the Eligible Asset Evaluation
          Date is a Dividend Payment Date for the Series A DARTS, (A) for the
          period beginning on such Eligible Asset Evaluation Date and ending on


                                       24
<PAGE>


          the first following Dividend Payment Date for the Series B DARTS, the
          Applicable Rate in effect on such valuation date, and (B) for the
          period beginning on such first following Dividend Payment Date and
          ending on the second following Dividend Payment Date the product of
          1.5 days and the Maximum Applicable Rate on the last occurring Auction
          Date for the series A DARTS and (C) for the period beginning on the
          second following Dividend Payment Date and ending on the 63rd day, the
          product of 2.58 and (1) the Maximum Applicable Rate on such valuation
          date (if such valuation date is the valuation date first following the
          Date of Original Issue) or (2) the Maximum Rate on the last occurring
          Auction Date for the Series A DARTS (if such valuation date is any
          other valuation date); and

               (iv) for Series B DARTS, if such Eligible Asset Evaluation Date
          is the date of Original Issue or any valuation date prior to the first
          Dividend Payment Date, for the Series A DARTS, (A) for the period
          beginning on such Eligible Asset Evaluation Date and ending on the
          first following Dividend Payment Date for Series B DARTS, the
          Applicable Rate for Series B DARTS in effect on such Eligible Asset
          Evaluation Date, and (B) for the period beginning on such first
          following Dividend Payment Date and ending on the 62nd day following
          such Eligible Asset Evaluation Date, the product of the Maximum
          Applicable Rate on such Eligible Asset Evaluation Date (or on a day,
          selected by the Fund, within three Business Days of such valuation
          date if such Eligible Asset Evaluation Date is the Date of Original
          Issue) and 2.58.

The number of days in each of the periods referred to in clauses (i), (ii) and
(iii) of this paragraph (zz) shall be determined by including the first day and
excluding the last day of each such period. If the date of determination is not
an Eligible Asset Evaluation Date, then the Projected Dividend Amount for the
applicable series as of such date of determination shall equal the Projected
Dividend Amount on the immediately preceding Eligible Asset Evaluation Date,
adjusted to reflect any decrease in the number of shares of such series
outstanding. The calculation of the Projected Dividend Amount may be made on
bases other than those set forth above if the relevant Rating Agency has advised
the Trust in writing that the revised calculation of the Projected Dividend
Amount would not adversely affect its then-current rating of the DARTS. If the
Board of Trustees increases the number of Dividend Period Days pursuant to
Section 6.4(b)(i) below, the Projected Dividend Amount shall be determined in
accordance with procedures established in consultation with the relevant Rating
Agency with a view to maintaining its then-current rating of the DARTS, provided
that Trust shall cause to be made available a written statement setting forth
the revised method of determination of the Projected Dividend Amount for
inspection by the Holders at the principal executive office of the Trust.

          (aaa) "Rating Agencies", on any date of determination, means (i) each
      of Moody's and Standard & Poor's if both such rating agencies are then
      rating the DARTS, or (ii) if only one of such rating agencies is then
      rating the DARTS, such rating agency, or (iii) if neither of such rating
      agencies is then rating the DARTS, any nationally recognized statistical
      rating organization designated by the Trust.

          (bbb) "Right" has the meaning specified in Section 6.4(d)(ii) below.


                                       25
<PAGE>


          (ccc) "Securities Depository" has the meaning specified in Section
      6.9(a)(xx) below.

          (ddd) "Shares Books" means the share transfer books of the Trust
      maintained by the DARTS Paying Agent with respect to the shares of the
      DARTS.

          (eee) "Short-Term Money Market Instruments" means the following types
      of instruments if, on the date of purchase or other acquisition thereof by
      the Trust (or, in the case of an instrument specified by clause (i) below,
      on the date of determination), the remaining terms to maturity thereof are
      not in excess of 90 days:

               (i) U.S. Treasury Securities;

               (ii) commercial paper that is rated at the time of the Trust's
          investment therein, or contractual commitment providing for such
          investment, at least "P-1" and "A-1+" by Moody's and Standard &
          Poor's, respectively, and is issued by an issuer (or guaranteed or
          supported by a person or entity other than the issuer) whose long-term
          unsecured debt obligations are rated at least "Aa" and "AA" by Moody's
          and Standard & Poor's respectively;

               (iii) demand or time deposits in, certificates of deposit of, or
          bankers' acceptances issued by (A) a depository institution or trust
          company incorporated under the laws of the United States of America or
          any state thereof or the District of Columbia or (B) a United States
          branch office or agency of a foreign depository institution (provided
          that such branch office or agency is subject to banking regulation
          under the laws of the United States, any state thereof or the District
          of Columbia) if, in each case, the commercial paper, if any, and the
          long-term unsecured debt obligations (other than such obligations the
          ratings of which are based on the credit of a person or entity other
          than such depository institution or trust company) of such depository
          institution or trust company at the time of the Trust's investment
          therein, or contractual commitment providing for such investment, have
          (1) credit ratings from Moody's and Standard & Poor's of at least
          "P-1" and "A-1+", respectively, in the case of commercial paper, and
          (2) credit ratings from Moody's and Standard & Poor's of at least "Aa"
          and "AA", respectively, in the case of long-term unsecured debt
          obligations; provided, however, that in the case of any such
          investment that matures in no more than one Business Day from the date
          of purchase or other acquisition by the Trust, all of the foregoing
          requirements shall be applicable except that the required long-term
          unsecured debt credit rating of such depository institution or trust
          company from Moody's and Standard & Poor's shall be at least "A"; and
          provided, further, however, that the foregoing credit rating
          requirements shall be deemed to be met with respect to a depository
          institution or trust company if (1) such depository institution or
          trust company is the principal depository institution in a holding
          company system, (2) the commercial paper, if any, of such depository
          institution or trust company is not rated below "P-1" by Moody's or
          "A-1+" by Standard & Poor's and (3) the holding company shall meet all
          of the foregoing credit rating requirements (including the preceding
          proviso in the case of investments that mature in no more than one


                                       26
<PAGE>


          Business Day from the date of purchase or other acquisition by the
          Trust);

               (iv) repurchase obligations with respect to any U.S. Treasury
          Security entered into with a depository institution, trust company or
          securities dealer (acting as principal) which meets the credit rating
          requirements for commercial paper and long-term unsecured debt
          obligations specified in clause (iii) above; and

               (v) eurodollar demand or time deposits in, or certificates of
          deposit of, the head office or the London or Tokyo branch office of a
          depository institution or trust company meeting the credit rating
          requirements of commercial paper and long-term unsecured debt
          obligations specified in clause (iii) above, provided that the
          interest receivable by the Trust shall not be subject to any
          withholding or similar taxes.

          (fff) "60-day `AA' Composite Commercial Paper Rate", on any date,
      means (i) the interest equivalent of the 60-day rate on commercial paper
      placed on behalf of issuers whose corporate bonds are rated "AA" by
      Standard & Poor's, or the equivalent of such rating by any other
      nationally recognized statistical rating organization, as such 60-day rate
      is made available on a discount basis or otherwise by the Federal Reserve
      Bank of New York for the Business Day immediately preceding such date, or
      (ii) in the event that the Federal Reserve Bank of New York does not make
      available such a rate, then the arithmetic average of the interest
      equivalent of the 60-day rate on commercial paper placed on behalf of such
      issuers, as quoted on a discount basis or otherwise by the Commercial
      Paper Dealers to the Trust Company (in the case of determination of the
      60-day "AA" Composite Commercial Paper Rate on any Auction Date) or the
      Trust (in the case of determination of such rate on any other day) as of
      the close of business on the Business Day immediately preceding such date.
      If any of the Commercial Paper Dealers do not quote a rate required to
      determine the 60-day "AA" Composite Commercial Paper Rate, the 60-day "AA"
      Composite Commercial Paper Rate shall be determined on the basis of the
      quotations (or quotation) furnished by the remaining Commercial Paper
      Dealers (or Dealer) and any Substitute Commercial Paper Dealer (or
      Dealers) selected by the Trust to provide such quotation not being
      supplied by any Commercial Paper Dealer or, if the Trust does not select
      any such Substitute Commercial Paper Dealer (or Dealers), by the remaining
      Commercial Paper Dealers (or Dealer); provided that, in the event the
      Trust is unable to cause such quotation to be furnished to the Trust
      Company (or, if applicable, to the Trust) by such sources, the Trust may
      cause the 60-day "AA" Composite Commercial Paper Rate to be furnished to
      the Trust Company (or, if applicable, to the Trust) by such alternative
      source or sources as the Trust in good faith deems to be reliable. If the
      Board of Trustees shall adjust the number of Dividend Period Days pursuant
      to Section 6.4(b)(i) below, then (i) if the number of Dividend Period Days
      after such adjustment shall be fewer than 70 days, such rate shall be the
      interest equivalent of the 60-day rate on such commercial paper, (ii) if
      the number of Dividend Period Days after such adjustment shall be 70 or
      more days but fewer than 85 days, such rate shall be the arithmetic
      average of the interest equivalent of the 60-day and 90-day rates on such
      commercial paper, (iii) if the number of Dividend Period Days shall be 85


                                       27
<PAGE>


      or more days but fewer than 99 days, such rate shall be the interest
      equivalent of the 90 day rate on such commercial paper, and (iv) if the
      number of Dividend Period Days after such adjustment shall be 99 or more
      days, such rate shall be determined on the basis of the interest
      equivalent of such commercial paper with a maturity (or the average of the
      interest equivalents of the rates on two issues of commercial paper with
      an average maturity) as nearly as practicable equal to such number of
      Dividend Period Days, as determined by the Trust in good faith; PROVIDED,
      HOWEVER, that if such number of Dividend Period Days shall exceed the
      longest maturity of such commercial paper for which a rate is available as
      provided in this paragraph (fff), then such rate shall be determined on
      the basis of the yield on the U.S. Treasury Security with a maturity (or
      the average of such yields in the case of two U.S. Treasury Securities
      with an average maturity) as nearly as practicable equal to such number of
      Dividend Period Days, as determined by the Trust in good faith. For
      purposes of this definition, the "interest equivalent" of a rate stated on
      a discount basis (a "discount rate") for commercial paper of a given days'
      maturity shall be equal to the quotient (rounded to the next higher .001)
      of (A) the discount rate divided by (B) the difference between (x) 1.00
      and (y) a fraction the numerator of which shall be the product of the
      discount rate times the number of days in which such commercial paper
      matures and the denominator of which shall be 360.

          (ggg) "Standard & Poor's" means Standard & Poor's Corporation or any
      successor thereto.

          (hhh) "S&P Eligible Assets" has the meaning specified in Section
      6.3(b).

          (iii) "Substitute Commercial Paper Dealers" means Kidder, Peabody &
      Co. Incorporated, PaineWebber Incorporated and Shearson Lehman Hutton Inc.
      or, in lieu thereof, their respective affiliates or successors, provided
      that such entity is then a commercial paper dealer.

          (jjj) "Trust Company" means Manufacturers Hanover Trust Company unless
      and until another bank or trust company has been appointed as Trust
      Company by a resolution of the Board of Trustees, and thereafter such
      substitute bank or trust company.

          (kkk) "U.S. Treasury Securities" means obligations issued by the
      United States of America which, other than Treasury bills, are not zero
      coupon securities.

      SECTION 6.3.      ELIGIBLE ASSET COVERAGE AND DIVIDEND COVERAGE.

          (a) "Moody's Eligible Assets" means:

               (i) cash (including, for this purpose, receivables for securities
          sold and dividends receivable on Moody's Eligible Assets);

               (ii) Short-Term Money Market Instruments (PROVIDED, HOWEVER, that
          for purposes of this definition, such instruments need not meet any
          otherwise applicable Standard & Poor's rating criteria);


                                       28
<PAGE>


               (iii) commercial paper that is not included as a Short-Term Money
          Market Instrument having on the date of purchase or other acquisition
          a rating from Moody's of "P-1" and issued or irrevocably and fully
          guaranteed by an obligor having at the time long-term unsecured debt
          obligations with a rating from Moody's of at least "Baa";

               (iv) preferred stocks (A) which either (1) are issued by issuers
          whose senior debt securities are rated at least "Baa" by Moody's or
          (2) are rated at least "Baa" by Moody's (or in the event an issuer's
          senior debt securities or preferred stock is not rated by Moody's
          which either (1) are issued by an issuer whose senior debt securities
          are rated at least "BBB" by Standard & Poor's or (2) are rated at
          least "BBB" by Standard & Poor's and which for this purpose have been
          assigned a Moody's equivalent rating of at least "Baa"), (B) of
          issuers which have (or, in the case of issuers which are special
          purpose corporations, whose parent companies have) common stock listed
          on the New York Stock Exchange or the American Stock Exchange, (C)
          which have a minimum issue size (when taken together with other of the
          issuer's issues of similar tenor) of $50 million, (D) which have paid
          consistent cash dividends during the preceding three-year period (or,
          in the case of new issuers without a dividend history, are rated at
          least "A" by Moody's or, if not rated by Moody's, are rated at least
          "A" by, Standard & Poor's), (E) which pay cash dividends in U.S.
          dollars, (F) which are not convertible into any other class of stock
          and do not have warrants attached, and (G) in the case of auction
          preferred stocks, which have dividend periods of less than or equal to
          49 days (or, in the case of a new issue of auction preferred stock, 64
          days for the initial dividend period) and have never had a failed
          auction; PROVIDED, that for this purpose the aggregate Market Value of
          the Trust's holdings of (x) any issue of preferred stock which is not
          an auction preferred stock shall not be less than $500,000 nor more
          than $5,000,000 and (y) any issue of auction preferred stock shall not
          be more than $5,000,000; and

               (v) common stocks (A) which are issued by issuers whose senior
          debt securities are rated at least "Baa" by Moody's (or, in the event
          an issuer's senior debt securities are not rated by Moody's, which are
          issued by an issuer whose senior debt securities are rated at least
          "BBB" by Standard & Poor's and which for this purpose have been
          assigned a Moody's equivalent rating of at least "Baa"), (B) which are
          traded on the New York Stock Exchange or the American Stock Exchange,
          (C) which in the case of common stocks other than utility common
          stocks have a market capitalization greater than $500 million, (D)
          which in the case of utility common stocks are currently paying cash
          dividends or, in the case of other common stocks, are currently paying
          cash dividends and have paid consistent cash dividends during the
          preceding three-year period, and in the case of common stocks other
          than utility common stocks and (E) which pay dividends in U.S.
          dollars; PROVIDED, that (1) the aggregate Market Value of the Trust's
          holdings of the common stock of any eligible issuer (x) shall be less
          than 5% of the number of outstanding shares times the Market Value of
          such common stock and (y) shall not exceed 5% of the number of
          outstanding shares (less the number of shares held by insiders, as
          determined in accordance with standards established by Moody's


                                       29
<PAGE>


          multiplied by the Market Value of such common stock and (2) the
          number' of shares of common stock of any eligible issuer held by the
          Trust shall not exceed the average weekly trading volume of such
          common stock during the preceding month;

               (vi) Defensive Securities (U.S. government securities which are
          direct obligations of, or obligations the full and timely payment of
          the principal and interest of which is fully guaranteed by, the full
          faith and credit of the United States of America); and

               (vii) bonds (A) which are not privately placed, rated at least
          Baa by Moody's with respect to utility bonds and rated at least A by
          Moody's with respect to corporate bonds (or, in the event the bond is
          not rated by Moody's, the bond is rated at least BBB or A,
          respectively, by Standard & Poor's and which for this purpose is
          assigned a Moody's equivalent rating of at least Baa or A,
          respectively), such rating confirmed on each Basic Maintenance Amount
          Evaluation Date, (B) which have a minimum issue size of at least
          $100,000,000, (C) which pay interest in cash in U.S. currency, (D)
          which are not convertible or exchangeable into equity of the issuing
          corporation and have a maturity of not more than 30 years and (E) for
          which the aggregate Market Value of the Trust's holdings of an
          original issue of corporate bonds shall not exceed 10% of the
          aggregate Market Value of such original issue calculated at the time
          of issuance.

PROVIDED, HOWEVER, that the Trust's investments in corporate bonds (not
including bonds issued by a utility) shall be included in the Moody's Eligible
Assets only to the extent that the aggregate Market Value of all such corporate
bonds does not exceed 40% of all the Trust's investments meeting the criteria
set forth in clauses (i) through (vii) above and PROVIDED FURTHER that the
Trust's investments in preferred and common stocks and bonds described in
clauses (iv), (v) and (vii) above of any single issuer whose senior debt
securities are rated A or better by Moody's or in such preferred stocks or
corporate bonds which are rated "a" or A, respectively, or better by Moody's, as
the case may be, shall be included in the Moody's Eligible Assets only to the
extent that the aggregate Market Value of all such stocks of such issuer does
not exceed 5% (or 10% taken together with common stocks and bonds described in
clause (v) and (vii) above which are issued by a utility whose senior debt
securities are rated A or better by Moody's, or 8% taken together with bonds
described in clause (vii) above which are issued by an issuer whose senior debt
securities are rated A or better by Moody's or which are rated A or better by
Moody's) of the aggregate Market Value of all of the Trust's investments meeting
the criteria set forth in clauses (i) through (vii) above less the aggregate
Market Value of those investments excluded from the Moody's Eligible Assets
pursuant to the immediately preceding provisos; and provided, further, that the
Trust's investments in preferred and common stocks and utility bonds described
in clauses (iv), (v) and (vii) above of any single issuer whose senior debt
securities are rated Baa by Moody's or in such preferred stocks which are rated
"baa" by Moody's, as the case may be, shall be included in the Moody's Eligible
Assets only to the extent that the aggregate Market Value of all such stocks of
such issuer does not exceed 2.5% (or 5% taken together with common stocks and
bonds described in clauses (v) and (vii) above which are issued by a utility
whose senior debt securities are rated Baa or better by Moody's) of the
aggregate Market Value of all the Trust's investments meeting the criteria set
forth in clauses (i) through (vii) above less the aggregate Market Value of


                                       30
<PAGE>


those investments excluded from the Moody's Eligible Assets pursuant to the two
immediately preceding provisos; and provided, further, that the Trust's
investments in any one industry (other than the utilities industry) shall be
included in the Moody's Eligible Assets only to the extent that the aggregate
Market Value of such investments does not exceed 20% of the aggregate Market
Value of all the Trust's investments meeting the criteria set forth in clauses
(i) through (vii) above less the aggregate Market Value of those investments
excluded from the Moody's Eligible Assets pursuant to the three immediately
preceding provisos; and provided, further, that the Trust's investments in
preferred and common stocks and bonds described in clauses (iv), (v) and (vii)
above of all issuers whose senior debt securities are rated Baa3 by Moody's or
in such preferred stocks which are rated "baa3" by Moody's, as the case may be,
shall be included in the Moody's Eligible Assets only to the extent that the
aggregate Market Value of all such stocks and bonds of such issuers does not
exceed 25% of the aggregate Market Value of all of the Trust's investments
meeting the criteria set forth in clauses (i) through (vii) above less the
aggregate Market Value of those investments excluded from the Moody's Eligible
Assets pursuant to the four immediately preceding provisos; and provided,
further, that the Trust's investments in adjustable rate preferred stocks
described in clause (iv) above shall be included in the Moody's Eligible Assets
only to the extent that the aggregate Market Value of such stocks does not
exceed 10% of the aggregate Market Value of all of the Trust's investments
meeting the criteria set forth in clauses (i) through (vii) above less the
aggregate Market Value of those investments excluded from the Moody's Eligible
Assets pursuant to the five immediately preceding provisos.

      By resolution of the Board of Trustees and without amending the By-Laws of
the Trust or otherwise submitting such resolution for shareholder approval,
other assets (including investments which either do not meet the criteria set
forth in clauses (i) through (vii) above or meet such criteria but are excluded
from the Moody's Eligible Assets by the foregoing provisos) may be included in
the Moody's Eligible Assets if Moody's has advised the Trust in writing that the
inclusion of such assets in the Moody's Eligible Assets would not adversely
affect its then-current rating of the shares of the AMPS, provided that the
Trust shall cause to be made available a written statement setting forth the
Moody's Eligible Assets, as changed and/or supplemented, for inspection by the
Holders at the principal executive office of the Trust.

          (b) "S&P ELIGIBLE ASSETS" MEANS:

               (i) cash (including, for this purpose, receivables for securities
          sold and, dividends receivable on S&P Eligible Assets);

               (ii) Short-Term Money Market Instruments (provided, however, that
          for purposes of this definition such instruments need not meet any
          otherwise applicable Moody's rating criteria);

               (iii) commercial paper that is not included as a Short-Term Money
          Market Instrument having on the date of purchase or other acquisition
          a rating from Standard & Poor's of "A-1+", "A-1" or "A-2" and issued
          or irrevocably and fully guaranteed by an obligor having at the time
          long-term unsecured debt obligations with a rating from Standard &
          Poor's of at least "BBB";


                                       31
<PAGE>


               (iv) preferred stocks (A) which either (1) are issued by issuers
          whose senior debt securities are rated at least "BBB" by Standard &
          Poor's or (2) are rated at least "BBB" by Standard & Poor's, (B) of
          issuers which have (or, in the case of issuers which are special
          purpose corporations, whose parent companies have) common stock listed
          on the New York Stock Exchange or the American Stock Exchange, (C)
          which have a minimum issue size (when taken together with other of the
          issuer's issues of similar tenor) of $50 million, (D) which have paid
          consistent cash dividends during the preceding three-year period (or,
          in the case of new issuers without a dividend history, are rated at
          least "A" by Standard & Poor's), (E) which pay cumulative cash
          dividends in U.S. dollars, (F) which are not convertible into any
          other class of stock and do not have warrants attached, and (G) in the
          case of auction preferred stocks, which have dividend periods of less
          than or equal to 49 days (or, in the case of a new issue of auction
          preferred stock, 64 days for the initial dividend period) and have
          never had a failed auction; PROVIDED, that for this purpose the
          aggregate Market Value of the Trust's holdings of (x) any issue of
          preferred stock which is not an auction preferred stock shall not be
          less than $500,000 nor more than $5,000,000 and (y) any issue of
          auction preferred stock shall not be more than $5,000,000; and

               (v) common stocks (A) which are issued by issuers whose senior
          debt securities are rated at least "BBB" by Standard & Poor's, (B)
          which are traded on the New York Stock Exchange or the American Stock
          Exchange, (C) which in the case of common stocks other than utility
          common stocks have a market capitalization greater than $500 million,
          (D) which in the case of utility common stocks are currently paying
          cash dividends or, in the case of other common stocks, are currently
          paying cash dividends and have paid consistent cash dividends during
          the preceding three-year period, and in the case of common stocks
          other than utility common stocks (E) which pay dividends in U.S.
          dollars; PROVIDED, that (1) the aggregate Market Value of the Trust's
          holdings of the common stock of any eligible issuer (x) shall be less
          than 5% of the number of outstanding shares multiplied by the Market
          Value of such common stock and (y) shall not exceed 5% of the number
          of outstanding shares (less the number of shares held by insiders as
          determined in accordance with standards established by Standard &
          Poor's) times the Market Value of such common stock and (2) the number
          of shares of common stock of any eligible issuer held by the Trust
          shall not exceed the average weekly trading volume of such common
          stock during the preceding month;

               (vi) Defensive Securities (U.S. government securities which (A)
          are direct obligations of, or fully guaranteed by the full faith and
          credit of, the United States of America, (B) either mature in less
          than one year or pay interest periodically and pay principal at
          maturity or call, (C) are registered in the name of the Trust
          (custodian account), (D) are free and clear of third party claims, and
          (E) the trustee (if any) has a first perfected security interest in
          the collateral);

               (vii) Utility Bonds which are (A) rated at least A by Standard &
          Poor's, (B) have a minimum issue size of at least $100 million, (C)
          have a maturity of not more than 30 years, and (D) are non-convertible


                                       32
<PAGE>


          and pay interest in U.S. currency; and

               (viii) Corporate bonds which are (A) rated at least A by Standard
          & Poor's, (B) have a minimum issue size of at least $100 million, (C)
          are registered under the 1933 Act, (D) have a maturity of not more
          than 30 years, (E) pay interest periodically in cash, and (F) are not
          convertible or exchangeable into equity of the issuing corporation.

PROVIDED, HOWEVER, that the Trust's investments in preferred and common stocks
described in clauses (iv) and (v) above of any single issuer whose senior debt
securities are rated "A" or better by Standard & Poor's or in such preferred
stock which is rated "A" or better by Standard & Poor's, as the case may be,
shall be included in the S&P Eligible Assets only to the extent that the
aggregate Market Value of all such stocks of such issuer does not exceed 5% (or
10% taken together with common stock described in clause (v) above issued by a
utility whose senior debt securities are rated "A" or better by Standard &'
Poor's) of the aggregate Market Value of all the Trust's investments meeting the
criteria set forth in clauses (i) through (vi) above; and PROVIDED, FURTHER,
that the Trust's,, investments in preferred and common stocks described in
clauses (iv) and (v) above of any single issuer whose senior debt securities are
rated "BBB" by Standard & Poor's or in such preferred stock which is rated "BBB"
by Standard & Poor's, as the case may be, shall be included in the S&P Eligible
Assets only to the extent that the aggregate Market Value of all such stocks of
such issuer does not exceed 2.5% (or 5% taken together with common stocks
described in clause (v) above issued by a utility whose senior debt securities
are rated "BBB" or better by Standard & Poor's) of the aggregate Market Value of
all the Trust's investments meeting the criteria set forth in clauses (i)
through (vi) above less the aggregate Market Value of those investments excluded
from the S&P Eligible Assets pursuant to the immediately preceding proviso; and
PROVIDED, FURTHEr, that the Trust's investments in any one industry (other than
the utilities industry) shall be included in the S&P Eligible Assets only to the
extent that the aggregate Market Value of such investments does not exceed 20%
of the aggregate Market Value of all of the Trust's investments meeting the
criteria set forth in clauses (i) through (vi) above less the aggregate Market
Value of those investments excluded from the S&P Eligible Assets pursuant to the
two immediately preceding provisos; and PROVIDED, FURTHER, that the Trust's
investments in preferred and common stocks described in clauses (iv) and (v)
above of all issuers whose senior debt securities are rated "BBB-" by Standard &
Poor's or in such preferred stocks which are rated "BBB-" by Standard & Poor's,
as the case may be, shall be included in the S&P Eligible Assets only to the
extent that the aggregate Market Value of all such stocks of such issuers does
not exceed 25% of the aggregate Market Value of all of the Trust's investments
meeting the criteria set forth in clauses (i) through (vi) above less the
aggregate Market Value of those investments excluded form the S&P Eligible
Assets pursuant to the three immediately preceding provisos; and PROVIDED,
FURTHER, that the Trust's investments in adjustable rate preferred stocks
described in clause (iv) above shall be included in the S&P Eligible Assets only
to the extent that the aggregate Market Value of such stocks does not exceed 10%
of the aggregate Market Value of all the Trust's investments meeting the
criteria set forth in clauses (i) through (vi) above less the aggregate Market
Value of those investments excluded from the S&P Eligible Assets pursuant to the
four immediately preceding provisos; and provided further Utility and Corporate
bonds described in clauses (vii) and (viii) be diversified by issuer and
industry independently of the diversification provisions described above for
common and preferred stocks. The diversification percentages of the corporate


                                       33
<PAGE>


and utility bonds includable as S&P Eligible Assets shall be based on the total
percentage of the defensive pool comprised of U.S. government securities
described in clause (vi), utility bonds described in clause (vii) and corporate
bonds described in clause (viii) determined by dividing the aggregate Market
Value of the investments meeting the criteria described in clauses (vi) through
(viii) by the aggregate Market Value of the Trust's investments meeting the
criteria set forth in clauses (i) through (viii) above.

                                 Defensive Pool

Percent of Trust's
Investments Composed of
Investments described under
Clauses vi, vii and viii above.         Issuer %                 Industry %
- -------------------------------         --------                 ----------
          0% - 29%                         5%                        10%
         30% - 59%                         6%                        12%
         60% - 79%                         8%                        17%
         80% - 100%                        10%                       20%

The Trust's investments in utility and corporate bonds described in clauses
(vii) and (viii) of any single issuer which are rated "A" or better by Standard
& Poor's shall be included as S&P Eligible Assets only to the extent that the
Market Value of all such corporate bonds and utility bonds of such issuer does
not exceed the appropriate Defensive Pool single issuer percentage of the
aggregate Market Value of all of the Trust's investments in utility and
corporate bonds meeting the criteria set forth in clauses (vii) and (viii) above
and provided further that the Trust's investments in corporate bonds in any one
industry (other than the utilities industry) shall be included in the S&P
Eligible Assets only to the extent that the aggregate Market Value of all such
corporate bonds does not exceed the appropriate Defensive Pool single industry
percentage of the aggregate Market Value of all of the Trust's investments in
utility and corporate bonds meeting the criteria set forth in clauses (vii) and
(viii) above less the aggregate Market Value of all those corporate bonds and
utility bonds excluded from the S&P Eligible Assets pursuant to the immediately
preceding proviso.

These diversification tests for corporate and utility bonds will be met after
the Trust is fully invested in such bonds. While the Trust is in the initial
process of purchasing corporate and utility bonds ("the invest-up period") the
above issuer and industry diversification restrictions will not apply; however,
such "invest-up period" shall not exceed 10 business days.

      By resolution of the Board of Trustees and without amending the By-Laws of
the Trust or otherwise submitting such resolution for shareholder approval,
other assets (including investments which either do not meet the criteria set
forth in clauses (i) through (viii) above or meet such criteria but are excluded
from the S&P Eligible Assets by the foregoing provisos) may be included in the
S&P Eligible Assets if Standard & Poor's has advised the Trust in writing that
the inclusion of such assets in the S&P Eligible Assets would not adversely
affect its then-current rating of the DARTS, PROVIDED that the Trust shall cause
to be made available a written statement setting forth the S&P Eligible Assets,
as changed and/or supplemented, for inspection by the Holders at the principal
executive office of the Trust.


                                       34
<PAGE>


          (c) (i) As of each 1940 Act Evaluation Date, the Trust shall determine
      whether the 1940 Act Asset Coverage is met as of such date. The
      calculation of the asset coverage for the DARTS on that date in accordance
      with the 1940 Act and whether the 1940 Act Asset Coverage is met shall be
      set forth in a certificate (a "Certificate of 1940 Act Asset Coverage")
      dated as of such 1940 Act Evaluation Date. In addition, as of each
      Eligible Asset Evaluation Date, the Trust shall determine (A) the Coverage
      Value of each Moody's Eligible Asset and each S&P Eligible Asset owned by
      the Trust on that date, (B) the Net Coverage Value of all such Moody's
      Eligible Assets and S&P Eligible Assets, (C) the Eligible Asset Coverage
      Amount with respect to such Eligible Asset Evaluation Date and (D) whether
      the Eligible Asset Coverage is met as of such date. The calculation of the
      Coverage Value of each Moody's Eligible Asset and each S&P Eligible Asset,
      the Net Coverage Value of all such Moody's Eligible Assets and S&P
      Eligible Assets, the Eligible Asset Coverage Amount and whether the
      Eligible Asset Coverage is met shall be set forth in a certificate (a
      "Certificate of Eligible Asset Coverage") dated as of such Eligible Asset
      Evaluation Date. As of each Dividend Coverage Evaluation Date, the Trust
      shall determine (A) the aggregate Coverage Value of the Dividend Coverage
      Assets for the Series A DARTS and Series B DARTS owned by the Trust on
      that date, (B) the Dividend Coverage Amount for the DARTS on that date,
      (C) whether the Dividend Coverage is met as of such date. The calculations
      of the aggregate Coverage Value of the Dividend Coverage Assets for the
      Series A DARTS and the Series B DARTS, the Dividend Coverage Amount for
      the Series A DARTS and the Series B DARTS and whether the Dividend
      Coverage is met shall be set forth in a certificate (a "Certificate of
      Dividend Coverage") dated as of such Dividend Coverage Evaluation Date.
      The Trust shall cause the Certificate of 1940 Act Asset Coverage to be
      delivered to the Common Shares Paying Agent not later than the close of
      business on the second Business Day after the related 1940 Act Evaluation
      Date. The Trust shall cause the Certificate of Eligible Asset Coverage and
      the Certificate of Dividend Coverage to be delivered to the DARTS Paying
      Agent and Standard and Poor's not later than the close of business on the
      second Business Day after the related evaluation date.

               (ii) In the event that a Certificate of 1940 Act Asset Coverage,
          a Certificate of Eligible Asset Coverage or a Certificate of Dividend
          Coverage is not delivered to the Common Shares Paying Agent or the
          DARTS Paying Agent, as the case may be, when required, the 1940 Act
          Asset Coverage, the Eligible Asset Coverage or the Dividend Coverage,
          as the case may be, will be deemed not to have been met as of the
          related evaluation date.

          (d) With respect to (i) the Certificate of 1940 Act Asset Coverage
      relating to any 1940 Act Cure Date, (ii) the Certificate of Eligible Asset
      Coverage relating to the Date of Original Issue and to every succeeding
      seventh Eligible Asset Evaluation Date thereafter (or such other dates as
      agreed to by the Rating Agencies), and to any Eligible Asset Cure Date,
      and (iii) the Certificate of Dividend Coverage relating to any Dividend
      Coverage Cure Date, the Trust shall obtain from the Independent
      Accountants a written communication confirming that, (A) with respect to
      the 1940 Act Asset Coverage, (1) the calculations set forth in the related
      Certificate of 1940 Act Asset Coverage are mathematically accurate and (2)
      the Independent Accountants have traced the prices used by the Trust in
      valuing the Trust's portfolio investments to the prices provided to the


                                       35
<PAGE>


      Trust by the Trust's custodian bank for such purpose and verified that
      such information agrees, and (B) with respect to the Eligible Asset
      Coverage or the Dividend Coverage, (1) the calculations set forth in the
      related Certificate of Eligible Asset Coverage or Certificate of Dividend
      Coverage, as the case may be, are mathematically accurate, (2) the method
      used by the Trust in determining whether the Eligible Asset Coverage or
      the Dividend Coverage, as the case may be, is met, is in accordance with
      the applicable requirements of the By-Laws of the Trust, (3) the
      Independent Accountants have traced the prices used by the Trust in the
      determination of Market Values of the Moody's Eligible Assets and the S&P
      Eligible Assets or the Dividend Coverage Assets, as the case may be, to
      the prices provided to the Trust by the Trust's custodian bank for
      purposes of such determination and verified that such information agrees,
      and (4) the assets listed as Moody's Eligible Assets and S&P Eligible
      Assets or Dividend Coverage Assets, as the case may be, in the related
      certificate conform to the descriptions of Moody's Eligible Assets and S&P
      Eligible Assets set forth in Sections 6.3(a) and (b) above, respectively,
      or the description of Dividend Coverage Assets set forth in Section 6.2(u)
      above, (such a written communication being referred to herein as an
      "Accountants' Certificate"). The Trust shall cause each Accountants'
      Certificate relating to any 1940 Act Cure Date to be delivered, together
      with the related Certificate of 1940 Act Asset Coverage, to the Common
      Shares Paying Agent by the close of business on such 1940 Act Cure Date.
      The Trust shall cause each Accountants' Certificate relating to every
      seventh Eligible Asset Evaluation Date to be delivered to the DARTS Paying
      Agent not later than the close of business on the sixth Business Day
      following the related Eligible Asset Evaluation Date (such sixth Business
      Day being referred to herein as a "Confirmation Date") and shall cause
      each Accountants' Certificate relating to any Eligible Asset Cure Date to
      be delivered to the DARTS Paying Agent by the close of business on the
      second Business Day following such Eligible Asset Cure Date. The Trust
      shall cause each Accountants' Certificate relating to any Dividend
      Coverage Cure Date to be delivered to the DARTS Paying Agent by the close
      of business on the second Business Day following such Dividend Coverage
      Cure Date. In the event of any difference between the Trust's calculations
      as shown on a Certificate of 1940 Act Asset Coverage, a Certificate of
      Eligible Asset Coverage or a Certificate of Dividend Coverage and the
      Independent Accountants' calculations as shown on an Accountants'
      Certificate, such calculations of the Independent Accountants shall
      control. If the number of Dividend Period Days is increased as provided in
      these By-Laws, the Trust shall provide for an Accountants' Certificate
      relating to a Certificate of Eligible Asset Coverage to be furnished to
      the DARTS Paying Agent at such additional times as may be necessary to
      provide for such confirmations to be furnished at least as frequently as
      provided prior to such increase.

          (e) If the 1940 Act Asset Coverage is not met as of any 1940 Act
      Evaluation Date as shown in a Certificate of 1940 Act Asset Coverage
      delivered to the Common Shares Paying Agent by the close of business on
      the second Business Day after such 1940 Act Evaluation Date, then the
      Trust shall (if necessary to enable it to meet the requirements of Section
      6.3 (f) below):

               (i) by the close of business on the 1940 Act Cure Date relating
          to such 1940 Act Evaluation Date, if the Trust shall have funds
          legally available for the purchase of shares of the DARTS, purchase
          such shares outside of an Auction in order that the 1940 Act Asset


                                       36
<PAGE>


          Coverage is met as of such 1940 Act Cure Date; and/or

               (ii) by the close of business on the applicable 1940 Act Cure
          Date, notify the DARTS Paying Agent of its intention to redeem, and
          give a Notice of Redemption as described in these By-Laws with respect
          to the redemption of DARTS.

          (f) If the 1940 Act Asset Coverage is not met as shown in a
      Certificate of 1940 Act Asset Coverage, then the Trust shall, by the close
      of business on the applicable 1940 Act Cure Date, deliver to the Common
      Shares Paying Agent a Certificate of 1940 Act Asset Coverage together with
      an Accountants' Certificate showing that the 1940 Act Asset Coverage is
      met (or, if subclause (ii) of Section 6.3(e) is applicable, would have
      been met) as of such 1940 Act Cure Date after giving effect to (A) any
      purchase of the DARTS outside of an Auction pursuant to subclause (i) of
      Section 6.3(e) and/or (B) any redemption of the DARTS pursuant to the
      Notice of Redemption contemplated by subclause (ii) of such Section 6.3
      (e) (as if such redemption had occurred immediately prior to the opening
      of business on such 1940 Act Cure Date).

          (g) If (x) the Eligible Asset Coverage is not met as of any Eligible
      Asset Evaluation Date as shown in a Certificate of Eligible Asset Coverage
      delivered to the DARTS Paying Agent by the close of business on the second
      Business Day after such Eligible Asset Evaluation Date or (y) the Trust is
      required to deliver to the DARTS Paying Agent by the close of business on
      a Confirmation Date an Accountants' Certificate confirming the Certificate
      of Eligible Asset Coverage with respect to such Eligible Asset Evaluation
      Date, and the Trust fails timely to deliver such Accountants' Certificate,
      then the Trust shall (if necessary to enable it to meet the requirements
      of Section 6.3 (h) below):

               (i) by the close of business on the Eligible Asset Cure Date
          relating to such Eligible Asset Evaluation Date or Confirmation Date,
          as the case may be, purchase or otherwise acquire additional Moody's
          Eligible Assets and/or S&P Eligible Assets or, if the Trust shall have
          funds legally available for the purchase of shares of the DARTS,
          purchase such shares outside of an Auction, or both, in order that the
          Eligible Asset Coverage is met as of such Eligible Asset Cure Date;
          and/or

               (ii) By the close of business on the second Business Day after
          the applicable Eligible Asset Cure Date, notify the DARTS Paying Agent
          of its intention to redeem, and give a Notice of Redemption with
          respect to the redemption of, shares of the DARTS as described herein.

          (h) If the Eligible Asset Coverage is not met as shown in a
      Certificate of Eligible Asset Coverage or if an Accountants' Certificate
      confirming a Certificate of Eligible Asset Coverage is not timely
      delivered as contemplated by subclause (x) or subclause (y) of Section 6.3
      (g) above, then the Trust shall, by the close of business on the second
      Business Day following the applicable Eligible Asset Cure Date, deliver to
      the DARTS Paying Agent a Certificate of Eligible Asset Coverage together


                                       37
<PAGE>


      with an Accountants' Certificate showing that the Eligible Asset Coverage
      is met (or, if subclause (ii) of such Section 6.3 (g) is applicable, would
      have been met) as of such Eligible Asset Cure Date after giving effect to
      (A) any purchase or other acquisition of Moody's Eligible Assets and/or
      S&P Eligible Assets or any purchase of the DARTS outside of an Auction
      pursuant to subclause (i) of Section 6.3 (g) and/or (B) any redemption of
      the DARTS pursuant to the Notice of Redemption contemplated by subclause
      (ii) of Section 6.3 (g) (as if such redemption had occurred immediately
      prior to the opening of business on such Eligible Asset Cure Date).

          (i) If the Dividend Coverage is not met as of any Dividend Coverage
      Evaluation Date as shown in a Certificate of Dividend Coverage delivered
      to the DARTS Paying Agent by the close of business on the second Business
      Day after such Dividend Coverage Evaluation Date, then the Trust shall, by
      the close of business on the Dividend Coverage Cure Date relating to such
      Dividend Coverage Evaluation Date, to the extent necessary so that the
      Dividend Coverage is met on such Dividend Coverage Cure Date, purchase or
      otherwise acquire Dividend Coverage Assets (with the proceeds from the
      liquidation of Moody's Eligible Assets and/or S&P Eligible Assets or
      otherwise). The Trust shall, by the second Business Day following the
      applicable Dividend Coverage Cure Date, deliver to the DARTS Paying Agent
      a Certificate of Dividend Coverage together with an Accountants'
      Certificate showing that the Dividend Coverage is met as of such Dividend
      Coverage Cure Date after giving effect to any purchase or other
      acquisition of Dividend Coverage Assets.

          (j) For purposes of determining whether the 1940 Act Asset Coverage is
      met, the Eligible Asset Coverage is met or the Dividend Coverage is met,
      no share of the DARTS shall be deemed to be "outstanding" for purposes of
      any computation if, prior to or concurrently with such determination, (i)
      the requisite funds for the redemption of such share shall have been
      deposited in trust with the DARTS Paying Agent for that purpose and the
      requisite Notice of Redemption shall have been given or (ii) such share
      shall have been redeemed, purchased or otherwise acquired by the Trust. In
      the case of subclause (i), the funds deposited with the DARTS Paying Agent
      (to the extent necessary to pay the full redemption price for such shares)
      shall not be included in determining whether the 1940 Act Asset Coverage,
      the Eligible Asset Coverage or the Dividend Coverage is met.

          (k) A copy of each certificate delivered to the DARTS Paying Agent or
      the Common Shares Paying Agent as required by this Section 6.3 shall be
      presented for review and approval at the meeting of the Board of Trustees
      next following the date of delivery of such certificate. Copies of all
      such certificates shall be included in the minute books of the Trust and
      shall be made available for inspection by the Holders at the principal
      executive office of the Trust.

      SECTION 6.4.  DIVIDENDS.
                    ----------

          (a) Holders of the Series A DARTS or Series B DARTS shall be entitled
      to receive, when, as, and if declared by the Board of Trustees, out of
      current and accumulated earnings and profits of the Trust for the fiscal
      year for which the dividend is declared, (i) cumulative cash dividends at


                                       38
<PAGE>


      the applicable dividend rate determined as set forth in Section 6.4(c)(i)
      below and (ii) cumulative cash Additional Dividends in an amount
      determined as set forth in Section 6.4(d)(ii) below, and no more, payable
      on the respective dates set forth below.

          (b) (i) Dividends on the shares of each series shall accumulate at the
      Applicable Rate (whether or not earned or declared) from the Date of
      Original Issue and shall be payable (I) in the case of Series A DARTS
      commencing on February 7, 1990 and thereafter on each successive seventh
      Wednesday following such date, and (II) in the case of Series B DARTS,
      commencing on February 14, 1990, and thereafter on each successive seventh
      Wednesday (the initial dividend payment date for the Series A DARTS or
      Series B DARTS being herein referred to as the "Initial Dividend Payment
      Date", and each such Wednesday on which dividends on the Series A DARTS or
      Series B DARTS would be payable but for the provisos below being referred
      to as a "Normal Dividend Payment Date") except that:

                    (A) if (1) the Securities Depository shall make available to
               its participants and members, in next-day funds in The City of
               New York, New York on Dividend Payment Dates, the amount due as
               dividends on such Dividend Payment Dates or shall make available
               to its participants and members, in funds immediately available
               in The City of New York, New York on Dividend Payment Dates, the
               amount then so due, but shall not have so advised the Trust
               Company, then (2)(x) if the Thursday following any Normal
               Dividend Payment Date for the Series A DARTS or Series B DARTS is
               not a Business Day, then dividends on the shares of the
               applicable series shall be payable on the Tuesday that precedes
               such Normal Dividend Payment Date, if such Tuesday and the Normal
               Dividend Payment Date are both Business Days, or (y) if the
               Normal Dividend Payment Date is not a Business Day, then on the
               Monday preceding such Normal Dividend Payment Date, if such
               Monday and the following Tuesday are both Business Days, or (z)
               if otherwise, then on the first Business Day that (I) falls after
               such Normal Dividend Payment Date and (II) is immediately
               followed by a Business Day; or

                    (B) if (1) the Securities Depository shall make available to
               its participants and members, in funds immediately available in
               The City of New York, New York on Dividend Payment Dates, the
               amount due as dividends on such Dividend Payment Dates, and shall
               have so advised the Trust Company, and (2) any Normal Dividend
               Payment Date for the applicable series is not a Business Day,
               then dividends on the shares of the applicable series shall be
               payable on the first Business Day after such Normal Dividend
               Payment Date;

provided, further, however, that if the date on which dividends on the
applicable series shall be payable as determined above is a day that would
result in the number of days between successive Auction Dates for such series
(determined by excluding the first Auction Date and including the second Auction
Date) not being at least equal to the then-current Minimum Holding Period, then


                                       39
<PAGE>


dividends on such series shall be payable on the first Business Day following
such date that is immediately followed by a Business Day and that results in the
number of days between successive Auction Dates for such series (determined as
above) being at least equal to the then-current Minimum Holding Period (each
such date on which dividends on the applicable series shall be payable being
referred to herein as a "Dividend Payment Date" for such series). Although any
particular Dividend Payment Date may not occur on the originally scheduled
Normal Dividend Payment Date because of the foregoing provisos, the next
succeeding Dividend Payment Date shall be, subject to such provisos, the seventh
Wednesday following the originally designated Normal Dividend Payment Date for
the prior Dividend Period. Notwithstanding the foregoing, in the event of a
change in law altering the minimum holding period (the "Minimum Holding Period")
required for corporate taxpayers generally to be entitled to the corporate
dividends received deduction under Section 243(a)(1) of the Internal Revenue
Code of 1986, as amended (the "Dividends Received Deduction"), in respect of
dividends (other than extraordinary dividends) paid on preferred stock held by
non-affiliated corporations, the Board of Trustees shall adjust uniformly the
period of time between successive Dividend Payment Dates for the Series A DARTS
and the period of time between successive Dividend Payment Dates for the Series
B DARTS (provided that both such periods shall be of equal length) so that the
number of days (such number of days, calculated without giving effect to the
provisos in the first sentence of this Section 6.4(b)(i), being herein referred
to as "Dividend Period Days") in Dividend Periods for each series commencing
after the effective date of such change in law will equal or exceed the
then-current Minimum Holding Period; provided that the number of Dividend Period
Days shall not exceed by more than ten days the length of such then-current
Minimum Holding Period, shall be evenly divisible by seven and, subject to the
provisos in the first sentence of this Section 6.4(b)(i), the Dividend Payment
Date shall be a Wednesday. The Trust shall notify the Rating Agencies at the
earliest practicable date of any impending change in law known to the Trust that
would lengthen the Minimum Holding Period, in order that the Rating Agencies may
analyze the Eligible Asset Coverage and Dividend Coverage in light of the
increased number of Dividend Period Days with a view toward maintaining their
then-current ratings of the DARTS. Upon any such change in the number of
Dividend Period Days as a result of a change in the law, the Trust shall cause
to be mailed notice of such change by first class mail, postage prepaid, to the
Trust Company, the DARTS Paying Agent, each Holder at such Holder's address as
it appears on the Shares Books, and to the Rating Agencies.

               (ii) Not later than noon on the Business Day immediately
          preceding each Dividend Payment Date with respect to which dividends
          on the Series A DARTS or Series B DARTS have been declared, the Trust
          shall deposit with (or, in the case of a wire transfer, shall
          irrevocably instruct its bank to transfer to) the DARTS Paying Agent
          sufficient funds for the payment of such dividends and shall give the
          DARTS Paying Agent irrevocable instructions to apply such funds and,
          if applicable, the income and proceeds therefrom, to the payment of
          such dividends. The Trust may direct the DARTS Paying Agent to invest
          any such available funds in Short-Term Money Market Instruments
          provided that the proceeds of any such investment will be available in
          The City of New York at the opening of business on such Dividend
          Payment Date. All such funds (to the extent necessary to pay the full
          amount of such dividends) shall be held in trust for the benefit of
          the Holders. In the event that sufficient funds shall not have been
          deposited with (or, in the case of a wire transfer, irrevocable
          instructions shall not have been given to transfer such funds to) the


                                       40
<PAGE>


          DARTS Paying Agent by noon on the Business Day immediately preceding
          any Dividend Payment Date for Series A DARTS or Series B DARTS for the
          payment of all accumulated dividends (whether or not earned or
          declared) on the outstanding shares of the applicable series on such
          Dividend Payment Date, then any Auction scheduled to determine the
          dividend rate on the shares of such series for the Dividend Period
          commencing on such Dividend Payment Date shall be deemed not to have
          been held and the dividend rate on the shares of such series for such
          Dividend Period shall be equal to 200% of the 60-day "AA" Composite
          Commercial Paper Rate on the Auction Date with respect to such
          Dividend Period.

               (iii) Each dividend on the shares of the Series A DARTS or Series
          B DARTS declared by the Board of Trustees shall be paid to Holders of
          such shares as such Holders' names appear on the Shares Books on the
          related record date, which shall be the opening of business on the
          Business Day immediately preceding the Dividend Payment Date for such
          dividend. Subject to Section 6.4(e)(i) below, dividends on the Series
          A DARTS or Series B DARTS in arrears for any past Dividend Period may
          be declared by the Board of Trustees and paid on any date fixed by the
          Board of Trustees, on a regular Dividend Payment Date or otherwise, to
          Holders of such shares as such Holders' names appear on the Shares
          Books on the related record date fixed by the Board of Trustees, which
          shall not be more than 15 days before the date fixed for the payment
          of such dividends.

          (c) (i) (A) The dividend rate on the Series A DARTS for the period
      commencing on the Date of Original Issue and ending on the Initial
      Dividend Payment Date shall be 7.20% per annum and the dividend rate on
      the Series B DARTS commencing on the Date of Original Issue and ending on
      the Initial Dividend Payment Date shall be 7.25% per annum, and (B) the
      dividend rate on the Series A DARTS and Series B DARTS for each subsequent
      period commencing on the last Dividend Payment Date for the applicable
      series and ending on the next Dividend Payment Date for such series (each
      such period, and the period commencing on the Date of Original Issue and
      ending on the Initial Dividend Payment Date, being referred to herein as a
      "Dividend Period" for the applicable series) shall be the rate per annum
      equal to the rate determined for the applicable series pursuant to the
      Auction Procedures set forth in Section 6.9 below. Notwithstanding the
      foregoing, (I) in the event that an Auction with respect to any Dividend
      Period for the applicable series is not held for any reason or is deemed
      not to have been held as provided in Section 6.4(b)(ii) above, the
      dividend rate on the shares of such series for such Dividend Period shall
      be the Maximum Applicable Rate on the Auction Date with respect to such
      Dividend Period, and (II) in the event that shares of the Series A DARTS
      or Series B DARTS are called for redemption, the dividend rate for such
      shares until the commencement of the next Dividend Period shall be the
      dividend rate otherwise in effect on the date of the Notice of Redemption,
      and the dividend rate for such shares for each subsequent Dividend Period
      or part thereof (if any) until the redemption date shall be the Maximum
      Applicable Rate on the Auction Date with respect to such Dividend Period.
      The dividend rate on the Series A DARTS and Series B DARTS for any


                                       41
<PAGE>


      Dividend Period or part thereof determined as set forth in this clause (i)
      is referred to herein as the "Applicable Rate" for such Dividend Period or
      part thereof.

               (ii) The amount of dividends per share of the Series A DARTS and
          Series B DARTS payable for each Dividend Period or part thereof shall
          be computed by multiplying the Applicable Rate for the applicable
          series for such Dividend Period by a fraction, the numerator of which
          shall be the number of days in such Dividend Period (determined by
          including the first day thereof and excluding the last day thereof)
          during which such share was outstanding and the denominator of which
          shall be 360, and multiplying the result by $100,000.

          (d) (i) If, for any taxable year, any portion of the dividends paid on
      the DARTS is ineligible for the Dividends Received Deduction because (A)
      the Trust's Net Income, excluding Net Capital Gains, exceeds the amount of
      dividends received by the Trust that qualify for the Dividends Received
      Deduction or (B) the Trust realizes Net Capital Gains and, as a result,
      the Trust is not permitted to designate all of the dividends paid on the
      DARTS as qualifying for the Dividends Received Deduction, then additional
      dividends ("Additional Dividends") for that year shall accumulate and
      shall become payable on the DARTS as set forth below such that the Net
      After-Tax Return to a Holder which is a corporation from any such dividend
      paid at the Applicable Rate and the Additional Dividend relating to such
      dividend will be the same as the Net After-Tax Return that would have been
      derived from the dividends paid in respect of such year if (x) the Trust's
      Net Income, excluding Net Capital Gains, had not exceeded the amount of
      dividends received by the Trust that qualify for the Dividends Received
      Deduction or (y) the Trust had not realized Net Capital Gains.

               (ii) Simultaneously with the declaration of each dividend at the
          Applicable Rate, the Board of Trustees shall declare a dividend
          consisting of one right (a "Right") to receive an Additional Dividend
          in respect of such dividend at the Applicable Rate. Shortly after the
          end of the fiscal year in which a dividend at the Applicable Rate for
          each series is declared, the Trust shall make a calculation pursuant
          to Section 6.4(d)(iii) and (iv) below of the Additional Dividend, if
          any, in respect of each Right for such year. If the Trust determines
          that an Additional Dividend is payable in respect of any Right
          received during such year, such Additional Dividend in respect of such
          Right shall be paid to each Holder that received such Right, whether
          or not any such Holder continues to own the shares of the applicable
          series in respect of which such Right was issued. Rights shall be
          nontransferable except by operation of law. The calculation of the
          amount of the Additional Dividend, if any, shall be based on the
          income and expenses of the Trust to the end of the Trust's fiscal
          year. Any Additional Dividend shall be payable as promptly as
          practicable after the calculation of the amount thereof, but in any
          event must be paid within the time limit and in such a manner as will
          permit the Trust to treat each Additional Dividend as having been paid
          during such year for Federal tax purposes. The Trust shall (i) deposit
          with the DARTS Paying Agent or (ii) irrevocably instruct its bank to
          segregate in a separate trust account sufficient funds for the payment
          of such Additional Dividend not later than noon on the Business Day
          immediately preceding the date on which such Additional Dividend


                                       42
<PAGE>

          becomes payable and shall give the DARTS Paying Agent, or its bank,
          irrevocable instructions to apply such funds and, if applicable, the
          income and proceeds therefrom, to the payment of such Additional
          Dividend. The Trust may direct the DARTS Paying Agent, or its bank, to
          invest any such available funds in Short-Term Money Market Instruments
          provided that the proceeds of any such investment will be available in
          The City of New York at the opening of business on the payment date
          for such Additional Dividend. All such funds (to the extent necessary
          to pay the full amount of such Additional Dividend) shall be held in
          trust for the benefit of the Holders. If, for any taxable year, all
          dividends at the Applicable Rate paid on the Series A DARTS and Series
          B DARTS are eligible in full for the Dividends Received Deduction,
          then the amount of each Additional Dividend with respect to such
          dividends shall be zero.

               (iii) If for any fiscal year (x) the Trust's Net Income,
          excluding Net Capital Gains, exceeds the amount of dividends received
          by the Trust that qualify for the Dividends Received Deduction or (y)
          the Trust realizes Net Capital Gains (each of (x) and (y) an
          "Additional Dividend Event"), then the Trust shall:

                    (A) allocate to the distributions made on the Common Shares
               and the DARTS dividends received by the Trust that would have
               qualified for the Dividends Received Deduction if the Trust were
               not a regulated investment company ("Qualified Dividends") in
               proportion to the distributions paid as dividends on the Common
               Shares and the DARTS (including Additional Dividends),
               respectively, for such fiscal year;

                    (B) allocate to the distributions made on the Common Shares
               and the DARTS (including Additional Dividends) the Net Capital
               Gains of the Trust in proportion to the distributions paid as
               dividends on the Common Shares and the DARTS (including
               Additional Dividends), respectively, for such fiscal year;

                    (C) designate (in part or in whole, as the case may be) as
               derived from Net Capital Gains allocated to the distributions
               made on the Series A DARTS and Series B DARTS first the dividend
               and the Additional Dividend payable with respect to the Dividend
               Period for which the first Dividend Payment Date for the
               applicable series occurs in the fiscal year following the fiscal
               year in which the Net Capital Gains are realized (the "Fiscal
               Year-End Dividend Period" for the applicable series) and next, if
               the Net Capital Gains allocated to the distributions made on the
               Series A DARTS and Series B DARTS exceed the amount of the
               dividend and Additional Dividend payable with respect to such
               Dividend Period, to the dividend and Additional Dividend payable
               with respect to the next preceding Dividend Period for the
               applicable series; and

                    (D) designate as derived from Qualified Dividends allocated
               to the distributions made on the Series A DARTS and Series B
               DARTS first the distribution paid as dividends with respect to
               the first Dividend Payment Date for the applicable series of the


                                       43
<PAGE>


               fiscal year in which the Trust earned such Qualified Dividends
               and thereafter designate each distribution paid as dividends with
               respect to each successive Dividend Payment Date for the
               applicable series as derived from such Qualified Dividends, up to
               an amount equal to the amount of the Qualified Dividends
               allocated to the distributions made on the Series A DARTS and
               Series B DARTS.

               (iv) Notwithstanding the provisions of paragraphs (d)(iii)(C) and
          (D) above, if (x) the difference of (1) the sum of the distributions
          paid as dividends and Additional Dividends on the Series A DARTS and
          Series B DARTS and (2) the Qualified Dividends allocable to the Series
          A DARTS and Series B DARTS exceeds the amounts payable as dividends
          and Additional Dividends with respect to the Fiscal year-End Dividend
          Period for both series and the immediately preceding Dividend Period
          for both series or (y) the Trust is prohibited by applicable law,
          rule, regulation or interpretation from designating dividends and
          Additional Dividends as derived from Net Capital Gains or as qualified
          for the Dividends Received Deduction as provided in subparagraphs (C)
          and (D) above, the Trust shall designate distributions made as
          dividends and Additional Dividends on the DARTS as derived from Net
          Capital Gains or as Qualified Dividends in a manner determined by the
          Board of Trustees to be just and equitable to the Holders.

               (v) If the Trust's designations of dividends qualifying for the
          Dividends Received Deduction are not given effect for federal income
          tax purposes, the Trust will not be required to pay Additional
          Dividends on the DARTS to compensate for the resulting reduction in
          the Net After-Tax Return to the holders of the DARTS. Moreover, no
          Additional Dividends shall become payable as a result of any change in
          the law concerning the eligibility of amounts paid with respect to the
          DARTS for the Dividends Received Deduction or the reduction or
          elimination of the Dividends Received Deduction.

          (e) (i) No dividends shall be declared or paid or set apart for
      payment on the Series A DARTS or Series B DARTS for any Dividend Period or
      part thereof unless full cumulative dividends (including Additional
      Dividends) have been or contemporaneously are declared and paid on each of
      the Series A DARTS and Series B DARTS through the most recent applicable
      Dividend Payment Date. Any dividend payment made on shares of the Series A
      DARTS and Series B DARTS will be first credited against the dividends
      accumulated thereon with respect to the earliest Dividend Period for such
      series for which dividends have not been paid. If full cumulative
      dividends are not paid on the Series A DARTS or Series B DARTS, all
      dividends declared on such shares shall be paid pro rata to the Holders of
      the outstanding shares of such series. No Holder shall be entitled to any
      dividends or Additional Dividends, whether payable in cash, property or
      shares, in excess of full cumulative dividends and Additional Dividends,
      as provided in this Section 6.4. No interest, or sum of money in lieu of
      interest, shall be payable in respect of any dividend payment on the
      shares of the DARTS that may be in arrears.


                                       44
<PAGE>


               (ii) For so long as any shares of the DARTS are outstanding, the
          Trust shall not declare, pay or set apart for payment any dividend or
          other distribution in respect of the Common Shares or any other shares
          of the Trust ranking junior to the DARTS as to dividends or upon
          liquidation, or call for redemption, redeem, purchase or otherwise
          acquire for consideration any Common Shares or any other shares of the
          Trust ranking junior to the DARTS as to dividends or upon liquidation,
          unless (A) immediately thereafter, the 1940 Act Asset Coverage is met,
          the Eligible Asset Coverage is met and the Dividend Coverage is met,
          (B) full cumulative dividends (including Additional Dividends) on all
          shares of the Series A DARTS and Series B DARTS for all past Dividend
          Periods for each series have been paid or declared and a sum
          sufficient for the payment of such dividends (which shall be reflected
          in an officer's certificate filed with the records of the Trust
          maintained at its principal executive office) set apart for payment,
          and (C) the Trust has redeemed the full number of shares of the DARTS
          required to be redeemed by any provision for mandatory redemption
          contained in the By-Laws of the Trust (the number of shares subject to
          mandatory redemption to be determined without regard to the
          requirement that redemptions be made out of legally available funds).
          The Certificate of 1940 Act Asset Coverage, the Certificate of
          Eligible Asset Coverage and the Certificate of Dividend Coverage dated
          as of the applicable evaluation date shall reflect any such
          transaction.

          (f) For so long as any shares of the DARTS are outstanding; the Trust
      Company (which shall act as agent of the Trust in connection with the
      implementation of the Auction Procedures) and the DARTS Paying Agent
      (which shall act as transfer agent, registrar, dividend disbursing agent
      and redemption agent on behalf of the Trust with respect to the DARTS),
      shall receive and inspect Certificates of Eligible Asset Coverage,
      Certificates of Dividend Coverage, and related Accountants' Certificates
      and shall have certain related responsibilities) shall each be a
      commercial bank, trust company or other financial institution unaffiliated
      with the Trust or any affiliate of the Trust (which, however, may engage
      or have engaged in business transactions with the Trust), and at no time
      shall the Trust or any affiliate of the Trust act as the Trust Company or
      the DARTS Paying Agent (except in connection with the payment of
      Additional Dividends). If the Trust Company or the DARTS Paying Agent
      resigns or for any reason its appointment is terminated during any period
      that any shares of the DARTS are outstanding, the Board of Trustees shall
      promptly thereafter use its best efforts to appoint another qualified
      commercial bank, trust company or financial institution to act as the
      Trust Company or the DARTS Paying Agent, as the case may be, upon
      commercially reasonable terms. A single qualified commercial bank, trust
      company or financial institution may act as the Trust Company and the
      DARTS Paying Agent. The DARTS Paying Agent shall maintain an office or
      agency in The City of New York for purposes of making payments on the
      shares of the DARTS.

      SECTION 6.5.  LIQUIDATION RIGHTS.
                    ------------------

          (a) Upon the liquidation, dissolution or winding up of the affairs of
      the Trust, whether voluntary or involuntary, Holders shall be entitled to
      receive, out of the assets of the Trust available for distribution to
      shareholders after satisfying claims of creditors but before any payment


                                       45
<PAGE>


      or distribution to the holders of the Common Shares or on any other class
      of shares ranking junior to the DARTS upon liquidation, a liquidation
      distribution in the amount of $100,000 per share plus an amount equal to
      accumulated and unpaid dividends (including Additional Dividends) on each
      such share (whether or not earned or declared) to the date of such
      distribution. Unless and until payment in full has been made to the
      Holders of the liquidation distributions to which they are entitled as
      provided in this Section 6.5, no dividends or distributions will be made
      to holders of the Common Shares or any other shares junior to the DARTS on
      liquidation, and no purchase, redemption or other acquisition for any
      consideration by the Trust will be made id respect of the Common Shares or
      any other shares ranking junior to the DARTS upon liquidation. After the
      payment to Holders of the full amount of the liquidation distributions to
      which they are entitled pursuant to the first sentence of this Section
      6.5(a), Holders (in their capacity as such Holders) shall have no right or
      claim to any of the remaining assets of the Trust.

          (b) Neither the sale, lease or exchange (for cash, stock, securities
      or other consideration) of all or substantially all of the property and
      assets of the Trust, nor the merger or consolidation of the Trust into or
      with any other corporation, nor the merger or consolidation of any other
      corporation into or with the Trust, shall be deemed to be a dissolution,
      liquidation or winding up, voluntary or involuntary, for the purposes of
      this Section 6.5.

          (c) If the assets of the Trust available for distribution to the
      Holders upon the dissolution, liquidation or winding up of the Trust,
      whether voluntary or involuntary, shall be insufficient to pay the full
      amount of the liquidation distributions to which the Holders are entitled
      pursuant to Section 6.5(a) above, then such assets shall be distributed
      among the Holders ratably in proportion to the full amount of distribution
      to which each Holder would have been entitled under such Section 6.5(a).

      SECTION 6.6.  REDEMPTION.
                    ----------

      Shares of the DARTS shall be redeemable by the Trust as provided below:

          (a) OPTIONAL REDEMPTION.

          At its option, the Trust may, out of funds legally available
therefor, upon not fewer than 30 nor more than 45 days' notice pursuant to a
Notice of Redemption, redeem the Series A DARTS or Series B DARTS as a whole or
from time to time in part on the second Business bay preceding any Dividend
Payment Date, at a redemption price equal to $100,000 per share plus an amount
equal to the accumulated and unpaid dividends (including Additional Dividends,
if any (such Additional Dividends payable on the first Dividend Payment Date
following the Trust's fiscal year end)) to the redemption date.

          (b) MANDATORY REDEMPTION.

               (i) If the 1940 Act Asset Coverage is not met as of any 1940 Act
          Cure Date as shown in a Certificate of 1940 Act Asset Coverage and the
          related Accountants' Certificate delivered by the Trust to the Common
          Shares Paying Agent by the close of business on such 1940 Act Cure


                                       46
<PAGE>


          Date, then the Trust shall, by the close of business on such 1940 Act
          Cure Date, (A) notify the DARTS Paying Agent of its intention to
          redeem on the earliest practicable date following such 1940 Act Cure
          Date the number of DARTS set forth below and (B) give a Notice of
          Redemption (which shall specify a mandatory redemption date that is
          not fewer than 30 days or more than 45 days after the date of such
          notice) with respect to the redemption of DARTS on such mandatory
          redemption date. On such mandatory redemption date, the Trust shall
          redeem, out of funds legally available therefor, the number of DARTS
          equal to the minimum number of shares the redemption of which, if such
          redemption had occurred immediately prior to the opening of business
          on such 1940 Act Cure Date, would result in the 1940 Act Asset
          Coverage having been met on such 1940 Act Cure Date or, if the 1940
          Act Asset Coverage cannot be so restored, all of the DARTS, at a
          redemption price equal to $l00,000 per share plus an amount equal to
          all accumulated and unpaid dividends (including Additional Dividends
          (such Additional Dividends payable on the first Dividend Payment Date
          following the Trust's fiscal year end)) on such shares (whether or not
          earned or declared) to such mandatory redemption date.

               (ii) If the Eligible Asset Coverage is not met as of any Eligible
          Asset Cure Date as shown in a Certificate of Eligible Asset Coverage
          and the related Accountants' Certificate delivered by the Trust to the
          DARTS Paying Agent by the close of business on the second Business Day
          following such Eligible Asset Cure Date, then the Trust shall, by the
          close of business on the second Business Day following such Eligible
          Asset Cure Date, (A) notify the DARTS Paying Agent of its intention to
          redeem on the earliest practicable date following such Eligible Asset
          Cure Date the number of DARTS set forth below and (B) give a Notice of
          Redemption (which shall specify a mandatory redemption date that is
          not fewer than 30 days or more than 45 days after the date of such
          notice) with respect to the redemption of DARTS on such mandatory
          redemption date. On such mandatory redemption date, the Trust shall
          redeem, out of funds legally available therefor, the number of DARTS
          equal to the minimum number of shares the redemption of which, if such
          redemption had occurred immediately prior to the opening of business
          on such Eligible Asset Cure Date,_ would result in the Eligible Asset
          Coverage having been met on such Eligible Asset Cure Date or, if the
          Eligible Asset Coverage cannot be so restored, all of the DARTS, at a
          redemption price equal to $100,000 per share plus an amount equal to
          all accumulated and unpaid dividends (including Additional Dividends)
          on such shares (whether or not earned or declared) to such mandatory
          redemption date.

               (iii) If the Trust shall not have funds legally available for the
          redemption of all or any portion of the DARTS to be redeemed on any
          mandatory redemption date, the Trust shall redeem on such mandatory
          redemption date the number of DARTS as it shall have legally available
          funds to redeem, and the remainder of the DARTS required to be
          redeemed shall be redeemed on the earliest practicable date next
          following the day on which the Trust shall first have funds legally
          available for the redemption of such shares, pursuant to a Notice of
          Redemption (which shall specify a mandatory redemption date that is
          not fewer than the minimum number of days after the date of such


                                       47
<PAGE>


          notice required by the 1940 Act).

               (iv) In the event of a redemption in part of Series A DARTS or
          Series B DARTS pursuant to Section 6.6(b)(i) or Section 6.6(b)(ii)
          above, such redemption shall not be effected on any of the three
          Business Days immediately preceding a Dividend Payment Date for the
          applicable series.

          (c)  GENERAL PROVISIONS FOR REDEMPTIONS.

               (i) Notwithstanding the other provisions of this Section 6.6, the
          Trust shall not redeem, purchase or otherwise acquire DARTS unless (A)
          all accumulated and unpaid dividends (including Additional Dividends)
          on all outstanding DARTS for all applicable past Dividend Periods
          shall have been or are contemporaneously paid or declared and a sum
          sufficient for the payment of such dividends (which shall be reflected
          in an officer's certificate filed with the records of the Trust
          maintained at its principal executive office) - set apart for payment
          and (B) the 1940 Act Asset Coverage, the Eligible Asset Coverage and
          the Dividend Coverage would be met on the date of such redemption,
          purchase or other acquisition after giving effect thereto and, on or
          prior to such date, the Trust provides to the Common Shares Paying
          Agent a Certificate of 1940 Act Asset Coverage and to the DARTS Paying
          Agent a Certificate of Eligible Asset Coverage and a Certificate of
          Dividend Coverage, each together with a confirming Accountants'
          Certificate, showing compliance with this subclause (B); provided,
          however, that the Trust may, without regard to the limitations
          contained in subclause (A) or (B), but subject to the requirements of
          the 1940 Act, redeem, purchase or otherwise acquire DARTS (1) as a
          whole, either pursuant to an optional redemption or a mandatory
          redemption, or (2) pursuant to a purchase or exchange offer made on an
          equal basis for all of the outstanding DARTS for a price that is
          proper under the 1940 Act. In the event that fewer than all of the
          outstanding DARTS are to be redeemed pursuant to either an optional
          redemption or a mandatory redemption, the shares to be redeemed shall
          otherwise be selected by lot, or such other method as the Board of
          Trustees shall deem fair and equitable.

               (ii) Whenever DARTS are to be redeemed, the Trust shall cause to
          be mailed, within the time periods specified in Section 6.6(a) and
          6.6(b) above, a written notice of redemption (a "Notice of
          Redemption") by first-class mail, postage prepaid, to each Holder of
          the DARTS to be redeemed as its name and address appear on the Shares
          Books and to the DARTS Paying Agent. The Notice of Redemption shall
          also be published in THE WALL STREET JOURNAL (or, if such notice
          cannot be published therein, then in a comparable newspaper printed in
          the English language and of general circulation in The City of New
          York). Each Notice of Redemption shall state (A) the redemption date,
          (B) the redemption price, (C) the number of Series A DARTS and Series
          B DARTS to be redeemed, (D) the place or places where the DARTS are to
          be surrendered for payment of the redemption price, (E) that dividends
          on the shares to be redeemed will cease to accumulate on such


                                       48
<PAGE>


          redemption date, (F) the provision of these By-Laws under which the
          redemption is being made and (G) if applicable, that the Holders of
          the DARTS being called for redemption will not be entitled to
          participate, with respect to such shares, in any Auction held
          subsequent to the date of such Notice of Redemption. In the case of an
          optional redemption in part of the Series A DARTS or Series B DARTS,
          the related Notice of Redemption shall not be given prior to the
          Dividend Payment Date for the applicable series immediately preceding
          the date of redemption specified in such notice. No defect in the
          Notice of Redemption-or in the mailing or publication thereof shall
          affect the validity of the redemption proceedings, except as required
          by applicable law. A Notice of Redemption shall be deemed given on the
          day that it is mailed in accordance with the first sentence of this
          subclause (ii).

               (iii) On or after the redemption date, each Holder of DARTS that
          were called for redemption shall surrender the certificate evidencing
          such shares to the Trust at the place designated in the Notice of
          Redemption and shall then be entitled to receive payment of the
          redemption price for each share. If less than all of the shares
          represented by one share certificate are to be redeemed, the Trust
          shall issue a new share certificate for the shares not redeemed.

               (iv) Not later than noon on the Business Day immediately
          preceding the redemption date, the Trust shall irrevocably deposit
          with (or, in the case of a wire transfer, shall irrevocably instruct
          its bank to transfer to) the DARTS Paying Agent sufficient funds to
          redeem the DARTS to be redeemed and shall give the DARTS Paying Agent
          irrevocable instructions to apply such funds and, if applicable, the
          income and proceeds therefrom, to the payment of the redemption price
          upon surrender of the certificate therefor. The Trust may direct the
          DARTS Paying Agent to invest any such available funds in Short-Term
          Money Market Instruments provided that the proceeds of any such
          investment will be available in The City of New York at the opening of
          business on such redemption date. All such funds (to the extent
          necessary to pay the full amount of the redemption price) shall be
          held in trust for the benefit of the Holders.

               (v) If the Trust shall have given or caused to be given a Notice
          of Redemption as aforesaid, shall have irrevocably deposited with the
          DARTS Paying Agent a sum sufficient to redeem the DARTS as to which
          such Notice of Redemption was given and shall have given the DARTS
          Paying Agent irrevocable instructions and authority to pay the
          redemption price to the Holders of such shares, then on the date of
          such deposit (or, if no such deposit shall have been made, then on the
          date fixed for redemption, unless the Trust shall have defaulted in
          making payment of the redemption price), all rights of the Holders of
          such shares by reason of their ownership of such shares (except their
          right to receive the redemption price thereof, but without interest)
          shall terminate, and such shares shall no longer be deemed outstanding
          for any purpose, including, without limitation, calculation of the
          Eligible Asset Coverage Amount or the Dividend Coverage Amount or the
          right of the Holders of such shares to vote on any matter or to
          participate in any subsequent Auctions. In addition, subject to the


                                       49
<PAGE>


          exception provided in the next sentence, any DARTS as to which a
          Notice of Redemption has been given by the Trust shall be deemed to be
          not outstanding (as defined in Section 6.9(a)(xi) below) for purposes
          of any Auction held subsequent to the date of such Notice of
          Redemption. In the case of a mandatory redemption in part of the
          Series A DARTS or Series B DARTS, the shares that are being redeemed
          shall remain outstanding for purposes of any Auction, notwithstanding
          the giving of a Notice of Redemption, until such shares are deemed to
          be not outstanding as provided in the first sentence of this clause
          (v). The Trust shall be entitled to receive, from time to time, from
          the DARTS Paying Agent the income, if any, derived from the investment
          of monies and/or other assets deposited with it (to the extent that
          such income is not required to pay the redemption price of the shares
          to be redeemed), and the Holders of shares to be redeemed shall have
          no claim to any such income. In case the Holder of any shares called
          for redemption shall not claim the redemption price for his shares
          within two years after the redemption date, the DARTS Paying Agent
          shall, upon demand, pay over to the Trust such amount remaining on
          deposit and the DARTS Paying Agent shall thereupon be relieved of all
          responsibility to the Holder with respect to such shares, and such
          Holder shall thereafter look only to the Trust for payment of the
          redemption price of such shares.

               (vi) Except as set forth in this Section 6.6 with respect to
          redemptions and subject to the provisions of Section 6.6(c)(i) above
          and the 1940 Act, nothing contained herein shall limit any legal right
          of the Trust to purchase or otherwise acquire any DARTS outside of an
          Auction at any price, whether higher or lower than the redemption
          price, in privately negotiated transactions or in the over-the-counter
          market or otherwise.

               (vii) DARTS that have been redeemed, purchased or otherwise
          acquired by the Trust may not be reissued.

               (viii) From and after the occurrence of any event requiring the
          redemption of DARTS pursuant to Section 6.6(b) above, and for so long
          as any DARTS are subject to mandatory redemption as provided in such
          Section 6.6(b), the Trust shall not reinvest the proceeds of any
          assets received prior to the mandatory redemption date for any such
          shares except in Short-Term Money Market Instruments with maturity
          dates not later than noon on the Business Day immediately preceding
          such mandatory redemption date; provided that the foregoing
          restrictions shall not be applicable to any reinvestment of proceeds
          if, after giving effect thereto, the Trust would have sufficient
          monies to redeem all of the DARTS that are subject to redemption on
          such mandatory redemption date.

               (ix) Solely for the purpose of determining the number of DARTS to
          be stated in a Notice of Redemption as subject to a mandatory or
          optional redemption, the amount of funds legally available for such
          redemption shall be determined as of the date of such Notice of
          Redemption.


                                       50
<PAGE>


               (x) In the event that the Trust shall have given a Notice of
          Redemption with respect to any shares of the DARTS and the sale of any
          Eligible Assets with a Discount Factor of greater than 1.000 shall be
          necessary to provide sufficient monies to redeem all such shares on
          the redemption date, the Trust shall sell or otherwise liquidate such
          asset as soon as reasonably practicable following the date on which
          such Notice of Redemption is given and shall take all reasonable steps
          to ensure that all such sales or other liquidations are effected no
          later than 30 days after such date.

               (xi) The Trust shall not give a Notice of Redemption with respect
          to an optional redemption unless at the time of giving of such notice
          the Trust shall in good faith believe that it will have sufficient
          funds to effect the redemption of all of the DARTS to be redeemed
          pursuant to such notice.

      SECTION 6.7.  VOTING RIGHTS.
                    -------------

          (a) GENERAL. Except as otherwise provided by law and as specified by
      this Section 6.7, the Holders of DARTS shall have equal voting rights with
      the holders of Common Shares and shall be entitled to one vote for each
      share on each matter submitted to a vote of the shareholders of the Trust.
      For purposes of determining any right of the Holders to vote on any
      matter, whether such right is created by the Declaration or these By-Laws,
      or otherwise, no Holder shall be entitled to vote and no share of the
      DARTS shall be deemed to be "outstanding" for the purpose of voting or
      determining the number of shares required to constitute a quorum, if prior
      to or concurrently with the time of determination of shares entitled to
      vote or shares deemed outstanding for quorum purposes, as the case may be,
      sufficient funds for the redemption of such shares have been deposited in
      trust with the DARTS Paying Agent for that purpose and the requisite
      Notice of Redemption with respect to such shares shall have been given as
      provided in Section 6.6(c)(ii) above.

          (b) CLASS VOTING. The holders of Common Shares and the Holders of the
      DARTS shall vote together as a single class except as hereinafter provided
      or to the extent otherwise required by the 1940 Act or the Declaration.

               (i) So long as any of the DARTS are outstanding, without the
          affirmative vote of (x) the Holders of at least a majority of the
          shares of the DARTS then outstanding and (y) the holders of at least a
          majority of the Common Shares then outstanding, each voting as a
          separate class, the Trust shall not approve any action requiring a
          vote of security holders as provided in Section 13(a) of the 1940 Act.

               (ii) The Trust may be voluntarily liquidated, dissolved or wound
          up when and as authorized at any meeting of shareholders called for
          the purpose, by the vote of (x) the Holders of at least 67% of the
          shares of the DARTS then outstanding and (y) the holders of at least
          67% of the Common Shares then outstanding, each voting as a separate
          class provided, however, if such termination is recommended by
          two-thirds of the total number of Trustees then in office, the vote of


                                       51
<PAGE>


          (x) the Holders of at least a majority of the shares of the DARTS then
          outstanding and (y) the holders of at least a majority of the Common
          Shares then outstanding, each voting as a separate class shall be
          sufficient authorization.

               (iii) The Trust may merge or consolidate with any other
          corporation, association, trust or other organization, or may sell,
          lease or exchange all or substantially all of its assets, including
          its good will, upon such terms and conditions and for such
          consideration, and thereafter be terminated, when and as authorized at
          any meeting of shareholders called for the purpose, by the vote of (x)
          the Holders of at least 67% of the shares of the DARTS then
          outstanding and (y) the holders of at least 67% of the Common Shares
          then outstanding, each voting as a separate class provided, however,
          if such termination is recommended by two-thirds of the total number
          of Trustees then in office, the vote of (x) the Holders of at least a
          majority of the shares of the DARTS then outstanding and (y) the
          holders of at least a majority of the Common Shares then outstanding,
          each voting as a separate class, shall be sufficient authorization.

               (iv) The Trust may be converted from a "closed-end company" to an
          "open-end company" as those terms are defined in the 1940 Act, when
          and as authorized at any meeting of shareholders called for the
          purpose, by the vote of (x) the Holders of at least 75% of the shares
          of the DARTS then outstanding and (y) the holders of at least 75% of
          the Common Shares then outstanding, each voting as a separate class
          provided, however, if such conversion is recommended by two-thirds of
          the total number of Trustees then in office, the vote of (x) the
          Holders of at least a majority of the shares of the DARTS then
          outstanding and (y) the holders of at least a majority of the Common
          Shares then outstanding, each voting as a separate class, shall be
          sufficient authorization.

               (v) So long as any of the DARTS are outstanding, the Trust shall
          not take any action adversely affecting either the DARTS or the Common
          Shares without the affirmative vote of the Holders of at least a
          majority of the shares of DARTS outstanding, voting separately as a
          class, or the holders of at least a majority of the Common Shares then
          outstanding, voting separately as a class, as the case may be.

               (vi) So long as any of the DARTS are outstanding, without the
          affirmative vote of the Holders of at least a majority of the shares
          of the DARTS then outstanding, voting separately as a class, the Trust
          shall not amend, alter or repeal any of the preferences, rights or
          powers of the Holders of the DARTS so as to affect materially and
          adversely such preferences, rights or powers, or issue any additional
          series of DARTS.

               (vii) Without the affirmative vote of (x) the Holders of at least
          a majority of the shares of the DARTS then outstanding and (y) the
          holders of at least a majority of the Common Shares then outstanding,
          each voting as a separate class, the Trust may not declare itself


                                       52
<PAGE>


          insolvent in a judicial proceeding or file for bankruptcy under
          applicable federal or state laws.

          (c)  ELECTION OF TRUSTEES; RIGHT TO ELECT MAJORITY OF BOARD OF
               TRUSTEES.

               (i) At any meeting of shareholders of the Trust at which Trustees
          are to be elected, the Holders of the DARTS, voting separately as a
          single class, shall be entitled to elect two members of the Board of
          Trustees, and the holders of the Common Shares, voting separately as a
          single class, shall be entitled to elect the remaining members of the
          Board of Trustees. If at any time, however, dividends on any Series A
          DARTS or Series B DARTS shall be unpaid in an amount equal to two full
          years' dividends, then the number of Trustees constituting the Board
          of Trustees shall automatically be increased by the smallest number
          such that, when added to the number of Trustees then constituting the
          Board of Trustees, the incumbent Trustees then elected solely by the
          Holders of the DARTS plus such additional Trustees shall constitute a
          majority of such increased number of Trustees; and at a special
          meeting of shareholders, which shall be called and held as provided in
          Section 6.7(d) below, and at all subsequent meetings at which Trustees
          are to be elected, the Holders of the Series A DARTS and Series B
          DARTS, by majority vote, voting separately as a single class (to the
          exclusion of the holders of all other Series and classes of shares of
          the Trust), shall be entitled to elect such smallest number of
          additional Trustees of the Trust who will constitute a majority of the
          total number of Trustees of the Trust as so increased. The terms of
          office of the persons who are Trustees at the time of that election
          shall continue. If the Trust thereafter shall pay, or declare and set
          apart for payment, in full all dividends payable on all outstanding
          Series A DARTS and Series B DARTS for all past Dividend Periods for
          each such series, the voting rights stated in the preceding sentence
          shall cease, and the terms of office of all of the additional Trustees
          elected by the Holders of the DARTS (but not the terms of the two
          incumbent Trustees elected by the Holders of the DARTS and the
          remaining incumbent Trustees elected by the Common Shares) shall
          terminate automatically, subject to the revesting of the rights of the
          Holders of the DARTS as provided in the second sentence of this
          paragraph in the event of any subsequent arrearage in the payment of
          two full years' dividends on the shares of the Series A DARTS or
          Series B DARTS.

               (ii) Any vacancy in the office of any Trustees elected by the
          Holders of the DARTS may be filled by the remaining Trustees (or
          Trustee) so elected or, if not so filled, by the Holders of the DARTS,
          voting separately as a single class, at any meeting of shareholders
          for the election of Trustees held thereafter. Any vacancy in the
          office of any Trustees elected by the holders of the Common Shares may
          be filled by the remaining Trustees (or Trustee) so elected or, if not
          so filled, by the Holders of the Common Shares, voting separately as a
          single class, at any meeting of shareholders for the election of
          Trustees held thereafter. Unless as otherwise provided in the
          Declaration, a Trustee elected by the Holders of the DARTS may be
          removed with or without cause, but only by action taken by the Holders
          of at least a majority of the outstanding DARTS. Unless as otherwise


                                       53
<PAGE>


          provided in the Declaration, a Trustee elected by the holders of the
          Common Shares may be removed but only for cause by action taken by the
          holders of at least 75% of the outstanding Common Shares; provided,
          however, that if such termination is recommended by two-thirds of the
          total number of Trustees then in office elected by the holders of the
          Common Shares, the vote of the holders of at least a majority of the
          Common Shares then outstanding shall be sufficient authorization.

          (d)  VOTING PROCEDURES.

      As soon as practicable after the accrual of any right of the Holders to
elect Trustees at a special meeting of shareholders as described in Section
6.7(c), the Trust shall call or cause to be called such special meeting by
mailing or causing to be mailed a notice of such special meeting to the Holders
upon not less than 10 nor more than 45 days prior to the date fixed for the
meeting. If the Trust does not call or cause to be called such special meeting,
it may be called by any Holder on like notice. The record date for determining
the Holders entitled to notice of and to vote at such meeting shall be the close
of business on the fifth Business Day preceding the day on which such notice is
mailed. The Holders of a majority of the DARTS then outstanding; present in
person or by proxy, will constitute a quorum for the election of additional
Trustees. At any such meeting or adjournment thereof in the absence of a quorum,
a majority of the Holders present in person or by proxy shall have the power to
adjourn the-meeting for the election of additional Trustees without notice,
other than an announcement at the meeting, until a quorum is present, and,
subject to Section 6.7(b) above, to take any other action as shall properly come
before such meeting. If the right to elect additional Trustees shall have
terminated as provided in Section 6.7(c) above after the notice of special
meeting provided for in this Section 6.7(d) has been given but before the
special meeting shall have been held, the Trust shall, as soon as practicable
after such termination, mail or cause to be mailed to the Holders a notice of
cancellation of such special meeting.

      SECTION 6.8. OTHER RESTRICTIONS. The Trust may not (i) enter into reverse
repurchase agreements, (ii) purchase or sell financial futures contracts or
options on futures contracts, (iii) make short sales of securities, (iv)
overdraw any bank account (except as may be necessary for the clearance of
security transactions), or (v) borrow money or issue senior securities (as
defined in the 1940 Act) other than the DARTS, unless in each case the relevant
Rating Agency has advised the Trust in writing that any such action would not
adversely affect the then-current rating of the DARTS and that any such action
will be in accordance with guidelines established by the relevant Rating Agency.

      SECTION 6.9.  AUCTION PROCEDURES.
                    ------------------

          (a) CERTAIN DEFINITIONS. Capitalized terms not defined in this Section
      6.9 shall have the respective meanings specified in Section 6.1 through
      Section 6.8 above. As used in this Section 6.9, the following terms shall
      have the following meanings, unless the context otherwise requires, and
      all defined terms, unless the context otherwise requires, shall be deemed
      to relate to either Series A DARTS or Series B DARTS, as the case may be:


                                       54
<PAGE>


               (i) "Agent Member" means the member of the Securities Depository
          that will act on behalf of a Bidder and is identified as such in such
          Bidder's Purchaser's Letter.

               (ii) "Auction" means the periodic operation of the procedures set
          forth in this Section 6.9.

               (iii) "Auction Date" means the Business Day immediately preceding
          a Dividend Payment Date.

               (iv) "Available DARTS" has the meaning specified in Section
          6.9(d)(i) below.

               (v) "Bid" has the meaning specified in Section 6.9(b)(i) below.

               (vi) "Bidder" has the meaning specified in Section 6.9(b)(i)
          below.

               (vii) "Broker-Dealer" means any broker-dealer, or other entity
          permitted by law to perform the functions required of a Broker-Dealer
          in this Section 6.9, that is a member of, or a participant in, the
          Securities Depository, that has been selected by the Trust and that
          has entered into a Broker Dealer Agreement with the Trust Company that
          remains effective.

               (viii) "Broker-Dealer Agreement" means an agreement between the
          Trust Company and a Broker-Dealer pursuant to which such Broker-Dealer
          agrees to follow the procedures specified in this Section 6.9.

               (ix) "DARTS" means the Series A DARTS or the Series B DARTS, as
          the case may be.

               (x) "Existing Holder", when used with respect to shares of the
          DARTS, means a Person who has executed a Purchaser's Letter and is
          listed as the beneficial owner of such shares of the DARTS in the
          records of the Trust Company.

               (xi) "Hold Order" has the meaning specified in Section 6.9(b)(i)
          below.

               (xii) "Maximum Applicable Rate" for the first Auction means the
          percentage of the 60-day "AA" Composite Commercial Paper Rate
          specified in Column I below based on the Prevailing Rating of the
          DARTS in effect at the close of business on the Business Day
          immediately preceding such Auction Date. The Maximum Applicable Rate
          for any subsequent Auction means (A) the higher of the Applicable
          Percentage or the Applicable Spread of the 60-day "AA" Composite
          Commercial Paper Rate specified in Column I if the immediately
          preceding Auction resulted in an Applicable Rate lower than the
          percentage of the 60-day "AA" Composite Commercial Paper Rate
          specified in Column I, or (B) the Applicable Percentage or Applicable
          Spread of the 60-day "AA" Composite Commercial Paper Rate specified in
          Column II below if the immediately preceding Auction resulted in an


                                       55
<PAGE>


          Applicable Rate equal to or higher than the percentage of the 60-day
          "AA" Composite Commercial Paper Rate specified in Column I but lower
          than the percentage of the 60-day "AA" Composite Commercial Paper Rate
          specified in Column II, or (C) the Applicable Percentage or Applicable
          Spread of the 60-day "AA" Composite Commercial Paper Rate specified in
          Column III below if the immediately preceding Auction resulted in an
          Applicable Rate equal to or higher than the percentage of the 60-day
          "AA" Composite Commercial Paper Rate specified in Column II, in each
          case based on the Prevailing Rating on the DARTS on the Business Day
          immediately preceding the Auction Date:

                             Applicable Percentages or Spreads
                    -----------------------------------------------------
     PREVAILING             I                II               III
     RATING

                    Percentage  Spread  Percentage  Spread  Percentage  Spread
                    ----------  ------  ----------  ------  ----------  ------
     "AA"/"aa" or     110%       110bp     120%      120bp     130%      130bp
     above
     "A"/"a"          120%       120bp     130%      130bp     145%      145bp
     "BBB"/"baa"      130%       130bp     145%      145bp     175%      175bp
     Below            200%       200bp     200%      200bp     200%      200bp
     "BBB"/"baa
     (includes) no
     rating

      For purposes of this definition, the "Prevailing Rating" of DARTS shall be
      (i) "AA"/"aa" or Above if the DARTS have a rating of "AA-" or better by
      Standard & Poor's or "aa3" or better by Moody's, or the equivalent of
      either or both of such ratings by such agencies or a substitute rating
      agency or substitute rating agencies selected as provided below, (ii) if
      not "AA"/"aa" or Above, then "A"/"a" if the DARTS have a rating of "A-" or
      better by Standard & Poor's or "a3" or better by Moody's or the equivalent
      of either or both of such ratings by such agencies or a substitute rating
      agency or substitute rating agencies selected as provided below, (iii) if
      not "AA"/"aa" or Above or "A"/"a," then "BBB"/"baa" if the DARTS have a
      rating of "BBB-" or better by Standard & Poor's or "baa3" or better by
      Moody's or the equivalent of either or both of such ratings by such
      agencies or a substitute rating agency or substitute rating agencies
      selected as provided below, (iv) if not "AA"/"aa" or Above, "A"/"a" or
      "BBB"/"baa," then Below "BBB"/"baa". The Trust shall take all reasonable
      action necessary to enable Standard & Poor's and Moody's to provide a
      rating for the DARTS. If either Standard & Poor's or Moody's shall not
      make such a rating available, or neither Standard & Poor's nor Moody's
      shall make such a rating available, the Trust, Salomon Brothers Inc or its
      successor shall select a nationally recognized statistical rating
      organization (as that term is used in the rules and regulations of the
      Securities and Exchange Commission under the Securities Exchange Act of
      1934, as amended) or two nationally recognized statistical rating
      organizations to act as substitute rating agency or substitute rating
      agencies, as the case may be, and the Trust shall take all reasonable
      action to enable such Rating Agency or rating agencies to provide a rating
      or ratings for the DARTS.


                                       56
<PAGE>


      Unless the context otherwise requires, "Maximum Applicable Rate," when
      used in this Section 6.9, means the Maximum Applicable Rate on the Auction
      Date.

                (xiii) "Minimum Applicable Rate" for any Auction Date means 59%
          of the 60-day "AA" Composite Commercial Paper Rate in effect on such
          Auction Date.

                (xiv) "Order" has the meaning specified in Section 6.9(b)(i)
          below.

                (xv) "Outstanding", with respect to the DARTS, means, as of any
          date, the DARTS theretofore issued by the Trust except, without
          duplication, (A) any DARTS theretofore cancelled or delivered to the
          Trust Company for cancellation, or redeemed by the Trust, (B) except
          as provided in Section 6.6(c)(v) above, any of the DARTS as to which a
          Notice of Redemption shall have been given by the Trust, (C) any DARTS
          held by the Trust and (D) any DARTS represented by any certificate in
          lieu of which a new certificate has been executed and delivered by the
          Trust.

                (xvi) "Person" means and includes an individual, a partnership,
          a corporation, a trust, an unincorporated association, a joint venture
          or other entity or a government or an agency or political subdivision
          thereof.

                (xvii) "Potential Holder" means any Person, including any
          Existing Holder, (A) who shall have executed a Purchaser's Letter and
          (B) who may be interested in acquiring DARTS (or, in the case of an
          Existing Holder, additional DARTS).

                (xviii) "Purchaser's Letter" means a master purchaser's letter
          addressed to the Trust, the Trust Company and a Broker-Dealer in which
          a Person agrees, among other things, to offer to purchase, purchase,
          offer to sell and/or sell the DARTS as set forth in this Section 6.9.

                (xix) "Securities Depository" means The Depository Trust Company
          and its successors and assigns, or any other securities depository
          selected by the Trust that agrees to follow the procedures required to
          be followed by such securities depository in connection with the
          DARTS.

                (xx) "Sell Order" has the meaning specified in Section 6.9(b)(i)
          below.

                (xxi) "Submission Deadline" means 12:30 P.M., New York City
          time, on any Auction Date or such other time on any Auction Date by
          which Broker-Dealers are required to submit Orders to the Trust
          Company as from time to time specified by the Trust Company, with the
          consent of the Trust, which consent shall not be unreasonably
          withheld.

                (xxii) "Submitted Bid" has the meaning specified in Section
          6.9(d)(i) below.


                                       57
<PAGE>


                (xxiii) "Submitted Hold Order" has the meaning specified in
          Section 6.9(d)(i) below.

                (xxiv) "Submitted Order" has the meaning specified in Section
          6.9(d) (i) below.

                (xxv) "Submitted Sell Order" has the meaning specified in
          Section 6.9(d)(i) below.

                (xxvi) "Sufficient Clearing Bids" has the meaning specified in
          Section 6.9(d)(i) below.

                (xxvii) "Winning Bid Rate" has the meaning specified in Section
          6.9(d) (i) below.

          (b)  ORDERS BY EXISTING HOLDERS AND POTENTIAL HOLDERS.

               (i)  On or prior to the Submission Deadline on each Auction Date:

                    (A)  each Existing Holder may submit to a Broker-Dealer
               information as to:

                         (1) the number of Outstanding shares, if any, of the
                    DARTS held by such Existing Holder which such Existing
                    Holder desires to continue to hold without regard to the
                    Applicable Rate for the next succeeding Dividend Period;

                         (2) the number of Outstanding shares, if any, of the
                    DARTS held by such Existing Holder which such Existing
                    Holder desires to continue to hold, provided that the
                    Applicable Rate for the next succeeding Dividend Period
                    shall not be less than the rate per annum specified by such
                    Existing Holder; and/or

                         (3) the number of Outstanding shares, if any, of the
                    DARTS held by such Existing Holder which such Existing
                    Holder offers to sell without regard to the Applicable Rate
                    for the next succeeding Dividend Period; and

                    (B) each Broker-Dealer, using a list of Potential Holders
               that shall be maintained by such Broker-Dealer in good faith for
               the purpose of conducting a competitive Auction, shall contact
               Potential Holders, including Persons who are not Existing
               Holders, on such list to determine the number of Outstanding
               shares, if any, of the DARTS which each such Potential Holder
               offers to purchase, provided that the Applicable Rate for the
               next succeeding Dividend Period shall not be less than the rate
               per annum specified by such Potential Holder.


                                       58
<PAGE>


For the purposes hereof, the communication to a Broker-Dealer of the information
referred to in clause (A) or (B) of this Section 6.9(b)(i) is hereinafter
referred to as an "Order" and each Existing Holder and each Potential Holder
placing an Order is hereinafter referred to as a "Bidder"; an Order containing
the information referred to in clause (A)(1) of this Section 6.9(b)(i) is
hereinafter referred to as a "Hold Order"; an Order containing the information
referred to in clause (A)(2) or (B) of this Section 6.9(b)(i) is hereinafter
referred to as a "Bid"; and an Order containing the information referred to in
clause (A)(3) of this Section 6.9(b)(i) is hereinafter referred to as a "Sell
Order".

               (ii) As a condition to participating in any Auction, each
          prospective purchaser of the DARTS shall be required to sign and
          deliver two copies to the Trust Company, and one copy to a
          Broker-Dealer, of a Purchaser's Letter, in which such prospective
          purchaser will agree, among other things, that:

                    (A) A Bid by an Existing Holder shall constitute an
               irrevocable offer to sell:

                         (1) the number of Outstanding shares of the DARTS
                    specified in such Bid if the Applicable Rate determined on
                    such Auction Date shall be less than the rate specified in
                    such Bid; or

                         (2) such specified number or a lesser number of
                    Outstanding shares of the DARTS determined as set forth in
                    Section 6.9(e)(i) (D) if the Applicable Rate determined on
                    such Auction Date shall be equal to the rate specified in
                    such Bid; or

                         (3) such number or a lesser number of Outstanding
                    shares of the DARTS to be determined as set forth in Section
                    6.9(e)(ii)(C) if the rate specified in such Bid shall be
                    higher than the Maximum Applicable Rate and Sufficient
                    Clearing Bids do not exist.

                    (B) A Sell order by an Existing Holder shall constitute an
               irrevocable offer to sell:

                         (1) the number of Outstanding shares of the DARTS
                    specified in such Sell Order; or

                         (2) such number or lesser number of Outstanding shares
                    of the DARTS as set forth in Section 6.9(e)(ii)(C) if
                    Sufficient Clearing Bids do not exist.

                    (C) A Bid by a Potential Holder shall constitute an
               irrevocable offer to purchase:

                         (1) the number of Outstanding shares of the DARTS
                    specified in such Bid if the Applicable Rate determined on
                    such Auction Date shall be higher than the rate specified in
                    such Bid; or


                                       59
<PAGE>


                         (2) such specified number or lesser number of
                    Outstanding shares of the DARTS as set forth in Section
                    6.9(e)(i)(E) if the Applicable Rate determined on such
                    Auction Date shall be equal to the rate specified in such
                    Bid.

          (c)  SUBMISSION OF ORDERS BY BROKER-DEALERS TO TRUST COMPANY.

               (i)  Each Broker-Dealer shall submit in writing to the Trust
          Company prior to the Submission Deadline on each Auction Date all
          Orders obtained by such Broker-Dealer for the Auction to be conducted
          on such Auction Date and shall specify with respect to each Order:

                    (A)  the name of the Bidder placing such Order;

                    (B)  the aggregate number of Outstanding shares of the DARTS
               that are the subject of such Order;

                    (C)  to the extent that such Bidder is an Existing Holder:

                         (1) the number of Outstanding shares, if any, of the
                    DARTS subject to any Hold Order placed by such Existing
                    Holder;

                         (2) the number of Outstanding shares, if any, of the
                    DARTS subject to any Bid placed by such Existing Holder and
                    the rate specified in such Bid; and

                         (3) the number of Outstanding shares, if any, of the
                    DARTS subject to any Sell Order placed by such Existing
                    Holder; and

                    (D)  to the extent that such Bidder is a Potential Holder,
               the rate and number of shares specified in such Potential
               Holder's Bid.

               (ii) If any rate specified in any Bid contains more than three
          digits to the right of the decimal point, the Trust Company shall
          round such rate up to the next highest one thousandth (.001) of 1%.

               (iii) If an Order or Orders covering all of the Outstanding
          shares of the DARTS held by an Existing Holder is not submitted to the
          Trust Company prior to the Submission Deadline, the Trust Company
          shall deem a Hold Order to have been submitted on behalf of such
          Existing Holder covering the number of Outstanding shares of the DARTS
          held by such Existing Holder and not subject to Orders submitted to
          the Trust Company.

               (iv) If one or more Orders covering in the aggregate more than
          the number of Outstanding shares of the DARTS held by an Existing
          Holder are submitted to the Trust Company, such Order or Orders shall
          be considered valid as follows and in the following order of priority:


                                       60
<PAGE>


                    (A) any Hold Orders submitted on behalf of such Existing
               Holder shall be considered valid up to and including the number
               of Outstanding DARTS held by such Existing Holder; provided that
               if more than one Hold Order is submitted on behalf of such
               Existing Holder and the number of DARTS subject to such Hold
               Orders exceeds the number of Outstanding DARTS held by such
               Existing Holder, the number of DARTS subject to such Hold Orders
               shall be reduced pro rata so that such Hold Orders shall cover
               the number of Outstanding shares of the DARTS held by such
               Existing Holder;

                    (B)  (1) any Bid shall be considered valid up to and
               including the excess of the number of Outstanding shares of the
               DARTS held by such Existing Holder over the number of shares of
               the DARTS subject to Hold Orders referred to in Section
               6.9(c)(iv)(A);

                         (2) subject to subclause (1) above, if more than one
                    Bid with the same rate is submitted on behalf of such
                    Existing Holder and the number of Outstanding shares of the
                    DARTS subject to such Bids is greater than such excess, the
                    number of shares of the DARTS subject to such Bids shall be
                    reduced pro rata so that such Bids shall cover the number of
                    shares of the DARTS equal to such excess;

                         (3) subject to subclause (1) above, if more than one
                    Bid with different rates is submitted on behalf of such
                    Existing Holder, such Bids shall be considered valid in the
                    ascending order of their respective rates and in any such
                    event the number, if any, of such Outstanding shares subject
                    to Bids not valid under this clause (B) shall be treated as
                    the subject of a Bid by a Potential Holder; and

                    (C)  any Sell Order shall be considered valid up to and
               including the excess of the number of Outstanding shares of the
               DARTS held by such Existing Holder over the number of shares of
               the DARTS subject to Hold Orders referred to in Section
               6.9(c)(iv)(A) and Bids referred to in Section 6.9(c)(iv)(B).

               (v) If more than one Bid is submitted on behalf of any Potential
          Holder, each Bid submitted shall be a separate Bid with the rate and
          the number of shares of the DARTS therein specified.

               (vi) If any rate specified in any Bid is lower than the Minimum
          Applicable Rate in effect on the Auction Date to which such Bid
          relates, such Bid shall be deemed to be a Bid specifying a rate equal
          to such Minimum Applicable Rate.

          (d)  DETERMINATION OF SUFFICIENT CLEARING BIDS, WINNING BID RATE AND
      APPLICABLE RATE.


                                       61
<PAGE>


               (i) The Trust Company shall assemble all valid Orders submitted
          or deemed submitted to it by the Broker-Dealers (each such Order as
          submitted or deemed submitted by a Broker-Dealer being hereinafter
          referred to individually as a "Submitted Hold Order", a "Submitted
          Bid" or a "Submitted Sell Order", as the case may be, or as a
          "Submitted Order") and shall, after the Submission Deadline on each
          Auction Date, determine:

                    (A)  the excess of the total number of Outstanding shares of
               the DARTS over the number of Outstanding shares of the DARTS that
               are the subject of Submitted Hold Orders (such excess being
               hereinafter referred to as the "Available DARTS");

                    (B)  from the Submitted Orders whether:

                         (1) the number of Outstanding shares of the DARTS that
                    are the subject of Submitted Bids by Potential Holders
                    specifying one or more rates equal to or lower than the
                    Maximum Applicable Rate exceeds or is equal to:

                         (2) the sum of (x) the number of Outstanding shares of
                    the DARTS that are the subject of Submitted Bids by Existing
                    Holders specifying one or more rates higher than the Maximum
                    Applicable Rate and (y) the number of Outstanding shares of
                    the DARTS that are the subject of Submitted Sell Orders (if
                    such excess or such equality exists (other than because the
                    numbers of shares of the DARTS in subclauses (x) and (y)
                    above are each zero because all of the outstanding shares of
                    the DARTS are the subject of Submitted Hold Orders), such
                    Submitted Bids in subclause (1) above being hereinafter
                    referred to collectively as "Sufficient Clearing Bids"); and

                    (C)  if Sufficient Clearing Bids exist, the lowest rate
               specified in the Submitted Bids (the "Winning Bid Rate") that,
               if:

                         (1) each Submitted Bid from Existing Holders specifying
                    such lowest rate and all other Submitted Bids from Existing
                    Holders specifying lower rates were rejected, thus entitling
                    such Existing Holders to continue to hold the shares of the
                    DARTS that are the subject of such Submitted Bids, and

                         (2) each Submitted Bid from Potential Holders
                    specifying such lowest rate and all other Submitted Bids
                    from Potential Holders specifying lower rates were accepted,
                    thus requiring such Potential Holders to purchase the shares
                    of the DARTS that are the subject of such Submitted Bids,


                                       62
<PAGE>


                    would result in the number of shares subject to all
                    Submitted Bids specifying such lowest rate or such lower
                    rates being not less than the Available DARTS.

                    (ii) Promptly after the Trust Company has made the
               determinations pursuant to Section 6.9(d)(i), the Trust Company
               shall determine the Applicable Rate for the next succeeding
               Dividend Period as follows and the Trust Company shall so notify
               the Trust:

                         (A) if Sufficient Clearing Bids exist, the Applicable
                    Rate for the next succeeding Dividend Period shall be equal
                    to the Winning Bid Rate so determined;

                         (B) if Sufficient Clearing Bids do not exist (other
                    than because all of the Outstanding DARTS are the subject of
                    Submitted Hold Orders), the Applicable Rate for the next
                    succeeding Dividend Period shall be equal to the Maximum
                    Applicable Rate; or

                         (C) if all of the Outstanding DARTS are the subject of
                    Submitted Hold Orders, the Applicable Rate for the next
                    succeeding Dividend Period shall be equal to the Minimum
                    Applicable Rate in effect on the date of such Auction.

          (e)  ACCEPTANCE AND REJECTION OF SUBMITTED BIDS AND SUBMITTED SELL
      ORDERS AND ALLOCATION OF SHARES.

Based on the determinations made pursuant to Section 6.9(d)(i), the Submitted
Bids and Submitted Sell Orders shall be accepted or rejected and the Trust
Company shall take such other action as set forth below:

                    (i)  If Sufficient Clearing Bids have been made, subject to
               the provisions of Section 6.9(e)(iii) and Section 6.9(e)(iv),
               Submitted Bids and Submitted Sell Orders shall be accepted or
               rejected in the following order of priority and all Submitted
               Bids to the extent not accepted as provided in this clause (i)
               shall be rejected:

                         (A) the Submitted Sell Orders of Existing Holders shall
                    be accepted and the Submitted Bid of each of the Existing
                    Holders specifying any rate that is higher than the Winning
                    Bid Rate shall be accepted, thus requiring each such
                    Existing Holder to sell the Outstanding shares of the DARTS
                    that are the subject of such Submitted Sell Order or
                    Submitted Bid;

                         (B) the Submitted Bid of each of the Existing Holders
                    specifying any rate that is lower than the Winning Bid Rate
                    shall be rejected, thus entitling each such Existing Holder
                    to continue to hold the Outstanding shares of the DARTS that
                    are the subject of such Submitted Bid;


                                       63
<PAGE>


                         (C) the Submitted Bid of each of the Potential Holders
                    specifying any rate that is lower than the Winning Bid Rate
                    shall be accepted, thus requiring each such Potential Holder
                    to purchase the Outstanding shares of the DARTS that are the
                    subject of such Submitted Bid;

                         (D) the Submitted Bid of each of the Existing Holders
                    specifying a rate that is equal to the Winning Bid Rate
                    shall be rejected, thus entitling each such Existing Holder
                    to continue to hold the Outstanding shares of the DARTS that
                    are the subject of such Submitted Bid, unless the number of
                    Outstanding shares of the DARTS that are the subject of such
                    Submitted Bids shall be greater than the difference in
                    number of shares of the DARTS ("remaining shares") equal to
                    the excess of the Available DARTS over the number of shares
                    of the DARTS subject to Submitted Bids described in Section
                    6.9(e)(i)(B) and Section 6.9(e)(i)(C), in which event the
                    Submitted Bids of each such Existing Holder shall be
                    accepted, and each such Existing Holder shall be required to
                    sell Outstanding shares of the DARTS, but only in an amount
                    equal to the difference between (1) the number of
                    Outstanding shares of the DARTS then held by such Existing
                    Holder subject to such Submitted Bid and (2) the number of
                    shares of the DARTS obtained by multiplying (x) the number
                    of the remaining shares by (y) a fraction, the numerator of
                    which shall be the number of Outstanding shares of the DARTS
                    held by such Existing Holder subject to such Submitted Bid
                    and the denominator of which shall be the sum of the number
                    of Outstanding shares of the DARTS subject to such Submitted
                    Bids made by all such Existing Holders that specified a rate
                    equal to the Winning Bid Rate; and

                         (E) the Submitted Bid of each of the Potential Holders
                    specifying a rate that is equal to the Winning Bid Rate
                    shall be accepted but only in an amount equal to the number
                    of Outstanding shares of the DARTS obtained by multiplying
                    (x) the difference between the Available DARTS and the
                    number of Outstanding shares of the DARTS subject to
                    Submitted Bids described in Section 6.9(e)(i)(B), Section
                    6.9(e)(i)(C) and Section 6.9(e)(i)(D) by (y) a fraction, the
                    numerator of which shall be the number of Outstanding shares
                    of the DARTS subject to such Submitted Bid and the
                    denominator of which shall be the sum of the number of
                    Outstanding shares of the DARTS subject to such Submitted
                    Bids made by all such Potential Holders that specified a
                    rate equal to the Winning Bid Rate.

                    (ii) If Sufficient Clearing Bids have not been made (other
               than because all of the Outstanding shares of the DARTS are
               subject to Submitted Hold Orders), subject to the provisions of
               section 6.9(e)(iii) and Section 6.9(e)(iv), Submitted Orders
               shall be accepted or rejected as follows in the following order
               of priority and all Submitted Bids to the extent not accepted as
               provided in this clause (ii) shall be rejected:


                                       64
<PAGE>


                         (A) the Submitted Bid of each Existing Holder
                    specifying any rate that is equal to or lower than the
                    Maximum Applicable Rate shall be rejected, thus entitling
                    such Existing Holder to continue to hold the shares of the
                    DARTS that are the subject of such Submitted Bid;

                         (B) the Submitted Bid of each Potential Holder
                    specifying any rate that is equal to or lower than the
                    Maximum Applicable Rate shall be accepted, thus requiring
                    such Potential Holder to purchase the shares of the DARTS
                    that are the subject of such Submitted Bid; and

                         (C) the Submitted Bid of each Existing Holder
                    specifying any rate that is higher than the Maximum
                    Applicable Rate shall be accepted, thus requiring each such
                    Existing Holder to sell the Outstanding shares of the DARTS
                    that are the subject of such Submitted Bid, and the
                    Submitted Sell Order of each Existing Holder shall be
                    accepted, in both cases only in an amount equal to the
                    difference between (1) the number of Outstanding shares of
                    the DARTS then held by such Existing Holder subject to such
                    Submitted Bid or Submitted Sell Order and (2) the number of
                    shares of the DARTS obtained by multiplying (x) the
                    difference between the Available DARTS and the aggregate
                    number of shares of the DARTS subject to Submitted Bids
                    described in Section 6.9(e)(ii)(A) and Section 6.9(e)(ii)(B)
                    by (y) a fraction, the numerator of which shall be the
                    number of Outstanding shares of the DARTS held by such
                    Existing Holder subject to such Submitted Bid or Submitted
                    Sell Order and the denominator of which shall be the number
                    of Outstanding shares of the DARTS subject to all such
                    Submitted Bids and Submitted Sell Orders.

                    (iii) If, as a result of the procedure described in Section
               6.9(e)(i) and Section 6.9(e)(ii), any Existing Holder would be
               entitled or required to sell, or any Potential Holder would be
               entitled or required to purchase, a fraction of a share of the
               DARTS on any Auction Date, the Trust Company shall, in such
               manner as, in its sole discretion, it shall determine, round up
               or down the number of shares of the DARTS to be purchased or sold
               by any Existing Holder or Potential Holder on such Auction Date
               so that the number of shares purchased or sold by each Existing
               Holder or Potential Holder on such Auction Date shall be whole
               shares of the DARTS.

                    (iv) If, as a result of the procedures described in Section
               6.9(e)(i) and Section 6.9(e)(ii), any Potential Holder would be
               entitled or required to purchase less than a whole share of the
               DARTS on any Auction Date, the Trust Company shall, in such
               manner as, in its sole discretion, it shall determine, allocate
               shares for purchase among Potential Holders so that only whole
               shares of the DARTS are purchased on such Auction Date by any
               Potential Holder, even if such allocation results in one or more
               of such Potential Holders not purchasing shares of the DARTS on
               such Auction Date.


                                       65
<PAGE>


                    (v) Based on the results of each Auction, the Trust Company
               shall determine the number of shares of the DARTS to be purchased
               and the aggregate number of shares of the DARTS to be sold by
               Potential Holders and Existing Holders on whose behalf each
               Broker-Dealer submitted Bids or Sell Orders, and, with respect to
               each Broker-Dealer, to the extent that such aggregate number of
               shares to be purchased and such aggregate number of shares to be
               sold differ, determine to which other Broker-Dealer or
               Broker-Dealers acting for one or more purchasers such
               Broker-Dealer shall deliver, or from which other Broker-Dealer or
               Broker-Dealers acting for one or more sellers such Broker-Dealer
               shall receive, as the case may be, Outstanding shares of the
               DARTS.

                    (vi) In no circumstance shall an Existing Holder be required
               to sell shares of the DARTS that are subject to a Hold Order
               submitted (or deemed to be submitted) by such Existing Holder.

               (f)  MISCELLANEOUS.

      The Board of Trustees may interpret the provisions of this Section 6.9 to
resolve any inconsistency or ambiguity, remedy any formal defect or make any
other change or modification that does not adversely affect the rights of
Existing Holders of the DARTS, and if such inconsistency, ambiguity or formal
defect reflects an inaccurate provision hereof, the Board of Trustees may, in
appropriate circumstances, authorize the filing of a Certificate of Correction.
An Existing Holder (A) may sell, transfer or otherwise dispose of shares of the
DARTS only pursuant to a Bid or Sell Order in accordance with the procedures
described in this Section 6.9 or to or through a Broker-Dealer or to a Person
that has delivered a signed copy of a Purchaser's Letter to the Trust Company,
provided that in the case of all transfers other than pursuant to Auctions such
Existing Holder or its Broker-Dealer or its Agent Member advises the Trust
Company of such transfer, and (B) shall have the ownership of the shares of the
DARTS held by it maintained in book-entry form by the Securities Depository in
the account of its Agent Member, which in turn will maintain records of such
Existing Holder's beneficial ownership. Neither the Trust nor any affiliated
person of the Trust (as defined under the 1940 Act) shall submit any Order in
any Auction. All of the Outstanding shares of the Series A DARTS shall be
represented by-a certificate and all of the Outstanding shares of the Series B
DARTS shall be represented by a certificate registered in the name of the
nominee of the Securities Depository. Each such certificate shall bear a legend
substantially to the effect that transfer of the shares represented by such
certificate is subject to the restrictions specified in this Section 6.9(f) and
in the Purchaser's Letter. Neither the Trust nor any of its agents, including,
without limitation, the Trust Company, shall have any liability with respect to
the failure of a Potential Holder, Existing Holder or Agent Member to deliver,
or to pay for, shares of the DARTS sold or purchased in an Auction or otherwise.

               (g)  HEADINGS OF SUBDIVISIONS.

      The headings of the various subdivisions of this Section 6.9 are for
convenience of reference only and shall not affect the interpretation of any of
the provisions hereof.


                                       66
<PAGE>


                                  ARTICLE VII

                             TERMS OF COMMON SHARES

     SECTION 7.1. DESIGNATION. A class of common shares of beneficial interest,
without par value, is hereby designated "Common Shares" (the "Common Shares").

     SECTION 7.2. COMMON SHARES.

          (i) The Common Shares shall rank junior to the DARTS with respect to
     payment of dividends and distributions on liquidation or dissolution and
     shall have such other qualifications, limitations or restrictions as
     provided in Article VI.

          (ii) Except as otherwise provided by law and Article VI, the holders
     of the Common Shares shall be entitled to one vote for each share on each
     matter submitted to a vote of the shareholders of the Trust. The holders of
     the Common Shares and the Holders of the DARTS shall vote together as a
     single class except as hereinafter provided or to the extent otherwise
     required by the 1940 Act or the Declaration.

                    (A) So long as any of the DARTS are outstanding, without the
               affirmative vote of (x) the Holders of at least a majority of the
               shares of the DARTS then outstanding and (y) the holders of at
               least a majority of the Common Shares then outstanding, each
               voting as a separate class, the Trust shall not approve any
               action requiring a vote of security holders as provided in
               Section 13(a) of the 1940 Act.

                    (B) The Trust may be voluntarily liquidated, dissolved or
               wound up when and as authorized at any meeting of shareholders
               called for the purpose, by the vote of (x) the Holders of at
               least 67% of the shares of the DARTS then outstanding and (y) the
               holders of at least 67% of the Common Shares then outstanding,
               each voting as a separate class provided, however, if such
               termination is recommended by two-thirds of the total number of
               Trustees then in office, the vote of (x) the Holders of at least
               a majority of the shares of the DARTS then outstanding and (y)
               the holders of at least a majority of the Common Shares then
               outstanding, each voting as a separate class, shall be sufficient
               authorization.

                    (C) The Trust may merge or consolidate with any other
               corporation, association, trust or other organization, or may
               sell, lease or exchange all or substantially all of its assets,
               including its good will, upon such terms and conditions and for
               such consideration, and thereafter be terminated, when and as
               authorized at any meeting of shareholders called for the purpose,
               by the vote of (x) the Holders of at least 67% of the shares of
               the DARTS then outstanding and (y) the holders of at least 67% of
               the Common Shares then outstanding, each voting as a separate
               class provided, however, if such termination is recommended by
               two-thirds of the total number of Trustees then in office, the
               vote of (x) the Holders of at least a majority of the shares of


                                       67
<PAGE>


               the DARTS then outstanding and (y) the holders of at least a
               majority of the Common Shares then outstanding, each voting as a
               separate class, shall be sufficient authorization.

                    (D) The Trust may be converted from a "closed-end company"
               to an "open-end company" as those terms are defined in the 1940
               Act, when and as authorized at any meeting of shareholders called
               for the purpose, by the vote of (x) the Holders of at least 75%
               of the shares of the DARTS then outstanding and (y) the holders
               of at least 75% of the Common Shares then outstanding, each
               voting as a separate class provided, however, if such conversion
               is recommended by two-thirds of the total number of Trustees then
               in office, the vote of (x) the Holders of at least a majority of
               the shares of the DARTS then outstanding and (y) the holders of
               at least a majority of the Common Shares then outstanding, each
               voting as a separate class, shall be sufficient authorization.

                    (E) So long as any of the DARTS are outstanding, the Trust
               shall not take any action adversely affecting either the DARTS or
               the Common Shares without the affirmative vote of the Holders of
               at least a majority of the shares of DARTS outstanding, voting
               separately as a class, or the holders of at least a majority of
               the Common Shares then outstanding, voting separately as a class,
               as the case may be.

                    (F) So long as any of the DARTS are outstanding, without the
               affirmative vote of the Holders of at least a majority of the
               shares of the DARTS then outstanding, voting separately as a
               class, the Trust shall not amend, alter or repeal any of the
               preferences, rights or powers of the Holders of the DARTS so as
               to affect materially and adversely such preferences, rights or
               powers, or issue any additional series of DARTS.

                    (G) Without the affirmative vote of (x) the Holders of at
               least a majority of the shares of the DARTS then outstanding and
               (y) the holders of at least a majority of the Common Shares then
               outstanding, each voting as a separate class, the Trust may not
               declare itself insolvent in a judicial proceeding or file for
               bankruptcy under applicable federal or state laws.

          (iii) After all accumulated and unpaid dividends upon all outstanding
      Series A DARTS and Series B DARTS for all previous dividend periods for
      each applicable series have been paid, and full dividends on all
      outstanding Series A DARTS and Series B DARTS for the then-current
      dividend period have been paid or declared and a sum sufficient for the
      payment thereof set apart therefor, then and not otherwise, and subject to
      any other applicable provisions of Article VI, dividends or other
      distributions may be declared upon and paid to the holders of the Common
      Shares, to the exclusion of the Holders of the DARTS.

          (iv) In the event of the dissolution, liquidation, or winding up of
      the Trust, whether voluntary or involuntary, after payment in full of the
      amounts, if any, required to be paid to the Holders of the DARTS, the


                                       68
<PAGE>


      holders of the Common Shares shall be entitled, to the exclusion of the
      Holders of the DARTS, to share ratably in all remaining assets of the
      Trust.

                                  ARTICLE VIII

                                 Net Asset Value
                                 ---------------

     The net asset value of the Trust's Common Shares will be determined at
least once each week by dividing the value of all assets of the Trust (including
accrued interest and dividends), less all liabilities (including accrued
expenses and accumulated and unpaid dividends, including any Additional
Dividends) and the aggregate liquidation preference of the outstanding DARTS, by
the total number of Common Shares outstanding.

     In valuing the Trust's portfolio, securities listed on an exchange or
traded over-the-counter and quoted on the NASDAQ System will be valued at the
last sale price on the day of valuation (using prices as of the close of
trading) or, if there has been no sale that day, at the last reported bid price
reported on the day of valuation or the last bid price reported as of the close
of business on the preceding Business Day. Over-the-counter securities not
quoted on the NASDAQ System will be valued at the current bid price as obtained
from two dealers which make markets in such securities or from a pricing
service. Securities for which reliable quotations are not readily available and
other assets will be valued at their fair value as determined by or under the
direction of the Board of Trustees. Auction preferred stocks have had a
consistent history of trading in the secondary market at par value plus accrued
dividends. Accordingly, when reliable quotations are not available for auction
preferred stocks, they will generally be valued at par plus accrued dividends,
although a different value may be assigned due to changes in an issuer's
creditworthiness or market conditions. Money market instruments with remaining
maturities of 60 days or less will be valued at amortized cost.

     The market value of the Fund's Eligible Assets will be determined as set
forth in the preceding paragraph, except that, for purposes of calculating the
Eligible Asset Coverage and the Dividend Coverage, (i) Eligible Assets for which
reliable quotations are not available will be valued at zero and (ii) Eligible
Assets subject to call options written by the Fund will be valued at the lower
of market value or the strike price of the option.

                                   ARTICLE IX

                   Limitation of Liability; Indemnification
                   ----------------------------------------

     SECTION 9.1. LIABILITY; NOTICE. All persons extending credit to,
contracting with or having any -claim against the Trust shall look only to the
assets of the Trust for payment under such credit, contract or claim, and
neither the shareholders nor the Trustees, nor any of the Trust's officers,
employees or agents, whether past, present or future, shall be personally liable
therefor. Every note, bond, contract, instrument, certificate or undertaking and
every other act or thing whatsoever executed or done by or on behalf of the
Trust or the Trustees or any of them in connection with the Trust shall be
conclusively deemed to have been executed or done only in or with respect to
their or his capacity as Trustees or Trustee, and such Trustees or Trustee shall
not be personally liable thereon. Notwithstanding the foregoing, nothing in


                                       69
<PAGE>


these By-Laws shall protect any Trustee against any liability to which such
Trustee would otherwise be subject by reason of willful misfeasance, bad faith,
gross negligence or reckless disregard of the duties involved in the conduct of
the office of Trustee.

      Every note, bond, contract, instrument, certificate or undertaking made or
issued by the Trustees or by any officer or officers shall give notice that the
Declaration is on file with the Secretary of The Commonwealth of Massachusetts
and shall recite that the same was executed or made by or on behalf of the Trust
or by them as Trustee or Trustees or as officer or officers and not individually
and that the obligations of such instrument are not binding upon any of them or
the shareholders individually but are binding only upon the assets and property
of the Trust, and may contain such further recital as he or they may deem
appropriate, but the omission thereof shall not operate to bind any Trustee or
Trustees or officer or officers or shareholder or shareholders individually.

     SECTION 9.2. TRUSTEES' GOOD FAITH ACTION; EXPERT ADVICE; NO BOND OR SURETY.
The exercise by the Trustees of their powers and discretion hereunder shall be
binding upon everyone interested. A Trustee shall be liable for his own willful
misfeasance, bad faith, gross negligence or reckless disregard of the duties
involved in the conduct of the office of Trustee, and for nothing else, and
shall not be liable for errors of judgment or mistakes of fact or law. Subject
to the foregoing, (i) the Trustees shall not be responsible or liable in any
event for any neglect or wrongdoing of any officer, agent, employee, consultant
or Contracting Party, nor shall any Trustee be responsible for the act or
omission of any other Trustee; (ii) the Trustees may take advice of counsel or
other experts with respect to the meaning and operation of the Declaration and
these By-Laws and shall be under no liability for any act or omission in
accordance with such advice or for failing to follow such advice; and (iii) in
discharging their duties, the Trustees, when acting in good faith, shall be
entitled to rely upon the books of account of the Trust and upon written reports
made to the Trustees by any officer appointed by them, any independent
accountant, and (with respect to the subject matter of the contract involved)
any officer, partner or responsible employee of a Contracting Party. The
Trustees shall not be required to give any bond as such, nor any surety or any
other security if a bond is required.

     SECTION 9.3. APPARENT AUTHORITY OF THE TRUSTEES. No person dealing with the
Trustees shall be bound to make any inquiry concerning the validity of any
transaction made or to be made by the Trustees or to see to the application of
any payments made or property transferred to the Trust or upon its order.

     SECTION 9.4. INDEMNIFICATION OF TRUSTEES, OFFICERS, ETC. TheTrust shall
indemnify each of its Trustees and officers and any person who serves at the
Trust's request as a director, officer or trustee of another organization in
which the Trust has any interest as a shareholder, creditor or otherwise
(hereinafter referred to, together with such person's heirs, executors,
administrators or other legal representatives, as a "COVERED PERSON") against
all liabilities and expenses, including but not limited to amounts paid in
satisfaction of judgments, in compromise or as fines and penalties, and counsel
fees, reasonably incurred or paid by such Covered Person in connection with any
action, suit or other proceeding, whether civil or criminal, before any court or
administrative or legislative body, in which such Covered Person may be or may
have been involved as a party or otherwise or with which he may be or may have
been threatened, while in office or thereafter, by reason of being or having


                                       70
<PAGE>


been such a Covered Person, except with respect to any matter as to which such
Covered Person shall have been finally adjudicated in any such action, suit or
other proceeding (i) not to have acted in good faith in the reasonable belief
that his action was in the best interests of the Trust, or (ii) to be liable to
the Trust or its shareholders by reason of willful misfeasance, bad faith, gross
negligence or reckless disregard of the duties involved in the conduct of his
office. Expenses, including counsel fees but excluding amounts paid in
satisfaction of judgments, in compromise, or as fines or penalties, so incurred
by any such Covered Person shall be paid from time to time by the Trust in
advance of a final decision on the merits in any such action, suit or proceeding
upon receipt of an undertaking by or on behalf of such Covered Person to repay
amounts so paid if it is ultimately determined that indemnification of such
expenses is not authorized under this Article; PROVIDED, HOWEVER, that either
(i) such Covered Person shall have provided appropriate security for his
undertaking, (ii) the Trust shall be insured against losses arising from any
such advance payments, or (iii) either a majority of a quorum of Trustees who
are neither "interested persons" of the Trust as the quoted phrase is defined in
the 1940 Act (or who have been exempted from being "interested persons" by any
rule, regulation or order of the Commission) nor parties to the action, suit or
other proceeding in question and against whom no other action, suit or
proceeding on the same or similar grounds is then or has been pending or
threatened (such quorum of such Trustees being referred to hereinafter as the
"DISINTERESTED TRUSTEES"), or an independent legal counsel in a written opinion,
shall have determined, based on a review of readily available facts (as opposed
to a full trial-type inquiry), that there is reason to believe that such Covered
Person ultimately will be found entitled to indemnification under this Article.

     SECTION 9.5. COMPROMISE PAYMENT. As to any matter disposed of (whether by a
compromise payment, pursuant to a consent decree or otherwise) without a final
decision on the merits by a court, or by any other body before which the
proceeding was brought, that such Covered Person either did not act in good
faith in the reasonable belief that his action was in the best interests of the
Trust or is liable to the Trust or its shareholders by reason of willful
misfeasance, bad faith, gross negligence or reckless disregard of the duties
involved in the conduct of his office, indemnification shall be provided if (i)
approved as in the best interests of the Trust by a majority of the
Disinterested Trustees upon a determination, based upon a review of readily
available facts (as opposed to a full trial-type inquiry) that such Covered
Person acted in good faith in the reasonable belief that his action was in the
best interests of the Trust and is not liable to the Trust or its shareholders
by reason of willful misfeasance, bad faith, gross negligence or reckless
disregard of the duties involved in the conduct of his office, or (ii) there has
been obtained an opinion of independent legal counsel, based upon a review of
the readily available facts (as opposed to a full trial-type inquiry), to the
effect that such Covered Person appears to have acted in good faith in the
reasonable belief that his action was in the best interests of the Trust and
that such indemnification would not protect such Covered Person against any
liability to the Trust to which he would otherwise be subject by reason of
willful misfeasance, bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of his office. Any such approval or opinion shall
not prevent the recovery from any Covered Person of any amount paid to such
Covered Person in accordance with this Article if such Covered Person is
subsequently adjudicated by a court of competent jurisdiction not to have acted
in good faith in the reasonable belief that his action was in the best interests
of the Trust or to have been liable to the Trust or its shareholders by reason
of willful misfeasance bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of his office.


                                       71
<PAGE>


     SECTION 9.6. INDEMNIFICATION NOT EXCLUSIVE, ETC. The right of
indemnification provided by this Article shall not be exclusive of or affect any
other rights to which any Covered Person may be entitled. Nothing contained in
this Article shall affect any rights to indemnification to which personnel of
the Trust, other than Trustees or officers, and other persons may be entitled by
contract or otherwise under law, nor the power of the Trust to purchase and
maintain liability insurance on behalf of any such person.

     SECTION 9.7. INDEMNIFICATION OF SHAREHOLDERS. If any shareholder or former
shareholder shall be held to be personally liable solely by reason of being or
having been a shareholder and not because of such shareholder's acts or
omissions or for some other reason, the shareholder or former shareholder (or
his/her heirs, executors, administrators or other legal representatives, or in
the case of a corporation or other entity, its corporate or other general
successor) shall be entitled to be held harmless from and indemnified against
all loss and expense arising from such liability.

                                   ARTICLE X

                                      Seal
                                      ----

     The seal of the Trust shall be in circular form and shall bear, in addition
to any other emblem or device approved by the Trustees, the name of the Trust,
the year of its organization and the words "Trust Seal" and "Massachusetts".
Said seal may be used by causing it or a facsimile thereof to be impressed or
affixed or in any other manner reproduced. Unless otherwise required by the
Trustees, it shall not be necessary to place the seal on, and its absence shall
not impair the validity of, any document, instrument or other paper executed and
delivered by or on behalf of the Trust.

                                   ARTICLE XI

                                   Fiscal Year
                                   -----------

     Unless otherwise determined by the Trustees, the fiscal year of the Trust
shall end on the last day of October in each year.

                                  ARTICLE XII

                                    Custodian
                                    ---------

     All securities and other assets of the Trust shall be deposited in the
safekeeping of a bank or trust company having capital, surplus and undivided
profits of at least two million dollars ($2,000,000) or of a member of a
national securities exchange (as defined in the Securities Exchange Act of
1934), as the Trustees may from time to time determine.


                                       72
<PAGE>


                                  ARTICLE XIII

                            Execution of Instruments
                            ------------------------

      Except as the Trustees may generally or in particular cases otherwise
authorize or direct, all deeds, leases, transfers, contracts, proposals, bonds,
notes, checks, drafts and other obligations made, accepted or endorsed by the
Trust shall be signed or endorsed on behalf of the Trust by the President, one
of the Vice-Presidents or the Treasurer.

                                  ARTICLE XIV

                         Independent Public Accountants
                         ------------------------------

     The firm of independent public accountants which shall sign or certify the
financial statements of the Trust filed with the Securities and Exchange
Commission shall be selected annually by the Trustees and ratified by the
shareholders in accordance with the provisions of the 1940 Act.

                                   ARTICLE XV

                                   Amendments
                                   ----------

     Except as otherwise provided herein, these By-Laws may be amended, altered
or repealed by the affirmative vote of a majority of the Trustees at any regular
or special meeting called for that purpose, provided, however, that no provision
of these By-Laws authorizing any action by the Trust that requires the vote of
the holders of any class of shares or the holders of any series of shares of any
class may be amended, altered or repealed except by the affirmative vote of (x)
the holders of at least the percentage of shares of such class or series
required to authorize the action specified therein and (y) the percentage of
Trustees required to authorize the action specified therein or, if no such
percentage is specified, a majority of the Trustees.

     Subject to the foregoing, these By-Laws may also be amended, altered or
repealed at any meeting of the shareholders at which a quorum is present or
represented.

                                      * * *

     The foregoing Third Amendment and Restatement to the By-Laws were adopted
by the Board of Trustees on March 8, 2005.

                                    /s/ Susan S. Newton
                                    ----------------------
                                    Susan S. Newton
                                    Senior Vice President and Secretary





                                       73
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.5
<SEQUENCE>7
<FILENAME>commonsharescert.txt
<DESCRIPTION>EXHIBIT 99.5(A)
<TEXT>

                  John Hancock Patriot Premium Dividend Fund II
                            COMMON SHARE CERTIFICATE

         THIS CERTIFICATE IS TRANSFERABLE IN BOSTON OR IN NEW YORK CITY
          ORGANIZED UNDER THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS

Number  ______                                                            SHARES


COMMON SHARE(S) OF
BENEFICIAL INTEREST
NO PAR VALUE

CUSIP 70336L 10 1
SEE REVERSE FOR CERTAIN DEFINITIONS

This certifies that ________________ is the owner of ___________ FULLY PAID AND
NON-ASSESSABLE COMMON SHARES OF BENEFICIAL INTEREST OF JOHN HANCOCK PATRIOT
PREMIUM DIVIDEND FUND II, the said shares being issued, received and held under
and subject to the terms and provisions of the Agreement and Declaration of
Trust dated as of September 26, 1989, establishing John Hancock Patriot Premium
Dividend Fund II, and all amendments thereto, copies of which are on file with
the Secretary of The Commonwealth of Massachusetts and the Fund's By-Laws, and
all amendments thereto. The said owner by accepting this certificate agrees to
and is bound by all of the said terms and provisions. The shares represented
hereby are transferable in writing by the owner thereof in person or by attorney
upon surrender of this certificate to the Fund, properly endorsed for transfer.
This certificate is executed on behalf of the Trustees of the Fund as Trustees
and not individually and the obligations hereof are not binding upon any of the
Trustees, officers or shareholders of the Fund individually but are binding only
upon the assets and property of the Fund. This certificate is not valid unless
countersigned and registered by the Transfer Agent and Registrar.

Witness the facsimile seal of the Fund and the facsimile signatures of its duly
authorized officers.

Dated:

                 ---------------------              ------------------
                 Treasurer                          President

Countersigned and Registered:
By Mellon Investor Services
            (Jersey City, NJ)      Transfer Agent and Registrar     [Trust Seal]

Authorized Signature

<PAGE>



                    Classes of Shares of Beneficial Interest

The preferences, voting powers, qualifications,  and special and relative rights
of the shares of  beneficial  interest  of each class and series of the Fund are
set forth in the Agreement and  Declaration of Trust and By-Laws.  The Fund will
furnish a copy of the  Agreement  and  Declaration  of Trust and  By-laws to the
holder of this certificate without charge upon written request.

EXPLANATION OF ABBREVIATIONS

      The following abbreviations when used in the form of ownership on the face
of this  certificate  shall be construed as though they were written out in full
according to applicable laws or regulations.  Abbreviations in addition to those
appearing below may be used.

<TABLE>
<CAPTION>

ABBREVIATION      EQUIVALENT                              ABBREVIATION          EQUIVALENT
- ------------      ----------                              ------------          ----------
<S>               <C>                                     <C>                   <C>

JT TEN            As joint tenants, with right of         TEN IN COM            As tenants in common
                  survivorship and not as tenants in
                  common
Abbreviation      Equivalent                              TEN BY ENT            As tenants by the entireties
ADM               Administrator(s)                        UNIF TRANSFERS MIN    Uniform Transfers to Minors Act
                                                          ACT
AGMT              Agreement                               ABBREVIATION          EQUIVALENT
                                                          ------------          ----------
CUST              Custodian for                           FDN                   Foundation
EST               Estate, Of estate of                    PL                    Public Law
EX                Executor(s), Executrix                  TR                    (As) trustee(s), for of
FBO               For the benefit of                      UA                    Under Agreement
                                                          UW                    Under the will of, Of will of, Under last
                                                                                will & Testament

- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                  TRANSFER FORM

      FOR VALUE RECEIVED, (I, we) hereby sell, assign and transfer unto [please
insert social security or other identifying number of assignee] [please print or
typewrite name and address (including postal zip code of assignee)]
_________________ Common Shares represented by this Certificate, and do hereby
irrevocably constitute and appoint _____________________________ Attorney to
transfer said shares on the books of the Fund with full power of substitution in
the premises.

Dated ____________________________                  ____________________________
                                                    Signature(s)

(The signature to this agreement must  correspond  with the name as written upon
the  face of this  Certificate  in  every  particular,  without  alternation  or
enlargement or any change whatsoever. If more than one owner, all must sign).

Signature Guaranteed By: __________________________________

(Signature  must be guaranteed  by a commercial  bank or trust company or member
firm of any national stock exchange.)

<PAGE>

                                IMPORTANT NOTICE

When you sign your name to the Transfer Form without filling in the name of your
"Assignee"  this  certificate  becomes  fully  negotiable,  similar  to a  check
endorsed  in  blank.  Therefore,  to  safeguard  a  signed  certificate,  it  is
recommended that you fill in the name of the new owner in the "assignee" space.

Alternatively,  instead of using  this  Transfer  form,  you may sign a separate
"stock power" form and then mail the unsigned  certificate and the signed "stock
power" in separate  envelopes.  For added protection,  use registered mail for a
certificate.

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.5
<SEQUENCE>8
<FILENAME>exhibit_5b.txt
<DESCRIPTION>EXHIBIT 99.5(B)
<TEXT>

                   DUTCH AUCTION RATE TRANSFERABLE SECURITIES
                    SHARE(S) OF BENEFICIAL INTEREST, SERIES C
                             NO PAR VALUE PER SHARE
                    $100,000 LIQUIDATION PREFERENCE PER SHARE

Certificate Number: __
Number of Shares:  ____
CUSIP No.: _____

                  John Hancock Patriot Premium Dividend Fund II

This certifies that Cede & Co. is the owner of the above referenced number of
fully paid and non-assessable Dutch Auction Rate Transferable Securities
share(s), Series C, no par value, $100,000 Liquidation Preference per Share, of
John Hancock Patriot Premium Dividend Fund II, a Massachusetts business trust
(the "Trust"), the said shares being issued, received and held under and subject
to the terms and provisions of the Agreement and Declaration of Trust dated as
of September 26, 1989, establishing the Trust, and all amendments thereto, and
the By-Laws of the Trust, and all amendments thereto, copies of which are on
file with the Secretary of Trust at the offices of the Trust. The said owner by
accepting this certificate agrees to and is bound by all of the said terms and
provisions. The shares represented hereby are transferable in writing by the
owner thereof in person or by attorney upon surrender of this certificate to the
Trust in the manner provided in the By-Laws properly endorsed for transfer. This
certificate is executed on behalf of the Trustees of the Trust as Trustees and
not individually, and the obligations hereof are not binding upon any of the
Trustees, officers or shareholders of the Trust individually but are binding
only upon the assets and property of the Trust. This certificate is not valid
until countersigned and registered by the Transfer Agent and Registrar.

Witness the facsimile seal of the Fund and the facsimile signatures of its duly
authorized officers.


Dated:

Executed on behalf of the Trust:

- ----------------------------                        ----------------------------
President and Chief Executive Officer               Treasurer

Countersigned and Registered:
By Deutsche Bank Trust Company Americas
New York, New York
Transfer Agent and Registrar
BY: ___________________________

<PAGE>

Unless this certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trust or its
agent for registration of a transfer, exchange, or payment, and any certificate
issued is registered in the name of Cede & Co. or in such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

EXPLANATION OF ABBREVIATIONS

      The following abbreviations when used in the form of ownership on the face
of this certificate shall be construed as though they were written out in full
according to applicable laws or regulations. Abbreviations in addition to those
appearing below may be used.

<TABLE>
<CAPTION>

ABBREVIATION      EQUIVALENT                              ABBREVIATION          EQUIVALENT
- ------------      ----------                              ------------          ----------
<S>               <C>                                     <C>                   <C>

JT TEN            As joint tenants, with right of         TEN IN COM            As tenants in common
                  survivorship and not as tenants in
                  common
Abbreviation      Equivalent                              TEN BY ENT            As tenants by the entireties

ADM               Administrator(s)                        UNIF TRANSFERS MIN    Uniform Transfers to Minors Act
                                                          ACT

AGMT              Agreement                               ABBREVIATION          EQUIVALENT
                                                          ------------          ----------

CUST              Custodian for                           FDN                   Foundation

EST               Estate, Of estate of                    PL                    Public Law

EX                Executor(s), Executrix                  TR                    (As) trustee(s), for of

FBO               For the benefit of                      UA                    Under Agreement

                                                          UW                    Under the will of, Of will of, Under last
                                                                                will & Testament

                        Additional abbreviations may also be used though not in the above list.
</TABLE>

THIS CERTIFICATE IS ISSUED SUBJECT TO THE PROVISIONS RESTRICTING TRANSFERS OF
THE DUTCH AUCTION RATE TRANSFERABLE SECURITIES CONTAINED IN THE BY-LAWS.


                                  TRANSFER FORM

     FOR VALUE RECEIVED, ____________________________________ hereby
sell, assign and transfer unto ________________ (Name)  ________________ (Social
Security Number)

Please print or typewrite Name and Address (including postal ZIP Code of
Assignee) _____________________________________________________________________
shares represented by this Certificate, and do hereby irrevocably constitute and
appoint _____________________________ Attorney, to transfer such beneficial
interest on the books of the Trust named therein with full power of substitution
in the premises.

Dated ______________________________, ________________

Signature(s)____________________________________

<PAGE>

(The signature of this assignment must correspond exactly with the name as
written upon the face of this Certificate in every particulate, without
alteration or enlargement or any change whatsoever. If more than one owner, all
must sign.)

- ------------------------------------
(Signature must be guaranteed by a commercial bank or trust company or member
firm of any national stock exchange.)

                                IMPORTANT NOTICE

When you sign your name to the Transfer Form without filling in the name of your
"Assignee" this certificate becomes fully negotiable, similar to a check
endorsed in blank. Therefore, to safeguard a signed certificate, it is
recommended that you fill in the name of the new owner in the "assignee" space.

Alternatively, instead of using this Transfer form, you may sign a separate
"stock power" form and then mail the unsigned certificate and the signed "stock
power" in separate envelopes. For added protection, use registered mail for a
certificate.

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.5
<SEQUENCE>9
<FILENAME>exhibit_5c.txt
<DESCRIPTION>EXHIBIT 99.5(C)
<TEXT>

                   DUTCH AUCTION RATE TRANSFERABLE SECURITIES
                    SHARE(S) OF BENEFICIAL INTEREST, SERIES D
                             NO PAR VALUE PER SHARE
                    $100,000 LIQUIDATION PREFERENCE PER SHARE

Certificate Number: __
Number of Shares:  ____
CUSIP No.: _____


                  John Hancock Patriot Premium Dividend Fund II

This certifies that Cede & Co. is the owner of the above referenced number of
fully paid and non-assessable Dutch Auction Rate Transferable Securities
share(s), Series D, no par value, $100,000 Liquidation Preference per Share, of
John Hancock Patriot Premium Dividend Fund II, a Massachusetts business trust
(the "Trust"), the said shares being issued, received and held under and subject
to the terms and provisions of the Agreement and Declaration of Trust dated as
of September 26, 1989, establishing the Trust, and all amendments thereto, and
the By-Laws of the Trust, and all amendments thereto, copies of which are on
file with the Secretary of Trust at the offices of the Trust. The said owner by
accepting this certificate agrees to and is bound by all of the said terms and
provisions. The shares represented hereby are transferable in writing by the
owner thereof in person or by attorney upon surrender of this certificate to the
Trust in the manner provided in the By-Laws properly endorsed for transfer. This
certificate is executed on behalf of the Trustees of the Trust as Trustees and
not individually, and the obligations hereof are not binding upon any of the
Trustees, officers or shareholders of the Trust individually but are binding
only upon the assets and property of the Trust. This certificate is not valid
until countersigned and registered by the Transfer Agent and Registrar.

Witness the facsimile seal of the Fund and the facsimile signatures of its duly
authorized officers.


Dated:

Executed on behalf of the Trust:

- ----------------------------                        ----------------------------
President and Chief Executive Officer               Treasurer

Countersigned and Registered:
By Deutsche Bank Trust Company Americas
New York, New York
Transfer Agent and Registrar
BY: ___________________________

<PAGE>

Unless this certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trust or its
agent for registration of a transfer, exchange, or payment, and any certificate
issued is registered in the name of Cede & Co. or in such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

EXPLANATION OF ABBREVIATIONS
      The following abbreviations when used in the form of ownership on the face
of this certificate shall be construed as though they were written out in full
according to applicable laws or regulations. Abbreviations in addition to those
appearing below may be used.

<TABLE>
<CAPTION>

ABBREVIATION      EQUIVALENT                              ABBREVIATION          EQUIVALENT
- ------------      ----------                              ------------          ----------
<S>               <C>                                     <C>                   <C>
JT TEN            As joint tenants, with right of         TEN IN COM            As tenants in common
                  survivorship and not as tenants in
                  common

Abbreviation      Equivalent                              TEN BY ENT            As tenants by the entireties

ADM               Administrator(s)                        UNIF TRANSFERS MIN    Uniform Transfers to Minors Act
                                                          ACT

AGMT              Agreement                               ABBREVIATION          EQUIVALENT
                                                          ------------          ----------

CUST              Custodian for                           FDN                   Foundation

EST               Estate, Of estate of                    PL                    Public Law

EX                Executor(s), Executrix                  TR                    (As) trustee(s), for of

FBO               For the benefit of                      UA                    Under Agreement

                                                          UW                    Under the will of, Of will of, Under last
                                                                                will & Testament

                        Additional abbreviations may also be used though not in the above list.
</TABLE>

THIS CERTIFICATE IS ISSUED SUBJECT TO THE PROVISIONS RESTRICTING TRANSFERS OF
THE DUTCH AUCTION RATE TRANSFERABLE SECURITIES CONTAINED IN THE BY-LAWS.



                                  TRANSFER FORM


     FOR VALUE RECEIVED, ____________________________________ hereby sell,
assign and transfer unto ________________ (Name) _____________ (Social Security
Number)

Please print or typewrite Name and Address (including postal ZIP Code of
Assignee)___________________________________________ shares represented by this
Certificate, and do hereby irrevocably constitute and appoint
_____________________________ Attorney, to transfer such beneficial interest on
the books of the Trust named therein with full power of substitution in the
premises.

Dated ______________________________, ________________

Signature(s)____________________________________

<PAGE>

(The signature of this assignment must correspond exactly with the name as
written upon the face of this Certificate in every particulate, without
alteration or enlargement or any change whatsoever. If more than one owner, all
must sign.)

_____________________________________
(Signature must be guaranteed by a commercial bank or trust company or member
firm of any national stock exchange.)

                                IMPORTANT NOTICE

When you sign your name to the Transfer Form without filling in the name of your
"Assignee" this certificate becomes fully negotiable, similar to a check
endorsed in blank. Therefore, to safeguard a signed certificate, it is
recommended that you fill in the name of the new owner in the "assignee" space.

Alternatively, instead of using this Transfer form, you may sign a separate
"stock power" form and then mail the unsigned certificate and the signed "stock
power" in separate envelopes. For added protection, use registered mail for a
certificate.

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.5
<SEQUENCE>10
<FILENAME>exhibit_5d.txt
<DESCRIPTION>EXHIBIT 99.5(D)
<TEXT>


                   DUTCH AUCTION RATE TRANSFERABLE SECURITIES
                    SHARE(S) OF BENEFICIAL INTEREST, SERIES E
                             NO PAR VALUE PER SHARE
                    $100,000 LIQUIDATION PREFERENCE PER SHARE

Certificate Number: __
Number of Shares:  ____
CUSIP No.: _____

                  John Hancock Patriot Premium Dividend Fund II

This certifies that Cede & Co. is the owner of the above referenced number of
fully paid and non-assessable Dutch Auction Rate Transferable Securities
share(s), Series E, no par value, $100,000 Liquidation Preference per Share, of
John Hancock Patriot Premium Dividend Fund II, a Massachusetts business trust
(the "Trust"), the said shares being issued, received and held under and subject
to the terms and provisions of the Agreement and Declaration of Trust dated as
of September 26, 1989, establishing the Trust, and all amendments thereto, and
the By-Laws of the Trust, and all amendments thereto, copies of which are on
file with the Secretary of Trust at the offices of the Trust. The said owner by
accepting this certificate agrees to and is bound by all of the said terms and
provisions. The shares represented hereby are transferable in writing by the
owner thereof in person or by attorney upon surrender of this certificate to the
Trust in the manner provided in the By-Laws properly endorsed for transfer. This
certificate is executed on behalf of the Trustees of the Trust as Trustees and
not individually, and the obligations hereof are not binding upon any of the
Trustees, officers or shareholders of the Trust individually but are binding
only upon the assets and property of the Trust. This certificate is not valid
until countersigned and registered by the Transfer Agent and Registrar.

      Witness the facsimile seal of the Fund and the facsimile signatures of its
duly authorized officers.


Dated:

Executed on behalf of the Trust:

- ----------------------------                        ----------------------------
President and Chief Executive Officer               Treasurer

Countersigned and Registered:
By Deutsche Bank Trust Company Americas
New York, New York
Transfer Agent and Registrar
BY: ___________________________

<PAGE>

Unless this certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trust or its
agent for registration of a transfer, exchange, or payment, and any certificate
issued is registered in the name of Cede & Co. or in such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

EXPLANATION OF ABBREVIATIONS
      The following abbreviations when used in the form of ownership on the face
of this certificate shall be construed as though they were written out in full
according to applicable laws or regulations. Abbreviations in addition to those
appearing below may be used.

<TABLE>
<CAPTION>

ABBREVIATION      EQUIVALENT                              ABBREVIATION          EQUIVALENT
- ------------      ----------                              ------------          ----------
<S>               <C>                                     <C>                   <C>

JT TEN            As joint tenants, with right of         TEN IN COM            As tenants in common
                  survivorship and not as tenants in
                  common
Abbreviation      Equivalent                              TEN BY ENT            As tenants by the entireties

ADM               Administrator(s)                        UNIF TRANSFERS MIN    Uniform Transfers to Minors Act

                                                          ACT

AGMT              Agreement                               ABBREVIATION          EQUIVALENT
                                                          ------------          ----------

CUST              Custodian for                           FDN                   Foundation

EST               Estate, Of estate of                    PL                    Public Law

EX                Executor(s), Executrix                  TR                    (As) trustee(s), for of

FBO               For the benefit of                      UA                    Under Agreement

                                                          UW                    Under the will of, Of will of, Under last
                                                                                will & Testament

                        Additional abbreviations may also be used though not in the above list.
</TABLE>

THIS CERTIFICATE IS ISSUED SUBJECT TO THE PROVISIONS RESTRICTING TRANSFERS OF
THE DUTCH AUCTION RATE TRANSFERABLE SECURITIES CONTAINED IN THE BY-LAWS.



                                  TRANSFER FORM


     FOR VALUE RECEIVED, ____________________________________ hereby sell,
assign and transfer unto ________________ (Name) ___________________ (Social
Security Number)

Please print or typewrite Name and Address (including postal ZIP Code of
Assignee)___________________________________
_____________________________________________________________________ shares
represented by this Certificate, and do hereby irrevocably constitute and
appoint _____________________________ Attorney, to transfer such beneficial
interest on the books of the Trust named therein with full power of substitution
in the premises.

Dated ______________________________, ________________

Signature(s)____________________________________

<PAGE>

(The signature of this assignment must correspond exactly with the name as
written upon the face of this Certificate in every particulate, without
alteration or enlargement or any change whatsoever. If more than one owner, all
must sign.)

____________________________________
(Signature must be guaranteed by a commercial bank or trust company or member
firm of any national stock exchange.)

                                IMPORTANT NOTICE

When you sign your name to the Transfer Form without filling in the name of your
"Assignee" this certificate becomes fully negotiable, similar to a check
endorsed in blank. Therefore, to safeguard a signed certificate, it is
recommended that you fill in the name of the new owner in the "assignee" space.

Alternatively, instead of using this Transfer form, you may sign a separate
"stock power" form and then mail the unsigned certificate and the signed "stock
power" in separate envelopes. For added protection, use registered mail for a
certificate.

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.5
<SEQUENCE>11
<FILENAME>exhibit_5e.txt
<DESCRIPTION>EXHIBIT 99.5(E)
<TEXT>


                   DUTCH AUCTION RATE TRANSFERABLE SECURITIES
                    SHARE(S) OF BENEFICIAL INTEREST, SERIES F
                             NO PAR VALUE PER SHARE
                    $100,000 LIQUIDATION PREFERENCE PER SHARE

Certificate Number: __
Number of Shares:  ____
CUSIP No.: _____

                  John Hancock Patriot Premium Dividend Fund II

This certifies that Cede & Co. is the owner of the above referenced number of
fully paid and non-assessable Dutch Auction Rate Transferable Securities
share(s), Series F, no par value, $100,000 Liquidation Preference per Share, of
John Hancock Patriot Premium Dividend Fund II, a Massachusetts business trust
(the "Trust"), the said shares being issued, received and held under and subject
to the terms and provisions of the Agreement and Declaration of Trust dated as
of September 26, 1989, establishing the Trust, and all amendments thereto, and
the By-Laws of the Trust, and all amendments thereto, copies of which are on
file with the Secretary of Trust at the offices of the Trust. The said owner by
accepting this certificate agrees to and is bound by all of the said terms and
provisions. The shares represented hereby are transferable in writing by the
owner thereof in person or by attorney upon surrender of this certificate to the
Trust in the manner provided in the By-Laws properly endorsed for transfer. This
certificate is executed on behalf of the Trustees of the Trust as Trustees and
not individually, and the obligations hereof are not binding upon any of the
Trustees, officers or shareholders of the Trust individually but are binding
only upon the assets and property of the Trust. This certificate is not valid
until countersigned and registered by the Transfer Agent and Registrar.

      Witness the facsimile seal of the Fund and the facsimile signatures of its
duly authorized officers.


Dated:

Executed on behalf of the Trust:

- ----------------------------                        ----------------------------
President and Chief Executive Officer               Treasurer

Countersigned and Registered:
By Deutsche Bank Trust Company Americas
New York, New York
Transfer Agent and Registrar
BY: ___________________________

<PAGE>

Unless this certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Trust or its
agent for registration of a transfer, exchange, or payment, and any certificate
issued is registered in the name of Cede & Co. or in such other name as is
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

EXPLANATION OF ABBREVIATIONS

      The following abbreviations when used in the form of ownership on the face
of this certificate shall be construed as though they were written out in full
according to applicable laws or regulations. Abbreviations in addition to those
appearing below may be used.

<TABLE>
<CAPTION>

ABBREVIATION      EQUIVALENT                              ABBREVIATION          EQUIVALENT
- ------------      ----------                              ------------          ----------
<S>               <C>                                     <C>                   <C>

JT TEN            As joint tenants, with right of         TEN IN COM            As tenants in common
                  survivorship and not as tenants in
                  common

Abbreviation      Equivalent                              TEN BY ENT            As tenants by the entireties

ADM               Administrator(s)                        UNIF TRANSFERS MIN    Uniform Transfers to Minors Act
                                                          ACT

AGMT              Agreement                               ABBREVIATION          EQUIVALENT
                                                          ------------          ----------

CUST              Custodian for                           FDN                   Foundation

EST               Estate, Of estate of                    PL                    Public Law

EX                Executor(s), Executrix                  TR                    (As) trustee(s), for of

FBO               For the benefit of                      UA                    Under Agreement

                                                          UW                    Under the will of, Of will of, Under last
                                                                                will & Testament

                        Additional abbreviations may also be used though not in the above list.
</TABLE>

THIS CERTIFICATE IS ISSUED SUBJECT TO THE PROVISIONS RESTRICTING TRANSFERS OF
THE DUTCH AUCTION RATE TRANSFERABLE SECURITIES CONTAINED IN THE BY-LAWS.



                                  TRANSFER FORM


     FOR VALUE RECEIVED, ___________________________hereby sell, assign and
transfer unto _______________ (Name) ______________________ (Social Security
Number)

Please print or typewrite Name and Address (including postal ZIP Code of
Assignee)_________________________________________________ shares
represented by this Certificate, and do hereby irrevocably constitute and
appoint _____________________________ Attorney, to transfer such beneficial
interest on the books of the Trust named therein with full power of substitution
in the premises.

Dated ______________________________, ________________

Signature(s)____________________________________

<PAGE>


(The signature of this assignment must correspond exactly with the name as
written upon the face of this Certificate in every particulate, without
alteration or enlargement or any change whatsoever. If more than one owner, all
must sign.)

____________________________________
(Signature must be guaranteed by a commercial bank or trust company or member
firm of any national stock exchange.)

                                IMPORTANT NOTICE

When you sign your name to the Transfer Form without filling in the name of your
"Assignee" this certificate becomes fully negotiable, similar to a check
endorsed in blank. Therefore, to safeguard a signed certificate, it is
recommended that you fill in the name of the new owner in the "assignee" space.

Alternatively, instead of using this Transfer form, you may sign a separate
"stock power" form and then mail the unsigned certificate and the signed "stock
power" in separate envelopes. For added protection, use registered mail for a
certificate.



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.6
<SEQUENCE>12
<FILENAME>investmentadvisory.txt
<DESCRIPTION>EXHBIT 99.6(A)
<TEXT>
                                                                     May 6, 1992

John Hancock Advisers, Inc.
101 Huntington Avenue
Boston, Massachusetts 02199

                          INVESTMENT ADVISORY CONTRACT
                          ----------------------------

Dear Sir:

      Patriot Premium Dividend Fund II (the "Fund") has been organized as a
business trust under the laws of The Commonwealth of Massachusetts to engage in
the business of an investment company.

      The Fund has selected John Hancock Advisers, Inc. (the "Adviser") to
provide overall investment advice and management for the Fund and to provide
certain other services, as more fully set forth below, and you are willing to
provide such advice, management and services under the terms and conditions
hereinafter set forth.  Accordingly, the Fund agrees with you as follows:

1.    DELIVERY OF DOCUMENTS.  The Fund has furnished you with copies, properly
certified or otherwise authenticated, of each of the following

(a)   Amended and Restated Agreement and Declaration of Trust of the Fund, dated
      December 12, 1989 (the "Declaration of Trust");

(b)   By-Laws of the Trust as in effect on the date hereof; and

(c)   Resolutions of the Trustees approving the form of this Agreement.

      The Fund will furnish you from time to time with copies, properly
certified or otherwise authenticated, of all amendments of or supplements to the
foregoing, if any.

2.    INVESTMENT AND MANAGEMENT SERVICES.  You will use your best efforts to
provide to the Fund continuing and suitable investment programs with respect to
investments, consistent with the investment policies, objectives and
restrictions of the Fund.  In the performance of the Adviser's duties hereunder,
subject always (x) to the provisions contained in the documents delivered to the
Adviser pursuant to Section 1, as each of the same may from time to time be
amended or supplemented, and (y) to the limitations set forth in the
registration statement of the Fund as in effect from time to time under the
Investment Company Act of 1940, as amended, the Adviser will, at its own
expense:

(a)   furnish the Fund with advice and recommendations, consistent with the
      investment policies, objectives and restrictions of the Fund, with respect
      to the purchase, holding and disposition of portfolio securities,
      including the purchase and sale of options;

<PAGE>
                                     -2-


(b)   advise the Fund in connection with policy decisions to be made by the Fund
      or any committee thereof with respect to such Fund's investments and, as
      requested, furnish the Fund with research, economic and statistical data
      in connection with the Fund's investments and investment policies;

(c)   submit such reports relating to the valuation of the Fund's securities as
      the Fund may reasonably request;

(d)   assist the Fund in any negotiations relating to its investments with
      issuers, investment banking firms, securities brokers or dealers and other
      institutions or investors;

(e)   consistent with provisions of Section 6 of this Agreement, place orders
      for the purchase, sale or exchange of portfolio securities with brokers or
      dealers selected by you, provided that in connection with the placing of
      such orders and the selection of such brokers or dealers you shall seek to
      obtain execution and pricing within the policy guidelines determined by
      the Fund as in effect from time to time;

(f)   from time to time or at any time requested by the Fund, make reports to
      the Fund of your performance of the foregoing services and furnish advice
      and recommendations with respect to other aspects of the business and
      affairs of the Fund;

(g)   obtain and evaluate such information relating to economies, industries,
      businesses, securities markets and securities as you may deem necessary or
      useful in the discharge of your duties hereunder;

(h)   provide office space and equipment and supplies, the use of accounting
      equipment when required, and necessary executive, clerical and secretarial
      personnel adequate to provide the services described in subparagraphs (a)
      through (g) above.  The Adviser and the Fund acknowledge that the Adviser
      is also furnishing the Fund with office space, equipment, supplies, and
      personnel under an Administrative, Agreement of even date for which it
      receives separate compensation;

3.    EXPENSES OF THE FUND.  You will pay:

(a)   the compensation and expenses of all officers and employees of the Fund,
      except those expressly paid by the Fund;

(b)   the expenses of office, rent, telephone and other utilities, office
      furniture, equipment, supplies and other office expenses of the Fund;

(c)   any other expenses incurred by you in connection with the performance of
      your duties hereunder; and

(d)   premiums for such insurance as may be agreed upon by you and the Fund.

<PAGE>
                                      -3-

4.    EXPENSES OF THE FUND NOT PAID BY YOU.  You will not be required to pay any
expenses which this Agreement does not expressly make payable by you.  In
particular, and without limiting the generality of the foregoing but subject to
the provisions of Section 3, you will not be required to pay:

(a)   any and all expenses, taxes and governmental fees incurred by the Fund
      prior to the date hereof;

(b)   the compensation and expenses of Trustees who are not interested persons
      (as used in this Agreement such term shall have the meaning specified in
      the Investment Company Act of 1940, as amended) of you, and of independent
      advisers, independent contractors, consultants, managers and other
      unaffiliated agents employed by the Fund other than through you;

(c)   legal, accounting and auditing fees and expenses of the Fund;

(d)   the fees or disbursements of custodians and depositories of the Fund's
      assets, transfer agents, disbursing agents, plan agents and registrars;

(e)   taxes and governmental fees assessed against the Fund's assets and payable
      by the Fund;

(f)   the cost of preparing and mailing dividends, distributions, reports,
      notices and proxy materials to shareholders of the Fund;

(g)   brokers' commissions and underwriting fees; and

(h)   the expense of periodic calculations of the net asset value of the shares
      of the Fund.

5.    COMPENSATION OF THE ADVISER.  For all services to be rendered, facilities
furnished and expenses paid or assumed by you as herein provided, the Fund will
pay you monthly, a fee equal to .50 of 1% annually of the Fund's average weekly
net assets plus 5% of the Fund's weekly gross income.  The Adviser's total fee
is limited to a maximum amount equal to 1% annually of the Fund's average weekly
net assets.  The Adviser and the Fund acknowledge that the Adviser is also
furnishing to the Fund office space, facilities, equipment and personnel under
an Administrative Agreement of even date for which it receives separate
compensation.

6.    AVOIDANCE OF INCONSISTENT POSITION.  In connection with purchases or sales
of portfolio securities for the account of the Fund, neither you nor any
investment management subsidiary of yours, nor any of your or their directors,
officers or employees will act as principal or agent or receive any commission.
If any occasion shall arise in which you advise persons concerning the shares of
the Fund, you will act solely on your own behalf and not in any way on behalf of
the Fund.

7.    NO PARTNERSHIP OR JOINT VENTURE.  The Fund and you are not partners of or
joint venturers with each other and nothing herein shall be construed so as to
make you such partners or joint venturers or impose any liability as such on any
of you.

<PAGE>
                                     -4-

8.    LIMITATION OF LIABILITY OF THE ADVISER.  You shall not be liable for any
error of judgment or mistake of law or for any loss suffered by the Fund in
connection with the matters to which this Agreement relates, except a loss
resulting from willful misfeasance, bad faith or gross negligence on your part
in the performance of your duties or from reckless disregard by you of your
obligations and duties under this Agreement.  Any person, even though also
employed by you, who may be or become an employee of and paid by the Fund shall
be deemed, when acting within the scope of his employment by the Fund, to be
acting in such employment solely for the Fund and not as your employee or agent.

9.    USE OF THE PATRIOT NAME.  The Fund acknowledges that you own and have the
right to control the use of the name "Patriot." Subject to the foregoing and to
applicable law, you reserve the right to (i) make use of the term "Patriot" for
any purpose, including the right to grant the use of the name "Patriot" to other
investment companies and (ii) to withdraw the right of the Fund to use the name
"Patriot" at any time that neither you nor any affiliate of yours serves as the
investment adviser to the Fund.

10.   DURATION AND TERMINATION OF THIS AGREEMENT.  This Agreement shall remain
in force until the second anniversary of the date upon which this Agreement was
executed by the parties hereto, and from year to year thereafter, but only so
long as such continuance is specifically approved at least annually by (a) a
majority of the Trustees who are not interested persons of you or (other than as
Trustees) of the Fund, cast in person at a meeting called for the purpose of
voting on such approval, and (b) either (i) the Trustees or (ii) a majority of
the outstanding voting securities of the Fund.  This Agreement may, on 60 days'
written notice, be terminated at any time without the payment of any penalty by
the Fund by vote of a majority of the outstanding voting securities of the Fund,
or by you.  This Agreement shall automatically terminate in the event of its
assignment.  In interpreting the provisions of this Section 10, the definitions
contained in section 2(a) of the Investment Company Act of 1940, as amended
(particularly the definitions of "assignment," "interested person" or "voting
security"), shall be applied.

11.   AMENDMENT OF THIS AGREEMENT.  No provision of this Agreement may be
changed, waived, discharged or terminated orally, but only by an instrument in
writing signed by the party against which enforcement of the change, waiver or
termination is sought, and no amendment, transfer, assignment, sale,
hypothecation or pledge of this Agreement shall be effective until approved by
(a) the Trustees, including a majority of the Trustees who are not interested
persons of you or (other than as Trustees) of the Fund, cast in person at a
meeting called for the purpose of voting on such approval, and (b) a majority of
the outstanding voting securities of the Fund, as defined in the Investment
Company Act of 1940, as amended.

12.   MISCELLANEOUS.  The captions in this Agreement are included for
convenience of reference only and in no way define or limit any of the
provisions hereof or otherwise affect their construction or effect.  This
Agreement may be executed simultaneously in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.  The obligations of the Fund are not personally
binding upon, nor shall resort be had to the private property of, any of the
Trustees, shareholders, officers, employees or agents of the Fund, but only the
Fund's property shall be bound.

<PAGE>
                                     -5-


                                     Yours very truly,

                                     PATRIOT PREMIUM DIVIDEND FUND II



                                     By: /s/ John A. Moran
                                         ----------------------------
                                         Vice President

The foregoing contract is hereby agreed
to as of the date hereof.

JOHN HANCOCK ADVISERS, INC.



By:  /s/ Andrew F. St. Pierre
     ------------------------------------
     Vice President
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.6
<SEQUENCE>13
<FILENAME>subadvisoryagmt.txt
<DESCRIPTION>EXHIBIT 99.6(B)
<TEXT>
                                                                  EXECUTION COPY

                               JOHN HANCOCK FUNDS

                             SUB-ADVISORY AGREEMENT

      AGREEMENT made this 31st day of December, 2005, among John Hancock
Advisers, LLC, a Delaware limited liability company (the "Adviser"), Sovereign
Asset Management LLC, a Delaware limited liability company (the "Sub-adviser"),
and each of the trusts that is a signatory hereto (each, a "Trust" and together,
as applicable, the "Trusts"). In consideration of the mutual covenants contained
herein, the parties agree as follows:

1.    APPOINTMENT OF SUB-ADVISER

      The Sub-adviser undertakes to act as investment sub-adviser to each of
the Trusts and the series thereof (each a "Fund"), in each case listed on
Appendix A to this Agreement, as such Appendix may be amended by the affected
Trust(s), the Adviser and the Sub-adviser from time to time, and, subject to the
supervision and control of the Trustees of each Trust and the terms of this
Agreement, to manage the investment and reinvestment of the assets of the Funds.
The Sub-adviser will be an independent contractor and will have no authority to
act for or represent any Trust, any Fund or the Adviser in any way except as
expressly authorized in this Agreement or another writing by the applicable
Trust or the Adviser. The Sub-adviser and the Adviser are currently affiliates
under the common control of Manulife Financial Corporation.

2.    SERVICES TO BE RENDERED BY THE SUB-ADVISER TO THE TRUSTS AND THE FUNDS

a.    Subject always to the direction and control of the Trustees of each Trust,
      the Sub-adviser shall have investment discretion over the assets of each
      Fund and will manage the investments and determine the composition of
      these assets in accordance with the applicable Trust's registration
      statement, as amended. In fulfilling its obligations to manage the
      investments and reinvestments of the assets of each Fund, the Sub-adviser
      will:

            i.    obtain and evaluate pertinent economic, statistical, financial
                  and other information affecting the economy generally and
                  individual companies or industries the securities of which are
                  included in a Fund's portfolio or are under consideration for
                  inclusion in a Fund's portfolio;

            ii.   formulate and implement a continuous investment program for
                  each Fund that is consistent with the investment objectives
                  and related investment policies for such Fund as described in
                  the applicable Trust's registration statement, as amended,
                  copies of which shall be furnished to the Sub-adviser promptly
                  upon amendment;

            iii.  take whatever steps are necessary to implement these
                  investment programs by the purchase and sale of securities,
                  including the placing of orders for such purchases and sales;

                                       1
<PAGE>

            iv.   regularly report to the Trustees of each Trust and to the
                  Adviser with respect to the implementation of these investment
                  programs; and

            v.    provide assistance to each Trust's custodian regarding the
                  fair value of securities held by each Fund for which market
                  quotations are not readily available.

b.    The Sub-adviser, at its expense, will furnish all necessary investment and
      management facilities, including salaries of personnel required for it to
      execute its duties faithfully.

c.    The Sub-adviser will select brokers and dealers to effect all transactions
      subject to the following conditions: The Sub-adviser will place all
      necessary orders with brokers, dealers, or issuers and will negotiate
      brokerage commissions, if applicable.  The Sub-adviser is directed at all
      times to seek to execute brokerage transactions for each Fund in
      accordance with such policies or practices as may be established by the
      Trustees and described in the applicable Trust's registration statement,
      as amended, and consistent with its fiduciary obligation to seek best
      execution.  Subject to policies established from time to time by the Board
      of Trustees of the Trusts, the Sub-adviser may pay a broker-dealer which
      provides research and brokerage services a higher spread or commission for
      a particular transaction than otherwise might have been charged by another
      broker-dealer if the Sub-adviser determines that the higher spread or
      commission is reasonable in relation to the value of the brokerage and
      research services that such broker-dealer provides, viewed in terms of
      either the particular transaction or the Sub-adviser's overall
      responsibilities with respect to accounts managed by the Sub-adviser.  The
      Sub-adviser may use for the benefit of the Sub-adviser's other clients, or
      make available to companies affiliated with the Sub-adviser or to its
      directors for the benefit of their clients, any such brokerage and
      research services that the Sub-adviser obtains from brokers or dealers.

d.    On occasions when the Sub-adviser deems the purchase or sale of a security
      to be in the best interest of a Fund as well as other clients of the Sub-
      adviser, the Sub-adviser, to the extent permitted by applicable laws and
      regulations, may, but shall be under no obligation to, aggregate the
      securities to be purchased or sold to attempt to obtain a more favorable
      price or lower brokerage commissions and efficient execution. In such
      event, allocation of the securities so purchased or sold, as well as the
      expenses incurred in the transaction, will be made by the Sub-adviser in
      the manner the Sub-adviser considers to be the most equitable and
      consistent with its fiduciary obligations to each Fund and to its other
      clients.

e.    The Sub-adviser will maintain all accounts, books and records with respect
      to each Fund as are required of an investment sub-adviser of a registered
      investment company pursuant to the Investment Company Act of 1940, as
      amended (the "Investment Company Act") and Investment Advisers Act of
      1940, as amended (the "Investment Advisers Act") and the rules thereunder.

f.    The Sub-adviser shall vote proxies relating to each Fund's investment
      securities in accordance with the applicable Trust's proxy voting policies
      and procedures, which provide that the Sub-adviser shall vote all proxies
      relating to securities held by a Fund and, subject to the applicable

                                       2
<PAGE>

      Trust's policies and procedures, shall use proxy voting policies and
      procedures adopted by the Sub-adviser in conformance with Rule 206(4)-6
      under the Investment Advisers Act. The Sub-adviser shall review its proxy
      voting activities on a periodic basis with the Trustees and with the
      Adviser.

3.    COMPENSATION OF SUB-ADVISER

      The Adviser will pay the Sub-adviser with respect to each Fund the
compensation specified in Appendix A to this Agreement.

4.    LIABILITY OF SUB-ADVISER

      Neither the Sub-adviser nor any of its directors, officers or employees
shall be liable to the Adviser or any Trust or Fund for any error of judgment or
mistake of law or for any loss suffered by the Adviser, Trust or Fund in
connection with the matters to which this Agreement relates, except for losses
resulting from willful misfeasance, bad faith or gross negligence in the
performance of, or from the reckless disregard of, the duties of the Sub-adviser
or any of its directors.

5.    CONFLICTS OF INTEREST

      It is understood that trustees, officers, agents, members and shareholders
of the Trusts are or may be interested in the Sub-adviser as trustees, officers,
partners, shareholders, members or otherwise; that employees, agents,
shareholders, members and partners of the Sub-adviser are or may be interested
in a Trust as trustees, officers, shareholders, members or otherwise; that the
Subadviser may be interested in the Trusts; and that the existence of any such
dual interest shall not affect the validity hereof or of any transactions
hereunder, except as otherwise provided in the Agreement and Declaration of
Trust of the applicable Trust and the limited liability company agreement of the
Sub-adviser, respectively, or by specific provision of applicable law.

6.    REGULATION

      The Sub-adviser shall comply with all applicable laws and regulations in
providing the services contemplated hereunder. Without limiting the foregoing,
the Sub-adviser shall provide all information reasonably requested of it by the
Board of Trustees of the Trusts in accordance with its duty to do so under
Section 15(c) of the Investment Company Act and the Sub-adviser shall submit to
all regulatory and administrative bodies having jurisdiction over the services
provided pursuant to this Agreement any information, reports or other material
which any such body, by reason of this Agreement, may request or require
pursuant to applicable laws and regulations.

7.    DURATION AND TERMINATION OF AGREEMENT

      This Agreement shall become effective with respect to each Fund on the
later of its execution, (ii) the date of the meeting of the Board of Trustees of
the applicable Trust, at which meeting this Agreement is approved as described
below and (iii) immediately following the close of business on December 31,
2005. The Agreement will continue in effect with respect to a Fund for a period
more than two years from its effective date only so long as such continuance is


                                       3
<PAGE>

specifically approved at least annually either by the Trustees of the applicable
Trust or by a majority of the outstanding voting securities of the applicable
Fund, provided that in either event such continuance shall also be approved by
the vote of a majority of the Trustees of the applicable Trust who are not
interested persons (as defined in the Investment Company Act) of any party to
this Agreement cast in person at a meeting called for the purpose of voting on
such approval. Any required shareholder approval of the Agreement or of any
continuance of the Agreement shall be effective with respect to any Fund if a
majority of the outstanding voting securities of the series (as defined in Rule
18f-2(h) under the Investment Company Act) of shares of that Fund votes to
approve the Agreement or its continuance, notwithstanding that the Agreement or
its continuance may not have been approved by a majority of the outstanding
voting securities of any other Fund affected by the Agreement.

      If any required shareholder approval of this Agreement or any continuance
of the Agreement is not obtained, the Sub-adviser will continue to act as
investment sub-adviser with respect to such Fund pending the required approval
of the Agreement or its continuance or of a new contract with the Sub-adviser or
a different adviser or sub-adviser or other definitive action; provided, that
the compensation received by the Sub-adviser in respect of such Fund during such
period is in compliance with Rule 15a-4 under the Investment Company Act.

      This Agreement may be terminated at anytime, without the payment of any
penalty, as to a Fund by the Trustees of the applicable Trust or by the vote of
a majority of the outstanding voting securities of the applicable Fund, on sixty
days' written notice to the Adviser and the Sub-adviser, or by the Adviser or
Sub-adviser on sixty days' written notice to the applicable Trust and the other
party. This Agreement will automatically terminate, without the payment of any
penalty, in the event of its assignment (as defined in the Investment Company
Act) or in the event the advisory agreement between the Adviser and the
applicable Trust terminates for any reason.

8.    PROVISION OF CERTAIN INFORMATION BY SUB-ADVISER

      The Sub-adviser will promptly notify the Adviser and the Trusts in writing
of the occurrence of any of the following events:

a.    the Sub-adviser fails to be registered as an investment adviser under the
      Investment Advisers Act or under the laws of any jurisdiction in which the
      Sub-adviser is required to be registered as an investment adviser in order
      to perform its obligations under this Agreement;

b.    the Sub-adviser is served or otherwise receives notice of any action,
      suit, proceeding, inquiry or investigation, at law or in equity, before or
      by any court, public board or body, involving the affairs of any Trust;
      and

c.    any change in actual control or management of the Sub-adviser or the
      portfolio manager of any Fund.

9.    SERVICES TO OTHER CLIENTS

      The Adviser understands, and has advised each Trust's Board of Trustees,
that the Sub-adviser now acts, or may in the future act, as an investment

                                       4
<PAGE>

adviser to fiduciary and other managed accounts and as investment adviser or
sub-adviser to other investment companies. Further, the Adviser understands, and
has advised each Trust's Board of Trustees, that the Sub-adviser and its
affiliates may give advice and take action for other accounts, including
investment companies, which differs from advice given or the timing or nature of
action taken for a Fund. The Sub-adviser is not obligated to initiate
transactions for a Fund in any security that the Sub-adviser, its partners,
affiliates or employees may purchase or sell for their own accounts or other
clients.

10.   CONSULTATION WITH OTHER SUB-ADVISERS

      As required by Rule 17a-10 under the Investment Company Act, the Sub-
adviser is prohibited from consulting with the entities listed below concerning
transactions for a Fund in securities or other assets:

      1.    other sub-advisers to the Fund
      2.    other sub-advisers to any other Fund
      3.    other sub-advisers to a Fund under common control with such Fund

provided, however, the Sub-adviser may consult with any entity listed above that
is an affiliate of the Sub-adviser.

11.   ONGOING RESPONSIBILITIES OF THE ADVISER.

      The Adviser understands, and has advised the Trustees of the Trusts, that
during the term of this Agreement the Adviser shall retain responsibility for
(i) providing the services set forth in Section 2 of this Agreement to the
Trusts in the event the Sub-adviser fails, for whatever reason, to provide such
services and (ii) ensuring that the services provided by the Sub-adviser to the
Trusts pursuant to this Agreement are rendered in a manner such that the nature
and quality of such services are at least comparable to the nature and quality
of the investment advisory services heretofore rendered to the Trusts by the
Adviser. Nothing in this Agreement is intended to limit or terminate the
Adviser's responsibilities under the Advisory Agreement, which obligations,
including the indemnification provisions thereof, shall remain in full force and
effect.

12.   AMENDMENTS TO THE AGREEMENT

      This Agreement (with the exception of Appendix A, which may be amended by
the Adviser and the Sub-adviser from time to time) may be amended by the parties
hereto only if such amendment is specifically approved by the vote of a majority
of the Trustees of each affected Trust and by the vote of a majority of the
Trustees of each affected Trust who are not interested persons of any party to
this Agreement cast in person at a meeting called for the purpose of voting ort
such approval. Any required shareholder approval shall be effective with respect
to any Fund if a majority of the outstanding voting securities of that Fund
votes to approve the amendment, notwithstanding that the amendment may not have
been approved by a majority of the outstanding voting securities of (a) any
other Fund affected by the amendment or (b) all the Funds of the applicable
Trust. No amendment shall be effective unless it is in writing and signed by all
parties hereto.

                                       5
<PAGE>

13.   ENTIRE AGREEMENT

      This Agreement contains the entire understanding and agreement of the
parties.

14.   HEADINGS

      The headings in the sections of this Agreement are inserted for
convenience of reference only and shall not constitute a part hereof.

15.   NOTICES

      All notices required to be given pursuant to this Agreement shall be
delivered or mailed to the last known business address of the affected Trusts or
applicable party in person or by registered mail or a private mail or delivery
service providing the sender with notice of receipt. Notice shall be deemed
given on the date delivered or mailed in accordance with this paragraph.

16.   SEVERABILITY

      Should any portion of this Agreement for any reason be held to be void in
law or in equity, this Agreement shall be construed, insofar as is possible, as
if such portion had never been contained herein.

17.   GOVERNING LAW

      The provisions of this Agreement shall be construed and interpreted in
accordance with the laws of The Commonwealth of Massachusetts, or any of the
applicable provisions of the Investment Company Act. To the extent that the laws
of The Commonwealth of Massachusetts, or any of the provisions in this
Agreement, conflict with applicable provisions of the Investment Company Act,
the latter shall control.

18.   LIMITATION OF LIABILITY

      The Agreement and Declaration of Trust of each Trust, a copy of which,
together with all amendments thereto (the "Declaration"), is on file in the
office of the Secretary of The Commonwealth of Massachusetts, provides that the
name of the applicable Trust refers to the Trustees under the Declaration
collectively as Trustees, but not as individuals or personally; and no Trustee,
shareholder, officer, employee or agent of the Trust shall be held to any
personal liability, nor shall resort be had to their private property, for the
satisfaction of any obligation or claim, in connection with the affairs of the
Trust or any Fund thereof, but only the assets belonging to the Trust, or to the
particular Fund with respect to which such obligation or claim arose, shall be
liable.

19.   CONFIDENTIALITY OF FUND HOLDINGS

      The Sub-adviser agrees to treat the portfolio security positions of each
Fund as confidential information in accordance with the applicable Trust's
"Policy Regarding Disclosure of Fund Holdings," as such policy may be amended
from time to time, and to prohibit its employees from trading on any such

                                       6
<PAGE>

confidential information. The policy and any such amendment shall not be binding
upon the Sub-adviser until a copy has been provided to the Sub-adviser.

20.   COMPLIANCE

      Upon execution of this Agreement, the Sub-adviser shall provide the
Adviser and the Trusts with the Sub-adviser's written policies and procedures
("Compliance Policies") as required by Rule 206(4)-7 under the Investment
Advisers Act. Throughout the term of this Agreement, the Sub-adviser shall
promptly submit to the affected Trust and the Adviser: (i) any material changes
to the Compliance Policies, (ii) notification of the commencement of any
regulatory examination of the Sub-adviser and documentation describing the
results of any such examination and of any periodic testing of the Compliance
Policies, and (iii) notification of any material compliance matter that relates
to the services provided by the Sub-adviser to any Trust, including but not
limited to any material violation of the Compliance Policies or of the Sub-
adviser's code of ethics. Throughout the term of this Agreement, the Sub-adviser
shall provide the Adviser and the Trust with any certifications, information and
access to personnel and resources (including those resources that will permit
testing of the Compliance Policies by the Adviser) that the Trust and/or the
Adviser may reasonably request to enable the Trusts to comply with Rule 38a-1
under the Investment Company Act.

      (THE REMAINDER OF THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK)


                                       7
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed under seal by their duly authorized officers as of the date first
mentioned above.

                                  JOHN HANCOCK ADVISERS, LLC
                                  By:    /s/ John G. Vrysen
                                        ------------------------------------
                                  Name:  John G. Vrysen
                                  Title: Executive Vice President and Chief
                                         Financial Officer


                                  SOVEREIGN ASSET MANAGEMENT LLC
                                  By:    /s/ Barry H. Evans
                                         ---------------------------------
                                  Name:  Barry H. Evans
                                  Title: Senior Vice President and Chief
                                         Operating Officer


                                       8
<PAGE>

       IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed under seal by their duly authorized officers as of the date first
mentioned above.

                           JOHN HANCOCK CURRENT INTEREST
                           on behalf of
                           John Hancock Money Market Fund
                           John Hancock U.S. Government Cash Reserve


                           JOHN HANCOCK SOVEREIGN BOND FUND
                           on behalf of
                           John Hancock Bond Fund


                           JOHN HANCOCK STRATEGIC SERIES
                           on behalf of
                           John Hancock Strategic Income Fund


                           JOHN HANCOCK BOND TRUST
                           on behalf of
                           John Hancock Government Income Fund
                           John Hancock High Yield Fund
                           John Hancock Investment Grade Bond Fund


                           JOHN HANCOCK TAX-EXEMPT SERIES FUND
                           on behalf of
                           John Hancock Massachusetts Tax-Free Income Fund
                           John Hancock New York Tax-Free Income Fund


                           JOHN HANCOCK CALIFORNIA TAX-FREE INCOME FUND


                           JOHN HANCOCK MUNICIPAL SERIES TRUST
                           on behalf of
                           John Hancock High Yield Municipal Bond Fund
                           John Hancock Tax-Free Bond Fund


                           JOHN HANCOCK EQUITY TRUST
                           on behalf of
                           John Hancock Growth Trends Fund

                               9
<PAGE>

                           John Hancock Technology Leaders Fund


                           JOHN HANCOCK INVESTMENT TRUST II
                           on behalf of
                           John Hancock Financial Industries Fund
                           John Hancock Regional Bank Fund
                           John Hancock Small Cap Equity Fund


                           JOHN HANCOCK INVESTMENT TRUST III
                           on behalf of
                           John Hancock Mid Cap Growth Fund


                           JOHN HANCOCK WORLD FUND
                           on behalf of
                           John Hancock Health Sciences Fund


                           JOHN HANCOCK SERIES TRUST
                           on behalf of
                           John Hancock Focused Equity Fund
                           John Hancock Mid Cap Equity Fund
                           John Hancock Multi Cap Growth Fund
                           John Hancock Real Estate Fund
                           John Hancock Small Cap Growth Fund,
                            John Hancock Technology Fund


                           JOHN HANCOCK INVESTMENT TRUST
                           on behalf of
                           John Hancock Balanced Fund
                           John Hancock Large Cap Equity Fund
                           John Hancock Large Cap Intrinsic Value Fund
                           John Hancock Small Cap Intrinsic Value Fund
                           John Hancock Sovereign Investors Fund


                           JOHN HANCOCK PATRIOT PREFERRED
                           DIVIDEND FUND


                           JOHN HANCOCK PREFERRED INCOME FUND
                           III

                               10
<PAGE>

                           JOHN HANCOCK PATRIOT SELECT
                           DIVIDEND TRUST


                           JOHN HANCOCK PATRIOT GLOBAL
                           DIVIDEND FUND


                           JOHN HANCOCK PREFERRED INCOME FUND


                           JOHN HANCOCK PREFERRED INCOME FUND
                           II


                           JOHN HANCOCK PATRIOT PREMIUM
                           DIVIDEND FUND I


                           JOHN HANCOCK BANK AND THRIFT
                           OPPORTUNITY FUND


                           JOHN HANCOCK PATRIOT PREMIUM
                           DIVIDEND FUND II


                           JOHN HANCOCK INCOME SECURITIES
                           TRUST


                           JOHN HANCOCK INVESTORS TRUST


                           JOHN HANCOCK TAX-ADVANTAGED
                           DIVIDEND INCOME FUND


                           Executed on behalf of each Trust and its relevant
                           Series referenced above:


                           By:    /s/ Keith F. Hartstein
                                  -------------------------------------
                           Name:  Keith F. Hartstein
                           Title: President and Chief Executive Officer

                                       11
<PAGE>

                                   APPENDIX A

      The Sub-adviser shall serve as investment sub-adviser for each Fund listed
below.  The Adviser will pay the Sub-adviser, as full compensation for all
services provided under this Agreement with respect to each Fund, the fee
computed separately for such Fund at an annual rate as follows (the "Sub-adviser
Fee"):

                     TRUST AND FUND         PERCENTAGE OF
                                           AVERAGE DAILY NET
                                                ASSETS

                         (See attachment to Appendix A)

      The Sub-adviser Fee for each Fund shall be accrued for each calendar day,
and the sum of the daily fee accruals shall be paid monthly to the Sub-adviser
WITHIN 30 CALENDAR DAYS OF THE END OF EACH MONTH. The daily fee accruals will be
computed by multiplying the fraction of one over the number of calendar days in
the year, by the applicable Sub-adviser Fee, and multiplying this product by the
net assets of the Fund. THE ADVISER SHALL PROVIDE THE SUB-ADVISER WITH SUCH
INFORMATION AS THE SUB-ADVISER MAY REASONABLY REQUEST SUPPORTING THE CALCULATION
OF THE FEES PAID TO IT HEREUNDER. FEES SHALL BE PAID EITHER BY WIRE TRANSFER OR
CHECK, AS DIRECTED BY THE SUB-ADVISER.

      If, with respect to any Fund, this Agreement becomes effective or
terminates, or if the manner of determining the applicable Sub-adviser Fee
changes, before the end of any month, the fee (if any) for the period from the
effective date to the end of such month or from the beginning of such month to
the date of termination or from the beginning of such month to the date of such
change, as the case may be, shall be pro rated according to the proportion which
such period bears to the full month in which such effectiveness or termination
or change occurs.




                                      A-1

<PAGE>

<TABLE>
<CAPTION>
Balanced                                     to $2 bil                 > $2 bil
                                             ---------                      ---
                           Subadvisory
                                             0.300%                    0.250%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<S>                        <C>               <C>                       <C>             <C>             <C>           <C>
Bond                                         to $1.5 bil               $1.5 - 2.0 bil  $2.0 - 2.5 bil  > $2.5 bil
                                             -----------               --------------  --------------  ----------
                           Subadvisory
                                             0.200%                    0.125%          0.100%          0.100%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
CA Tax-Free Income                           to $500 m                 next $500m      > $1 bil
                                             ---------                 ----------      --------

                           Subadvisory       0.200%                    0.150%          0.150%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Financial Industries                         to $500 m                 next $500m      next bil        > $2 bil
                                             ---------                 ----------      --------        --------

                           Subadvisory       0.400%                    0.300%          0.250%          0.250%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Focused Equity                               to $800m                  > $800m
                                             --------                  -------

                           Subadvisory       0.350%                    0.300%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Government Income                            to $300 m                 next $300m      > $600m
                                             ---------                 ----------      -------

                           Subadvisory       0.200%                    0.150%          0.100%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Growth Trends                                to $2.4 bil               > $2.4 bil
                                             -----------                 --------

                           Subadvisory       0.350%                    0.250%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Health Sciences                              $200 bil                  > $200m
                                             --------                    -----

                           Subadvisory       0.450%                    0.400%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
High Yield                                   to $75m                   next $75m       $150m - $2.5b   $2.5b - 5.0b  > $5 bil
                                             -------                   ---------       -------------   ------------  --------

                                                                                                       0.150%
                           Subadvisory       0.275%                    0.275%          0.225%                        0.150%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
High Yield Muni. Bond                        to $75m                   next $75m       > $150m
                                             -------                   ---------       -------

                           Subadvisory       0.200%                    0.200%          0.200%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Grade Bond                        to $1.5 bil               > $1.5 bil
                                             -----------               ----------

                           Subadvisory       0.200%                    0.100%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Large Cap Equity                             to $3 bil                 > $3 bil
                                             ---------                 --------

                           Subadvisory       0.325%                    0.200%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Large Cap Intrinsic                          All Assets
Value                      Advisory          0.750% 0.325%
                           Subadvisory
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
MA Tax-Free Income                           to $250m                  next $250m      $500m - $1bil   next $250m    > $1.25 bil
                                             --------                  ----------      -------------   ----------    -----------

                                                                                                       0.150%
                           Subadvisory       0.200%                    0.200%          0.150%                        0.150%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Mid Cap Equity                               to $500m                  next $500m      > $1 bil.
                                             --------                  ----------      ---------

                           Subadvisory       $0.350%                   0.300%          0.250%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Mid Cap Growth                               to $500m                  next $500m      > $1 bil.
                                             --------                  ----------      ---------

                           Subadvisory       $0.350%                   0.300%          0.250%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
<S>                        <C>               <C>          <C>           <C>            <C>             <C>           <C>
Money Market                                 to $500m     next $250m    next $250m     next $500m      next $500m    next $500m
                                             --------     ----------    ----------     ----------      ----------    ----------
                                                                                       0.020%          0.020%        0.020%
                           Subadvisory       $0.050%      0.020%        0.020%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Multi Cap Growth                             to $750m     > $750m
                                             --------     -------
                           Subadvisory       $0.350%      0.250%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
NY Tax-Free Income                           to $250m     next $250m    $500m -        next $250m      > 1.25 bil
                                             --------     ----------    -------        ----------      ----------
                                                                        $1bil
                                                                        --------
                                                                                       0.150%
                           Subadvisory       $0.200%      0.200%        0.150%                         0.150%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Real Estate                                  to $1.5 bil  > $1.5 bil
                                             -----------  ----------

                           Subadvisory       $0.350%      0.300%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Regional Bank                                to $500m     next $500m    next bil       > 2 bil
                                             --------     ----------    --------       -------

                           Subadvisory       $0.400%      0.300%        0.250%         0.250%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Small Cap Equity                             to $1 bil    > $1 bil
                                             ---------    --------

                           Subadvisory       $0.450%      0.400%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Small Cap Growth                             to $1.5 bil  > $1.5 bil
                                             -----------  ----------

                           Subadvisory       $0.450%      0.400%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Small Cap Intrinsic                          to $500 m    next $500m    > 1 bil
                                             ---------    ----------    -------
Value
                           Subadvisory       $0.500%      0.450%        0.400%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Sovereign Investors                          to $570 m    next $750m    next bil       > 2.5 bil
                                             ---------    ----------    --------       ----------

                           Subadvisory       $0.325%      0.250%        0.250%         0.200%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Strategic                                    to $100m     $100m -       $250 - $500m   $500 -          $650m - $1bil > 1 bil
                                             --------     -------       ------------   ------          ------------- -------
Income                                                    $250m                        $650m

                           Subadvisory       $0.275%      0.275%        0.200%         0.200%                        0.150%
                                                                                                                     ------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Tax-Free Bond                                to $500m     next $500m    > $1 bil.
                                             --------     ----------    ---------

                           Subadvisory       $0.200%      0.150%        0.100%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Technology                                   to $100m     next $750m    > $800m
                                             --------     ----------    -------

                           Subadvisory       $0.450%      0.400%        0.350%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Technology                                   All Assets
Leaders                    Advisory          1.00%
                           Subadvisory       0.400%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>



<TABLE>
<CAPTION>
<S>                      <C>                 <C>        <C>          <C>           <C>           <C>         <C>            <C>
- ------------------------------------------------------------------------------------------------------------------------------------
US Gov't Cash                                to $500m   next $250m   next $250m    next $500m    next $500m  next $500m     > $2.5
Reserve
                                                                                     0.020%        0.020%      0.020%
                           Subadvisory       $0.050%    0.020%      0.020%                                                  0.20%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Bank & Thrift                                All Assets
Opportunity
                           Subadvisory       0.400%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------

</TABLE>
<PAGE>

<TABLE>
<CAPTION>
Income Securities                            to $150m     next $50m     next $100m     > 300m
                                             --------     ---------     ----------     ------

                           Subadvisory       $0.200%      0.200%        0.200%         0.150%
<S>                        <C>               <C>          <C>           <C>            <C>

Investors Trust                              to $150m     next $50m     next $100m     > 300m
                                             --------     ---------     ----------     ------

                           Subadvisory       $0.200%      0.200%        0.200%         0.150%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
JH Preferred Income                          All Assets
                                             ----------

                           Subadvisory       0.150%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
JH Preferred Income II                       All Assets
                                             ----------

                           Subadvisory       0.150%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
JH Preferred Income III                      All Assets
                                             ----------

                           Subadvisory       0.150%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
JH Tax-Adv. Div. Inc.                        All Assets
                                             ----------

                           Subadvisory       0.150%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Patriot Global                               All Assets
                                             ----------

                           Subadvisory       0.200%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Patriot Preferred                            All Assets
                                             ----------

                           Subadvisory       0.200%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Patriot Prem. Dividend I                     All Assets
                                             ----------

                           Subadvisory       0.200%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Patriot Prem. Dividend II                    All Assets
                                             ----------

                           Subadvisory       0.200%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------

Patriot Select Dividend                      All Assets
                                             ----------

                           Subadvisory       0.200%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.9
<SEQUENCE>14
<FILENAME>custodyagreement.txt
<DESCRIPTION>EXHIBIT 99.9(A)
<TEXT>
                                CUSTODY AGREEMENT


    AGREEMENT,  dated as of  September  10, 2001  between each John Hancock Fund
listed on Schedule II, each either a business trust organized and existing under
the  laws  of The  Commonwealth  of  Massachusetts,  or a  Maryland  corporation
organized  and  existing  under the laws of the state of  Maryland,  having  its
principal  office  and  place of  business  at 101  Huntington  Avenue,  Boston,
Massachusetts 02199 (each the "Fund",  collectively the "Funds") and The Bank of
New York, a New York corporation  authorized to do a banking business having its
principal  office and place of business at One Wall Street,  New York,  New York
10286 ("Custodian").

                              W I T N E S S E T H:

that for and in consideration  of the mutual promises  hereinafter set forth the
Fund and Custodian agree as follows:

                                   ARTICLE I
                                   DEFINITIONS

    Whenever used in this Agreement, the following words shall have the meanings
set forth below:

    1.  "AUTHORIZED  PERSON"  shall be any person,  whether or not an officer or
employee  of the Fund,  duly  authorized  by the  Fund's  board to  execute  any
Certificate or to give any Oral  Instruction  or other  Instruction on behalf of
the Fund and listed in the  Certificate  annexed  hereto as Schedule I hereto or
such other Certificate as may be received by Custodian from time to time.

    2. "BNY AFFILIATE"  shall mean any office,  branch or subsidiary of The Bank
of New York Company, Inc.

    3. "BOOK-ENTRY  SYSTEM" shall mean the Federal  Reserve/Treasury  book-entry
system for receiving and delivering securities, its successors and nominees.

    4.  "BUSINESS  DAY"  shall  mean any day on which  the Fund,  Custodian  and
relevant Depositories are open for business.

    5. "CERTIFICATE" shall mean any notice,  instruction, or other instrument in
writing,  authorized  or required by this  Agreement  to be given to  Custodian,
which is actually  received by Custodian  and signed on behalf of the Fund by an
Authorized  Person  or a  person  reasonably  believed  by  Custodian  to  be an
Authorized Person.

    6.  "COMPOSITE  CURRENCY  UNIT"  shall mean the Euro or any other  composite
currency  unit  consisting  of the  aggregate of specified  amounts of specified
currencies, as such unit may be constituted from time to time.

<PAGE>

    7. "DEPOSITORY"  shall include (a) the Book-Entry System, (b) the Depository
Trust Company, (c) any other clearing agency or securities depository registered
with the Securities and Exchange Commission  identified to the Fund from time to
time, and (d) the respective successors and nominees of the foregoing.

    8. "FOREIGN  DEPOSITORY" shall mean (a) Euroclear,  (b) Clearstream Banking,
societe  anonyme,  (c) each  Eligible  Securities  Depository as defined in Rule
17f-7  under the  Investment  Company Act of 1940,  as amended  (the "'40 Act"),
identified to the Fund from time to time, and (d) the respective  successors and
nominees of the foregoing.

    9.  "INSTRUCTIONS"  shall mean  communications  transmitted by electronic or
telecommunications media, including S.W.I.F.T./I.S.I.T.C.,  computer-to-computer
interface,   facsimile  transmissions  executed  by  an  Authorized  Person,  or
dedicated transmission lines.

    10. "ORAL INSTRUCTIONS" shall mean verbal instructions received by Custodian
from an Authorized Person or from a person  reasonably  believed by Custodian to
be an Authorized Person.

    11.  "SECURITIES" shall have the same meaning as when used in the Securities
Act of 1933,  including,  without limitation,  any common stock and other equity
securities,  bonds,  debentures and other debt securities,  notes,  mortgages or
other obligations, and any instruments representing rights to receive, purchase,
or subscribe for the same, or representing any other rights or interests therein
(whether  represented  by  a  certificate  or  held  in  a  Depository  or  by a
Subcustodian).

    12. "SUBCUSTODIAN" shall mean a bank (including any branch thereof) or other
financial institution (other than a Foreign Depository) located outside the U.S.
which is utilized by Custodian in connection with the purchase,  sale or custody
of Securities  hereunder and identified to the Fund from time to time, and their
respective successors and nominees.

                                   ARTICLE II
                       APPOINTMENT OF CUSTODIAN; ACCOUNTS

    1. (a) The Fund hereby appoints Custodian as custodian of all Securities and
cash at any time delivered to Custodian  during the term of this Agreement,  and
authorizes  Custodian to hold  Securities in registered  form in its name or the
name of its nominees.  Custodian  hereby accepts such  appointment and agrees to
establish  and  maintain  one or more  separate  securities  accounts  and  cash
accounts  for each  Fund in which  Custodian  will hold  Securities  and cash as
provided  herein.  Custodian  shall maintain books and records  segregating  the
assets of each Fund from the assets of any other Fund.  Such accounts  (each, an
"Account"; collectively, the "Accounts") shall be in the name of the Fund.

       (b)  Custodian  may from time to time  establish on its books and records
such  sub-accounts  within each Account as the Fund and Custodian may agree upon
(each a "Special  Account"),  and Custodian shall reflect therein such assets as
the Fund may specify in a Certificate or Instructions.


                                      - 2 -
<PAGE>

       (c)  Custodian  may from  time to time  establish  pursuant  to a written
agreement  with and for the  benefit  of a broker,  dealer,  futures  commission
merchant or other third party  identified in a Certificate or Instructions  such
accounts on such terms and conditions as the Fund and Custodian shall agree, and
Custodian  shall transfer to such account such  Securities and money as the Fund
may specify in a Certificate or Instructions.

                                  ARTICLE III
                          CUSTODY AND RELATED SERVICES

    1. (a) Subject to the terms hereof, the Fund hereby authorizes  Custodian to
hold any  Securities  received  by it from time to time for the Fund's  account.
Custodian shall be entitled to utilize Depositories, Subcustodians, and, subject
to subsection(c) of this Section 1, Foreign Depositories, to the extent possible
in connection  with its  performance  hereunder.  Securities  and cash held in a
Depository or Foreign  Depository  will be held subject to the rules,  terms and
conditions of such entity.  Securities and cash held through Subcustodians shall
be held subject to the terms and conditions of Custodian's  agreements with such
Subcustodians.  Subcustodians  may be authorized  to hold  Securities in Foreign
Depositories in which such Subcustodians participate.  Unless otherwise required
by local law or  practice or a  particular  subcustodian  agreement,  Securities
deposited with a Subcustodian, a Depositary or a Foreign Depository will be held
in a commingled account, in the name of Custodian,  holding only Securities held
by Custodian as custodian for its  customers.  Custodian  shall  identify on its
books and records the Securities  and cash  belonging to the Fund,  whether held
directly  or  indirectly  through   Depositories,   Foreign   Depositories,   or
Subcustodians.  Custodian shall,  directly or indirectly through  Subcustodians,
Depositories, or Foreign Depositories, endeavor, to the extent feasible, to hold
Securities in the country or other  jurisdiction in which the principal  trading
market for such Securities is located, where such Securities are to be presented
for cancellation  and/or payment and/or  registration,  or where such Securities
are acquired.  Custodian at any time may cease utilizing any Subcustodian and/or
may replace a  Subcustodian  with a  different  Subcustodian  (the  "Replacement
Subcustodian").  In the  event  Custodian  selects a  Replacement  Subcustodian,
Custodian shall not utilize such Replacement Subcustodian until after the Fund's
board or  foreign  custody  manager  has  determined  that  utilization  of such
Replacement  Subcustodian  satisfies  the  requirements  of the `40 Act and Rule
17f-5 thereunder.

       (b) Unless  Custodian has received a Certificate or  Instructions  to the
contrary, Custodian shall hold Securities indirectly through a Subcustodian only
if (i) the Securities are not subject to any right,  charge,  security interest,
lien or claim of any kind in favor  of such  Subcustodian  or its  creditors  or
operators,  including a receiver or trustee in bankruptcy or similar  authority,
except  for a claim  of  payment  for the  safe  custody  or  administration  of
Securities  on  behalf  of the Fund by such  Subcustodian,  and (ii)  beneficial
ownership of the Securities is freely transferable  without the payment of money
or value other than for safe custody or administration.

       (c) With respect to each Foreign  Depository,  Custodian  shall  exercise
reasonable  care,  prudence,  and  diligence  (i) to  provide  the Fund  with an
analysis  of the  custody  risks  associated  with  maintaining  assets with the
Foreign Depository, and (ii) to monitor such custody risks on a continuing basis
and  promptly  notify the Fund of any  material  change in such risks.  The Fund
acknowledges and agrees,  that such analysis and monitoring shall be made on the

                                      - 3 -
<PAGE>

basis of, and limited by, information  gathered from  Subcustodians,  from trade
associations  of which  Custodian  is a member  from  time to time,  or  through
publicly available  information  otherwise obtained by Custodian,  and shall not
include any evaluation of Country Risks. As used herein the term "Country Risks"
shall  mean  with  respect  to  any  Foreign   Depository:   (a)  the  financial
infrastructure  of the  country  in which it is  organized,  (b) such  country's
prevailing custody and settlement practices, (c) nationalization,  expropriation
or other governmental  actions,  (d) such country's regulation of the banking or
securities  industry,  (e)  currency  controls,  restrictions,  devaluations  or
fluctuations,  and (f) market  conditions which affect the orderly  execution of
securities transactions or affect the value of securities.  Custodian represents
that each Foreign  Depository in which a Subcustodian  is authorized to maintain
Fund  assets is an  "Eligible  Securities  Depository"  as defined in Rule 17f-7
under the '40 Act. Custodian agrees to certify to the Fund's board, annually and
upon  reasonable  request,  that each  Foreign  Depository  remains an  Eligible
Securities Depository.

    2. Custodian  shall furnish Fund on-line access to daily  transactions  on a
real time basis and a monthly summary of all transfers to or from Fund's account
on the first business day after the month end.

    3. With respect to all Securities held hereunder,  Custodian  shall,  unless
otherwise instructed to the contrary:

       (a) Collect all income,  dividends,  distributions and other payments due
or payable;

       (b) Present  for payment and collect the amount paid upon all  Securities
which mature;

       (c) Forward to the Fund promptly  copies of all  information or documents
that it may  actually  receive  from  an  issuer  of  Securities  which,  in the
reasonable  opinion of  Custodian,  are  intended  for the  beneficial  owner of
Securities;

       (d) Execute,  as custodian,  any  certificates of ownership,  affidavits,
declarations or other certificates under any tax laws now or hereafter in effect
in connection with the collection of bond and note coupons;

       (e) Hold directly or through a  Depository,  a Foreign  Depository,  or a
Subcustodian  all rights  and  similar  Securities  issued  with  respect to any
Securities credited to an Account hereunder; and

       (f)  Endorse  for   collection   checks,   drafts  or  other   negotiable
instruments.

    4. (a) Custodian  promptly shall notify the Fund of rights or  discretionary
actions with respect to Securities held  hereunder,  and of the date or dates by
when such rights must be exercised or such action must be taken,  provided  that
Custodian  has actually  received,  from the issuer or the  relevant  Depository
(with  respect to Securities  issued in the United  States) or from the relevant
Subcustodian,  Foreign Depository, or a nationally or internationally recognized
bond or corporate action service to which Custodian subscribes, timely notice of

                                      - 4 -
<PAGE>

such  rights or  discretionary  corporate  action  or of the date or dates  such
rights must be exercised or such action must be taken.

       (b)  Whenever  Securities  (including,  but  not  limited  to,  warrants,
options,  tenders,  options  to tender or  non-mandatory  puts or calls)  confer
discretionary  rights  on the  Fund  or  provide  for  discretionary  action  or
alternative  courses of action by the Fund,  the Fund shall be  responsible  for
making  any  decisions  relating  thereto  and for  directing  Custodian  to act
provided  that  Custodian  promptly has notified the Fund of such  discretionary
right or action.  In order for  Custodian  to act,  it must  receive  the Fund's
Certificate or Instructions at Custodian's  offices,  addressed as Custodian may
from time to time request,  not later than noon (New York time) at least one (1)
Business  Day  prior to the last  scheduled  date to act  with  respect  to such
Securities  (or such earlier date or time as Custodian may specify to the Fund).
Custodian  shall not be liable for failure to take any action  relating to or to
exercise any rights conferred by such Securities, unless Custodian has failed to
timely  receive  the  Fund's  Certificate  or  Instruction  and such  failure is
attributable to Custodian's negligence or willful misconduct.

    5. All voting rights with respect to Securities,  however registered,  shall
be exercised by the Fund or its  designee.  For domestic and foreign  securities
Custodian will utilize a proxy service for the exercise of such voting rights.

    6. Custodian shall promptly advise the Fund upon Custodian's  actual receipt
of  notification  of the partial  redemption,  partial  payment or other  action
affecting  less than all  Securities of the relevant  class.  If Custodian,  any
Subcustodian,  any Depository, or any Foreign Depository holds any Securities in
which the Fund has an  interest  as part of a  fungible  mass,  Custodian,  such
Subcustodian,  Depository,  or Foreign  Depository  may select the Securities to
participate in such partial  redemption,  partial payment or other action in any
non-discriminatory manner that it customarily uses to make such selection.

    7.  Custodian  shall not  under any  circumstances  accept  bearer  interest
coupons  which have been stripped  from United  States  federal,  state or local
government  or agency  securities  unless  explicitly  agreed to by Custodian in
writing.

    8. The Fund  shall be liable for all  taxes,  assessments,  duties and other
governmental  charges,  including  any interest or penalty with respect  thereto
("Taxes"),  with respect to any cash or Securities held on behalf of the Fund or
any transaction  related  thereto.  The Fund shall indemnify  Custodian and each
Subcustodian for the amount of any Tax that Custodian,  any such Subcustodian or
any other  withholding  agent is  required  under  applicable  laws  (whether by
assessment  or otherwise) to pay on behalf of, or in respect of income earned by
or payments or  distributions  made to or for the account of the Fund (including
any  payment  of Tax  required  by reason of an earlier  failure  to  withhold).
Custodian  shall,  or  shall  instruct  the  applicable  Subcustodian  or  other
withholding  agent to,  withhold  the amount of any Tax which is  required to be
withheld under applicable law upon collection of any dividend, interest or other
distribution  made with  respect to any Security and any proceeds or income from
the sale, loan or other transfer of any Security. In the event that Custodian or
any  Subcustodian  is required under  applicable law to pay any Tax on behalf of
the Fund,  Custodian is hereby authorized to withdraw cash from that Fund's cash
account in the amount required to pay such Tax and to use such cash, or to remit
such cash to the appropriate  Subcustodian or other  withholding  agent, for the
timely  payment of such Tax in the manner  required  by  applicable  law. If the
aggregate  amount of cash in that Fund's cash accounts is not  sufficient to pay
such Tax,  Custodian shall promptly notify the Fund of the additional  amount of
cash (in the appropriate currency) required, and the Fund shall directly deposit
such additional amount in the appropriate cash account promptly after receipt of
such  notice,  for use by  Custodian  as  specified  herein.  In the event  that

                                      - 5 -
<PAGE>

Custodian reasonably believes that Fund is eligible,  pursuant to applicable law
or to the  provisions  of any tax treaty,  for a reduced  rate of, or  exemption
from,  any Tax which is  otherwise  required to be withheld or paid on behalf of
the Fund under any  applicable  law,  Custodian  shall,  or shall  instruct  the
applicable Subcustodian or withholding agent to, either withhold or pay such Tax
at such  reduced  rate or  refrain  from  withholding  or paying  such  Tax,  as
appropriate;  provided  that  Custodian  shall have  received  from the Fund all
documentary  evidence of residence or other  qualification for such reduced rate
or exemption required to be received under such applicable law or treaty. In the
event that  Custodian  reasonably  believes that a reduced rate of, or exemption
from,  any Tax is  obtainable  only  by  means  of an  application  for  refund,
Custodian  and  the  applicable   Subcustodian  shall  have  responsibility  for
providing  the Fund with the correct  forms and filling them out in a timely and
accurate  fashion,  but no  responsibility  for the  accuracy or validity of the
Fund's information on any forms or documentation  provided solely by the Fund to
Custodian  hereunder.  The Fund hereby  agrees to  indemnify  and hold  harmless
Custodian   and  each   Subcustodian   for  any   liability   arising  from  any
underwithholding or underpayment of any Tax which results from the inaccuracy or
invalidity  of any  information  provided  by the Fund  for such  forms or other
documentation  prepared  solely by the Fund,  and such  obligation  to indemnify
shall be a  continuing  obligation  of the  Fund,  its  successors  and  assigns
notwithstanding the termination of this Agreement.

    9.  (a)  For  the  purpose  of  settling  Securities  and  foreign  exchange
transactions,  the Fund shall  provide  Custodian  with  sufficient  immediately
available funds for all  transactions by such time and date as conditions in the
relevant  market  dictate.  As used herein,  "sufficient  immediately  available
funds" shall mean either (i)  sufficient  cash  denominated  in U.S.  dollars to
purchase the necessary foreign currency,  or (ii) sufficient  applicable foreign
currency,  to settle the  transaction.  Custodian  shall  provide  the Fund with
immediately   available  funds  each  day  which  result  from  the  contractual
settlement of all sale  transactions,  based upon advices  received by Custodian
from Subcustodians,  Depositories, and Foreign Depositories. Such funds shall be
in U.S. dollars or such other currency as the Fund may specify to Custodian.

       (b) Any foreign exchange  transaction effected by Custodian in connection
with this Agreement may be entered with  Custodian or a BNY Affiliate  acting as
principal or otherwise through customary banking channels.  The Fund may issue a
standing   Certificate  or  Instructions   with  respect  to  foreign   exchange
transactions,  but Custodian may establish  rules or limitations  concerning any
foreign  exchange  facility made  available to the Fund. The Fund shall bear all
investment  risks of investing in  Securities or holding cash  denominated  in a
foreign currency.

    10.  Custodian  shall  promptly send to the Fund (a) any reports it receives
from a Depository on such Depository's  system of internal  accounting  control,

                                      - 6 -
<PAGE>

and (b) such  reports on its own system of  internal  accounting  control as the
Fund may reasonably request from time to time.


                                      - 7 -
<PAGE>

                                   ARTICLE IV
                        PURCHASE AND SALE OF SECURITIES;
                               CREDITS TO ACCOUNT

    1. Promptly  after each purchase or sale of Securities by the Fund, the Fund
shall deliver to Custodian a Certificate or  Instructions,  or with respect to a
purchase or sale of a Security  generally required to be settled on the same day
the  purchase or sale is made,  Oral  Instructions  specifying  all  information
Custodian  may  reasonably  request to settle such  purchase or sale.  Custodian
shall account for all purchases and sales of Securities on the actual settlement
date unless otherwise agreed by Custodian.

    2. The Fund  understands  that  when  Custodian  is  instructed  to  deliver
physical Securities against payment,  delivery of such Securities and receipt of
payment  therefor  may  not be  completed  simultaneously.  Notwithstanding  any
provision  in  this  Agreement  to  the  contrary,  settlements,   payments  and
deliveries  of  physical   Securities  may  be  effected  by  Custodian  or  any
Subcustodian in accordance with the customary or established  securities trading
or securities  processing  practices and procedures in the jurisdiction in which
the transaction occurs, including,  without limitation,  delivery to a purchaser
or dealer  therefor (or agent) against receipt with the expectation of receiving
later payment for such Securities

    3.  Custodian  may, as a matter of  bookkeeping  convenience  or by separate
agreement  with the Fund,  credit the Account with the  proceeds  from the sale,
redemption or other  disposition  of Securities or interest,  dividends or other
distributions payable on Securities prior to its actual receipt of final payment
therefor. All such credits shall be conditional until Custodian's actual receipt
of final  payment  and may be  reversed  by  Custodian  to the extent that final
payment is not  received.  Payment  with  respect to a  transaction  will not be
"final" until  Custodian shall have received  immediately  available funds which
under  applicable  local law,  rule and/or  practice  are  irreversible  and not
subject  to any  security  interest,  levy or other  encumbrance,  and which are
specifically applicable to such transaction.

                                   ARTICLE V
                           OVERDRAFTS OR INDEBTEDNESS

    1. If Custodian should in its sole discretion advance funds on behalf of any
Fund which  results in an  overdraft  because the money held by  Custodian in an
Account for such Fund shall be insufficient to pay the total amount payable upon
a  purchase  of  Securities  by  such  Fund,  as  set  forth  in a  Certificate,
Instructions or Oral  Instructions,  or if an overdraft arises with respect to a
Fund for some other reason, including, without limitation, because of a reversal
of a conditional  credit or the purchase of any currency,  or if any Fund is for
any other reason indebted to Custodian (except a borrowing for investment or for
temporary  or  emergency  purposes  pursuant  to  a  separate  agreement),  such
overdraft or indebtedness shall be deemed to be a loan made by Custodian to such
Fund payable on demand and shall bear  interest  from the date  incurred at such
rate per annum as such Fund and  Custodian  may agree upon from time to time. In
addition,  the Fund hereby  agrees that  Custodian  shall to the maximum  extent
permitted  by law  have a  continuing  lien,  security  interest,  and  security
entitlement  in  and  to  any  property,   including,  without  limitation,  any
investment  property or any  financial  asset,  of such Fund at any time held by
Custodian  for the  benefit  of such  Fund or in  which  such  Fund  may have an

                                      - 8 -
<PAGE>

interest which is then in Custodian's  possession or control or in possession or
control of any third party acting in Custodian's  behalf.  Such Fund  authorizes
Custodian,  in its sole discretion,  at any time to charge any such overdraft or
indebtedness  together with interest due thereon  against any balance of account
standing to such Fund's credit on Custodian's  books.  Custodian  shall promptly
advise any Fund  whenever  such Fund has an  overdraft or  indebtedness  bearing
interest as provided in this Article,  or whenever  Custodian intends to realize
upon its lien, security interest or security entitlement.

    2. If the Fund  borrows  money  from any bank  (including  Custodian  if the
borrowing is pursuant to a separate  agreement)  for investment or for temporary
or emergency purposes using Securities held by Custodian hereunder as collateral
for  such  borrowings,  the  Fund  shall  deliver  to  Custodian  a  Certificate
specifying  with  respect to each such  borrowing:  (a) the Series to which such
borrowing  relates;  (b) the name of the bank,  (c) the amount of the borrowing,
(d) the time and date, if known,  on which the loan is to be entered  into,  (e)
the total amount  payable to the Fund on the borrowing  date, (f) the Securities
to be delivered as collateral  for such loan,  including the name of the issuer,
the title and the  number of shares or the  principal  amount of any  particular
Securities,  and (g) a statement  specifying whether such loan is for investment
purposes  or for  temporary  or  emergency  purposes  and that  such  loan is in
conformance with the `40 Act and the Fund's prospectus.  Custodian shall deliver
on the  borrowing  date  specified in a  Certificate  the  specified  collateral
against  payment by the lending  bank of the total  amount of the loan  payable,
provided that the same conforms to the total amount  payable as set forth in the
Certificate.  Custodian  may,  at the  option  of the  lending  bank,  keep such
collateral in its possession, but such collateral shall be subject to all rights
therein  given  the  lending  bank  by  virtue  of any  promissory  note or loan
agreement.  Custodian shall deliver such Securities as additional  collateral as
may be specified  in a  Certificate  to  collateralize  further any  transaction
described in this  Section.  The Fund shall cause all  Securities  released from
collateral  status  to be the  name of the  Series  for  which  such  money  was
received.

                                   ARTICLE VI
                          SALE AND REDEMPTION OF SHARES

    1. Whenever the Fund shall sell any shares issued by the Fund  ("Shares") it
shall deliver to Custodian a Certificate or  Instructions  specifying the amount
of money  and/or  Securities  to be received by  Custodian  for the sale of such
Shares and specifically allocated to an Account for such Series.

    2. Upon  receipt of such  money,  Custodian  shall  credit  such money to an
Account in the name of the Series for which such money was received.

    3. Except as provided  hereinafter,  whenever the Fund desires  Custodian to
make payment out of the money held by Custodian  hereunder in connection  with a
redemption  of any  Shares,  it shall  furnish to  Custodian  a  Certificate  or
Instructions  specifying the total amount to be paid for such Shares.  Custodian
shall make payment of such total amount to the transfer agent  specified in such
Certificate  or  Instructions  out  of  the  money  held  in an  Account  of the
appropriate Series.

                                      - 9 -
<PAGE>


                                  ARTICLE VII
                      PAYMENT OF DIVIDENDS OR DISTRIBUTIONS

    1. Whenever the Fund shall  determine to pay a dividend or  distribution  on
Shares it shall furnish to Custodian Instructions or a Certificate setting forth
with respect to the Series specified therein the date of the declaration of such
dividend or distribution, the total amount payable, and the payment date.

    2. Upon the payment date  specified  in such  Instructions  or  Certificate,
Custodian  shall pay out of the money held for the  account  of such  Series the
total amount payable to the dividend agent of the Fund specified therein.

                                  ARTICLE VIII
                              CONCERNING CUSTODIAN

    1. (a) Except as otherwise expressly provided herein, Custodian shall not be
liable for any  costs,  expenses,  damages,  liabilities  or  claims,  including
attorneys'  and  accountants'  fees  (collectively,  "Losses"),  incurred  by or
asserted  against the Fund,  except those Losses arising out of Custodian's  own
negligence or willful misconduct.  Custodian shall have no liability  whatsoever
for the action or inaction of any Depositories or any Foreign Depositories. With
respect to any Losses  incurred  by the Fund as a result of the acts or failures
to act by a Subcustodian which is either a BNY Affiliate or listed on Appendix A
hereto,  Custodian shall be liable to the Fund for such Losses,  but only to the
extent such Losses arise out of or are caused by acts or failures to act by such
Subcustodian which are contrary to the prevailing  practices or standard of care
in the relevant market in which such Subcustodian operates.  With respect to any
Losses  incurred  by the Fund as a result  of the acts or  failures  to act by a
Subcustodian  which is not a BNY  Affiliate  and is not  listed  on  Appendix  A
hereto, Custodian shall take appropriate action to recover such Losses from such
Subcustodian,  and  Custodian's  sole  responsibility  and liability to the Fund
shall be limited to amounts so received  from such  Subcustodians  (exclusive of
costs and expenses incurred by Custodian). In no event shall Custodian be liable
to the Fund or any third party for special,  indirect or consequential  damages,
or lost profits or loss of business,  arising in connection with this Agreement,
nor shall BNY or any  Subcustodian be liable:  (i) for acting in accordance with
any Certificate or Oral Instructions  actually  received by Custodian;  (ii) for
acting in accordance with  Instructions;  (iii) for conclusively  presuming that
all Instructions  other than Oral  Instructions are given only by person(s) duly
authorized;  (iv) for any Losses due to forces  beyond the control of Custodian,
including without limitation strikes, work stoppages,  acts of war or terrorism,
insurrection,  revolution,  nuclear  or  natural  catastrophes  or  acts of God,
interruption,  loss or malfunction of utilities or communication  services,  or,
but  only to the  extent  beyond  Custodian's  reasonable  control,  and only if
Custodian  is  maintaining  the  same  and  appropriate   back-up  system(s)  in
accordance  with  industry  standards  and  practices,  interruption,  loss,  or
malfunction of computers  (hardware or software);  or (v) for any Losses arising
from the  applicability of any law or regulation now or hereafter in effect,  or
from the occurrence of any event, including, without limitation,  implementation
or  adoption  of any  rules or  procedures  of a Foreign  Depository,  which may
affect,  limit,  prevent  or impose  costs or burdens  on, the  transferability,
convertibility,  or availability  of any currency or Composite  Currency Unit in
any  country  or on the  transfer  of any  Securities,  and  in no  event  shall
Custodian be obligated to substitute another currency for a currency  (including

                                     - 10 -
<PAGE>

a  currency   that  is  a  component  of  a  Composite   Currency   Unit)  whose
transferability,  convertibility or availability has been affected,  limited, or
prevented by such law, regulation or event, and to the extent that any such law,
regulation or event  imposes a cost or charge upon  Custodian in relation to the
transferability,  convertibility,  or  availability  of  any  cash  currency  or
Composite  Currency  Unit,  such cost or charge  shall be for the account of the
Fund, and Custodian may treat any account denominated in an affected currency as
a group of separate accounts denominated in the relevant component currencies.

       (b) Custodian may enter into subcontracts,  agreements and understandings
with any BNY  Affiliate,  whenever and on such terms and  conditions as it deems
necessary or appropriate to perform its services hereunder. No such subcontract,
agreement  or  understanding  shall  discharge  Custodian  from its  obligations
hereunder.

       (c) The Fund agrees to indemnify  and hold  Custodian  harmless  from and
against  any and  all  Losses  sustained  or  incurred  by or  asserted  against
Custodian by reason of or as a result of any action or inaction,  or arising out
of Custodian  performance  hereunder,  including reasonable fees and expenses of
counsel, provided however, that the Fund shall not indemnify Custodian for those
Losses arising out of Custodian's own negligence or willful misconduct,  nor for
any Losses which constitute indirect, special, or consequential damages, or lost
profits or loss of business.  Custodian  agrees to  indemnify  and hold the Fund
harmless  from and  against any and all Losses,  including  reasonable  fees and
expenses of  counsel,  sustained  or  incurred  by or asserted  against the Fund
arising out of  Custodian's  own  negligence  or willful  misconduct,  provided,
however,  that  Custodian  shall not  indemnify  the Fund for any  Losses  which
constitute indirect,  special, or consequential damages, or lost profits or loss
of  business.  This  indemnity  shall  be a  continuing  obligation  of Fund and
Custodian, their successors and assigns, notwithstanding the termination of this
Agreement.

    2. Without  limiting the  generality of the  foregoing,  Custodian  shall be
under no obligation to inquire into, and shall not be liable for:

       (a) The  validity  of the issue of any  Securities  purchased,  sold,  or
written  by or for the Fund,  the  legality  of the  purchase,  sale or  writing
thereof, or the propriety of the amount paid or received therefor;

       (b)  The  legality  of the  sale  or  redemption  of any  Shares,  or the
propriety of the amount to be received or paid therefor;

       (c) The  legality  of the  declaration  or  payment  of any  dividend  or
distribution by the Fund;

       (d) The legality of any borrowing by the Fund;

       (e) Whether any Securities at any time delivered to, or held by Custodian
or by any Subcustodian,  for the account of the Fund are such as properly may be
held by the Fund  under  the  provisions  of its  then  current  prospectus  and
statement of additional information, or to ascertain whether any transactions by

                                     - 11 -
<PAGE>

the Fund,  whether or not  involving  Custodian,  are such  transactions  as may
properly be engaged in by the Fund.

    3. Custodian may, with respect to questions of law specifically regarding an
Account,  obtain the advice of  counsel  at its own  expense  and shall be fully
protected  with  respect  to  anything  done or  omitted  by it in good faith in
conformity with such advice.

    4.  Custodian  shall have no duty or  responsibility  to inquire into,  make
recommendations,  supervise,  or determine  the  suitability  of any  Securities
transactions effected for a Fund.

    5.  The  Fund  shall  pay  to  Custodian  the  fees  and  charges  as may be
specifically  agreed  upon from time to time and such other fees and  charges at
Custodian's  standard  rates for such  services as may be  applicable.  The Fund
shall also  reimburse  Custodian for  out-of-pocket  expenses which are a normal
incident of the services provided hereunder.

    6. With  instructions  from an Authorized  Person of the Fund, the Custodian
has the right to debit any cash  account  for any amount  payable by the Fund in
connection with any and all obligations of the Fund to Custodian. Custodian will
use its bet  efforts  to  consult  with  Fund's  investment  advisor  about  the
selection of securities used to offset that Fund's obligations to Custodian. Any
such asset of, or obligation to the Fund may be transferred to Custodian and any
BNY Affiliate in order to effect the above rights.

    7. The Fund will make its best efforts to forward to Custodian a Certificate
or  Instructions  confirming  Oral  Instructions by the close of business of the
same day that such Oral Instructions are given to Custodian.  Fund and Custodian
agree that the fact that such  confirming  Certificate or  Instructions  are not
received or that a contrary Certificate or contrary Instructions are received by
Custodian  shall  affect  the  validity  and   enforceability   of  transactions
authorized  by such Oral  Instructions  and effected by  Custodian.  If the Fund
elects to transmit Instructions through an on-line communications system offered
by  Custodian,  the  Fund's  use  thereof  shall be  subject  to the  Terms  and
Conditions  attached as Appendix I hereto,  and Custodian shall provide user and
authorization  codes,  passwords and  authentication  keys only to an Authorized
Person.

    8. The books and records  pertaining  to the Fund which are in possession of
Custodian  shall be the  property of the Fund.  Such books and records  shall be
prepared and maintained as required by the `40 Act and the rules thereunder. The
Fund,  or its  authorized  representatives,  shall have access to such books and
records during Custodian's normal business hours. Upon the reasonable request of
the Fund, copies of any such books and records shall be provided by Custodian to
the Fund or its authorized  representative.  Upon the reasonable  request of the
Fund,  Custodian  shall  provide in hard copy or on  computer  disc any  records
included in any such  delivery  which are  maintained by Custodian on a computer
disc, or are similarly maintained.

    9. It is understood  that Custodian is authorized to supply any  information
regarding the Accounts  which is required by any law,  regulation or rule now or
hereafter in effect.  Custodian  shall provide the Fund with any report obtained
by Custodian on the system of internal  accounting control of a Depository,  and

                                     - 12 -
<PAGE>

with such reports on its own system of internal  accounting  control as the Fund
may reasonably request from time to time.


                                   ARTICLE IX
                                   TERMINATION

    1. Either of the parties  hereto may terminate  this  Agreement by giving to
the other  party a notice in writing  specifying  the date of such  termination,
which  shall be not less than  sixty  (60) days after the date of giving of such
notice.  In the event such notice is given by the Fund, it shall be  accompanied
by a copy of a  resolution  of the board of the Fund,  certified  by the  Fund's
Secretary or any Assistant  Secretary,  electing to terminate this Agreement and
designating a successor  custodian or custodians,  each of which shall be a bank
or trust company having not less than $2,000,000 aggregate capital,  surplus and
undivided  profits.  In the event such  notice is given by  Custodian,  the Fund
shall,  on or before the  termination  date,  deliver to  Custodian  a copy of a
resolution of the board of the Fund, certified by the Secretary or any Assistant
Secretary,  designating a successor  custodian or custodians.  In the absence of
such  designation  by the Fund,  Custodian may  designate a successor  custodian
which shall be a bank or trust company having not less than $2,000,000 aggregate
capital,  surplus and undivided profits.  Upon the date set forth in such notice
this Agreement shall terminate,  and Custodian shall upon receipt of a notice of
acceptance  by the  successor  custodian  on that date  deliver  directly to the
successor  custodian all Securities and money then owned by the Fund and held by
it as Custodian,  after  deducting all fees,  expenses and other amounts for the
payment or reimbursement of which it shall then be entitled.

    2. If a successor  custodian is not  designated  by the Fund or Custodian in
accordance with the preceding Section, the Fund shall upon the date specified in
the notice of  termination  of this Agreement and upon the delivery by Custodian
of all Securities  (other than Securities which cannot be delivered to the Fund)
and money then owned by the Fund be deemed to be its own custodian and Custodian
shall  thereby be relieved of all duties and  responsibilities  pursuant to this
Agreement,  other  than the duty with  respect  to  Securities  which  cannot be
delivered to the Fund to hold such Securities  hereunder in accordance with this
Agreement.


                                    ARTICLE X
                                  MISCELLANEOUS

    1. The Fund agrees to furnish to Custodian a new  Certificate  of Authorized
Persons in the event of any change in the then present Authorized Persons. Until
such new  Certificate is received,  Custodian shall be fully protected in acting
upon Certificates or Oral Instructions of such present Authorized Persons.

    2. Any notice or other instrument in writing, authorized or required by this
Agreement to be given to Custodian,  shall be sufficiently given if addressed to
Custodian and received by it at its offices at 100 Church Street,  New York, New

                                     - 13 -
<PAGE>

York 10286,  or at such other place as Custodian may from time to time designate
in writing.

    3. Any notice or other instrument in writing, authorized or required by this
Agreement  to be given to the Fund shall be  sufficiently  given if addressed to
the Fund and  received by it at its offices at 101  Huntington  Avenue,  Boston,
Massachusetts  02199,  or at such other  place as the Fund may from time to time
designate in writing.

    4. Each and every right granted to either party hereunder or under any other
document delivered hereunder or in connection herewith,  or allowed it by law or
equity,  shall be cumulative  and may be exercised from time to time. No failure
on the part of either party to exercise,  and no delay in exercising,  any right
will  operate as a waiver  thereof,  nor will any single or partial  exercise by
either party of any right preclude any other or future  exercise  thereof or the
exercise of any other right.

    5. In case any  provision in or  obligation  under this  Agreement  shall be
invalid,  illegal or unenforceable in any exclusive jurisdiction,  the validity,
legality and enforceability of the remaining  provisions shall not in any way be
affected  thereby.  This  Agreement may not be amended or modified in any manner
except  by a  written  agreement  executed  by both  parties,  except  that  any
amendment  to the  Schedule  I hereto  need be  signed  only by the Fund and any
amendment to Appendix I hereto need be signed only by Custodian.  This Agreement
shall  extend  to and  shall be  binding  upon the  parties  hereto,  and  their
respective successors and assigns; provided,  however, that this Agreement shall
not be assignable by either party without the written consent of the other.

    6. This Agreement shall be construed in accordance with the substantive laws
of The  Commonwealth  of  Massachusetts,  without  regard to  conflicts  of laws
principles  thereof.  The Fund and Custodian each hereby  irrevocably waives any
and all  rights  to  trial by jury in any  legal  proceeding  arising  out of or
relating to this Agreement.

    7. This  Agreement  may be executed in any number of  counterparts,  each of
which shall be deemed to be an original,  but such counterparts shall, together,
constitute only one instrument.

    8.  Fund and  Custodian  agree  that the  obligations  of each  Fund are not
binding upon any of the Trustees/Directors, officers or shareholders of the Fund
individually,  but are  binding  only upon that Fund and its  assets.  Each Fund
shall be severally,  not jointly, liable only for its own obligations under this
Agreement.


                                     - 14 -
<PAGE>

    IN WITNESS WHEREOF,  the Fund and Custodian have caused this Agreement to be
executed by their respective officers,  thereunto duly authorized, as of the day
and year first above written.


                                    Each John Hancock Fund listed on Schedule II


                                    By:       /s/Richard A Brown
                                    Title:   Senior Vice President and
                                             Chief Financial Officer

                                    THE BANK OF NEW YORK

                                    By:  /s/James E. Hillman
                                    Title:   Senior Vice President


                                     - 15 -
<PAGE>

                                   SCHEDULE I
                        CERTIFICATE OF AUTHORIZED PERSONS
                   (The Fund - Oral and Written Instructions)

    The undersigned  hereby certifies that he/she is the duly elected and acting
Treasurer of each John  Hancock Fund listed on Schedule II (each a "Fund"),  and
further certifies that the following officers or employees of the Fund have been
duly authorized in conformity  with the Fund's  Declaration of Trust and By-Laws
to  deliver  Certificates  and  Oral  Instructions  to  The  Bank  of  New  York
("Custodian")  pursuant to the Custody  Agreement between the Fund and Custodian
dated  ____________2001,  and that the signatures appearing opposite their names
are true and correct:


- -------------------------        -------------------       --------------------
Name                             Title                     Signature

- -------------------------        -------------------       --------------------
Name                             Title                     Signature

- -------------------------        -------------------       --------------------
Name                             Title                     Signature

- -------------------------        -------------------       --------------------
Name                             Title                     Signature

- -------------------------        -------------------       --------------------
Name                             Title                     Signature

- -------------------------        -------------------       --------------------
Name                             Title                     Signature

- -------------------------        -------------------       --------------------
Name                             Title                     Signature

- -------------------------        -------------------       --------------------
Name                             Title                     Signature



    This  certificate  supersedes any certificate of Authorized  Persons you may
currently have on file.


                                   By:____________________________________
                                      Title: Vice President and Treasurer

Date:


<PAGE>

                                   SCHEDULE II

                               John Hancock Funds

                              [include tax id #'s]


<PAGE>

                                   APPENDIX I

                              THE BANK OF NEW YORK

                  ON-LINE COMMUNICATIONS SYSTEM (THE "SYSTEM")

                              TERMS AND CONDITIONS

    1.  LICENSE;  USE.  Upon  delivery  to  an  Authorized  Person  or a  person
reasonably  believed  by  Custodian  to be an  Authorized  Person of the Fund of
software  enabling  the Fund to obtain  access to the System  (the  "Software"),
Custodian  grants  to the  Fund a  personal,  nontransferable  and  nonexclusive
license to use the  Software  solely for the  purpose  of  transmitting  Written
Instructions,  receiving  reports,  making inquiries or otherwise  communicating
with  Custodian  in  connection  with the  Account(s).  The Fund  shall  use the
Software solely for its own internal and proper business purposes and not in the
operation of a service bureau.  Except as set forth herein,  no license or right
of any kind is  granted  to the Fund  with  respect  to the  Software.  The Fund
acknowledges  that  Custodian  and its  suppliers  retain  and  have  title  and
exclusive  proprietary  rights to the  Software,  including any trade secrets or
other ideas,  concepts,  know-how,  methodologies,  or information  incorporated
therein  and the  exclusive  rights to any  copyrights,  trademarks  and patents
(including  registrations and applications for registration of either), or other
statutory or legal  protections  available in respect thereof.  The Fund further
acknowledges  that  all  or a  part  of  the  Software  may  be  copyrighted  or
trademarked  (or a  registration  or claim made  therefor)  by  Custodian or its
suppliers.  The Fund shall not take any  action  with  respect  to the  Software
inconsistent  with the  foregoing  acknowledgments,  nor  shall you  attempt  to
decompile, reverse engineer or modify the Software. The Fund may not copy, sell,
lease or provide,  directly or  indirectly,  any of the  Software or any portion
thereof to any other person or entity without Custodian's prior written consent.
The Fund may not remove any statutory  copyright notice or other notice included
in the  Software  or on any  media  containing  the  Software.  The  Fund  shall
reproduce any such notice on any  reproduction of the Software and shall add any
statutory  copyright  notice  or other  notice  to the  Software  or media  upon
Custodian's request.

    2. EQUIPMENT. The Fund shall obtain and maintain at its own cost and expense
all  equipment  and  services,  including  but  not  limited  to  communications
services,  necessary  for it to utilize the  Software  and obtain  access to the
System,   and  Custodian  shall  not  be  responsible  for  the  reliability  or
availability of any such equipment or services.

    3. PROPRIETARY INFORMATION.  The Software, any data base and any proprietary
data, processes, information and documentation made available to the Fund (other
than which are or become part of the public domain or are legally required to be
made  available  to the  public)  (collectively,  the  "Information"),  are  the
exclusive  and  confidential  property of Custodian or its  suppliers.  The Fund


<PAGE>

shall keep the  Information  confidential  by using the same care and discretion
that the Fund uses  with  respect  to its own  confidential  property  and trade
secrets, but not less than reasonable care. Upon termination of the Agreement or
the Software  license  granted  herein for any reason,  the Fund shall return to
Custodian any and all copies of the  Information  which are in its possession or
under its control.

    4.  MODIFICATIONS.  Custodian reserves the right to modify the Software from
time to time  and the  Fund  shall  install  new  releases  of the  Software  as
Custodian  may  direct.  The Fund  agrees not to modify or attempt to modify the
Software without  Custodian's prior written consent.  The Fund acknowledges that
any modifications to the Software,  whether by the Fund or Custodian and whether
with or without Custodian's consent, shall become the property of Custodian.

    5. NO  REPRESENTATIONS  OR WARRANTIES.  CUSTODIAN AND ITS  MANUFACTURERS AND
SUPPLIERS  MAKE NO WARRANTIES OR  REPRESENTATIONS  WITH RESPECT TO THE SOFTWARE,
SERVICES OR ANY DATABASE,  EXPRESS OR IMPLIED,  IN FACT OR IN LAW, INCLUDING BUT
NOT LIMITED TO  WARRANTIES  OF  MERCHANTABILITY  AND  FITNESS  FOR A  PARTICULAR
PURPOSE. THE FUND ACKNOWLEDGES THAT THE SOFTWARE,  SERVICES AND ANY DATABASE ARE
PROVIDED "AS IS." IN NO EVENT SHALL  CUSTODIAN OR ANY SUPPLIER BE LIABLE FOR ANY
DAMAGES, WHETHER DIRECT, INDIRECT SPECIAL, OR CONSEQUENTIAL,  WHICH THE FUND MAY
INCUR  IN  CONNECTION  WITH  THE  SOFTWARE,  SERVICES  OR ANY  DATABASE,  UNLESS
CUSTODIAN OR SUCH SUPPLIER KNOWS OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH
DAMAGES.  IN NO EVENT SHALL CUSTODIAN OR ANY SUPPLIER BE LIABLE FOR ACTS OF GOD,
MACHINE OR COMPUTER  BREAKDOWN OR  MALFUNCTION,  INTERRUPTION  OR MALFUNCTION OF
COMMUNICATION FACILITIES,  LABOR DIFFICULTIES OR ANY OTHER SIMILAR OR DISSIMILAR
CAUSE BEYOND THEIR REASONABLE CONTROL.

    6.  SECURITY;  RELIANCE;  UNAUTHORIZED  USE. The Fund will cause all persons
utilizing the Software and System to treat all applicable user and authorization
codes,  passwords  and  authentication  keys  with  extreme  care,  and it  will
establish   internal   control  and  safekeeping   procedures  to  restrict  the
availability  of the  same to  persons  duly  authorized  to give  Instructions.
Custodian is hereby irrevocably authorized to act in accordance with and rely on
Instructions received by it through the System. The Fund acknowledges that it is
its sole  responsibility  to assure that only  persons duly  authorized  use the
System  and  that  Custodian  shall  not  be  responsible  nor  liable  for  any
unauthorized use thereof.


<PAGE>

    7. SYSTEM  ACKNOWLEDGMENTS.  Custodian shall acknowledge  through the System
its receipt of each transmission communicated through the System. In the absence
of such  acknowledgment  Custodian shall not be liable for any failure to act in
accordance  with such  transmission  however,  Custodian  will be liable for all
transmissions  where the Fund  shows  that such  transmission  was  received  by
Custodian.

    8.  EXPORT  RESTRICTIONS.  EXPORT OF THE  SOFTWARE IS  PROHIBITED  BY UNITED
STATES LAW. THE FUND MAY NOT UNDER ANY CIRCUMSTANCES RESELL,  DIVERT,  TRANSFER,
TRANSSHIP OR OTHERWISE  DISPOSE OF THE SOFTWARE (IN ANY FORM) IN OR TO ANY OTHER
COUNTRY.  IF CUSTODIAN  DELIVERED THE SOFTWARE TO THE FUND OUTSIDE OF THE UNITED
STATES,  THE SOFTWARE WAS EXPORTED FROM THE UNITED STATES IN ACCORDANCE WITH THE
EXPORTER  ADMINISTRATION   REGULATIONS.   DIVERSION  CONTRARY  TO  U.S.  LAW  IS
PROHIBITED.  The Fund hereby authorizes Custodian to report its name and address
to  government   agencies  to  which  Custodian  is  required  to  provide  such
information by law.

    9. ENCRYPTION.  The Fund  acknowledges and agrees that encryption may not be
available for every communication  through the System, or for all data. The Fund
agrees that Custodian may deactivate any encryption  features at any time,  with
notice to the Fund, for the purpose of maintaining, repairing or troubleshooting
the System or the Software.

    The Fund and the  bank  agree  that  the  obligations  of each  Fund are not
binding upon any of the Trustees/Directors. Officers or shareholders of the Fund
individually,  but are  binding  only upon that Fund and its  assets.  Each Fund
shall be  severally,  not  jointly,  liable for its own  obligations  under this
Agreement.


<PAGE>


                                   APPENDIX A


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.9
<SEQUENCE>15
<FILENAME>amendment.txt
<DESCRIPTION>EXHIBIT 99.9(B)
<TEXT>
                                    AMENDMENT

    AMENDMENT made as of January 9, 2003, to that certain Custody Agreement,

dated as of September 10, 2001, between each John Hancock Fund listed on

Schedule II hereto (each a "Fund" and collectively the "Funds") and The Bank of

New York ("Custodian").

                              W I T N E S S E T H :

         For and in consideration of the mutual promises hereinafter set forth

each Fund and Custodian hereby agree as follows:

         Article 3 of the Custody Agreement is hereby amended by the addition

of the following new Section 11:

         "Section 11.  Custodian shall make such payments out of the money held

in each Account as it may be directed to make by a Certificate or Instructions,

and each Fund shall impose and maintain restrictions of the destinations to

which cash may be disbursed to ensure that each such disbursement is for a

proper corporate purpose.  In addition, Custodian shall, until otherwise

instructed by a Fund in a Certificate or Instructions, make payment of such

investment advisory fees as may be specified by The Bank of New York as Fund

Accounting agent under that certain Fund Accounting Agreement, dated as of

September 10, 2001, between each Fund and BNY, as amended, to Custodian as then

due and payable. For purposes of this Agreement in general, including, without

limitation, Article VIII, any such payment shall be deemed a payment by

Custodian pursuant to the Instructions of the Fund."

         IN WITNESS WHEREOF, each Fund and Custodian have caused this Amendment

to be executed by their respective officers, thereunto duly authorized, as of

the day and year first above written.

                                      EACH JOHN HANCOCK FUND
                                      LISTED ON SCHEDULE II


                                      By:  /s/Richard A. Brown

                                      Title: Senior Vice President and Chief
                                             Financial Officer



                                      THE BANK OF NEW YORK


                                      By:   /s/James E. Hillman

                                      Title:  Senior Vice President



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.9
<SEQUENCE>16
<FILENAME>bnycustody_sched.txt
<DESCRIPTION>EXHIBIT 99.9(C)
<TEXT>
                               JOHN HANCOCK FUNDS

                                  SCHEDULE II
                                  -----------

As of August 1, 2006:    Addition of John Hancock Classic Value Fund II
- --------------------

<TABLE>
<CAPTION>
EIN             NAME
- -------------------------------------------------------------------------------
<S>             <C>
20-3338244      John Hancock Allocation Core Portfolio
- -------------------------------------------------------------------------------
20-3338270      John Hancock Allocation Growth +Value Portfolio
- -------------------------------------------------------------------------------
04-3167136      John Hancock Balanced Fund
- -------------------------------------------------------------------------------
04-3241844      John Hancock Bank & Thrift Opportunity Fund
- -------------------------------------------------------------------------------
04-2528977      John Hancock Bond Fund
- -------------------------------------------------------------------------------
76-0296100      John Hancock California Tax-Free Income Fund
- -------------------------------------------------------------------------------
95-4570453      John Hancock Classic Value Fund
- -------------------------------------------------------------------------------
20-5051736      John Hancock Classic Value Fund II
- -------------------------------------------------------------------------------
04-3122478      John Hancock Core Equity Fund
- -------------------------------------------------------------------------------
04-3305812      John Hancock Financial Industries Fund
- -------------------------------------------------------------------------------
56-1662953      John Hancock Financial Trends Fund, Inc.
- -------------------------------------------------------------------------------
04-3535633      John Hancock Focused Equity Fund
- -------------------------------------------------------------------------------
76-0230587      John Hancock Government Income Fund
- -------------------------------------------------------------------------------
20-2733121      John Hancock Greater China Opportunities Fund
- -------------------------------------------------------------------------------
04-3524763      John Hancock Growth Trends Fund
- -------------------------------------------------------------------------------
04-3124238      John Hancock Health Sciences Fund
- -------------------------------------------------------------------------------
04-3551132      John Hancock High Income Fund
- -------------------------------------------------------------------------------
76-0230586      John Hancock High Yield Fund
- -------------------------------------------------------------------------------
76-0235997      John Hancock High Yield Municipal Bond
- -------------------------------------------------------------------------------
04-2507646      John Hancock Income Securities Trust
- -------------------------------------------------------------------------------
04-3260680      John Hancock Independence Diversified Core Equity Fund II
- -------------------------------------------------------------------------------
04-3214877      John Hancock International Fund
- -------------------------------------------------------------------------------
20-3973987      John Hancock International Classic Value Fund
- -------------------------------------------------------------------------------
76-0354706      John Hancock Investment Grade Bond Fund
- -------------------------------------------------------------------------------
04-2474663      John Hancock Investors Trust
- -------------------------------------------------------------------------------
74-6035056      John Hancock Large Cap Equity Fund
- -------------------------------------------------------------------------------
20-2251020      John Hancock Large Cap Intrinsic Value Fund
- -------------------------------------------------------------------------------
13-6164869      John Hancock Large Cap Select Fund
- -------------------------------------------------------------------------------
04-6564705      John Hancock Massachusetts Tax-Free Income Fund
- -------------------------------------------------------------------------------
32-0085382      John Hancock Mid Cap Equity Fund
- -------------------------------------------------------------------------------
</TABLE>

                                       1
<PAGE>
<TABLE>
<CAPTION>
04-3208756      John Hancock Mid Cap Growth Fund
- -------------------------------------------------------------------------------
<S>             <C>    <C>    <C>    <C>    <C>    <C>

76-0230583      John Hancock Money Market Fund
- -------------------------------------------------------------------------------
04-3539446      John Hancock Multi-Cap Growth Fund
- -------------------------------------------------------------------------------
04-6564703      John Hancock New York Tax-Free Income Fund
- -------------------------------------------------------------------------------
04-3161453      John Hancock Patriot Global Dividend Fund
- -------------------------------------------------------------------------------
04-3190056      John Hancock Patriot Preferred Dividend Fund
- -------------------------------------------------------------------------------
04-3044078      John Hancock Patriot Premium Dividend Fund I
- -------------------------------------------------------------------------------
04-3097281      John Hancock Patriot Premium Dividend Fund II
- -------------------------------------------------------------------------------
04-3090916      John Hancock Patriot Select Dividend Trust
- -------------------------------------------------------------------------------
75-3075015      John Hancock Preferred Income Fund
- -------------------------------------------------------------------------------
11-3660454      John Hancock Preferred Income Fund II
- -------------------------------------------------------------------------------
77-0598263      John Hancock Preferred Income Fund III
- -------------------------------------------------------------------------------
04-3435529      John Hancock Real Estate Fund
- -------------------------------------------------------------------------------
04-6526682      John Hancock Regional Bank Fund
- -------------------------------------------------------------------------------
04-3432939      John Hancock Small Cap Fund
- -------------------------------------------------------------------------------
04-3214880      John Hancock Small Cap Equity Fund
- -------------------------------------------------------------------------------
76-0230584      John Hancock Small Cap Growth Fund
- -------------------------------------------------------------------------------
20-2251082      John Hancock Small Cap Intrinsic Value Fund
- -------------------------------------------------------------------------------
51-0094374      John Hancock Sovereign Investors Fund
- -------------------------------------------------------------------------------
04-6545497      John Hancock Strategic Income Fund
- -------------------------------------------------------------------------------
20-0663068      John Hancock Tax-Advantaged Dividend Income Fund
- -------------------------------------------------------------------------------
76-0296098      John Hancock Tax-Free Bond Fund
- -------------------------------------------------------------------------------
13-3100162      John Hancock Technology Fund
- -------------------------------------------------------------------------------
91-1876970      John Hancock Technology Leaders Fund
- -------------------------------------------------------------------------------
76-0235823      John Hancock U.S. Government Cash Reserve
- -------------------------------------------------------------------------------
13-3843241      John Hancock U.S. Global Leaders Growth Fund
- -------------------------------------------------------------------------------
42-1585103      John Hancock Cash Investment Trust [private placement, not a mutual fund]
- -------------------------------------------------------------------------------
04-6568111      John Hancock NSCC Same Day Funds Settlement Account (added to the
                Custody contract only, effective 6/1/04)
</TABLE>

THE BANK OF NEW YORK                   JOHN HANCOCK FUNDS



By:  /s/ Edward G. McGann              By:  /s/ William H. King
     -----------------------------          ------------------------------------
      Name:  Edward G. McGann                William H. King
      Title: Managing Director               Vice President and Treasurer


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.13
<SEQUENCE>17
<FILENAME>transfersrvagmt.txt
<DESCRIPTION>EXHIBIT 99.13(A)
<TEXT>

[MELLON LOGO]MELLON

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)











                                SERVICE AGREEMENT


                                       FOR


                             TRANSFER AGENT SERVICES


                                       TO


                  JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND I
                  JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II
                  JOHN HANCOCK PATRIOT PREFERRED DIVIDEND FUND
                    JOHN HANCOCK PATRIOT GLOBAL DIVIDEND FUND
                   JOHN HANCOCK PATRIOT SELECT DIVIDEND TRUST
                          JOHN HANCOCK INVESTORS TRUST
                      JOHN HANCOCK INCOME SECURITIES TRUST
                  JOHN HANCOCK BANK AND THRIFT OPPORTUNITY FUND

<PAGE>

      THIS TRANSFER AGENT AGREEMENT (this "Agreement") between John Hancock
Patriot Premium Dividend Fund I, John Hancock Patriot Premium Dividend Fund II,
John Hancock Patriot Preferred Dividend Fund, John Hancock Patriot Global
Dividend Fund, John Hancock Patriot Select Dividend Trust, John Hancock
Investors Trust, John Hancock Income Securities Trust, John Hancock Bank And
Thrift Opportunity Fund, each a Massachusetts Business Trust, a Maryland
corporation (each a "Client" and collectively the "Clients") and Mellon Investor
Services LLC, a New Jersey limited liability company ("Mellon"), is dated as of
June 1, 2002.

1.    APPOINTMENT.  Clients appoint Mellon as their transfer agent, registrar
and dividend disbursing agent and Mellon accepts such appointment in accordance
with the following terms and conditions for all authorized shares of each class
of common stock listed in EXHIBIT A hereto (the "Shares").

2.    TERM AND TERMINATION OF AGREEMENT.

      (a)   This Agreement shall commence on the date hereof and shall continue
for a term of two years. Unless either party gives written notice of termination
of this Agreement at least 60 days prior to the end of the initial two year
term, or any successive one year term, this Agreement shall automatically renew
for an additional one year term.

      (b)   This Agreement may be terminated at any time by either party upon a
material breach of a representation, covenant or term of this Agreement by the
other which is not cured within a period not to exceed thirty (30) days after
the date of written notice thereof by the other party.

      (c)   Prior to termination of this Agreement, Clients must provide Mellon
with written instructions as to the disposition of records, as well as any
additional documentation reasonably requested by Mellon. Except as otherwise
expressly provided in this Agreement, the respective rights and duties of
Clients and Mellon under this Agreement shall cease upon termination of the
appointment.

      (d)   Upon receipt of written notice of termination, Mellon shall follow
its standard procedures to facilitate the transition of services hereunder to a
successor agent, and both parties agree to use commercially practicable efforts
to effect an orderly termination of this Agreement.

3.    DUTIES OF MELLON.  Mellon will provide the services listed in EXHIBIT B
hereto, in the performance of its duties as transfer agent, registrar, and
dividend disbursing agent.

4.    REPRESENTATIONS AND WARRANTIES OF MELLON AND CLIENT.

      (a)   Mellon represents, warrants and covenants to Clients that:

           (i)    it is a limited liability company duly organized and existing
and in good standing under the laws of the State of New Jersey;

<PAGE>

           (ii)   it is empowered under applicable laws and by its
organizational documents to enter into and perform the Transfer Agent function
per this Agreement; and

           (iii)  all requisite corporate proceedings have been taken to
authorize it to enter into and perform this Agreement.

      (b)   each Client represents, warrants and covenants to Mellon that:

            (i)   the Shares issued and outstanding on the date hereof have been
duly authorized, validly issued and are fully paid and are non-assessable; and
any Shares to be issued hereunder, when issued, shall have been duly authorized,
validly issued and fully paid and will be non-assessable;

            (ii)  the Shares issued and outstanding on the date hereof have been
duly registered under the Securities Act of 1933, as amended, and such
registration has become effective, or are exempt from such registration; and
have been duly registered under the Securities Exchange Act of 1934, as amended,
or are exempt from such registration;

            (iii) any Shares to be issued hereunder, when issued shall have been
duly registered under the Securities Act of 1933, as amended, and such
registration shall have become effective or shall be exempt from such
registration; and shall have been duly registered under the Securities Exchange
Act of 1934, as amended, or shall be exempt from such registration;

            (iv)  such Client has paid or caused to be paid all taxes, if any,
that were payable upon or in respect of the original issuance of the Shares
issued and outstanding on the date hereof;

            (v)   the execution and delivery of this Agreement, and the issuance
and any subsequent transfer of the Shares hereunder, do not and will not
conflict with, violate, or result in a breach of, the terms, conditions or
provisions of, or constitute a default under, the charter or the by-laws of such
Client, any law or regulation, any order or decree of any court or public
authority having jurisdiction, or any mortgage, indenture, contract, agreement
or undertaking to which such Client is a party or by which it is bound; and this
Agreement is enforceable against such Client in accordance with its terms,
except as may be limited by bankruptcy, insolvency, moratorium, reorganization
and other similar laws affecting the enforcement of creditors' rights generally;
and

            (vi)  such Client shall provide the documentation and notifications
listed in EXHIBIT C hereto. Such Client further agrees to deliver an opinion of
counsel as provided in Exhibit C, Section 7(a) and (b) upon any future original
issuance of Shares for which Mellon will act as transfer agent hereunder.

5.    COMPENSATION AND EXPENSES.  Each Client shall compensate Mellon for its
services hereunder in accordance with the fee schedules listed in EXHIBIT D
hereto. In accordance with EXHIBIT D hereto, each Client shall reimburse Mellon
for all reasonable expenses, disbursements or advances incurred by it in


                                      -2-
<PAGE>

accordance herewith. All amounts owed to Mellon hereunder are due upon receipt
of the invoice. Delinquent payments are subject to a late payment charge of one
and one half percent (1.5%) per month commencing forty-five (45) days from the
invoice date. Clients agree to reimburse Mellon for any reasonable attorney's
fees and any other costs associated with collecting delinquent payments.

6.    SCOPE OF AGENCY.

      (a)   Mellon shall act solely as agent for Clients under this Agreement
and owes no duties hereunder to any other person. Mellon undertakes to perform
the duties and only the duties that are specifically set forth in this
Agreement, and no implied covenants or obligations shall be read into this
Agreement against Mellon.

      (b)   Mellon may rely upon, and shall be protected in acting or refraining
from acting in reliance upon, (i) any Client communication authorized by this
Agreement, (ii) any communication from any predecessor Transfer Agent or
co-Transfer Agent or from any Registrar (other than Mellon), predecessor
Registrar or co-Registrar, and (iii) any other written instruction, notice,
request, direction, consent, report, certificate, or other instrument, paper,
document or electronic transmission believed by Mellon to be genuine and to have
been signed or given by the proper party or parties. In addition, Mellon is
authorized to refuse to make any transfer it deems improper.

      (c)   Mellon may consult with counsel (including internal counsel) whose
advice shall be full and complete authorization and protection in respect of any
action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon.

      (d)   Any instructions given by a Client to Mellon orally shall be
confirmed in writing by such Client as soon as practicable. Mellon shall not be
liable or responsible and shall be fully authorized and protected for acting, or
failing to act, in accordance with any oral instructions which do not conform
with the written confirmation received in accordance with this Section.

      (e)   Mellon may perform any of its duties hereunder either directly or by
or through agents or attorneys.

      (f)   Mellon shall not be obligated to take any legal action hereunder;
if, however, Mellon determines to take any legal action hereunder, and, where
the taking of such legal action might in Mellon's judgment subject or expose
Mellon to any expense or liability, Mellon shall not act unless it shall have
been furnished with an indemnity satisfactory to it.

7.    INDEMNIFICATION.

      (a)   Clients shall indemnify Mellon for, and hold it harmless against,
any loss, liability, claim or expense ("Loss") arising out of or in connection
with its duties under this Agreement or this appointment, including the costs
and expenses of defending itself against any Loss or enforcing this Agreement,


                                      -3-
<PAGE>

except to the extent that such Loss shall have been determined by a court of
competent jurisdiction to be a result of Mellon's negligence or intentional
misconduct.

      (b)   Mellon shall indemnify Clients for, and hold them harmless against,
any Loss arising out of or in connection with Mellon's duties under this
Agreement or this appointment, including the costs and expenses of defending
Clients against any Loss or enforcing this Agreement, to the extent that such
Loss shall have been determined by a court of competent jurisdiction to be a
result of Mellon's negligence or intentional misconduct.

      (c)   In order that the indemnification provisions contained in this
Section shall apply, upon the assertion of a claim for which one party may be
required to indemnify another, the indemnified party shall promptly notify the
indemnifying party of such assertion, and shall keep such party advised with
respect to all developments concerning such claim; provided, however, that a
party's failure to so notify or advise the other party shall not limit such
other party's indemnification obligation hereunder except to the extent that
such other party has been materially prejudiced by such failure. The
indemnifying party shall have the option to participate with the indemnified
party in the defense of any such claim or to defend against said claim. In no
case shall an indemnified party confess any claim or make any compromise in any
case in which an indemnifying party may be required to indemnify it except with
such indemnifying party's written consent.

8.  LIMITATION OF LIABILITY.

      (a)   In the absence of negligence or intentional misconduct on its part,
Mellon shall not be liable for any action taken, suffered, or omitted by it or
for any error of judgment made by it in the performance of its duties under this
Agreement. Mellon's liability to each Client shall be limited in the aggregate
to an amount equal to (12) times the flat monthly fee to be paid by such Client
as set forth in EXHIBIT D hereto. In no event will Mellon be liable for special,
indirect, incidental or consequential loss or damages of any kind whatsoever
(including but not limited to lost profits), even if Mellon has been advised of
the possibility of such damages.

      (b)   In the event any question or dispute arises with respect to Mellon's
duties hereunder, Mellon shall not be required to act or be held liable or
responsible for its failure or refusal to act until the question or dispute has
been (i) judicially settled (and, if appropriate, Mellon may file a suit in
interpleader or for a declaratory judgment for such purpose) by final judgment
rendered by a court of competent jurisdiction that is binding on all parties
interested in the matter and is no longer subject to review or appeal, or (ii)
settled by a written document in form and substance satisfactory to Mellon and
executed by Client. In addition, Mellon may require for such purpose, but shall
not be obligated to require, the execution of such written settlement by parties
that may have an interest in the settlement.

9.    FORCE MAJEURE.  Mellon shall not be liable for any failures, delays or
losses, arising directly or indirectly out of conditions beyond its reasonable

                                      -4-
<PAGE>

control, including, but not limited to, acts of government, exchange or market
ruling, suspension of trading, work stoppages or labor disputes, civil
disobedience, riots, rebellions, electrical or mechanical failure, computer
hardware or software failure, communications facilities failures including
telephone failure, war, fires, earthquakes, storms, floods, acts of God or
similar occurrences.

10.   MARKET DATA.  Each Client acknowledges that Mellon may provide real-time
or delayed quotations and other market information and messages ("Market Data"),
which Market Data is provided to Mellon by certain national securities exchanges
and associations who assert a proprietary interest in Market Data disseminated
by them but do not guarantee the timeliness, sequence, accuracy or completeness
thereof. Each Client agrees and acknowledges that Mellon shall not be liable in
any way for any loss or damage arising from or occasioned by any inaccuracy,
error, delay in, omission of, or interruption in any Market Data or the
transmission thereof.

11.   BANKRUPTCY; NON-PAYMENT; REORGANIZATION.  Subject to a reasonable
opportunity for Clients to cure, Mellon may suspend transfers and/or terminate
this Agreement with respect to a Client if (i) such Client fails to pay amounts
due or defaults on any of its material obligations hereunder; (ii) any
proceeding in bankruptcy, reorganization, receivership or insolvency is
commenced by or against such Client, such Client shall become insolvent, or
shall cease paying its obligations as they become due or makes any assignment
for the benefit of its creditors; or (iii) such Client is acquired by or is
merged with or into another entity where such Client is not the surviving
company, or such Client sells all or substantially all of its assets. Each
Client agrees that if any of the foregoing events shall occur and such Client
failures to cure, all fees to which Mellon is or shall be entitled hereunder
shall be immediately due and payable to Mellon. Unrealized fees will be
calculated from the termination date to the expiration date of the then current
term based on the services and number of shareholders as of the termination
date.

12.   NOTICES.  All notices, demands and other communications given pursuant to
the terms and provisions hereof shall be in writing, shall be deemed effective
on the date of receipt, and may be sent by facsimile, overnight delivery
services, or by certified or registered mail, return receipt requested to:

If to a Client:                       with an additional copy to:

(see title page for Client names)     [additional notice name and address]
c/o John Hancock Advisers             None
101 Huntington Avenue
Boston, MA 02199
Attn: Susan S. Newton
Tel: 617 375 1702
Fax: 617 375 1770


If to Mellon:                         with an additional copy to:

                                      -5-
<PAGE>

Mellon Investor Services LLC          Mellon Investor Services LLC
111 Founders Plaza - 11th Floor       Overpeck Centre
Hartford, CT  06108                   85 Challenger Road
Attn:  Lynore Leconche                Ridgefield Park, NJ  07660
Tel:  860-282-3509                    Attn: Legal Department
Fax:  860-528-6472                    Tel: 201-373-7155
                                      Fax: 201-373-7166


13.   SUBMISSION TO JURISDICTION; FOREIGN LAW.

      (a)   Each Client hereby irrevocably submits to the non-exclusive
jurisdiction of any New York State court sitting in New York City or the United
States District Court for the Southern District of New York and any appellate
court from any thereof in any action or proceeding arising out of or relating to
this Agreement, and each Client hereby irrevocably agrees that all claims in
respect of such action or proceeding may be heard and determined in such New
York State court or in such United States Federal court. Each Client hereby
irrevocably waives, to the fullest extent it may effectively do so, the defense
of an inconvenient forum to the maintenance of such action or proceeding or a
defense based on the grounds of jurisdiction with respect thereto. Each Client
agrees that, to the fullest extent permitted by applicable laws, a final
judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.

      (b)   Mellon is not required hereunder to comply with the laws or
regulations of any country other than the United States of America or any
political subdivision thereof. After consultation with a Client, Mellon may
consult with foreign counsel, at such Client's expense, to resolve any foreign
law issues that may arise as a result of such Client or any other applicable
party being subject to the laws or regulations of any foreign jurisdiction.

14.   MISCELLANEOUS.

      (a)   AMENDMENTS.  This Agreement may not be amended or modified in any
manner except by a written agreement signed by both Clients and Mellon. Clients
and Mellon agree to enter into discussions to amend the Fee Schedule (EXHIBIT D)
if the number of shareholders increases or decreases by more than 7% in any 12
month period or the nature of services provided materially changes or if Mellon
enters into Transfer Agent contract negotiations with John Hancock Financial
Services, Inc.

      (b)   GOVERNING LAW.  This Agreement shall be governed by, construed and
interpreted in accordance with the laws of the State of New York, without regard
to principles of conflicts of law.

      (c)   SURVIVAL OF TERMS.  Sections 5, 7 and 8 hereof shall survive
termination of this Agreement.

                                      -6-
<PAGE>

      (d)   ASSIGNMENT.  This Agreement may not be assigned, or otherwise
transferred, in whole or in part, by either party without the prior written
consent of the other party, which the other party will not unreasonably
withhold, condition or delay. Any attempted assignment in violation of the
foregoing will be void.

      (e)   HEADINGS.    The headings contained in this Agreement are for the
purposes of convenience only and are not intended to define or limit the
contents of this Agreement.

      (f)   SEVERABILITY.  Whenever possible, each provision of this Agreement
will be interpreted in such a manner as to be effective and valid under
applicable law, but if any provision of this Agreement is found to violate a
law, it will be severed from the rest of the Agreement and ignored.

      (g)   COUNTERPARTS.  This Agreement may be executed manually in any number
of counterparts, each of which such counterparts, when so executed and
delivered, shall be deemed an original, and all such counterparts when taken
together shall constitute one and the same original instrument.

      (h)   ENTIRE AGREEMENT.  This Agreement constitutes the entire
understanding of the parties with respect to the subject matter hereof
and merges all prior written or oral communications, understandings,
and agreements with respect to the subject matter of this Agreement.
The parties acknowledge that the Exhibits hereto are an integral part
of this Agreement.

      (i)   BENEFITS OF THIS AGREEMENT.  Nothing in this Agreement shall be
construed to give any person or entity other than Mellon and Clients any legal
or equitable right, remedy or claim under this Agreement; but this Agreement
shall be for the sole and exclusive benefit of Mellon and Clients.

15.   CONFIDENTIALITY.

      (a)   Mellon and each Client agree that they will not, at any time during
the term of this Agreement or after its termination, reveal, divulge, or make
known to any person, firm, corporation or other business organization, any
lists, trade secrets, cost figures and projections, profit figures and
projections, or any other secret or confidential information whatsoever, whether
of Mellon or of a Client, used or gained by Mellon or a Client during
performance under this Agreement. Each Client and Mellon further covenant and
agree to retain all such knowledge and information acquired during and after the
term of this Agreement respecting such lists, trade secrets, or any secret or
confidential information whatsoever in trust for the sole benefit of Mellon or
the Client and their successors and assigns. The above prohibition of disclosure
shall not apply to the extent that Mellon must disclose such data to its
sub-contractor or Client agent for purposes of providing services under this
Agreement, however, such sub-contractor shall be bound by the provisions of this
Section.

      (b)   In the event that any requests or demands are made for the
inspection of the Shareholder records of the Client, other than request for


                                      -7-
<PAGE>

records of Shareholders pursuant to standard subpoenas from state or federal
government authorities (e.g., in divorce and criminal actions), Mellon will
endeavor to notify the Client and to secure instructions from an authorized
officer of the Client as to such inspection. Mellon expressly reserves the
right, however, to exhibit the Shareholder records to any person whenever it is
advised by counsel that it may be held liable for the failure to exhibit the
Shareholder records to such person or if required by law or court order.

16.   PRIVACY OF CONSUMER INFORMATION.  Whereas, it is reasonably necessary for
Client to furnish to Mellon certain information about Client customers or
prospective customers ("customer information"), to enable Mellon to perform its
services for Client; and Client and/or its representative has provided and/or
will provide customer information to Mellon for the purpose of performing one or
more tasks for Client; and Client is legally required to protect the
confidentiality of customer information; Mellon and Client agree as follows:

      (a)   Mellon will not disclose any customer information provided to it by
or on behalf of Client to any affiliated or unaffiliated third party except to
the extent Mellon reasonably believes necessary to satisfy the purpose for which
the customer information was provided to Mellon, and provided that Mellon will
take reasonable efforts to impose on such third party the same confidentiality
requirements that Mellon is required to abide by with respect to the customer
information.

      (b)   Mellon will not use customer information for any purpose other than
the specific purpose for which it was provided to Mellon by or on behalf of
Client, and will make customer information available to its employees only as
reasonably necessary to satisfy the purpose for which the customer information
was provided to Mellon.

      (c)   Mellon will maintain reasonable security guidelines to ensure its
ability to comply with the requirements of this Section 16.

      (d)   This Agreement shall be in addition to any confidentiality
provisions in any existing agreement between the parties; provided, however,
that in the event of a conflict, the provision that provides the most
confidentiality or security protection for customer information shall prevail.

         [The remainder of this page has been intentionally left blank.
                            Signature page follows.]


                                      -8-
<PAGE>



      IN WITNESS WHEREOF, the parties hereto have executed this Agreement by
their duly authorized officers as of the day and year above written.


JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND I
JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II
JOHN HANCOCK PATRIOT PREFERRED DIVIDEND FUND
JOHN HANCOCK PATRIOT GLOBAL DIVIDEND FUND
JOHN HANCOCK PATRIOT SELECT DIVIDEND TRUST
JOHN HANCOCK INVESTORS TRUST
JOHN HANCOCK INCOME SECURITIES TRUST
JOHN HANCOCK BANK AND THRIFT OPPORTUNITY FUND




By:     /s/ Susan S. Newton
        -------------------
Name:   Susan S. Newton
Title:  Senior Vice President and Corporate Secretary





MELLON INVESTOR SERVICES LLC



By:     /s/ Beverly a Verrico
        ---------------------
Name:   Beverly A. Verrico
Title:  Vice President

                                      -9-
<PAGE>

[MELLON LOGO]MELLON

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)

                                                                       Exhibit A



                         STOCK SUBJECT TO THE AGREEMENT





                                                              Common Shares
- ---------------------------------------------------         Number of Authorized
                    Client Name                               & issued Shares
- ---------------------------------------------------        ---------------------
JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND I                          14,979,601

JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II                         15,002,724

JOHN HANCOCK PATRIOT PREFERRED DIVIDEND FUND                           7,257,200

JOHN HANCOCK PATRIOT GLOBAL DIVIDEND FUND                              8,334,700

JOHN HANCOCK PATRIOT SELECT DIVIDEND TRUST                             9,885,027

JOHN HANCOCK INVESTORS TRUST                                           7,978,242

JOHN HANCOCK INCOME SECURITIES TRUST                                  10,898,374

JOHN HANCOCK BANK AND THRIFT OPPORTUNITY FUND                         84,400,000


                                      A-1
<PAGE>

[MELLON LOGO]MELLON

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)


                                                                       Exhibit B



                             SERVICES TO BE PROVIDED


ACCOUNT MAINTENANCE FUNCTIONS

o     Opening new accounts
o     Posting debits and credits
o     Maintaining certificate history
o     Placing and releasing stop transfer notations
o     Consolidating accounts
o     Coding accounts requiring special handling (e.g. "bad address,"
      "do not mail," "VIP," etc.)
o     Processing address changes
o     Responding to shareholder correspondence
o     Providing a dedicated toll-free phone number for shareholder inquiries
o     Obtaining and posting Taxpayer Identification Number certifications
      pursuant to IDTCA regulations
o     Maintaining inactive accounts for the purpose of research and tax
      reporting
o     Closing (purging) inactive accounts that meet selective criteria
o     Providing Client and its shareholders with on-line access to
      shareholder records
o     Training on all aspects of Mellon's stock transfer system
o     Create and generate management reports which Client and Mellon
      agree upon.
o     Handle buck-slip inserts into statements or privacy statement and
      or special mailings.



SECURITY ISSUANCE FUNCTIONS

o     Qualifying under the rules of the NYSE and NASDAQ/AMEX to act in
      the dual capacity as transfer agent and registrar
o     Maintaining mail and window facilities for the receipt of
      transfer requests
o     Maintaining and securing unissued certificate inventory and
      supporting documents
o     Examining issuance or transfer requests to ensure that proper
      authority is being exercised
o     Verifying (to the extent possible) that surrendered certificates
      are genuine and have not been altered
o     Verifying that original issuances are properly authorized and
      have necessary regulatory approval

                                      B-1
<PAGE>

o     In connection with requests for transfer, verifying that Shares
      issued equal the amount surrendered
o     Place and remove stop orders on Shares
o     Verifying that no stop orders are held against Shares submitted
      for transfer
o     Issuing and registering new securities
o     Recording canceled and issued securities
o     Canceling surrendered certificates
o     Delivering completed transfers
o     Processing restricted and legal transfers upon presentment of
      appropriate supporting documentation
o     Preparing daily transfer or management summary journals
o     Replacing lost, destroyed or stolen certificates provided that
      Mellon is in receipt of (a) evidence acceptable to it of the loss,
      theft or destruction, and (b) a surety bond acceptable to Mellon
      sufficient to indemnify and hold it and Client harmless (charge
      imposed on shareholder)


PROXY AND ANNUAL MEETING FUNCTIONS
o     Assisting in annual meeting planning
o     Processing and mailing proxy material and Annual Report
o     Tabulating physical proxies (both scanner and manual) returned by
      shareholders
o     Identifying shareholders who will attend the Annual Meeting
o     Providing Inspector(s) of Election for the Annual Meeting
o     Supporting efforts of any proxy solicitor
o     Preparing certified list of record date holders
o     Preparing report of final vote
o     Providing remote access to proxy tabulation system
o     Maintaining an automated link with (i) DTC to redistribute record
      date Cede & Co. share positions to participants and (ii) ADP to
      receive transmissions of broker votes
o     Processing omnibus proxies for respondent banks

CASH DIVIDEND DISBURSEMENT FUNCTIONS  (IF APPLICABLE)

o     Disburse regularly scheduled dividends for each fund as outlined
      in Exhibit D hereto
o     Preparing and mailing checks
o     Reconciling checks
o     Preparing payment register in list form
o     Withholding and filing taxes for non-resident aliens and others
o     Filing federal tax information returns
o     Processing "B" and "C" notices received from the IRS
o     Mailing required statements (Form 1099DIV or Form 1042) to
      registered holders

                                      B-2
<PAGE>

o     Maintaining stop payment files and issuing replacement checks
o     Maintaining separate dividend addresses
o     Receiving, verifying and posting funds to cover entire dividend
      distribution on mailing date of checks


ESCHEATMENT SERVICES

o     Taking all necessary steps to establish compliance with the
      unclaimed property requirements of all jurisdictions that may have a
      claim on escheatable property held by your organization
o     Identifying specific records and property subject to reporting
      based upon current state statutes, rules, and regulations
o     Executing state mandated due diligence mailings for lost property
      owners as required, organizing records into acceptable formats for
      reporting, and remitting property due each state when and as required
o     Obtaining penalty and interest release agreements and
      indemnification from future claim agreements (on property remitted)
      from the states that offer such agreements
o     Identifying all property that has become escheatable since the
      last filing date
o     Reviewing the applicable state regulations to determine if there
      have been any changes in reporting procedures
o     Reporting and remitting to each state when and as required
o     Executing a mailing to all accounts with uncashed checks or RPO
      certificates as required by state laws
o     Executing SEC mandated lost shareholder database searches


QUALITY STANDARDS

o     Establish mutually agreed upon set of service performance
      standards.
o     Provide client with monthly service performance reports and
      formal quarterly service performance reports for review by Board of
      Trustees.

                                      B-3
<PAGE>

OTHER SERVICES  (OPTIONAL SERVICES - SUBJECT TO ADDITIONAL FEES):

o     ACH, Direct Deposit Services
o     Bank/Broker Distributions
o     Confidential Proxy Voting
o     Corporate Stock Buy-Backs
o     Custodial Services
o     Direct Purchase & Dividend Reinvestment Services
o     Direct Registration System/Profile Services
o     Dividends - special cash dividends
o     Solicitation, processing and maintenance of consents for
      electronic distribution of materials
o     Electronic distribution of material
o     Electronic Proxy Voting (e.g. telephone, internet, intranet)
o     Employee Stock Option Plan administration
o     Employee Stock Purchase Plan Administration
o     Escrow Services
o     Exchanges or Tender Offers
o     Foreign Tax Re-claim
o     Solicitation, processing and maintenance of consents for delivery
      of materials to households
o     Logistics services including document transportation,
      fulfillment, printing and media placement
o     Mailing Quarterly or Periodic Reports
o     Maintaining Mail Lists
o     Odd-Lot Programs
o     Proxy Solicitation
o     Secondary Offerings or Closings
o     Special Meetings
o     Standby Rights Agency
o     Stock Splits and Stock Dividends
o     StockWatch (beneficial owner identification)
o     Subscription Agent Services
o     Survey Tabulation
o     Warrant Agency

                                      B-4
<PAGE>

[MELLON LOGO]MELLON

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)


                                                                       Exhibit C


              DOCUMENTS AND NOTIFICATIONS TO BE DELIVERED TO MELLON

                        UPON EXECUTION OF THIS AGREEMENT


Client shall provide Mellon with the following:

1.    An adequate supply of Share certificates.

2.    A copy of the resolutions adopted by the Board of Directors of
      Client appointing or authorizing the appointment of Mellon as
      Transfer Agent and/or Registrar and Dividend Disbursing Agent, as
      the case may be, duly certified by the Secretary or Assistant
      Secretary of Client under the corporate seal.

3.    A copy of the Certificate of Incorporation of Client, and all
      amendments thereto, certified by the Secretary of State of the
      state of incorporation.

4.    A copy of the By-laws of Client as amended to date, duly
      certified by the Secretary of Client under the corporate seal.

5.    A certificate of the Secretary or an Assistant Secretary of Client, under
      its corporate seal, stating that:

      a) this Agreement has been executed and delivered pursuant to the
      authority of Client's Board of Directors;

      b) the attached specimen Share certificate(s) are in substantially the
      form submitted to and approved by Client's Board of Directors for current
      use and the attached specimen Share certificates for each Class of Stock
      with issued and outstanding Shares are in the form previously submitted to
      and approved by Client's Board of Directors for past use;

      c) the attached list of existing agreements pursuant to which Shares have
      been reserved for future issuance specifying the number of reserved Shares
      subject to each such existing agreement and the substantive provisions
      thereof, is true and complete, or no Shares have been reserved for future
      issuance.

      d) each shareholder list provided is true and complete (such certification
      may state that it is based upon the certification of the predecessor
      Transfer Agent or predecessor Registrar that prepared the list) or no
      Shares are outstanding;

      e) the name of each stock exchange upon which any of the Shares are listed
      and the number and identity of the Shares so listed;

      f) the name and address of each co-Transfer Agent, Registrar (other than
      Mellon) or co-Registrar for any of the Shares and the extent of its


                                      C-1
<PAGE>

      appointment, or there are no co-Transfer Agents, Registrars (other than
      Mellon) or co-Registrars for any of the Shares; and

      g) the officer(s) of Client, who executed this Agreement as well as any
      certificates or papers delivered to Mellon pursuant to this Agreement,
      were validly elected to, and the incumbents of, the offices they purported
      to hold at the time of such execution and delivery, and that their
      signatures on all documentation are genuine; and upon which is subscribed
      a certificate of an officer of Client, other than the officer executing
      the certificate of the Secretary, stating that the person who executed the
      certificate of the Secretary was validly elected to, and is the Secretary
      or an Assistant Secretary of Client and that his signature on the
      certificate is genuine.

6.    A shareholder list, preferably in machine readable format, certified as
      true and complete by the person preparing the list, for the issued and
      outstanding Shares, setting forth as to each holder, his/her name and
      address, tax identification number certified by the shareholder pursuant
      to requirements of the Internal Revenue Code and applicable regulations,
      the number of Shares held, the Share certificate numbers and the existence
      of any stop orders or other transfer restrictions.

7.    Opinion of in-house counsel for Client, addressed to Mellon, to the effect
      that:

      a) the Shares issued and outstanding on the date hereof have been duly
      authorized, validly issued and are fully paid and are non-assessable;

      b) the Shares issued and outstanding on the date hereof have been duly
      registered under the Securities Act of 1933, as amended, and such
      registration has become effective, or are exempt from such registration;
      and have been duly registered under the Securities Exchange Act of 1934,
      as amended, or are exempt from such registration;

      c) Client has paid or caused to be paid all taxes, if any, which were
      payable upon or in respect of the original issuance of the Shares issued
      and outstanding on the date hereof; and

      d) the execution and delivery of this Agreement and the issuance of the
      Shares do not and will not conflict with, violate, or result in a breach
      of, the terms, conditions or provisions of, or constitute a default under,
      the charter or the by-laws of Client, any law or regulation, any order or
      decree of any court or public authority having jurisdiction, or any
      mortgage, indenture, contract, agreement or undertaking to which Client is
      a party or by which it is bound and this Agreement is enforceable against
      Client in accordance with it terms, except as limited by bankruptcy,
      insolvency, moratorium, reorganization and other similar laws affecting
      the enforcement of creditors' rights generally.

8.    A completed Internal Revenue Service Form 2678.

                                      C-2
<PAGE>

                             NOTIFICATION OF CHANGES

Client shall promptly notify Mellon of the following:

1.    Any change in the name of Client, amendment of its certificate of
      incorporation or its by-laws;

2.    Any change in the title of a Class of Stock from that set forth in the
      first column of Exhibit A;

3.    Any change in the Number of Authorized Shares from that set forth in the
      second column of Exhibit A;

4.    Any change in existing agreements or any entry into new agreements
      changing the Number of Authorized Shares Reserved for Future Issuance
      Under Existing Agreements from that listed in the fourth column of Exhibit
      A hereto;

5.    Any change in the number of outstanding Shares subject to stop orders or
      other transfer limitations;

6.    The listing or delisting of any Shares on any stock exchange;

7.    The appointment after the date hereof of any co-Transfer Agent, Registrar
      (other than Mellon) or any co-Registrar for any of the Shares;

8.    The merger of Client into, or the consolidation of Client with, or the
      sale or other transfer of the assets of Client substantially as an
      entirety to, another person; or the merger or consolidation of another
      person into or with Client; and

9.    Any other change in the affairs of Client of which Mellon must have
      knowledge to perform properly its duties under this Agreement.

                                      C-3
<PAGE>

[MELLON LOGO]MELLON

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)

                                                                       Exhibit D


                                  FEE SCHEDULE
                                       TO
                  JOHN HANCOCK BANK & THRIFT OPPORTUNITIES FUND


INITIAL TERM OF AGREEMENT: Two (2) Years
                           -------------

ANNUAL ADMINISTRATIVE FEE:                                            $10,000
ANNUAL DIVIDEND REINVESTMENT ADMINISTRATIVE FEE:                      $6,300
ANNUAL FEE PER ACTIVE SHAREHOLDER ACCOUNT:                             $2.50
ANNUAL FEE PER INACTIVE SHAREHOLDER ACCOUNT:                           $1.00
ANNUAL FEE PER DIVIDEND REINVESTMENT ACCOUNT:                          $4.00

The above fee will be charged for all  services  listed in Exhibit B and
will be  subject  to the  following  annual  allowances  and  additional
charges:


 Number of active accounts maintained                                   1,487
 Number of option items processed                                          50
 Number of restricted items processed                                      25
 Number of legal items processed                                           10
 Number of  mailings per year (including one enclosure)                     1
 Number of cash dividends paid per fiscal year                              1
 Number of semi-annual report mailings                                      2
 Number of reports, analyses, list or labels                                6
 Number of Inspectors of Election                                           1
 Number of respondent bank omnibus proxies                                 15
 Number of certificates issued and book-entry credits                      10
 Number of certificates cancelled and book-entry debits                   300
 Number of DWACS                                                           25
 Number of shareholder telephone calls handled by
 Interactive Voice Response System                                         50
 Number of shareholder telephone calls transferred out of
 the IVR to a Customer Service Representative                             500
 Number of shareholder written or E-mail inquiries                         25
 Number of Investor ServiceDirect? transactions                            50
 Number of state mandated due diligence mailings for lost
 property, as required                                                     25
 Number of SEC mandated lost shareholder database searches                 25

                                      D-1
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)

To the extent the above annual  allowances  are exceeded,  the following
unit fees will apply:

            For each active account maintained (per year)                  $2.50
            For each inactive account maintained       40% of active account fee
            For each option issued                                        $25.00
            For each legal item processed                                 $50.00
            Mailings                                                See Attached
            Lists / Labels / Analyses                               See Attached
            For each additional Inspector of Election                  $1,500.00
            For each respondent bank omnibus proxy                       $100.00
            For each DWAC delivery                                        $25.00
            For each certificate issued or cancelled                       $2.00
            For each book-entry credit or debit posted                     $1.50
            For each shareholder telephone call via CSR                    $5.25
            For each shareholder telephone call via IVR                    $1.50
            For each correspondence responding to a shareholder           $15.00
            For each Investor ServiceDirect transaction                    $1.50
            For each stop maintained on a lost certificate (per month)     $0.05
            For each stop removed from a lost certificate                  $0.05
            For each stop placed on or removed from a restricted
            security                                                      $50.00


FOR THE PURPOSES OF THIS AGREEMENT THE FOLLOWING DEFINITIONS APPLY:

1.    Investor ServiceDirect (ISD) transactions will include any
      shareholder transaction initiated through ISD including, but not
      limited to, the following:

        o     Purchasing or selling shares
        o     Duplicate 1099 requests
        o     Updating or changing consent to electronic delivery
        o     Forms or document requests
        o     Taxpayer certification
        o     Certificate issuance
        o     Update dividend reinvestment selection
        o     Duplicate book entry statement
        o     PIN change

2.    Active and Inactive accounts will be defined as follows:

        o     Active accounts are defined as accounts with a share balance
              greater than zero or outstanding cash balances or
              taxable income that has not yet been reported to the
              Internal Revenue Service.


                                      D-2
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)


                                  FEE SCHEDULE
                                       TO
                      JOHN HANCOCK INCOME SECURITIES TRUST


INITIAL TERM OF AGREEMENT: Two (2) Years
                           -------------

ANNUAL ADMINISTRATIVE FEE:                                               $18,000
ANNUAL DIVIDEND REINVESTMENT ADMINISTRATIVE FEE:                          $7,500
ANNUAL FEE PER ACTIVE SHAREHOLDER ACCOUNT:                                 $2.50
ANNUAL FEE PER INACTIVE SHAREHOLDER ACCOUNT:                               $1.00
ANNUAL FEE PER DIVIDEND REINVESTMENT ACCOUNT:                              $4.00

The above fee will be charged for all  services  listed in Exhibit B and
will be  subject  to the  following  annual  allowances  and  additional
charges:


 Number of active accounts maintained                                      5,132
 Number of option items processed                                             50
 Number of restricted items processed                                         25
 Number of legal items processed                                              75
 Number of  mailings per year (including one enclosure)                        1
 Number of cash dividends paid per fiscal year                                 4
 Number of semi-annual report mailings                                         2
 Number of reports, analyses, list or labels                                   6
 Number of Inspectors of Election                                              1
 Number of respondent bank omnibus proxies                                    15
 Number of certificates issued and book-entry credits                        150
 Number of certificates cancelled and book-entry debits                      900
 Number of DWACS                                                              25
 Number of shareholder telephone calls handled by
 Interactive Voice Response System                                            50
 Number of shareholder telephone calls transferred out of                    800
 the IVR to a Customer Service Representative
 Number of shareholder written or E-mail inquiries                           100
 Number of Investor ServiceDirect? transactions                               50
 Number of state mandated due diligence mailings for lost
 property, as required                                                        25
 Number of SEC mandated lost shareholder database searches                    25


                                      D-3
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)


To the extent the above annual  allowances  are exceeded,  the following
unit fees will apply:

            For each active account maintained (per year)                  $2.50
            For each inactive account maintained40% of active account fee
            For each option issued                                        $25.00
            For each legal item processed                                 $50.00
            Mailings                                                See Attached
            Lists/Labels/Analyses                                   See Attached
            For each additional Inspector of Election                  $1,500.00
            For each respondent bank omnibus proxy                       $100.00
            For each DWAC delivery                                        $25.00
            For each certificate issued or cancelled                       $2.00
            For each book-entry credit or debit posted                     $1.50
            For each shareholder telephone call via CSR                    $5.25
            For each shareholder telephone call via IVR                    $1.50
            For each correspondence responding to a shareholder           $15.00
            For each Investor ServiceDirect transaction                    $1.50
            For each stop maintained on a lost certificate (per month)
            $0.05
            For each stop removed from a lost certificate                  $0.05
            For each stop placed on or removed from a restricted
            security                                                      $50.00


FOR THE PURPOSES OF THIS AGREEMENT THE FOLLOWING DEFINITIONS APPLY:

1. Investor ServiceDirect (ISD) transactions will include any
   shareholder transaction initiated through ISD including, but not
   limited to, the following:

        o     Purchasing or selling shares
        o     Duplicate 1099 requests
        o     Updating or changing consent to electronic delivery
        o     Forms or document requests
        o     Taxpayer certification
        o     Certificate issuance
        o     Update dividend reinvestment selection
        o     Duplicate book entry statement
        o     PIN change

2. Active and Inactive accounts will be defined as follows:

        o     Active accounts are defined as accounts with a share balance
              greater than zero or outstanding cash balances or
              taxable income that has not yet been reported to the
              Internal Revenue Service.


                                      D-4
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)



        o     Inactive accounts are defined as accounts with a share balance
              equal to zero and no outstanding cash balances and no
              taxable income to be reported to the Internal Revenue
              Service.

                                      D-5
<PAGE>


[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)


                                  FEE SCHEDULE
                                       TO
                          JOHN HANCOCK INVESTORS TRUST


INITIAL TERM OF AGREEMENT: TWO (2) YEARS

ANNUAL ADMINISTRATIVE FEE:                                              $18,000
ANNUAL DIVIDEND REINVESTMENT ADMINISTRATIVE FEE:                         $7,500
ANNUAL FEE PER ACTIVE SHAREHOLDER ACCOUNT:                                $2.50
ANNUAL FEE PER INACTIVE SHAREHOLDER ACCOUNT:                              $1.00
ANNUAL FEE PER DIVIDEND REINVESTMENT ACCOUNT:                             $4.00

The above fee will be charged for all  services  listed in Exhibit B and
will be  subject  to the  following  annual  allowances  and  additional
charges:


 Number of active accounts maintained                                     4,428
 Number of option items processed                                            50
 Number of restricted items processed                                        25
 Number of legal items processed                                             75
 Number of  mailings per year (including one enclosure)                       1
 Number of cash dividends paid per fiscal year                                4
 Number of semi-annual report mailings                                        2
 Number of reports, analyses, list or labels                                  6
 Number of Inspectors of Election                                             1
 Number of respondent bank omnibus proxies                                   15
 Number of certificates issued and book-entry credits                     1,000
 Number of certificates cancelled and book-entry debits                     900
 Number of DWACS                                                             25
 Number of shareholder telephone calls handled by
 Interactive Voice Response System                                           50
 Number of shareholder telephone calls transferred out of                   800
 the IVR to a Customer Service Representative
 Number of shareholder written or E-mail inquiries                          100
 Number of Investor ServiceDirect(SM) transactions                           50
 Number of state mandated due diligence mailings for lost
 property, as required                                                       25
 Number of SEC mandated lost shareholder database searches                   25

                                      D-6
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)


To the extent the above annual  allowances  are exceeded,  the following
unit fees will apply:

            For each active account maintained (per year)                  $2.50
            For each inactive account maintained40% of active account fee
            For each option issued                                        $25.00
            For each legal item processed                                 $50.00
            Mailings                                                See Attached
            Lists / Labels / Analyses                               See Attached
            For each additional Inspector of Election                  $1,500.00
            For each respondent bank omnibus proxy                       $100.00
            For each DWAC delivery                                        $25.00
            For each certificate issued or cancelled                       $2.00
            For each book-entry credit or debit posted                     $1.50
            For each shareholder telephone call via CSR                    $5.25
            For each shareholder telephone call via IVR                    $1.50
            For each correspondence responding to a shareholder           $15.00
            For each Investor ServiceDirect transaction                    $1.50
            For each stop maintained on a lost certificate (per month)     $0.05
            For each stop removed from a lost certificate                  $0.05
            For each stop placed on or removed from a restricted
            security                                                      $50.00


FOR THE PURPOSES OF THIS AGREEMENT THE FOLLOWING DEFINITIONS APPLY:

1. Investor ServiceDirect (ISD) transactions will include any
   shareholder transaction initiated through ISD including, but not
   limited to, the following:

             o   Purchasing or selling shares
             o   Duplicate 1099 requests
             o   Updating or changing consent to electronic delivery
             o   Forms or document requests
             o   Taxpayer certification
             o   Certificate issuance
             o   Update dividend reinvestment selection
             o   Duplicate book entry statement
             o   PIN change

2. Active and Inactive accounts will be defined as follows:

             o   Active accounts are defined as accounts with a share balance
                 greater than zero or outstanding cash balances or taxable
                 income that has not yet been reported to the Internal Revenue
                 Service.

                                      D-7
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)



             o   Inactive accounts are defined as accounts with a share balance
                 equal to zero and no outstanding cash balances and no taxable
                 income to be reported to the Internal Revenue Service.


                                      D-8
<PAGE>

                                  FEE SCHEDULE
                                       TO
                    JOHN HANCOCK PATRIOT GLOBAL DIVIDEND FUND


INITIAL TERM OF AGREEMENT: TWO (2) YEARS

ANNUAL ADMINISTRATIVE FEE:                                              $12,000
ANNUAL DIVIDEND REINVESTMENT ADMINISTRATIVE FEE:                        $10,000
ANNUAL FEE PER ACTIVE SHAREHOLDER ACCOUNT:                                $2.50
ANNUAL FEE PER INACTIVE SHAREHOLDER ACCOUNT:                              $1.00
ANNUAL FEE PER DIVIDEND REINVESTMENT ACCOUNT:                             $4.00

The above fee will be charged for all  services  listed in Exhibit B and
will be  subject  to the  following  annual  allowances  and  additional
charges:


 Number of active accounts maintained                                       444
 Number of option items processed                                            50
 Number of restricted items processed                                        25
 Number of legal items processed                                             25
 Number of  mailings per year (including one enclosure)                       1
 Number of cash dividends paid per fiscal year                               12
 Number of semi-annual report mailings                                        2
 Number of reports, analyses, list or labels                                  6
 Number of Inspectors of Election                                             1
 Number of respondent bank omnibus proxies                                   15
 Number of certificates issued and book-entry credits                        15
 Number of certificates cancelled and book-entry debits                     150
 Number of DWACS                                                             25
 Number of shareholder telephone calls handled by
 Interactive Voice Response System                                           50
 Number of shareholder telephone calls transferred out of
 the IVR to a Customer Service Representative                               150
 Number of shareholder written or E-mail inquiries                           50
 Number of Investor ServiceDirect(SM) transactions                           50
 Number of state mandated due diligence mailings for lost
 property, as required                                                       25
 Number of SEC mandated lost shareholder database searches                   25


                                      D-9
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)


To the extent the above annual  allowances  are exceeded,  the following
unit fees will apply:

            For each active account maintained (per year)                $2.50
            For each inactive account maintained     40% of active account fee
            For each option issued                                      $25.00
            For each legal item processed                               $50.00
            Mailings                                              See Attached
            Lists / Labels / Analyses                             See Attached
            For each additional Inspector of Election                $1,500.00
            For each respondent bank omnibus proxy                     $100.00
            For each DWAC delivery                                      $25.00
            For each certificate issued or cancelled                     $2.00
            For each book-entry credit or debit posted                   $1.50
            For each shareholder telephone call via CSR                  $5.25
            For each shareholder telephone call via IVR                  $1.50
            For each correspondence responding to a shareholder         $15.00
            For each Investor ServiceDirect transaction                  $1.50
            For each stop maintained on a lost certificate (per month)
            $0.05
            For each stop removed from a lost certificate                $0.05
            For each stop placed on or removed from a restricted
            security                                                    $50.00


FOR THE PURPOSES OF THIS AGREEMENT THE FOLLOWING DEFINITIONS APPLY:

1.    Investor ServiceDirect (ISD) transactions will include any shareholder
      transaction initiated through ISD including, but not limited to, the
      following:

             o   Purchasing or selling shares
             o   Duplicate 1099 requests
             o   Updating or changing consent to electronic delivery
             o   Forms or document requests
             o   Taxpayer certification
             o   Certificate issuance
             o   Update dividend reinvestment selection
             o   Duplicate book entry statement
             o   PIN change

2. Active and Inactive accounts will be defined as follows:

             o   Active accounts are defined as accounts with a share balance
                 greater than zero or outstanding cash balances or taxable
                 income that has not yet been reported to the Internal Revenue
                 Service.

                                      D-10
<PAGE>

             o   Inactive accounts are defined as accounts with a share balance
                 equal to zero and no outstanding cash balances and no taxable
                 income to be reported to the Internal Revenue Service.

                                      D-11
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)



                                  FEE SCHEDULE
                                       TO
                  JOHN HANCOCK PATRIOT PREFERRED DIVIDEND FUND


INITIAL TERM OF AGREEMENT: TWO (2) YEARS
                           -------------

ANNUAL ADMINISTRATIVE FEE:                                              $12,500
ANNUAL DIVIDEND REINVESTMENT ADMINISTRATIVE FEE:                        $10,000
ANNUAL FEE PER ACTIVE SHAREHOLDER ACCOUNT:                                $2.50
ANNUAL FEE PER INACTIVE SHAREHOLDER ACCOUNT:                              $1.00
ANNUAL FEE PER DIVIDEND REINVESTMENT ACCOUNT:                             $4.00

The above fee will be charged for all  services  listed in Exhibit B and
will be  subject  to the  following  annual  allowances  and  additional
charges:


 Number of active accounts maintained                                       681
 Number of option items processed                                            50
 Number of restricted items processed                                        25
 Number of legal items processed                                             25
 Number of  mailings per year (including one enclosure)                       1
 Number of cash dividends paid per fiscal year                               12
 Number of semi-annual report mailings                                        2
 Number of reports, analyses, list or labels                                  6
 Number of Inspectors of Election                                             1
 Number of respondent bank omnibus proxies                                   15
 Number of certificates issued and book-entry credits                        10
 Number of certificates cancelled and book-entry debits                     150
 Number of DWACS                                                             25
 Number of shareholder telephone calls handled by
 Interactive Voice Response System                                           50
 Number of shareholder telephone calls transferred out of
 the IVR to a Customer Service Representative                               150
 Number of shareholder written or E-mail inquiries                           50
 Number of Investor ServiceDirect(SM) transactions                           50
 Number of state mandated due diligence mailings for lost
 property, as required                                                       25
 Number of SEC mandated lost shareholder database searches                   25

                                      D-12
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)


To the extent the above annual allowances are exceeded, the following unit fees
will apply:

            For each active account maintained (per year)                $2.50
            For each inactive account maintained     40% of active account fee
            For each option issued                                      $25.00
            For each legal item processed                               $50.00
            Mailings                                              See Attached
            Lists / Labels / Analyses                             See Attached
            For each additional Inspector of Election                $1,500.00
            For each respondent bank omnibus proxy                     $100.00
            For each DWAC delivery                                      $25.00
            For each certificate issued or cancelled                     $2.00
            For each book-entry credit or debit posted                   $1.50
            For each shareholder telephone call via CSR                  $5.25
            For each shareholder telephone call via IVR                  $1.50
            For each correspondence responding to a shareholder         $15.00
            For each Investor ServiceDirect transaction                  $1.50
            For each stop maintained on a lost certificate (per month)   $0.05
            For each stop removed from a lost certificate                $0.05
            For each stop placed on or removed from a restricted
            security                                                    $50.00


FOR THE PURPOSES OF THIS AGREEMENT THE FOLLOWING DEFINITIONS APPLY:

1. Investor ServiceDirect (ISD) transactions will include any
   shareholder transaction initiated through ISD including, but not
   limited to, the following:

             o   Purchasing or selling shares
             o   Duplicate 1099 requests
             o   Updating or changing consent to electronic delivery
             o   Forms or document requests
             o   Taxpayer certification
             o   Certificate issuance
             o   Update dividend reinvestment selection
             o   Duplicate book entry statement
             o   PIN change

2. Active and Inactive accounts will be defined as follows:

             o   Active accounts are defined as accounts with a share balance
                 greater than zero or outstanding cash balances or taxable
                 income that has not yet been reported to the Internal Revenue
                 Service.

                                      D-13
<PAGE>

             o   Inactive accounts are defined as accounts with a share balance
                 equal to zero and no outstanding cash balances and no taxable
                 income to be reported to the Internal Revenue Service.

                                      D-14
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit B

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)



                                  FEE SCHEDULE
                                       TO
                  JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND I


INITIAL TERM OF AGREEMENT: TWO (2) YEARS
                           -------------

ANNUAL ADMINISTRATIVE FEE:                                              $12,500
ANNUAL DIVIDEND REINVESTMENT ADMINISTRATIVE FEE:                        $10,000
ANNUAL FEE PER ACTIVE SHAREHOLDER ACCOUNT:                                $2.50
ANNUAL FEE PER INACTIVE SHAREHOLDER ACCOUNT:                              $1.00
ANNUAL FEE PER DIVIDEND REINVESTMENT ACCOUNT:                             $4.00

The above fee will be charged for all  services  listed in Exhibit B and
will be  subject  to the  following  annual  allowances  and  additional
charges:


 Number of active accounts maintained                                     1,299
 Number of option items processed                                            50
 Number of restricted items processed                                        25
 Number of legal items processed                                             25
 Number of  mailings per year (including one enclosure)                       1
 Number of cash dividends paid per fiscal year                               12
 Number of semi-annual report mailings                                        2
 Number of reports, analyses, list or labels                                  6
 Number of Inspectors of Election                                             1
 Number of respondent bank omnibus proxies                                   15
 Number of certificates issued and book-entry credits                        20
 Number of certificates cancelled and book-entry debits                     300
 Number of DWACS                                                             25
 Number of shareholder telephone calls handled by
 Interactive Voice Response System                                           50
 Number of shareholder telephone calls transferred out of
 the IVR to a Customer Service Representative                               400
 Number of shareholder written or E-mail inquiries                           80
 Number of Investor ServiceDirect(SM) transactions                           50
 Number of state mandated due diligence mailings for lost
 property, as required                                                       25
 Number of SEC mandated lost shareholder database searches                   25


                                      D-15
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)


To the extent the above annual  allowances  are exceeded,  the following
unit fees will apply:

            For each active account maintained (per year)                 $2.50
            For each inactive account maintained      40% of active account fee
            For each option issued                                       $25.00
            For each legal item processed                                $50.00
            Mailings                                               See Attached
            Lists / Labels / Analyses                              See Attached
            For each additional Inspector of Election                 $1,500.00
            For each respondent bank omnibus proxy                      $100.00
            For each DWAC delivery                                       $25.00
            For each certificate issued or cancelled                      $2.00
            For each book-entry credit or debit posted                    $1.50
            For each shareholder telephone call via CSR                   $5.25
            For each shareholder telephone call via IVR                   $1.50
            For each correspondence responding to a shareholder          $15.00
            For each Investor ServiceDirect transaction                   $1.50
            For each stop maintained on a lost certificate (per month)
                                                                          $0.05
            For each stop removed from a lost certificate                 $0.05
            For each stop placed on or removed from a restricted
            security                                                     $50.00


FOR THE PURPOSES OF THIS AGREEMENT THE FOLLOWING DEFINITIONS APPLY:

1. Investor ServiceDirect (ISD) transactions will include any
   shareholder transaction initiated through ISD including, but not
   limited to, the following:

             o   Purchasing or selling shares
             o   Duplicate 1099 requests
             o   Updating or changing consent to electronic delivery
             o   Forms or document requests
             o   Taxpayer certification
             o   Certificate issuance
             o   Update dividend reinvestment selection
             o   Duplicate book entry statement
             o   PIN change

2. Active and Inactive accounts will be defined as follows:

             o   Active accounts are defined as accounts with a share balance
                 greater than zero or outstanding cash balances or taxable
                 income that has not yet been reported to the Internal Revenue
                 Service.

                                      D-16
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)


             o   Inactive accounts are defined as accounts with a share balance
                 equal to zero and no outstanding cash balances and no taxable
                 income to be reported to the Internal Revenue Service.

                                      D-17
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)


                                  FEE SCHEDULE
                                       TO
                  JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II


INITIAL TERM OF AGREEMENT: TWO (2) YEARS

ANNUAL ADMINISTRATIVE FEE:                                              $15,000
ANNUAL DIVIDEND REINVESTMENT ADMINISTRATIVE FEE:                        $10,000
ANNUAL FEE PER ACTIVE SHAREHOLDER ACCOUNT:                                $2.50
ANNUAL FEE PER INACTIVE SHAREHOLDER ACCOUNT:                              $1.00
ANNUAL FEE PER DIVIDEND REINVESTMENT ACCOUNT:                             $4.00

The above fee will be charged for all  services  listed in Exhibit B and
will be  subject  to the  following  annual  allowances  and  additional
charges:


 Number of active accounts maintained                                       844
 Number of option items processed                                            50
 Number of restricted items processed                                        25
 Number of legal items processed                                             25
 Number of  mailings per year (including one enclosure)                       1
 Number of cash dividends paid per fiscal year                               12
 Number of semi-annual report mailings                                        2
 Number of reports, analyses, list or labels                                  6
 Number of Inspectors of Election                                             1
 Number of respondent bank omnibus proxies                                   15
 Number of certificates issued and book-entry credits                        10
 Number of certificates cancelled and book-entry debits                     200
 Number of DWACS                                                             25
 Number of shareholder telephone calls handled by
 Interactive Voice Response System                                           50
 Number of shareholder telephone calls transferred out of
 the IVR to a Customer Service Representative                               300
 Number of shareholder written or E-mail inquiries                           50
 Number of Investor ServiceDirect(SM) transactions                           50
 Number of state mandated due diligence mailings for lost
 property, as required                                                       25
 Number of SEC mandated lost shareholder database searches                   25



                                      D-18
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)


To the extent the above annual  allowances  are exceeded,  the following
unit fees will apply:

            For each active account maintained (per year)                 $2.50
            For each inactive account maintained      40% of active account fee
            For each option issued                                       $25.00
            For each legal item processed                                $50.00
            Mailings                                               See Attached
            Lists / Labels / Analyses                              See Attached
            For each additional Inspector of Election                 $1,500.00
            For each respondent bank omnibus proxy                      $100.00
            For each DWAC delivery                                       $25.00
            For each certificate issued or cancelled                      $2.00
            For each book-entry credit or debit posted                    $1.50
            For each shareholder telephone call via CSR                   $5.25
            For each shareholder telephone call via IVR                   $1.50
            For each correspondence responding to a shareholder          $15.00
            For each Investor ServiceDirect transaction                   $1.50
            For each stop maintained on a lost certificate (per month)    $0.05
            For each stop removed from a lost certificate                 $0.05
            For each stop placed on or removed from a restricted
            security                                                     $50.00


FOR THE PURPOSES OF THIS AGREEMENT THE FOLLOWING DEFINITIONS APPLY:

1. Investor ServiceDirect (ISD) transactions will include any
   shareholder transaction initiated through ISD including, but not
   limited to, the following:

             o   Purchasing or selling shares
             o   Duplicate 1099 requests
             o   Updating or changing consent to electronic delivery
             o   Forms or document requests
             o   Taxpayer certification
             o   Certificate issuance
             o   Update dividend reinvestment selection
             o   Duplicate book entry statement
             o   PIN change

2. Active and Inactive accounts will be defined as follows:

             o   Active accounts are defined as accounts with a share balance
                 greater than zero or outstanding cash balances or taxable
                 income that has not yet been reported to the Internal Revenue
                 Service.

                                      D-19
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)



             o   Inactive accounts are defined as accounts with a share balance
                 equal to zero and no outstanding cash balances and no taxable
                 income to be reported to the Internal Revenue Service.

                                      D-20
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)



                                  FEE SCHEDULE
                                       TO
                   JOHN HANCOCK PATRIOT SELECT DIVIDEND TRUST


INITIAL TERM OF AGREEMENT: TWO (2) YEARS
                           -------------

ANNUAL ADMINISTRATIVE FEE:                                              $12,500
ANNUAL DIVIDEND REINVESTMENT ADMINISTRATIVE FEE:                        $10,000
ANNUAL FEE PER ACTIVE SHAREHOLDER ACCOUNT:                                $2.50
ANNUAL FEE PER INACTIVE SHAREHOLDER ACCOUNT:                              $1.00
ANNUAL FEE PER DIVIDEND REINVESTMENT ACCOUNT:                             $4.00

The above fee will be charged for all  services  listed in Exhibit B and
will be  subject  to the  following  annual  allowances  and  additional
charges:


 Number of active accounts maintained                                       846
 Number of option items processed                                            50
 Number of restricted items processed                                        25
 Number of legal items processed                                             25
 Number of  mailings per year (including one enclosure)                       1
 Number of cash dividends paid per fiscal year                               12
 Number of semi-annual report mailings                                        2
 Number of reports, analyses, list or labels                                  6
 Number of Inspectors of Election                                             1
 Number of respondent bank omnibus proxies                                   15
 Number of certificates issued and book-entry credits                        10
 Number of certificates cancelled and book-entry debits                     150
 Number of DWACS                                                             25
 Number of shareholder telephone calls handled by
 Interactive Voice Response System                                           50
 Number of shareholder telephone calls transferred out of
 the IVR to a Customer Service Representative                               300
 Number of shareholder written or E-mail inquiries                           50
 Number of Investor ServiceDirect(SM) transactions                           50
 Number of state mandated due diligence mailings for lost
 property, as required                                                       25
 Number of SEC mandated lost shareholder database searches                   25

                                      D-21
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)


To the extent the above annual  allowances  are exceeded,  the following
unit fees will apply:

            For each active account maintained (per year)                 $2.50
            For each inactive account maintained      40% of active account fee
            For each option issued                                       $25.00
            For each legal item processed                                $50.00
            Mailings                                               See Attached
            Lists / Labels / Analyses                              See Attached
            For each additional Inspector of Election                 $1,500.00
            For each respondent bank omnibus proxy                      $100.00
            For each DWAC delivery                                       $25.00
            For each certificate issued or cancelled                      $2.00
            For each book-entry credit or debit posted                    $1.50
            For each shareholder telephone call via CSR                   $5.25
            For each shareholder telephone call via IVR                   $1.50
            For each correspondence responding to a shareholder          $15.00
            For each Investor ServiceDirect transaction                   $1.50
            For each stop maintained on a lost certificate (per month)    $0.05
            For each stop removed from a lost certificate                 $0.05
            For each stop placed on or removed from a restricted
            security                                                     $50.00


FOR THE PURPOSES OF THIS AGREEMENT THE FOLLOWING DEFINITIONS APPLY:

1. Investor ServiceDirect (ISD) transactions will include any
   shareholder transaction initiated through ISD including, but not
   limited to, the following:

             o   Purchasing or selling shares
             o   Duplicate 1099 requests
             o   Updating or changing consent to electronic delivery
             o   Forms or document requests
             o   Taxpayer certification
             o   Certificate issuance
             o   Update dividend reinvestment selection
             o   Duplicate book entry statement
             o   PIN change

2. Active and Inactive accounts will be defined as follows:

             o   Active accounts are defined as accounts with a share balance
                 greater than zero or outstanding cash balances or taxable
                 income that has not yet been reported to the Internal Revenue
                 Service.

                                      D-22
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)


             o   Inactive accounts are defined as accounts with a share balance
                 equal to zero and no outstanding cash balances and no taxable
                 income to be reported to the Internal Revenue Service.

                                      D-23
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)


                            LISTS / LABELS / ANALYSES

                                  FEE SCHEDULE

                           (APPLICABLE TO ALL CLIENTS)


LISTS


   Per name listed                                                      $0.05


LABELS

   Per label printed                                                    $0.05


ANALYSES

   Per name passed on data base                                         $0.02

   Per name listed in report                                            $0.05


(Minimum charge for each of the above services will be $250.)


                                      D-24
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)


                                MAILING SERVICES

                                  FEE SCHEDULE

                           (APPLICABLE TO ALL CLIENTS)


ADDRESSING

   Addressing mailing medium (per name)                                 $0.05


AFFIXING

   Affixing labels (per label)                                          $0.04


INSERTING

   Inserting Enclosures (Machine)

      1st Enclosure (per piece)                                         $0.05

      2nd Enclosure (per piece)                                         $0.04

      Each Enclosure thereafter (per piece)                             $0.03

   Inserting Enclosures (Manual)

      Charge will be determined based on analysis of work to be
      performed.


(Minimum charge for any mailing will be $500.)

                                      D-25
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)


EXPENSES AND OTHER CHARGES  (APPLICABLE TO ALL CLIENTS)


FEES AND OUT OF POCKET EXPENSES: The cost of stationery and supplies, including
but not limited to transfer sheets, dividend checks, envelopes, and paper stock,
together with any disbursement for telephone, postage, mail insurance, travel
for annual meeting, link-up charges for ADP and tape charges from DTC are billed
in addition to the above fees. All charges and fees, out of pocket costs,
expenses and disbursements of Mellon are due and payable by Client upon receipt
of an invoice from Mellon.

With respect to any shareholder mailing processed by Mellon, client shall, at
least one business day prior to mail date, provide immediately available funds
sufficient to cover all postage due on such mailing. For any dividend mailing,
client shall, at least one business day prior to the mail date, also provide
immediately available funds sufficient to pay the aggregate amount of dividends
to be paid.

If Client participates in the Direct Registration System, Mellon will provide a
"sell" feature for liquidation of book-entry shares held on behalf of a
shareholder. Upon receipt of a sell request by the registered shareholder,
Mellon Bank, N.A. will process the request and remit the proceeds to the
shareholder in the form of a check (less the appropriate fees). The charge for
each such sale is $15.00 plus $0.12 per share or, if applicable, the fees quoted
in the Client's stock purchase and / or dividend reinvestment plan.


OFFERING ADMINISTRATION FEE: A minimum fee of $5,000 will be imposed for
activities associated with initial public offerings (IPO's), secondary offerings
and / or closings. The fee covers the coordination of efforts necessary between
Mellon, the Client's underwriters, the banknote company and DTC in order to
effect the closing. This fee will cover the issuance of up to 200 certificates
and /or book-entry credits. Certificates and / or book-entry credits over this
amount will be billed at $2.00 each. This fee is in addition to any fees Mellon
may charge for coordination of selling shareholders, custody services and / or
escrow services.


CONVERSION: There shall be no charge for converting the Client's files to
Mellon's systemunless extraordinary efforts will be required to complete the
conversion, such as account history conversion or file format conversion. Mellon
will review the conversion requirements and any charge will be discussed with
and approved by the Client prior to work commencing. In addition, if an
out-of-proof condition exists at the time of conversion, and such condition is
not resolved within 90 days of such conversion, Client agrees to provide Mellon
with funds or shares sufficient to resolve the out-of-proof condition promptly
after the 90th day.


DECONVERSION FEE: In the event Client requests that Mellon provide records to a
successor agent, in connection with the expiration or termination of this

                                      D-26
<PAGE>

[MELLON LOGO]MELLON                                                    Exhibit D

             MELLON INVESTOR SERVICES

             A MELLON FINANCIAL COMPANY(SM)


Agreement, Client shall pay Mellon a fee for deconversion services (e.g.,
providing shareholder lists and files, producing and shipping records, answering
successor agent inquiries). This fee will be based on Mellon's then-current
deconversion fee schedule. Mellon may withhold the Client's records, reports and
unused certificate stock from a successor agent pending the Client's payment in
full of all fees and expenses owed to Mellon under this Agreement.


LEGAL, TECHNOLOGICAL EXPENSES: Certain expenses may be incurred in resolving
legal matters that arise in the course of performing services hereunder. This
may result in a separate charge to cover Mellon's expenses (including the cost
of external or internal counsel) in resolving such matters; provided that any
legal expenses charged to the Clients shall be reasonable. Mellon shall use best
efforts to consult with Client prior to incurring any material expenses in
accordance with this paragraph.

In the event any Federal regulation and/or state or local law are enacted which
require Mellon to make any technological improvements and/or modifications to
its current system, Client shall compensate Mellon, on a pro rata basis
proportionate to the Client's registered shareholder base, for the costs
associated with making such required technological improvements and/or
modifications.


RECORD STORAGE: Monthly fee of $2.50 per box, with a minimum charge of $50.00.


LOST SHAREHOLDER SERVICES: A fee of $3.00 will be charged for each lost account
searched per database searched. A fee of $2.50 will be charged per account for
each state mandated due diligence mailing.


OTHER SERVICES: Fees for any services provided to Client by or on behalf of
Mellon hereunder that are not set forth in EXHIBIT B hereto or in this EXHIBIT D
will be based on Mellon's standard fees at the time such services are provided
or, if no standard fees have been established, an appraisal of the work to be
performed.


                                      D-27





</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.13
<SEQUENCE>18
<FILENAME>amendmenttojhcef.txt
<DESCRIPTION>EXHIBIT 99.13(B)
<TEXT>
                                  AMENDMENT TO

                          JOHN HANCOCK CLOSED END FUNDS

                                SERVICE AGREEMENT

                                       FOR

                             TRANSFER AGENT SERVICES







<PAGE>


THIS AMENDMENT (this "Amendment"), dated July 1, 2005, is entered into between
Mellon Investor Services LLC, a New Jersey limited liability company ("Mellon")
and John Hancock Patriot Premium Dividend Fund I, John Hancock Patriot Premium
Dividend Fund II, John Hancock Patriot Preferred Dividend Fund, John Hancock
Patriot Global Dividend Fund, John Hancock Patriot Select Dividend Trust, John
Hancock Investors Trust, John Hancock Income Securities Trust, John Hancock Bank
And Thrift Opportunity Fund, John Hancock Preferred Income Fund I, John Hancock
Preferred Income Fund II, John Hancock Preferred Income Fund III, and John
Hancock Tax-Advantaged Dividend Income Fund each a Massachusetts Business Trust,
a Maryland corporation (each a "Client" and collectively the "Clients").

WHEREAS, Mellon and Client entered into that certain Service Agreement for
Transfer Agent Services dated June 1, 2002 (the "Agreement") pursuant to which
Mellon is providing transfer agent and related services to Client. Capitalized
terms used herein, but not otherwise defined herein, shall have the meanings set
forth in the Agreement.

WHEREAS, Mellon and Client desire to amend the Agreement as provided in this
Amendment.

NOW THEREFORE, in consideration of the mutual conditions and agreements set
forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

1.     EXHIBIT D. Exhibit D of the Agreement is hereby deleted in its entirety
       and replaced with the following: Revised Exhibit D's Attached

2.     TERM OF THE AMENDMENT. This Amendment shall become effective upon due
       execution and delivery by both parties hereto, and shall remain in effect
       for so long as the Agreement shall remain in effect.

3.     RATIFICATION. Except as expressly set forth herein, the Agreement is not
       modified hereby and shall remain in full force and effect in accordance
       with the respective provisions thereof and is in all respects ratified
       and affirmed.

4.     PARTIAL INVALIDITY. If any provision of this Amendment is held to be
       invalid or unenforceable, such invalidity or unenforceability shall not
       invalidate this Amendment as a whole, but this Amendment shall be
       construed as though it did not contain the particular provision held to
       be invalid or unenforceable and the rights and obligations of the parties
       shall be construed and enforced only to such extent as shall be permitted
       by applicable law.

5.     COUNTERPARTS. This Amendment may be executed in two or more counterparts,
       each of which, when executed and delivered, shall be deemed an original
       for all purposes, but all of which together shall constitute one and the
       same instrument.

<PAGE>

IN WITNESS WHEREOF, Mellon and Client have caused these presents to be duly
executed as of the day and year first above written.


MELLON INVESTOR SERVICES LLC


By:      /s/ Lynore LeConche
         -------------------
Name:    Lynore LeConche
Title:   Client Service Manager


JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND I
JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II
JOHN HANCOCK PATRIOT PREFERRED DIVIDEND FUND
JOHN HANCOCK PATRIOT GLOBAL DIVIDEND FUND
JOHN HANCOCK PATRIOT SELECT DIVIDEND TRUST
JOHN HANCOCK INVESTORS TRUST
JOHN HANCOCK INCOME SECURITES TRUST
JOHN HANCOCK BANK AND THRIFT OPPORTUNITY FUND
JOHN HANCOCK PREFERRED INCOME FUND I
JOHN HANCOCK PREFERRED INCOME FUND II
JOHN HANCOCK PREFERRED INCOME FUND III
JOHN HANCOCK TAX-ADVANTAGED DIVIDEND INCOME FUND

By:      /s/ Alfred P. Ouellette
         -----------------------
Name:    Alfred P. Ouellette
Title:   Assistant Secretary

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.13
<SEQUENCE>19
<FILENAME>trustcoagreement.txt
<DESCRIPTION>EXHIBIT 99.13(C)
<TEXT>
- -------------------------------------------------------------------------------

                            TRUST COMPANY AGREEMENT

                                    between

                        PATRIOT PREMIUM DIVIDEND FUND II


                                      and

                      MANUFACTURERS HANOVER TRUST COMPANY

                         Dated as of December 21, 1989

                                  Relating to

                   DUTCH AUCTION RATE TRANSFERABLE SECURITIES

                     PREFERRED STOCK SERIES A AND SERIES B

                                       of

                        PATRIOT PREMIUM DIVIDEND FUND II

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



<PAGE>


      TRUST  COMPANY  AGREEMENT  dated  as  of December 21, 1989 between Patriot
Premium Dividend Fund II, a Massachusetts Business  Trust  (the  "Company"), and
Manufacturers Hanover Trust Company, a New York corporation, acting  through its
Corporate Trust Department (the "Trust Company").

      The   Company   proposes  to  issue  598  shares  of  Dutch  Auction  Rate
Transferable Securities  Preferred Stock Series A (the "Series A DARTS") and 598
shares of Dutch Auction Rate  Transferable  Securities  Preferred Stock Series B
(the  "Series  B  DARTS",  and  together with the Series A DARTS,  the  "DARTS")
pursuant to its Agreement and Declaration  of Trust and its By-Laws. The Company
desires that the Trust Company perform certain  duties  in  connection  with the
DARTS  upon the terms and conditions of this Agreement, and hereby appoints  the
Trust Company to act in the capacities set forth in this Agreement.

      NOW  THEREFORE,  in consideration of the premises and the mutual covenants
contained herein, the Company and the Trust Company agree as follows:

1.    Definitions and Rules of Construction.
      -------------------------------------

      1.1   Terms Defined by Reference to Restated Agreement and Declaration of
            Trust and the By-Laws.
            ---------------------

      Capitalized terms  not  defined  herein shall have the respective meanings
specified in the Declaration of Trust and the By-Laws.

      1.2   Terms Defined Herein.
            --------------------

      As used herein and in the Settlement Procedures, the following terms shall
have the following meanings, unless the context otherwise requires:

                  (a)    "Agent Member" of any Person shall mean a member of, or
      participant in, the Securities Depository  that  will  act  on behalf of a
      Person and is identified as such in such Person's Purchaser's Letter.

                  (b)    "Auction"  shall  mean each periodic operation  of  the
      Auction Procedures that are set forth  in Section 6.9 of Article VI of the
      By-Laws.

                  (c)    "Auction Procedures"  shall mean the Auction Procedures
      that are set forth in Section 6.9 of Article VI of the By-Laws.

                  (d)    "Authorized  officer"  shall   mean  each  Senior  Vice
      President, Vice President, Assistant Vice President, Assistant Manager and
      Trust  Officer  of  the  Trust  Company  assigned to its  Corporate  Trust
      Department  and  every  other officer or employee  of  the  Trust  Company
      designated  as  an  "Authorized   officer"   for   purposes  hereof  in  a
      communication to the Company.

                  (e)    "Broker-Dealer  Agreement"  shall mean  each  agreement
      between the Trust Company and a Broker-Dealer substantially  in  the  form
      attached hereto as Exhibit A.

<PAGE>

                  (f)    "By-Laws"  shall  mean  the  By-Laws of the Company, as
      adopted by the Company's Board of Trustees on November  6,  1989,  and  as
      amended  on  December  14,  1989,  a  copy  of which is attached hereto as
      Exhibit B, as the same may be further amended from time to time.

                  (g)    "Company officer" shall mean  the Chairman of the Board
      of  Directors,  the  President,  each  Vice  President  (whether   or  not
      designated  by  a  number or word or words added before or after the title
      "Vice President"), the  Secretary, the Treasurer, each Assistant Secretary
      and each Assistant Treasurer  of  the  Company  and every other officer or
      employee  of the Company designated as a "Company  Officer"  for  purposes
      hereof in a notice to the Trust Company.

                  (h)    DARTS  shall  mean  the Series A DARTS and the Series B
      DARTS.

                  (i)    "Declaration of Trust"  shall  mean  the  Agreement and
      Declaration of Trust of the Company, as filed by the Company on  September
      26,   1989  in  the  office  of  the  Secretary  of  the  Commonwealth  of
      Massachusetts  as  amended on December 14, 1989 and filed in the office of
      the Secretary of the Commonwealth of Massachusetts on December 14, 1989, a
      copy of which is attached hereto as Exhibit C.

                  (j)    "Fiscal  Year-End Dividend Period" with respect to each
      series of the DARTS shall mean  the Dividend Period for which the Dividend
      Payment Date is the first Dividend  Payment Date for such series occurring
      in the fiscal year following the fiscal  year  in  respect  of  which  the
      Company is obligated to pay Additional Dividends to the Holders.

                  (k)    "Purchaser's  Letter"  shall  mean a master purchaser's
      letter substantially in the form attached hereto as Exhibit D.

                  (l)    "Series  A  DARTS" shall mean the  Dutch  Auction  Rate
      Transferable Securities Preferred  Stock  Series A, liquidation preference
      $100,000 per share, to be issued by the Company.

                  (m)    "Series  B DARTS" shall mean  the  Dutch  Auction  Rate
      Transferable Securities Preferred  Stock  Series B, liquidation preference
      $100,000 per share, to be issued by the Company.

                  (n)    "Settlement  Procedures"   shall  mean  the  Settlement
      Procedures attached hereto as Exhibit E.

      1.3   Rules of Construction.
            ---------------------

      Unless  the  context  or  use indicates another or  different  meaning  or
intent, the following rules shall apply to the construction of this Agreement:

                  (a)    Words importing the singular number shallinclude    the
      plural number and vice versa.


                                       3
<PAGE>

                  (b)    The   captions  and  headings  herein  are  solely  for
      convenience of reference and shall not constitute a part of this Agreement
      nor shall they affect the meaning, construction or effect of-any provision
      of this Agreement.

                  (c)    The words  "hereof", "herein", "hereto" and other words
      of similar import refer to this Agreement as a whole.

                  (d)    All references herein to a particular time of day shall
      be to New York City time.

2.    The Auction.
      -----------

      2.1   Purpose; Incorporation by Reference of Auction Procedures and
            Settlement Procedures.
            ---------------------

                  (a)    The By-Laws  provide  that  the  Applicable Rate on the
      shares  of  each series of the DARTS for each Dividend  Period  after  the
      initial Dividend  Period  for  such  series  shall,  except  under certain
      circumstances,  be  the  rate  per  annum  that  a  bank  or trust company
      appointed  by the Company advises results from the implementation  of  the
      Auction Procedures for such series of the DARTS. The Board of Directors of
      the Company  has  adopted  a  resolution  appointing Manufacturers Hanover
      Trust Company as Trust Company for purposes  of  implementing  the Auction
      Procedures  for each series of the DARTS.  The Trust Company accepts  such
      appointment and  agrees to follow the procedures set forth in this Section
      2 and the Auction Procedures for the purpose of determining the Applicable
      Rate for the DARTS.  Separate  Auctions  will be conducted with respect to
      each series of the DARTS.

                  (b)    All  of  the  provisions  contained   in   the  Auction
      Procedures  and  the  Settlement  Procedures  are  incorporated herein  by
      reference in their entirety and shall be deemed to be a part hereof to the
      same extent as if such provisions were fully set forth herein.

      2.2   Preparation for Each Auction; Maintenance of Registry of Beneficial
            Owners.
            ------

                  (a)    Not later than the Date of original  Issue, the Company
      will  provide  the Trust Company with a list of the Broker-Dealers  and  a
      manually signed copy of each Broker-Dealer Agreement. Not later than seven
      days prior to any  Auction  Date  for  which  any  change  in such list of
      Broker-Dealers  is  to  be  effective,  the Company will notify the  Trust
      Company in writing of such change and, if  any such change is the addition
      of a Broker-Dealer to such list, shall cause  to be delivered to the Trust
      Company  for  execution  by  the  Trust Company a Broker-Dealer  Agreement
      manually  signed  by such Broker-Dealer.  The  Trust  Company  shall  have
      entered into a Broker-Dealer  Agreement  with  each Broker-Dealer prior to
      the participation of any such Broker-Dealer in any Auction.

                  (b)    In  the event that the Auction  Date  for  any  Auction
      shall be changed after the  Trust Company has given the notice pursuant to
      clause (vii) of paragraph (a)  of  the  Settlement  Procedures,  the Trust

                                       4
<PAGE>

      Company, by such means as the Trust Company deems practicable, shall  give
      notice of such change to the Broker-Dealers not later than the earlier  of
      9:15 A.M. on the new Auction Date and 9:15 A.M. on the old Auction Date.

                  (c)    (i)   If  the  number  of Dividend Period Days for both
      series of DARTS is adjusted as provided in  Section 6.4 (b) (i) of Article
      VI of the By-Laws, not later than 21 days prior  to  the  first day of the
      first Dividend Period for such series of the DARTS for which  such  change
      is first to be effective, the Company shall provide the Trust Company with
      a  form of notice of such change to be sent to Existing Holders by Broker-
      Dealers  pursuant  to  Section 2.4(c) of the Broker-Dealer Agreements. The
      Trust Company shall provide  each  Broker-Dealer  with such form of notice
      not later than five days after receipt thereof from the Company.

                  (ii)   If  (a)  there is any change in the  credit  rating  of
either  series  of the DARTS referred  to  in  the  definition  of  the  Maximum
Applicable Rate by  either  rating agency (or any substitute or successor rating
agency) that results in any change in the Prevailing Rating for either series of
DARTS after the date of this  Agreement  or  (b)  if the most recent Auction for
either series of DARTS resulted in an Applicable Rate  equal  to  or higher than
the  percentage of the 60-day "AA" Composite Commercial Paper Rate specified  in
column I or column II of the table in the definition of Maximum Applicable Rate,
the Company  shall  notify  the  Trust  Company in writing of such change in the
Prevailing Rating or that the Applicable  Rate  exceeded such percentage and, in
each case, shall notify the Trust Company of the  corresponding  percentage (the
"Applicable  Percentage")  to  be  used  by  the Trust Company to calculate  the
Maximum Applicable Rate prior to 9:00 a.m. on  the  Auction Date for such series
of DARTS. The Applicable Percentage in effect on the  date of this Agreement for
the Series A DARTS and the Series B DARTS is 110%. The  Trust  Company  shall be
entitled  to  rely  on  the  last Applicable Percentage of which it has received
notice from the Company (or, in  the  absence  of  such  notice,  the Applicable
Percentage  set  forth  in  the  preceding sentence) in determining the  Maximum
Applicable Rate as set forth in Section 2.2(d) (i) hereof.

                  (d)    (i)  On each  Auction  Date  for  either  series of the
      DARTS,  the  Trust  Company  shall  determine  the  60-day  "AA" Composite
      Commercial  Paper  Rate,  the  Minimum  Applicable  Rate  and  the Maximum
      Applicable Rate. If the 60-day "AA" Composite Commercial Paper Rate is not
      quoted  on  an interest basis, the Trust Company shall convert the  quoted
      rate to its interest  equivalent  thereof as set forth in Section 6.2(eee)
      of Article VI of the By-Laws if the  rate obtained by the Trust Company is
      quoted on a discount basis or, if the  rate  obtained by the Trust Company
      is quoted on another basis, the Trust Company  shall  convert  such quoted
      rate to its interest equivalent after consultation with the Company  as to
      the  method  of  such conversion. Not later than 9:30 A.M. on each Auction
      Date for either series  of  the  DARTS, the Trust Company shall notify the
      Company and the Broker-Dealers of  the  60-day  "AA"  Composite Commercial
      Paper Rate and the Maximum Applicable Rate so determined.

                  (ii)  If the 60-day "AA" Composite Commercial  Paper  Rate is
to  be based on rates supplied by the Commercial Paper Dealers, and one or  more
of the  Commercial Paper Dealers shall fail to provide a quotation or quotations
for the determination  of  the  60-day "AA" Composite Commercial Paper Rate, the
Trust Company shall immediately notify  the  Company  so  that  the  Company can
determine  whether  to select a Substitute Commercial Paper Dealer or Substitute
Commercial Paper Dealers  to  provide  the  quotation  or  quotations  not being

                                       5
<PAGE>

supplied  by  such  Commercial  Paper  Dealer  or  Commercial Paper Dealers. The
Company shall promptly advise the Trust Company of any such selection.

                  (e)    (i)  The Trust Company shall maintain a registry of the
      beneficial owners of the shares of each series  of  the  DARTS,  who shall
      constitute  Existing  Holders  of  shares  of such series for purposes  of
      Auctions, and shall indicate therein the identity of each Existing Holder,
      if any, on whose behalf each Broker-Dealer submitted the most recent Order
      in any Auction that resulted in such Existing Holder continuing to hold or
      purchasing shares of such series of the DARTS.  The  Trust  Company  shall
      keep  such  registry  current  and  accurate. The Company shall provide or
      cause the Broker-Dealers to provide on  its behalf to the Trust Company on
      the Date of Original Issue a list of the  initial  Existing Holders of the
      shares  of  each series of the DARTS and the respective  Broker-Dealer  of
      each such Existing  Holder  through  which  such Existing Holder purchased
      such shares of each series of the DARTS. The  Trust Company may rely upon,
      as  evidence  of the identities of the Existing Holders,  such  list,  the
      results of Auctions  and  notices  from  the  Broker-Dealer  of  each such
      Existing Holder with respect to such Existing Holder's transfer of  shares
      of  such  series  of  the  DARTS to another Person. Except as permitted by
      Sections 2.2(f), 2.7 and 4.7  hereof, the Trust Company shall not disclose
      this information to any other Person.

                  (ii)   In the event  of  any  partial  redemption of shares of
either series of the DARTS, the Trust Company shall, at least  two Business Days
prior to the next Auction for shares of such series, request the Agent Member of
each Existing Holder of shares of such series to disclose to the  Trust  Company
(upon selection by such Agent Member of the Existing Holders whose shares are to
be redeemed) the number of shares of DARTS of such series, if any, of each  such
Existing Holder, if any, which are subject to such redemption, provided that the
Trust  Company  has  been  furnished, at least three Business Days prior to such
Auction, with the name and telephone  number  of  a person or department at such
Agent Member from which it shall request such information.  Upon  the refusal of
the Agent Member to release such information, the Trust Company shall deliver to
such Agent Member a facsimile copy of such Existing Holder's Purchaser's Letter,
which authorizes and instructs such Agent Member to release such information  to
the Trust Company. In the absence of receiving any such information with respect
to  an  Existing  Holder,  the Trust Company may continue to treat such Existing
Holder as the beneficial owner  of  the  number  of shares of such series of the
DARTS shown in the Trust Company's registry.

                  (iii)    The  Trust Company shall be  required  to  register a
transfer of shares of the DARTS from an  Existing  Holder to another Person only
if  such  transfer  is  made  to a Person that has delivered  or  caused  to  be
delivered a signed Purchaser's  Letter  to  the  Trust  Company  and if (A) such
transfer is pursuant to an Auction or (B) the Trust Company has been notified in
writing  (I) in a notice substantially in the form of Exhibit E to  the  Broker-
Dealer Agreements,  by  an  Existing  Holder  or  the Broker-Dealer or the Agent
Member  of  such  Existing  Holder  of  such  transfer  or   (II)  in  a  notice
substantially in the form of Exhibit G to the Broker-Dealer Agreements,  by  the
Broker-Dealer  of  any Person that purchased or sold such shares of the DARTS in
an Auction of the failure  of  such  shares  of the DARTS to be transferred as a

                                       6
<PAGE>

result of such Auction. The Trust Company is not  required  to  accept  any such
notice for an Auction unless it is received by the Trust Company by 3:00 P.M. on
the Business Day preceding such Auction Date.

                  (f)    The  Trust  Company may request the Broker-Dealers,  as
      set forth in the Broker-Dealer Agreements,  to  provide  the Trust Company
      with a list of their respective customers that such Broker-Dealers believe
      are  Existing Holders of shares of either series of the DARTS.  The  Trust
      Company  shall  keep  confidential  such  registry of Existing Holders and
      shall not disclose the identities of the Existing  Holders  to  any Person
      other   than   the  Company  and  the  Broker-Dealer  that  provided  such
      information.

                  (g)    The  Trust  Company  is  not  required  to  accept  the
      Purchaser's  Letter of any Potential Holder who wishes to submit a Bid for
      the first time in an Auction or of any Potential Holder or Existing Holder
      who wishes to  amend  its Purchaser's Letter intending that such amendment
      is to take effect with  respect  to  an  Auction  unless  such Purchaser's
      Letter or such amendment is received by the Trust Company by  3:00 P.M. on
      the Business Day preceding such Auction Date.

      2.3   Auction Schedule.
            ----------------

      The Trust Company shall conduct Auctions for each series of the  DARTS  in
accordance  with  the  schedule set forth below. Such schedule may be changed by
the Trust Company with the  consent  of  the Company, which consent shall not be
unreasonably withheld. The Trust Company shall  give  written notice of any such
change to each Broker-Dealer. Such notice shall be given  prior  to the close of
business on the Business Day next preceding the first Auction Date  on which any
such change shall be effective.

   Time on Auction Date                                Event
   --------------------                                -----

Between 9:30 A.M.                      Trust Company  advises  the  Company  and
                                       Broker-Dealers  of 60-day "AA"  Composite
                                       Commercial   Paper   Rate,   the  Minimum
                                       Applicable  Rate and  Maximum  Applicable
                                       Rate as set  forth in  Section  2.2(d)(i)
                                       hereof.

Between 9:30 A.M. and                  Trust Company assembles information
12:30 P.M.                             communicated  to it by Broker-Dealers as
                                       provided in Section  6.9(c) of Article VI
                                       of the  By-Laws.  Submission  Deadline is
                                       1:00  P.M.  or  such  other  time  on any
                                       Auction   Date  as  the   Trust   Company
                                       specifies.

Not earlier than 12:30 P.M.            Trust Company makes determinations
                                       pursuant to Section  6.9(d)(i) of Article
                                       VI of the By-Laws.

By approximately 3:00 P.M.             Trust Company advises Company of results
                                       of Auction as provided in Section 6.9 (d)
                                       (ii) of Article VI of the By-Laws.

                                       Submitted  Bids and Submitted Sell Orders
                                       are  accepted  and rejected and shares of

                                       7
<PAGE>

                                       the  DARTS   allocated   as  provided  in
                                       Section  6.9(e)  of  Article  VI  of  the
                                       By-Laws.

                                       Trust  Company  gives  notice of  Auction
                                       results  as set  forth in the  Settlement
                                       Procedures.

      2.4   Notice of Auction Results.
            -------------------------

      The  Trust  Company  shall follow the notification procedures set forth in
paragraph (a) of the Settlement Procedures.

      2.5   Broker-Dealers.
            --------------

                  (a)    Not later than 12:00 noon on each Dividend Payment Date
      for either series of the DARTS, the Company shall pay to the Trust Company
      an amount in cash equal to the product of (i) a fraction, the numerator of
      which is the number of  days  in  the  Dividend  Period  beginning  on the
      relevant  Dividend  Payment Date (calculated by counting the first day  of
      such  Dividend  Period  but  excluding  the  last  day  thereof)  and  the
      denominator of which  is  360  times  (ii)  1/4 of 1% times (iii) $100,000
      times (iv) the aggregate number of shares of such series of the DARTS then
      outstanding.  The Trust Company shall advise the  Company  of  the  amount
      referred to in the preceding sentence in respect of such Auction not later
      than 4:00 P.M.  on  the Business Day preceding such Dividend Payment Date.
      The Trust Company shall  apply  such monies as set forth in Section 2.5 of
      the Broker-Dealer Agreements. To  the  extent that any such moneys are not
      payable to a Broker-Dealer because Sufficient  Clearing Bids did not exist
      in the relevant Auction and shares of the DARTS  therefore continued to be
      held despite being subject to a Submitted Sell Order,  the  Trust  Company
      shall repay such money to the Company.

                  (b)    The  Company  shall  obtain  the  consent  of the Trust
      Company  prior  to  selecting any Person to act as a Broker-Dealer,  which
      consent shall not be unreasonably withheld.

                  (c)    The  Trust  Company  shall  terminate any Broker-Dealer
      Agreement as set forth therein if so directed by the Company.

                  (d)    Subject  to Section 2.5(b) hereof,  the  Trust  Company
      shall from time to time enter  into  such  Broker-Dealer Agreements as the
      Company shall request.

                  (e)    The  Trust Company shall maintain  a  list  of  Broker-
      Dealers.

      2.6   Ownership of Shares of the DARTS and Submission of Bids by the
            Company and Affiliates.
            ----------------------

      The Company shall notify the Trust Company if the Company or any affiliate
(as such term is defined under  the  Investment  Company  Act  of  1940)  of the
Company  acquires any shares of the DARTS. Neither the Company nor any affiliate
of the Company  shall  submit  any order in any Auction. The Trust Company shall
have no duty or liability with respect to the enforcement of this Section 2.6.


                                       8
<PAGE>

      2.7   Access to and Maintenance of Auction Records.
            --------------------------------------------

      The Trust Company, upon the  written  request of the Company, shall afford
to the Company and its agents, independent public  accountants and legal counsel
access at reasonable times during normal business hours  to  all books, records,
documents and other information concerning the conduct and results  of Auctions.
For  purposes  of  the  preceding sentence, the parties hereto acknowledge  that
Broker-Dealers shall not  be  deemed  agents  of  the Company. The Trust Company
shall maintain records relating to any Auction for  a  period of two years after
such Auction (unless requested by the Company to maintain  such  records  for  a
longer period not in excess of six years, then for such longer period), and such
records  shall,  in reasonable detail, accurately and fairly reflect the actions
taken by the Trust Company hereunder.

3.    The Trust Company as Paying Agent.
      ---------------------------------

      3.1   Company to Provide for Dividends and Redemptions.
            ------------------------------------------------

                  (a)    Not   later   than  12:00  noon  on  the  Business  Day
      immediately preceding each Dividend  Payment  Date  with  respect to which
      dividends  (or  Additional  Dividends with respect to the Fiscal  Year-End
      Dividend Period) on the shares  of  the  DARTS  have  been  declared,  the
      Company  shall  deposit  or  cause  to be deposited with the Trust Company
      sufficient funds (available on such Dividend  Payment  Date  in  New  York
      City) for the payment of such dividends or Additional Dividends; provided,
      however,  that  the Company shall not be required to make any deposit with
      the Trust company in respect of Additional Dividends other than Additional
      Dividends payable with respect to the Fiscal Year-End Dividend Period. The
      Company shall give  the  Trust  Company  irrevocable instructions to apply
      such funds deposited with the Trust Company and, if applicable, the income
      and proceeds therefrom, to the payment of  such  dividends  or  Additional
      Dividends on such Dividend Payment Date. The Company may direct the  Trust
      Company   to  invest  any  available  funds  in  Short-Term  Money  Market
      Instruments;  provided  that  the proceeds of any such investments will be
      available in New York City at the  opening  of  business  on such Dividend
      Payment Date.

                  (b)    If the Company shall give a Notice of Redemption, then,
      not  later  than 12:00 noon of the Business Day immediately preceding  the
      date fixed for  redemption,  the  Company  shall  deposit  with  the Trust
      Company  sufficient  funds (available on such redemption date in New  York
      City) to redeem the shares  of  DARTS called for redemption in such Notice
      of Redemption and shall give the Trust Company irrevocable instructions to
      apply such funds and, if applicable, the income and proceeds therefrom, to
      the payment of the redemption price  for  such  shares  of  the DARTS upon
      surrender  of  the  certificate or certificates therefor. The Company  may
      direct the Trust Company to invest any available funds in Short-Term Money
      Market Instruments; provided  that  the  proceeds  of any such investments
      will  be  available  in New York City at the opening of  business  on  the
      redemption date.

                  (c)    The  Trust  Company  shall not be liable or responsible
      for  any  loss,  in  whole  or in part, incurred  or  resulting  from  any
      investments made pursuant to  paragraph  (a)  or  (b) of this Section 3.1,

                                       9
<PAGE>

      such investments being solely for the account of and  at  the  risk of the
      Company.  The  Trust  Company shall also not be liable to the extent  that
      investments made by the  Trust  Company  at  the  direction of the Company
      pursuant to clause (a) or (b) of this Section 3.1 do not constitute Short-
      Term Money Market Instruments.

                  (d)    If pursuant to paragraph (a) or (b) of this Section 3.1
      the Company directs the Trust Company to invest in Short-Term Money Market
      Instruments  and  the Trust Company receives income on  such  investments,
      then the Trust Company  shall  (to  the  extent  that  such  income is not
      required to pay dividends, Additional Dividends or the redemption price of
      shares  to  be  redeemed,  as  the  case may be), upon the request of  the
      Company, transmit such income to the Company.

      3.2   Disbursing Dividend and Redemption Price.
            ----------------------------------------

      Subject to receipt of the requisite funds  and instructions by the Company
as provided in Section 3.1 hereof, the Trust Company shall pay to the Holders of
shares of each series of the DARTS (i) on each Dividend  Payment  Date  for such
series of the DARTS, dividends and, if applicable, Additional Dividends (to  the
extent  that  the  company  has  deposited  with  the Trust Company, pursuant to
Section 3.1(a) hereof, funds for the payment thereof)  on  such  series  of  the
shares of the DARTS, and (ii) on any date fixed for redemption of shares of such
series  of  the DARTS, the redemption price for any shares of such series of the
DARTS called  for  redemption upon presentation and surrender of the certificate
or certificates evidencing  shares  of  such  series  of  the DARTS held by such
Holders  and  called for redemption. The amount of dividends  for  any  Dividend
Period or portion thereof to be paid by the Trust Company to the Holders will be
determined by the  Company'  as set forth in Section 6.4(c) of Article VI of the
By-Laws.

      The  amount  of Additional  Dividends  payable  for  any  Fiscal  Year-End
Dividend Period for  any  taxable  year  to  be paid by the Trust Company to the
Holders will be determined by the Company as set  forth in Sections 6.4(d) (iii)
and (iv) of Article VI of the By-Laws. The redemption  price  to  be paid by the
Trust Company to the Holders will be determined by the Company as set  forth  in
Sections  6.6(a)  and  6.6(b)  of  Article  VI of the By-Laws. The Company shall
deliver  to  the  Trust  Company any Notice of Redemption  required  by  Section
6.6(c)(ii) of Article VI of the By-Laws when mailed to the Holders of the shares
to be redeemed. Such notice  shall  contain  the  information  required  by such
Section  6.6(c) (ii) to be stated in the Notice of Redemption. The Trust Company
shall have  no duty to determine the redemption price and may rely on the amount
thereof set forth in such notice.

      3.3   Certificates of Eligible Asset Coverage and Dividend Coverage
            -------------------------------------------------------------

                  (a)    (i)  The  Company  shall,  no  later  than the close of
      business  on the second Business Day immediately following  each  Eligible
      Asset Evaluation  Date,  deliver  to  the  Trust Company a fully completed
      Certificate  of  Eligible Asset Coverage, substantially  in  the  form  of
      Exhibit F hereto (a "Certificate of Eligible Asset Coverage"), dated as of
      such Eligible Asset Evaluation Date.

                  (ii)   The  Company shall, no later than the close of business
on  the  second  Business  Day  immediately  following  each  Dividend  Coverage

                                       10
<PAGE>

Evaluation Date, deliver to the Trust  Company  a fully completed Certificate of
Dividend Coverage, substantially in the form of Exhibit G hereto (a "Certificate
of Dividend Coverage"), dated as of such Dividend Coverage Evaluation Date.

                  (b)    If Item 9 of the Certificate of Eligible Asset Coverage
      indicates that the Eligible Asset Coverage  was not met as of any Eligible
      Asset Evaluation Date, or if the Certificate of Eligible Asset Coverage is
      not delivered when required, then the Company,  no later than the close of
      business on the second Business Day following the Eligible Asset Cure Date
      related to such Eligible Asset Evaluation Date, shall deliver to the Trust
      Company  a  Certificate  of  Eligible Asset Coverage,  dated  as  of  such
      Eligible Asset Cure Date, indicating  that the Eligible Asset Coverage was
      met as of such Eligible Asset Cure Date.

                  (c)    If  Item 2.F of the Certificate  of  Dividend  coverage
      indicates that the Dividend  Coverage  was  not  met  as  of  any Dividend
      Coverage  Evaluation  Date, or if the Certificate of Dividend Coverage  is
      not delivered when required,  then the Company, no later than the close of
      business on the second Business  Day  following the Dividend Coverage Cure
      Date with respect to such Dividend Coverage Evaluation Date, shall deliver
      to the Trust Company a Certificate of Dividend  Coverage, dated as of such
      Dividend Coverage Cure Date, indicating that the  Dividend Coverage is met
      as of such Dividend Coverage Cure Date.

      3.4   Accountants' Certificates.
            -------------------------

                  (a)    With  respect  to  the Certificate  of  Eligible  Asset
      Coverage relating to the Eligible Asset  Evaluation  Date  on  the Date of
      original  Issue  and,  thereafter,  with  respect  to  the Certificate  of
      Eligible  Asset  Coverage relating to every succeeding seventh  Evaluation
      Date (or, if the Eligible  Asset  Coverage  is  not  met  as  of  any such
      Eligible  Asset Evaluation Date, the Eligible Asset Cure Date with respect
      to any such  Eligible  Asset Evaluation Date), the Company shall cause the
      Independent  Accountants   to   deliver   an   Accountants'   Certificate,
      substantially  in  the  form of Exhibit H hereto, to the Trust Company  no
      later than the close of business  on the sixth Business Day following each
      such  Eligible  Asset  Evaluation Date  (such  sixth  Business  Day  being
      referred to herein as the "Confirmation Date").

                  (b)    With  respect  to  the Certificate of Dividend Coverage
      relating to any Dividend Coverage Cure  Date,  the Company shall cause the
      Independent   Accountants   to   deliver   an  Accountants'   Certificate,
      substantially in the form of Exhibit I hereto,  to  the  Trust  Company no
      later than the close of business on the second Business Day following such
      Dividend Coverage Cure Date.

                  (c)    With  respect  to  the  Certificate  of  1940 Act Asset
      Coverage relating to any 1940 Act Cure Date, the Company shall  cause  the
      Independent   Accountants   to   deliver   an   Accountants'  Certificate,
      substantially in the form of Exhibit J hereto, to  the  Trust  Company  no
      later than the close of business on such 1940 Act Cure Date.


                                       11
<PAGE>

                  (d)    If  an Accountants' Certificate is not delivered to the
      Trust Company by the close of business on any Confirmation Date confirming
      that the Eligible Asset  Coverage was met as of the related Eligible Asset
      Evaluation Date or Eligible  Asset Cure Date, as the case may be, then the
      Company, no later than the close  of  business  on the fourth Business Day
      following such Confirmation Date, shall deliver to  the  Trust  Company  a
      Certificate  of  Eligible  Asset Coverage, dated as of the second Business
      Day following such Confirmation  Date,  indicating that the Eligible Asset
      Coverage was met as of such second Business  Day,  together  with,  if  so
      required  by the Amended and Restated By-Laws, an Accountants' Certificate
      confirming such Certificate of Eligible Asset Cure Asset Coverage.

      3.5   Notice of Special Meeting of Holders of the DARTS of the Company.
            ----------------------------------------------------------------

                  (a)    If  an  event described in Section 6.7 of Article VI of
      the By-Laws occurs, then the  Trust  Company  shall, upon receipt from the
      Company of a notice of a special meeting of the  holders  of shares of the
      DARTS (a "Special Meeting") in substantially the form set forth in Exhibit
      K hereto with appropriate insertions (the "Notice"), mail such  notice  to
      all Holders of shares of the DARTS who were Holders of record at the close
      of business on the fifth Business Day preceding the date of mailing of the
      Notice  (the  "Record  Date").  The  Trust Company shall insert the Record
      Date, the date of the Special Meeting and the time of day of such meeting,
      as specified by the Company, in the Notice.

                  (b)    If  at any time after  the  Trust  Company  shall  have
      mailed the Notice but before the Special Meeting shall have been held, all
      accumulated and unpaid dividends  (including Additional Dividends, if any)
      on all then-outstanding shares of the  Series  A  DARTS  and  the Series B
      DARTS  including  the  accumulated  and  unpaid  dividends for the current
      Dividend Period for the DARTS, of either series, shall  have  been paid or
      declared and a sum sufficient for the payment of such dividends  deposited
      with  the  Trust  Company, the Trust Company shall, upon receipt from  the
      Company  of  a  notice   of   cancellation  of  such  Special  Meeting  in
      substantially the form set forth  in Exhibit L hereto, mail such notice as
      soon as practicable to all Holders of shares of the DARTS who were Holders
      of record at the close of business on the fifth Business Day preceding the
      date the Notice was mailed.

                  (c)    The Company shall  provide a temporary chairman for any
      Special Meeting. The Trust Company shall have no obligations in connection
      with  such meeting, except with respect  to  the  mailing  of  the  Notice
      pursuant to this Agreement.

      3.6   Dividends on Common Stock; Notice to Holders.
            --------------------------------------------

      So long  as any shares of the DARTS are outstanding, the Company shall not
declare, pay or  set  apart  for  payment  any dividend or other distribution in
respect of the Common Stock or any other stock  of the Company ranking junior to
the  shares  of  the  DARTS  as to dividends or upon liquidation,  or  call  for
redemption, redeem, purchase or  otherwise  acquire for consideration any shares
of the Common Stock or any other stock of the  Company  ranking  junior  to  the
shares  of  the DARTS as to dividends or upon liquidation, unless, in each case,

                                       12
<PAGE>

the Company has  prior  to  such  transaction  provided the Trust Company with a
certificate, substantially in the form of Exhibit M hereto.

4.    The Trust Company as Transfer Agent and Registrar.
      -------------------------------------------------

      4.1   Original Issue of Stock Certificates.
            ------------------------------------

      With respect to each series of the DARTS,  on  the Date of Original Issue,
one certificate representing all of the shares of the  Series  A  DARTS  and one
certificate representing all of the shares of the Series B DARTS shall be issued
by  the  Company  and, at the request of the Company, registered in the name  of
Cede & Co. and countersigned by the Trust Company.

      4.2   Registration of Transfer or Exchange of Shares.
            ----------------------------------------------

      Except as otherwise  provided  in  this  Section  4.2, shares of the DARTS
shall  be  registered  solely in the name of the Securities  Depository  or  its
nominee. If the Securities  Depository  shall  give  notice  of its intention to
resign  as  such,  and  if  the  Company  shall  not  have selected a substitute
Securities Depository acceptable to the Trust Company prior to such resignation,
then  upon such resignation, the shares of each series of  the  DARTS  shall  be
registered  for  transfer  or exchange, and new certificates shall be issued, in
the name or names of the designated transferee or transferees, upon surrender of
the old certificates in form  deemed  by the Trust Company properly endorsed for
transfer with all necessary endorsers' signatures guaranteed, in such manner and
form as the Trust Company may require, by a guarantor reasonably believed by the
Trust Company to be responsible, accompanied  by  such  assurances  as the Trust
Company  shall  deem  necessary  or appropriate to evidence the genuineness  and
effectiveness  of  each  necessary  endorsement  and  satisfactory  evidence  of
compliance with all applicable laws relating to the collection of taxes or funds
necessary for the payment of such taxes.

      4.3   Removal of Legend.
            -----------------

      All requests for removal of legends on certificates representing shares of
the DARTS indicating restrictions on transfer shall be accompanied by an opinion
of counsel stating that such legends  may  be removed and the shares represented
by such certificate may be freely transferred.  Such  opinion shall be delivered
under cover of a letter from a Company Officer authorizing  the Trust Company to
remove the legend on the basis of said opinion.

      4.4   Lost Stock Certificates.
            -----------------------

      The  Trust company shall issue and register replacement  certificates  for
certificates  represented  to  have  been  lost,  stolen  or destroyed, upon the
fulfillment of such requirements as shall be deemed appropriate  by  the Company
and the Trust Company, subject at all times to provisions of law, the By-Laws of
the  Company  governing  such  matters  and resolutions adopted by the Board  of
Directors of the Company with respect to  such  matters.  The  Trust Company may
issue  new certificates in exchange for and upon the cancellation  of  mutilated
certificates.  Any  request  by  the  Company  to  the  Trust Company to issue a
replacement or new certificate pursuant to this Section 4.4  shall  be deemed to
be a representation and warranty by the Company to the Trust Company  that  such
issuance will comply with such provisions of law and By-Laws and resolutions  of
the Board of Directors of the Company.


                                       13
<PAGE>

      4.5   Disposition of Cancelled Certificates; Record Retention.
            -------------------------------------------------------

      In  accordance with applicable rules and regulations of the Securities and
Exchange Commission,  the  Trust  Company  shall retain stock certificates which
have  been  cancelled  in  transfer  or  in  exchange   and   the   accompanying
documentation  for  two  calendar  years.  Upon  the  expiration of the two-year
period,  the  Trust  Company  shall  deliver  to  the  Company   such  cancelled
certificates  and  the  accompanying  documentation. The Company shall,  at  its
expense, retain such records for a minimum  additional  period  of four calendar
years  from  the date of delivery of the records to the Company and  shall  make
such records available during this period at any time, or from time to time, for
reasonable periodic,  special,  or  other examinations by representatives of the
Securities and Exchange Commission and  the  Board  of  Governors of the Federal
Reserve System. The Company shall also undertake to furnish  to  the  Securities
and  Exchange  Commission  and  to the Board of Governors of the Federal Reserve
System, upon demand, at either the  principal  office or at any regional office,
complete,  correct  and  current  hard  copies  of any  and  all  such  records.
Thereafter,  such  records  shall  not  be  destroyed  by  the  Company  without
concurrence of the Trust Company but shall be safely stored  for possible future
reference.

      4.6   Stock Books.
            -----------

      For  so long as the Trust Company is acting as transfer agent  for  either
series of the  DARTS,  the  Trust Company shall maintain the Stock Books listing
the Holders of the shares of  the  Series  A  DARTS  and the Series B DARTS, the
number of shares of Series A DARTS and the Series B DARTS  held  by  each Holder
and  the  address  of  each  Holder.  In  case  of any request or demand for the
inspection  of  the  Stock  Books  of  the Company or any  other  books  in  the
possession of the Trust Company, the Trust  Company shall notify the Company and
secure  instructions as to permitting or refusing  such  inspection.  The  Trust
Company reserves  the  right, however, to exhibit the Stock Books or other books
to any Person if it is advised by its counsel that its failure to do so would be
unlawful.

      4.7   List of Holders.
            ---------------

      If the Company is  obligated to pay Additional Dividends in respect of any
dividends paid to the Holders,  other  than  Additional  Dividends  payable with
respect to the Fiscal Year-End Dividend Period, the Trust Company shall,  within
10  days  of  its  receipt  from  the  Company  of a notice of its intent to pay
Additional Dividends in substantially the form set  forth  in  Exhibit  N hereto
with  appropriate  insertions  and  signed  by  the Chairman of the Board or the
President  and the principal financial or accounting  officer  of  the  Company,
furnish the  Company  with  a list of the Existing Holders as of the record date
for the corresponding Dividend  Payment  Date for each Dividend Period specified
in such certificate.

      4.8   Return of Funds.
            ---------------

      Any funds deposited with the Trust Company  hereunder  .by the Company for
any reason, including but not limited to redemption of shares of the DARTS, that
remain  unpaid  after  two  years  shall  be repaid to the Company upon  written
request of the Company.

5.    Representations and Warranties of the Company.
      ---------------------------------------------


                                       14
<PAGE>

      The Company represents and warrants to the Trust Company that:

                  (a)    the Company has been  duly  organized  and  is  validly
      existing as a business trust in good standing under the laws of the  State
      of  Massachusetts and has full power to execute and deliver this Agreement
      and to authorize, create and issue the shares of the DARTS, and the shares
      of the  DARTS have been duly authorized, validly issued and are fully paid
      and non-assessable;

                  (b)    this  Agreement  has  been duly and validly authorized,
      executed  and delivered by the Company and,  assuming  due  authorization,
      execution and delivery by the Trust Company, constitutes the legal, valid,
      binding  and  enforceable  obligation  of  the  Company,  subject,  as  to
      enforceability,  to  bankruptcy, insolvency, reorganization and other laws
      of general applicability  relating to or affecting creditors rights and to
      general equitable principles;

                  (c)    the form  of  the certificates evidencing the shares of
      the Series A DARTS and the Series  B  DARTS  complies  with all applicable
      laws of the State of Massachusetts;

                  (d)    the shares of the DARTS have been duly registered under
      the  Securities Act of 1933, as amended, and no action by  or  before  any
      governmental  body  or  authority  of  the  United States. or of any state
      thereof is required in connection with the execution  and delivery of this
      Agreement or the issuance of the shares of the DARTS, except  as  required
      by applicable state securities laws;

                  (e)    the  execution  and  delivery  of  this  Agreement, the
      performance  by the Company of its obligations hereunder and the  issuance
      and delivery of the shares of the DARTS do not and will not conflict with,
      violate, or result in a breach of, the terms, conditions or provisions of,
      or constitute  a default under, the Declaration of Trust or the By-Laws of
      the Company, any  law  or  regulation, any order or decree of any court or
      public  authority  having  jurisdiction,   or   any  mortgage,  indenture,
      contract, agreement or undertaking to which the Company  is  a party or by
      which it is bound; and

                  (f)    no  taxes  are  payable  upon  or  in  respect  of  the
      execution of this Agreement or the issuance of the shares of the DARTS.

6.    The Trust Company.
      ----------------

      6.1   Duties and Responsibilities.
            ---------------------------

                  (a)    The  Trust  Company  is  acting  solely as agent of the
      Company hereunder and owes no fiduciary duty to any other Person by reason
      of this Agreement.

                  (b)    The Trust Company undertakes to perform such duties and
      only such duties as are specifically set forth in his  Agreement,  and  no
      implied  covenants  or  obligations  shall   be  read  into this Agreement
      against the Trust Company.


                                       15
<PAGE>

                  (c)    The Trust Company shall have no duty  or responsibility
      to  verify or determine the accuracy of any document delivered  to  it  in
      accordance  with the terms hereunder. The Trust Company shall have no duty
      or responsibility to enforce the obligations of the Company to provide the
      Trust Company with any notice or document.

                  (d)    In  the absence of bad faith or negligence on its part,
      the Trust Company shall  not  be liable for any action taken, suffered, or
      omitted or for any error of judgment  made by it in the performance of its
      duties under this Agreement. The Trust Company shall not be liable for any
      error of judgment made in good faith unless  the  Trust Company shall have
      been negligent in ascertaining the pertinent facts.

      6.2   Rights of the Trust Company.
            ---------------------------

                  (a)    The Trust Company may rely and shall  be  protected  in
      acting  or refraining from acting upon any communication authorized hereby
      and upon  any  written  instruction,  notice, request, direction, consent,
      report,  certificate, share certificate  or  other  instrument,  paper  or
      document believed  by  it  to  be  genuine. The Trust Company shall not be
      liable for acting upon any telephone communication authorized hereby which
      the Trust Company believes in good faith to have been given by the Company
      or by a Broker-Dealer. The Trust Company  may  record by tape or otherwise
      telephone communications with the Company or any  of the Broker-Dealers or
      both.

                  (b)    The  Trust Company may consult with  counsel,  and  the
      advice  of such counsel shall  be  full  and  complete  authorization  and
      protection  in  respect  of  any  action  taken, suffered or omitted by it
      hereunder in good faith and in reliance thereon.

                  (c)    The Trust Company shall  not  be  required  to advance,
      expend  or  risk  its  own  funds or otherwise incur or become exposed  to
      financial liability in the performance of its duties hereunder.

                  (d)    The Trust  Company  may perform its duties and exercise
      its rights hereunder either directly or by or through agents or attorneys.

      6.3   Trust Company's Disclaimer.
            --------------------------

      The Trust Company makes no representation  as  to  the  correctness of the
recitals  in  or  the validity or adequacy of this Agreement, the  Broker-Dealer
Agreements or the shares of the DARTS.

      6.4   Compensation Expenses and Indemnification.
            -----------------------------------------

                  (a)    The  Company  shall  pay the Trust Company from time to
      time reasonable compensation for all services rendered by it hereunder and
      under the Broker-Dealer Agreements.

                  (b)    The Company shall reimburse  the Trust Company upon its
      request  for  all  reasonable  out-of-pocket expenses,  disbursements  and
      advances incurred or made by the  Trust  Company  in  accordance  with any


                                       16
<PAGE>

      provision hereof or the Broker-Dealer Agreements (including the reasonable
      compensation  and  the  expenses  and  disbursements  of  its  agents  and
      counsel),   except   any  expense  or  disbursement  attributable  to  its
      negligence or bad faith.

                  (c)    The  Company shall indemnify the Trust Company against,
      and  hold it harmless from,  any  loss,  liability  or  expense,  incurred
      without  negligence  or  bad  faith  on  its  part,  arising  out of or in
      connection   with   its   agency  hereunder  or  under  the  Broker-Dealer
      Agreements, including the costs  and  expenses of defending itself against
      any claim or liability in connection with  its  exercise or performance of
      any of its duties hereunder and thereunder for which  it  is  entitled  to
      indemnification hereunder or thereunder.

7.    Miscellaneous.
      -------------

      7.1   Term of Agreement.
            -----------------

                  (a)    The  term of this Agreement shall continue indefinitely
      until this Agreement shall  be terminated as provided in this Section 7.1.
      The Company may terminate this  Agreement  at any time by so notifying the
      Trust Company; provided that the Company has  entered into an agreement in
      substantially the form of this Agreement with a successor Trust Company or
      no shares of the DARTS remain outstanding. The Trust Company may terminate
      this Agreement upon notice to the Company on the  date  specified  in such
      notice which date shall be no earlier than the 98th day after the delivery
      of such notice.

                  (b)    Except as otherwise provided in this paragraph (b), the
      respective  rights  and  duties of the Company and the Trust Company under
      this  Agreement  shall cease  upon  termination  of  this  Agreement.  The
      Company's representations,  warranties,  covenants  and obligations to the
      Trust  Company  under  Sections  5  and  6.4  hereof  shall  survive   the
      termination  hereof. Upon termination of this Agreement, the duties of the
      Trust Company  under  each of the Broker-Dealer Agreements shall cease and
      at the Company's request,  the Trust Company shall promptly deliver to the
      Company copies of all books  and  records  maintained  by it in connection
      with its duties hereunder.

      7.2   Communications.
            --------------

      Except for (i) communications authorized to be made by telephone  pursuant
to  this  Agreement  or  the  Auction  Procedures  and  (ii)  communications  in
connection with Auctions (other than those expressly required to be in writing),
all  notices,  requests and other communications to any party hereunder shall be
in writing (including  telecopy  or  similar writing) and shall be given to such
person addressed to it, at its address or telecopier number set forth below:



 If to the Company,                   Patriot Premium Dividend
  addressed:                             Fund II
                                      211 Congress Street
                                      Boston, Massachusetts  02110

                                       17
<PAGE>

                                      Attention:  Mary Lomasney
                                      Telecopier No.: 617-426-6230
                                      Telephone No.: 617-426-3310

If to the Trust                       Manufacturers Hanover Trust
  Company, addressed:                    Company
                                      Corporate Trust Department
                                      40 Wall Street
                                      20th Floor
                                      New York, New York 10015
                                      Attention: Corporate Trust
                                      Department

                                      Telecopier No.: 212-742-1790
                                      Telephone No.:  212-623-5601



                                       18
<PAGE>


with a copy, except                   Manufacturers Hanover Trust
  communications in                      Company
  connection with                     450 West 33rd Street, 15th Floor
  Auctions, to:                       New York, New York 10020
                                      Attention: Agency
                                        Administration

                                      Telecopier No.: 212-765-2549

                                      Telephone No.:  212-957-1740

or to such other address, telephone or telecopier number as such party may
hereafter specify for such purpose by notice to the other party. Each such
notice, request or communication shall be effective when delivered at the
address specified herein. Communications shall be given on behalf of the Company
by a Company Officer and on behalf of the Trust Company by an Authorized
officer.

      7.3   Entire Agreement.
            ----------------

      This Agreement contains the entire  agreement between the parties relating
to  the  subject  matter  hereof  and  there  are   no   other  representations,
endorsements, promises, agreements or understandings, oral, written or inferred,
between the parties relating to the subject matter hereof  except for agreements
relating to the compensation of the Trust Company.

      7.4   Benefits.
            --------

      Nothing herein, express or implied, shall give to any  Person,  other than
the Company, the Trust Company and their respective successors and assigns,  any
benefit of any legal or equitable right, remedy or claim hereunder.

      7.5   Amendment; Waiver.
            -----------------

                  (a)    This  Agreement  shall not be deemed or construed to be
      modified, amended, rescinded, cancelled  or  waived,  in whole or in part,
      except by a written instrument signed by the parties hereto.  The  Company
      shall  notify  the Trust Company of any change in the Declaration of Trust
      or the By-Laws prior  to  the effective date of any such change; provided,
      however, that any change in  the By-Laws that would have a material effect
      on  the  Trust Company's duties  under  the  Auction  Procedures  must  be
      approved by  the  Trust  Company, which approval shall not be unreasonably
      withheld.

                  (b)    Failure of either party hereto to exercise any right or
      remedy hereunder in the event  of a breach hereof by the other party shall
      not constitute a waiver of any such  right  or  remedy with respect to any
      subsequent breach.

      7.6   Successors and Assigns.
            ----------------------

      This  Agreement shall be binding upon, inure to the  benefit  of,  and  be
enforceable by, the respective successors and assigns of each of the Company and
the Trust Company.


                                       19
<PAGE>

      7.7   Severability.
            ------------

      If any  clause,  provision  or  section  hereof  shall be ruled invalid or
unenforceable  by  any  court  of  competent  jurisdiction,  the  invalidity  or
unenforceability of such clause, provision or section shall not  affect  any  of
the remaining clauses, provisions or sections hereof.

      7.8   Execution in Counterparts.
            -------------------------

      This  Agreement  may  be  executed  in several counterparts, each of which
shall be an original and all of which shall  constitute  but  one  and  the same
instrument.

      7.9   Governing Law.
            -------------

      This  Agreement shall be governed by and construed in accordance with  the
laws of the State of New York.

      IN WITNESS  WHEREOF,  the  parties hereto have caused this Agreement to be
duly executed and delivered by their  proper  and duly authorized officers as of
the date first above written.

                               PATRIOT PREMIUM.DIVIDEND FUND II




                               By: /s/ Walter M. Cabot, Jr.
                                   _________________________________________
                                   Name: Walter M. Cabot, Jr.
                                   Title: President


                               MANUFACTURERS HANOVER TRUST COMPANY


                               By:  _________________________________________
                                     Name
                                     Title:




                                       20

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.13
<SEQUENCE>20
<FILENAME>brokerdealer-agmt.txt
<DESCRIPTION>EXHIBIT 99.13(D)
<TEXT>














                             BROKER-DEALER AGREEMENT

                                     Between

                              BANKERS TRUST COMPANY

                                       and

                                   J.P. MORGAN

                            Dated as of June 26, 2001

                                   Relating to

                   DUTCH AUCTION RATE TRANSFERABLE SECURITIES
                                PREFERRED STOCK.

                                  SERIES A & B

                        PATRIOT PREMIUM DIVIDEND FUND II

<PAGE>

      BROKER.-DEALER  AGREEMENT  Dated as of June 26, 2001 between Bankers Trust
Company, a New York corporation (not  in  its  individual capacity but solely as
agent of the Company pursuant to authority granted  to  it in the "Trust Company
Agreement) (together with its successors and assigns, the  "Trust Company"), and
J.P. Morgan, a Delaware corporation (together with its successors  and  assigns,
"BD").

      The  company  has  issued  500  shares  of Dutch Auction Rate Transferable
Securities Preferred Stock Series A (the Series  A  "DARTS")  and  500 Shares of
Dutch Auction Rate Transferable Securities Preferred Stock Series B  (the Series
B  "DARTS" and, together with the Series A DARTS, the "DARTS") pursuant  to  its
Amended and Restated Agreement and Declaration of Trust ("Declaration of Trust")
and its Amended and Restated By-Laws (the "By-Laws").

      The By-Laws provide that the dividend rate on the shares of each series of
the DARTS for each Dividend Period with respect to such series after the initial
Dividend  Period with respect to such series shall be the Applicable Rate, which
shall, except  under certain circumstances, be the rate per annum that a bank or
trust company appointed  by  the  Company advises results from implementation of
the Auction Procedures with respect  to  the DARTS of such series.  The Board of
Trustees  of  the  Company  has adopted a resolution  appointing  Bankers  Trust
Company for purposes of implementing the Auction Procedures and related matters.
Pursuant to Section 2.5 (d) of  the  Trust  Company  Agreement,  the Company has
requested and directed the Trust Company to execute and deliver this Agreement.

      The  Auction  Procedures require the participation of one or more  Broker-
Dealers.

      NOW, THEREFORE, in consideration of the mutual covenants contained herein,
the Trust Company and BD agree as follows:

1.    DEFINITIONS AND RULES OF CONSTRUCTION.

      1.1    TERMS DEFINED  BY  REFERENCES  TO DECLARATION OF TRUST AND BY-LAWS.
Capitalized  terms  not  defined  herein  shall  have  the  respective  meanings
specified in the Company's Declaration of Trust and By-Laws.

      1.2    TERMS DEFINED HEREIN. As used herein  in the Settlement Procedures,
the  following  terms  shall  have the following meanings,  unless  the  context
otherwise requires:

                   (a)    "Auction"  shall have the meaning specified in Section
      2.1 hereof.

                   (b)    "Auction Procedures" shall mean the auction procedures
      as set forth in Section 9 of Article VI of the By-Laws.

                                       1
<PAGE>

                   (c)    "Authorized  Officer"  shall  mean  each  Senior  Vice
      President, Vice president, Assistant Vice President, Assistant Manager and
      Trust  Officer  of  the  Trust  Company  assigned  to  its Corporate Trust
      Department  and  every  other  officer  or  employee of the Trust  Company
      designated as an "Authorized Officer" for purposes  of this Agreement in a
      communication to BD.

                   (d)    "BD Officer" shall mean each officer or employee of BD
      designated  as  a  "BD  Officer"  for  purposes  of  this Agreement  in  a
      communication to the Trust Company.

                   (e)    "Broker-Dealer  Agreement" shall mean  this  Agreement
      and any substantially similar agreement  between  the  Trust Company and a
      Broker-Dealer.

                   (f)    "By-Laws"   shall  mean  the  Company's  Amended   and
      Restated  By-Laws  as  adopted  by the  Company's  Board  of  Trustees  on
      September 6, 1990, a copy of which is attached hereto as Exhibit A, as the
      same may be amended from time to time.

                   (g)    "Company shall  mean Patriot Premium Dividend Fund II,
      a Massachusetts business trust, and its successors and assigns.

                   (h)    "Declaration of Trust"  shall  mean  the Agreement and
      Declaration of Trust of the Company as filed by the Company  in the office
      of the Secretary of State of the Commonwealth of Massachusetts on December
      14,  1989,  and  as amended and restated on December 12, 1989, a  copy  of
      which is attached hereto as Exhibit B.

                   (i)    "Prospectus"  shall mean the prospectus dated December
      14, 1989 relating to the issuance and offering of the shares of the DARTS.

                   (j)    "Purchaser's Letter"  shall  mean a Master Purchaser's
      Letter substantially in the form attached hereto as Exhibit C.

                   (k)    "Settlement  Procedures"  shall  mean  the  Settlement
      Procedures attached hereto as Exhibit D.

                   (l)    "Summary"  shall  mean a summary  description  of  the
      DARTS and the Auction Procedures and Settlement  Procedures  with  respect
      thereto.

                   (m)    "Trust Company Agreement" shall mean the Trust Company
      Agreement,  dated  as  of  December  21, 1989, between the Company and the
      Trust Company relating to the DARTS.

      1.3    RULES OF CONSTRUCTION.  Unless the context or use indicates another
or  different  meaning  or  intent,  the following  rules  shall  apply  to  the
construction of this Agreement:

                                       2
<PAGE>

                   (a)    Words importing  the singular number shall include the
      plural number and vice versa.

                   (b)    The  captions  and  headings  herein  are  solely  for
      convenience of reference and shall not constitute a part of this Agreement
      nor shall they affect the meaning, construction or effect of any provision
      hereof.

                   (c)    The  words  "hereof," "herein,"  "hereto,"  and  other
      words of similar import refer to this Agreement as a whole.

                   (d)    All references  herein  to  a  particular  time of day
      shall be to New York City time.

2.    THE AUCTION.  Separate Auctions will be held for the Series A DARTS and
the Series B DARTS.  Unless the context otherwise requires, references to the
DARTS in this Section shall be deemed references to the Series A DARTS or the
Series B DARTS, as the case may be.

      2.1    PURPOSE;  INCORPORATION  BY  REFERENCE  OF  AUCTION PROCEDURES  AND
SETTLEMENT PROCEDURES.

                   (a)    The  provisions  of  the  Auction Procedures  will  be
      followed  by  the  Trust  Company  for  the  purpose  of  determining  the
      Applicable Rates for the DARTS.  Each periodic operation  of  such Auction
      Procedures is hereinafter referred to as an "Auction."

                   (b)    All   of  the  provisions  contained  in  the  Auction
      Procedures  and  the Settlement  Procedures  are  incorporated  herein  by
      reference in their  entirety  and  shall  be  deemed  to be a part of this
      Agreement to the same extent as if such provisions were  fully  set  forth
      herein.

                   (c)    Unless  BD  has  heretofore  done so, BD is delivering
      herewith a Purchaser's Letter executed by BD.  BD  agrees  to  act  as, to
      assume  the  obligations  of,  and  to  be  subject to the limitations and
      restrictions  placed  upon,  a  Broker-Dealer under  this  Agreement.   BD
      understands that other Persons meeting  the  requirements specified in the
      definition  of  "Broker-Dealer"  contained in Section  6.9  (a)  (vii)  of
      Article  VI  of  the  By-Laws  may execute  Broker-Dealer  Agreements  and
      Purchaser's Letters and participate  as  Broker-Dealers  in  Auctions.  BD
      agrees to handle customer orders in accordance with its respective  duties
      under applicable securities laws and rules.

                   (d)    BD   and   other  Broker-Dealers  may  participate  in
      Auctions for their own accounts,  provided  that  BD or such other Broker-
      Dealers, as the case may be, have executed and deposited  with  the  Trust
      Company  a Purchaser's Letter.  However, the Company may, by notice to  BD
      and all other  Broker-Dealers, prohibit all Broker-Dealers from submitting
      Bids in Auctions  for  their  own  account,  but  the  Broker-Dealers  may

                                       3
<PAGE>

      continue  to submit Hold and Sell Orders.  The Trust Company shall have no
      duty or responsibility to monitor the provisions of this Section 2.1 (d).

      2.2    PREPARATION FOR EACH AUCTION.

                   (a)    Not  later  than  9:30 on each Auction Date, the Trust
      Company shall advise the Broker-Dealers  by  telephone  of the 60-day "AA"
      Composite  Commercial  Paper  Rate,  The Minimum Applicable Rate  and  the
      Maximum Applicable Rate.

                   (b)    In the event that  the  Auction  Date  for any Auction
      shall be changed after the Trust Company has given notice referred  to  in
      clause  (vii)  of  paragraph  (a)  of the Settlement Procedures, the Trust
      Company, by such means as the Trust  Company deems practicable, shall give
      notice of such change to BD not later than the earlier of 9:15 A.M. on the
      new Auction Date or 9:15 on the old Auction  Date.   Thereafter,  BD shall
      promptly  notify  its  customers whom BD believes are Existing Holders  of
      shares of the DARTS of such change in Auction Date.

                   (c)    For  each  Auction  Date for which BD submits an Order
      for any Bidder which is accepted, BD shall  maintain,  for  a period of at
      least fifteen months, a list of such Holder or Holders and the  number  of
      shares  of  DARTS  held  by  each such Holder ("Holder Lists").  The Trust
      Company or the Company from time  to  time  may  request BD and each other
      Broker-Dealer to provide the Trust Company or the  Company  with  any such
      Holder Lists and/or with a list of their respective customers that  BD and
      such  Broker-Dealers  believe are Existing Holders of shares of the DARTS.
      BD shall comply with any  such  request,  and  the  Trust  Company and the
      Company shall not disclose any such information so provided  to any Person
      except as provided and in accordance with Sections 2.2 (f), 2.7 and 4.7 of
      the Trust Company Agreement.

                   (d)    The  Trust  Company  is  not  required  to accept  the
      Purchaser's Letter of any Potential Holder who wishes to submit  a Bid for
      the  first time in an Auction or any amendment to a Purchaser's Letter  of
      any  Potential   Holder  or  Existing  Holder  who  wishes  to  amend  its
      Purchaser's Letter  intending  that  such amendment is to take effect with
      respect to an Auction, unless such Purchaser's Letter or such amendment is
      received by the Trust Company by 3:00  P.M.  on the Business Day preceding
      such Auction Date.

      2.3    AUCTION SCHEDULE: METHOD OF SUBMISSION OF ORDERS.

                   (a)    The Trust Company shall conduct Auctions in accordance
      with the schedule set forth below.  Such schedule  may  be  changed by the
      Trust Company with the consent of the Company, which consent  shall not be
      unreasonably withheld.  The Trust Company shall give written notice of any
      such  change  to  BD.   Such  notice shall be received prior to the  first
      Auction Date on which any such change shall be effective.

                                       4
<PAGE>

Time on Auction Date                                     Event
- --------------------                                     -----

By 9:30 A.M.                               Trust Company advises Company and
                                           Broker-Dealers of 60-day "AA"
                                           Composite Commercial Paper Rate, the
                                           Minimum Applicable Rate and the
                                           Maximum Applicable Rate as set forth
                                           in Section 2.2 (a) hereof.

Between 9:30 A.M. and 12:30 P.M.           Trust Company assembles information
                                           communicated to it by Broker-Dealers
                                           as provided in Section 6.9 (c) of
                                           Article VI of the By-Laws. Submission
                                           Deadline is 12:30 P.M. or such other
                                           time on any Auction Date as the Trust
                                           Company specifies.

After 1:00 P.M.                            Trust Company makes determinations
                                           pursuant to Section 6.9 (d) (i) of
                                           Article VI of the By-Laws.

By approximately 3:00 P.M.                 Trust Company advises Company of
                                           results of Auction as provided in
                                           Section 6.9 (d) (ii) of Article VI of
                                           the By-Laws. Submitted Bids and
                                           Submitted Sell Orders are accepted
                                           and rejected and shares of the DARTS
                                           allocated as provided in Section 6.9
                                           (e) of Article VI of the By-Laws. The
                                           Trust Company gives notice of Auction
                                           results as set forth in Section 2.4
                                           (a) hereof.

                   (b)    BD agrees to  maintain  a list of Potential Holders to
      contact the Potential Holders on such list on  or  prior  to  each Auction
      Date  for the purposes set forth in Section 6.9 of Article VI of  the  By-
      Laws, and  to  deliver  to  each  Potential Holder prior to such Potential
      Holder's initial participation in an  Auction  (i)  a  Prospectus, if such
      delivery is in the 90-day period following the date of the  Prospectus, or
      (ii) a Summary, if such delivery is thereafter.

                   (c)    BD agrees not to sell, assign or dispose of any shares
      of  the  DARTS  to  any  Person who has not delivered a signed Purchaser's
      Letter to the Trust Company.

                                       5
<PAGE>

                   (d)    BD shall submit Orders to the Trust Company in writing
      in substantially the form  attached  hereto  as Exhibit E or by electronic
      transmission of a type acceptable to the Trust  Company.   BD shall submit
      separate Orders to the Trust Company for each Potential Holder or Existing
      Holder  on  whose  behalf BD is submitting an Order and shall not  net  or
      aggregate the Orders of different Potential Holders or Existing Holders on
      whose behalf BD is submitting Orders.

                   (e)    BD  shall  deliver  to Trust Company a written notice,
      substantially in the form attached hereto  as  Exhibit  F, of transfers of
      shares  of  the  DARTS  made through BD by an Existing Holder  to  another
      Person other than pursuant  to  an  Auction  and,  subject to the terms of
      Section 2.2 (d) hereof, shall deliver or cause to be delivered the related
      Purchaser's  Letter  executed  by  such  Person  if  such Person  has  not
      previously  so  delivered or caused to be delivered a Purchaser's  Letter.
      BD shall deliver  a  written  notice,  substantially  in the form attached
      hereto  as  Exhibit  G, of the failure of any shares of the  DARTS  to  be
      transferred to or by any Person that purchased or sold shares of the DARTS
      through BD pursuant to  the Auction.  The Trust Company is not required to
      accept any notice specified  in  this  section  2.3  (e)  intended to take
      effect  with  respect  to  an Auction unless it is received by  the  Trust
      Company by 3:00 P.M. on the  business  Day  preceding  the related Auction
      Date.

                   (f)    BD  on  or prior to the Date of Original  Issue  shall
      provide the Trust Company with  a  list of the initial Existing Holders of
      the shares of the DARTS who purchased  such shares through BD, if any.  In
      order to verify the accuracy and authenticity  of  the  list  of  Existing
      Holders  so provided or the Holder Lists provided pursuant to Section  2.2
      (c), the Trust  Company  may  confirm  those lists by sending confirmation
      notices containing lists ("confirmation lists") of the Existing Holders or
      prior Holders, as the case may be, to BD  within  ten Business Days of the
      Trust Company's receipt thereof If the lists contained in any confirmation
      list  received by BD shall not conform to the original  list  of  Existing
      Holders  or  Holders  Lists  provided by BD to the Trust Company, BD shall
      notify the Trust Company of such  discrepancy  within  two  Business  Days
      after  its  receipt of the Trust Company's confirmation lists.  Subject to
      any change based  on  any discrepancy notified to the Trust Company by BD,
      the confirmation lists  sent by the Trust Company shall, in the absence of
      manifest error, be binding and conclusive on the Company and BD.

                   (g)    BD  agrees   to   handle   its  customer's  Orders  in
      accordance with its duties under applicable securities laws and rules.

      2.4    NOTICES.

                   (a)    On each Auction Date, the Trust  Company  shall notify
      BD by telephone as provided in paragraph (a) of the Settlement Procedures.
      By  approximately  10:30 A.M.  on  the  Business Day next succeeding  such
      Auction  Date,  the  Trust  Company shall notify  BD  in  writing  of  the

                                       6
<PAGE>

      disposition of all Orders submitted  by  BD  in  the  Auction held on such
      Auction Date.

                   (b)    BD  shall  notify  each Existing Holder  or  Potential
      Holder on whose behalf BD has submitted  an Order as provided in paragraph
      (b) of the Settlement Procedures and take such other action as is required
      of BD pursuant to the Settlement Procedures.

                   (c)    If the number of Dividend  Period Days is increased as
      provided in Section 6.4 (b) (i) of Article VI of  the  By-Laws,  the Trust
      Company  shall  provide BD with a form of notice of such change not  later
      than five days after  the  receipt  of  such  form  of notice by the Trust
      Company  from the Company.  BD shall mail a copy of such  notice  (at  the
      address specified  in  such  Existing Holder's Purchaser's Letter) to each
      Existing Holder which acquired  through  BD,  and, to the knowledge of BD,
      has not disposed of its shares of the DARTS, at least 10 days prior to the
      first day of the Dividend Period for which such change is to be effective.

      2.5    SERVICE CHARGE TO BE PAID TO BD.  On each Dividend Payment Date for
the  DARTS,  the  Trust Company shall pay to BD from monies  received  from  the
Company an amount equal to the product of (1) a fraction, the numerator of which
is the number of days  in the Dividend Period beginning on such Dividend Payment
Date (calculated by counting  the  first  day but excluding the last day of such
Dividend Period) and the denominator of which  is  360,  (ii)  1/4  of 1%, (iii)
$100,000 and (iv) the sum of (A) the aggregate number of the shares of the DARTS
placed  by  BD  in  such Auction that were (x) the subject of Submitted Bids  of
Existing Holders submitted  by  BD  and continued to be held as a result of such
submission and (y) the subject of Submitted  Bids of Potential Holders submitted
by  BD  and  were purchased as a result of such submission,  (B)  the  aggregate
number of shares  of  the  DARTS  subject  to valid Hold Orders submitted to the
Trust Company by BD and (C) the number of shares  of the DARTS that were covered
by Hold Orders deemed to have been submitted by Existing  Holders  and that were
acquired  by  such Existing Holders through BD.  For purposes of subclause  (iv)
(C) of the foregoing sentence, if any Existing Holder who acquired shares of the
DARTS through BD transfers those shares to another Person other than pursuant to
an Auction, then  BD  shall  continue  to be the Broker-Dealer for the shares so
transferred; PROVIDED, HOWEVER, that if  the transfer was effected by, or if the
transferee is, a Broker-Dealer other than  BD,  then  such  other  Broker-Dealer
shall be the Broker-Dealer for such shares.

      2.6    SETTLEMENT.

                   (a)    If  any  Existing  Holder  on  whose  behalf  BD   has
      submitted  a Bid or Sell Order that was accepted in whole or in part fails
      to instruct  its  Agent  Member  to  deliver  shares  of the DARTS against
      payment  therefor, BD shall instruct such Agent Member to  deliver  to  it
      such shares  against  payment therefor and BD may deliver to the Potential
      Holder on whose behalf BD submitted a Bid that was accepted in whole or in
      part a number of shares  of  the  DARTS  that  is  less than the number of

                                       7
<PAGE>

      shares  of  the  DARTS  specified  in  such Bid to the purchaser  by  such
      Potential Holder.  Notwithstanding the foregoing terms of this Section 2.6
      (a), any delivery or non-delivery of shares  of DARTS which represents any
      departure  from  the  results of an Auction, as determined  by  the  Trust
      Company, shall be of no  effect  unless  and until the Trust Company shall
      have  been notified of such delivery or non-delivery  in  accordance  with
      Section 2.3 (e) hereof.  The Trust Company shall have no duty or liability
      with respect to enforcement of this Section 2.6 (a).

                   (b)    Neither  the  Trust Company nor the Company shall have
      any responsibility or liability with respect to the failure of an Existing
      Holder,  a  Potential Holder or its respective  Agent  Member  to  deliver
      shares of the  DARTS  or  to pay for shares of the DARTS sold or purchased
      pursuant to the Auction Procedures or otherwise.

      2.7    DISBURSEMENT OF ADDITIONAL  DIVIDENDS.  If the Company provides the
Trust Company and BD with a notice of its  intent  to  pay  Additional Dividends
substantially  in  the  form  set  forth  in  Exhibit H hereto with  appropriate
insertions (the "Additional Dividend Notice"),  and  not  later than noon on the
Business  day  immediately  preceding  the  Additional  Dividend   Payment  Date
specified in such notice, the Trust Company or the Company irrevocably  deposits
with BD sufficient funds for the payment of such Additional Dividends, BD  shall
disburse such funds to Existing Holders and former Holders in the amounts and in
accordance  with  instructions  specified in the Additional Dividend Notice.  BD
shall have no duty or liability with  respect  to this Section 2.7 other than to
disburse the amounts received by it from the Trust Company or the Company in the
manner specified in the Additional Dividend Notice.

3.    THE TRUST COMPANY.

      3.1    DUTIES AND RESPONSIBILITIES.

                   (a)    The Trust Company is acting  solely  as  agent  of the
      Company  hereunder  and  owes  no  fiduciary duties to any other Person by
      reason of this Agreement.

                   (b)    The Trust Company  undertakes  to  perform such duties
      and only such duties as are specifically set forth in this  Agreement, and
      no  implied  covenants  or  obligations  shall be read into this Agreement
      against the Trust Company.

                   (c)    In the absence of bad faith or negligence on its part,
      the Trust Company shall not be liable for  any  action  taken, suffered or
      omitted or for any error of judgment made by it in the performance  of its
      duties  under  this  Agreement.  The Trust Company shall not be liable for
      any error of judgment  made  in  good faith unless the Trust Company shall
      have been negligent in ascertaining the pertinent facts.

                                       8
<PAGE>

      3.2    RIGHTS OF THE TRUST COMPANY.

                   (a)    The Trust Company  may  rely and shall be protected in
      acting or refraining from acting upon any communication authorized by this
      Agreement  and upon any written instruction, notice,  request,  direction,
      consent, report,  certificate,  share  certificate  or  other  instrument,
      paper, or document believed by it to be genuine.  The Trust Company  shall
      not  be  liable  for acting upon any telephone communication authorized by
      this Agreement which the Trust Company believes in good faith to have been
      given by the Company  or by a Broker-Dealer.  The Trust Company may record
      by tape or otherwise telephone communications with the Broker-Dealers.

                   (b)    The  Trust  Company  may  consult with counsel and the
      advice  of  such  counsel  shall  be full and complete  authorization  and
      protection in respect of any action  taken,  suffered  or  omitted  by  it
      hereunder in good faith and in reliance thereon.

                   (c)    The  Trust  Company  shall not be required to advance,
      expend  or risk its own funds or otherwise  incur  or  become  exposed  to
      financial liability in the performance of its duties hereunder.

                   (d)    The  Trust Company may perform its duties and exercise
      its rights hereunder either directly or by or through agents or attorneys.

      3.3    TRUST  COMPANY'S  DISCLAIMER.    The   Trust   Company   makes   no
representation as to the validity or adequacy of this Agreement or the shares of
the DARTS.

4.    MISCELLANEOUS.

      4.1    TERMINATION.  Either party may terminate this Agreement at any time
on  five  days'  notice  to  the  other  party.   This Agreement shall terminate
automatically upon termination of the Trust Company Agreement.

      4.2    AGENT MEMBER.  At the date hereof BD is,  and  shall remain for the
terms  of  this  Agreement,  a  participant  in,  or  member of, the  Securities
Depository.

      4.3    COMMUNICATIONS.  Except for (i) communications  authorized to be by
telephone by this Agreement or the Auction Procedures or (ii)  communications in
connection  with  the  Auctions (other than those expressly required  to  be  in
writing),  all  notices, requests  and  other  communications  to  either  party
hereunder shall be  in writing (including telecopy or similar writing) and shall
be given to such party, addressed to it, at its address or telecopier number set
forth below:

                                       9
<PAGE>

If to BD:                                          J.P. Morgan
addressed:                                         60 Wall Street
                                                   New York, NY 10260
                                   Attention:      Kevin C. O'Connor
                                   Telecopier No:  212-648-5628
                                   Telephone No:   212-648-0947

If to the Auction Agent:                           Bankers Trust Company
                                                   4 Albany Street
                                                   New York, New York 10005
                                                   Attn: Linda Reale
                                                   Telecopier No: (212) 250-1502
                                                   Telephone No: (212) 250-6850

or  such other address,  telephone  or  telecopier  number  as  such  party  may
hereafter  specify  for  such  purpose  by notice to the other party.  Each such
notice, request or communication shall be  effective (i) if given by telex, when
such  telex  is  transmitted  to  the  telex number  specified  herein  and  the
appropriate answer back is received or (ii)  if  given  by any other means, when
delivered at the address specified herein.  Communications  shall  be  given  on
behalf of BD by a BD Officer and on behalf of the Trust Company by an Authorized
Officer.  BD may record telephone communications with the Trust Company.

      4.4    ENTIRE  AGREEMENT.   This  Agreement  contains the entire agreement
between  the parties relating to the subject matter hereof,  and  there  are  no
other representations,  endorsements,  promises,  agreements  or understandings,
oral,  written or inferred, between the parties relating to the  subject  matter
hereof.

      4.5    BENEFITS.   Nothing  in  this  Agreement, express or implied, shall
give to any person, other than the Company, the  Trust  Company and BD and their
respective successors and assigns any benefits of any legal  or equitable right,
remedy or claim under this Agreement.

      4.6    AMENDMENT; WAIVER.

                   (a)    This Agreement shall not be deemed or  construed to be
      modified,  amended,  rescinded, canceled or waived, in whole or  in  part,
      except by a written instrument  signed  by duly authorized representatives
      of the parties hereto.

                   (b)    Failure of either party  to this Agreement to exercise
      any right or remedy hereunder in the event of  a  breach of this Agreement
      by  the other party shall not constitute a waiver of  any  such  right  or
      remedy with respect to any subsequent breach.

      4.7    SUCCESSORS  AND  ASSIGNS.   This  Agreement  shall be binding upon,
inure  to the benefit of, and be enforceable by, the respective  successors  and
assigns of BD and the Trust Company.

                                       10
<PAGE>

      4.8    SEVERABILITY.    If  any  clause,  provision  or  Section  of  this
Agreement shall be ruled invalid  or  unenforceable  by  any  court of competent
jurisdiction,  the invalidity or unenforceability of such clause,  provision  or
Section shall not  affect  any of the remaining clauses, provisions and sections
hereof.

      4.9    EXECUTION IN COUNTERPARTS.   This  Agreement  may  be  executed  in
several  counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

5.    GOVERNING LAW.  This Agreement shall be governed by and construed in

accordance with the laws of the State of New York.

IN WITNESS  WHEREOF,  the  parties  hereto have caused this Agreement to be duly
executed and delivered by their proper  and  duly  authorized officers as of the
date first above written.

                                       BANKERS TRUST COMPANY

                                       By: /s/ Tony Gomez
                                           ---------------------------
                                           Name:  Tony Gomez
                                           Title: Associate


                                       J.P. Morgan

                                       By: /s/ Kevin O'Connor
                                           ---------------------------
                                           Name:  Kevin O'Connor
                                           Title: Vice President

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.13
<SEQUENCE>21
<FILENAME>b-damend.txt
<DESCRIPTION>EXHIBIT 99.13(E)
<TEXT>
            MERRILL LYNCH [LOGO]
            --------------------------------------------------------------------
            Global Markets & Investment Banking


                                                               December 27, 2005

                                    AMENDMENT

Alfred Ouellette
Assistant Vice President and Senior Counsel
John Hancock Advisors, LLC
601 Congress Street, 11th Floor
Boston, MA 02210


Robert Sandt
Vice President
Deutsche Bank Trust Company Americas
60 Wall Street, 27th Floor MS NYC60-2715
New York, NY 10005

Ladies and Gentlemen:

        Reference is made to the Broker-Dealer Agreements (collectively, the
"Broker-Dealer Agreements") between Deutsche Bank Trust Company Americas
(formerly known as Bankers Trust Company) (acting not in its individual capacity
but solely as the agent in each case of the applicable Company, the "Auction
Agent") and Merrill Lynch, Pierce, Fenner &. Smith Incorporated ("Merrill
Lynch") relating to the Auction Market' Preferred Stock or Bonds of the issuers
(each, an "Issuer") listed in Annex A hereto (collectively, the "AMPS").

         Pursuant to the Broker-Dealer Agreements, Merrill Lynch is required to
obtain from each purchaser of AMPS a purchaser's letter (the "Purchaser's
Letter"), the form of which is attached as Annex B hereto. Merrill Lynch would
like to amend the Broker-Dealer Agreements to the extent necessary to eliminate
the requirement that Merrill Lynch obtain the Purchaser's Letters; and, the
Issuer (specified below) also would like the Broker-Dealer Agreement(s) to which
it is party to be so amended.

        Accordingly, said Broker-Dealer Agreement(s) is(are) hereby amended to
eliminate any requirement that Merrill Lynch obtain a Purchaser's Letter from
any purchaser of AMP's.

        This Amendment is limited as specified and shall not constitute a
modification, acceptance or waiver of any other provision of any Broker-Dealer
Agreement. This Amendment may be executed in any number of counterparts and by

<PAGE>

the different parties hereto on separate counterparts, each of which when
executed and delivered shall be an original, but all of which shall together
constitute one and the same instrument.

        This Amendment shall be construed in accordance with and governed by the
law of the State of New York (without reference to choice of law doctrine).

        This Amendment shall become effective as of the date written above when
executed by Merrill Lynch and the Auction Agent; provided, that it is understood
by Merrill Lynch and by the Issuer that the Auction Agent is executing this
Amendment not in its individual capacity but solely as agent of the Issuer and
that execution hereof by the Issuer shall constitute a direction by the Issuer
to the Auction Agent to execute this Amendment as agent for the Issuer.


<PAGE>




         We hereby request that (i) the Issuer indicate its consent to this
Amendment and its instruction to the Auction Agent to execute this Amendment by
signing this Amendment in the space provided below and (ii) the Auction Agent
execute this Amendment in the space provided below pursuant to the Issuer's
instruction as heretofore described.



                                  Very truly yours,
                                  MERRILL LYNCH, PIERCE, FENNER & SMITH
                                               INCORPORATED



                                  By       /s/ Frances M. Constable
                                           -------------------------------------
                                           Frances M. Constable
                                           Managing Director



By countersigning below, the Issuer consents to this Amendment and instructs the
Auction Agent to execute this Amendment as of the date first written above:

JOHN HANCOCK ADVISERS, LLC on behalf of the Funds listed on Annex A




By /s/ Alfred Ouellette
   ------------------------------------------------
   Alfred Ouellette
   Assistant Vice President and Senior Counsel

By countersigning below, the Auction Agent consents to this Amendment, not in
its individual capacity but solely as agent of the Issuer, as of the date first
written above:

DEUTSCHE BANK TRUST COMPANY AMERICAS



By /s/ Robert Sandt
   ---------------------------------
   Robert Sandt
   Vice President




<PAGE>




                                    ANNEX A
CUSIP                                                 $MM          ISSUE DATE
41013G301         JHN HNCCK/PTRIOT GLB                60.000        04/30/93
41013Q200         JNH HNCCK/PTRIOT PRM                62.500        12/16/88
41013T204         JHN HNCCK/PTRIOT PRM                50.000        12/14/89
41013T303         JHN HNCCK/PTRIOT PRM                50.000        12/14/89
41013U201         JHN HNCCK/PTRIOT SLT                70.000        08/23/90



<PAGE>




                                     ANNEX B

           TO BE SUBMITTED TO YOUR BROKER-DEALER OR REMARKETING AGENT

                            Master Purchaser's Letter

                                   Relating to
                       Securities Involving Rate Settings
                        Through Auctions or Remarketings

THE COMPANY
A REMARKETING AGENT
THE TRUST COMPANY
A BROKER-DEALER
AN AGENT MEMBER
OTHER PERSONS

Dear Sirs:

        1. This letter is designed  to apply to  publicly or  privately  offered
debt or equity securities ("Securities") of any issuer (the "Company") which are
described in any final prospectus or other offering  materials  relating to such
Securities  as the same  may be  amended  or  supplemented  (collectively,  with
respect to the particular  Securities  concerned,  the  "Prospectus")  and which
involve  periodic rate setting  through  auctions  ("Auctions")  or  remarketing
procedures ("Remarketing").  This letter shall be for the benefit of any Company
and of any trust company,  auction  agent,  paying agent  (collectively,  "trust
company"), remarketing agent, broker-dealer, agent member, securities depository
or other  interested  person  in  connection  with any  Securities  and  related
Auctions or Remarketings  (it being understood that such persons may be required
to  execute   specified   agreements   and  nothing   herein  shall  alter  such
requirements).  The  terminology  used  herein is  intended to be general in its
application  and not to  exclude  any  Securities  in  respect  of which (in the
Prospectus or otherwise) alternative terminology is used.

        2. We may from time to time offer to purchase,  purchase,  offer to sell
and/or sell  Securities of any Company as described in the  Prospectus  relating
thereto. We agree that this letter shall apply to all such purchases,  sales and
offers and to Securities  owned by us. We understand that the  dividend/interest
rate on Securities  may be based from time to time on the results of Auctions or
Remarketings as set forth in the Prospectus.

        3. We agree that any bid or sell  order  placed by us in an Auction or a
Remarketing shall constitute an irrevocable offer (except as otherwise described
in the Prospectus) by us to purchase or sell the Securities  subject to such bid
or sell order,  or such lesser  amount of  Securities as we shall be required to
sell or purchase as a result of such Auction or  Remarketing,  at the applicable
price, all as set forth in the Prospectus, and that if we fail to place a bid or
sell order with respect to Securities  owned by us with a  broker-dealer  on any
Auction or Remarketing date, or a broker-dealer to which we communicate a bid or
sell  order  fails to  submit  such bid or sell  order to the trust  company  or
remarketing agent concerned, we shall be deemed to have placed a hold order with
respect to such  Securities  as described in the  Prospectus.  We authorize  any
broker-dealer  that  submits  a bid or sell  order as our agent in  Auctions  or
Remarketings to execute contracts for the sale of Securities covered by such bid
or  sell  order.  We  recognize  that  the  payment  by such  broker-dealer  for
Securities purchased on our behalf shall not relieve us of any liability to such
broker-dealer for payment for such Securities.

        4. We understand that in a Remarketing, the dividend or interest rate or
rates on the  Securities  and the  allocation  of  Securities  tendered for sale
between  dividend or interest  periods of  different  lengths will be based from
time to time on the determinations of one or more remarketing  agent(s),  and we
agree to be conclusively bound by such  determinations.  We further agree to the
payment  of  different  dividend  or  interest  rates to  different  holders  of
Securities depending on the length of the dividend or interest period elected by

<PAGE>

such holders. We agree that any notice given by us to a remarketing agent (or to
a broker-dealer for transmission to a remarketing agent) of our desire to tender
Securities  in a Remarketing  shall  constitute  an  irrevocable  (except to the
limited extent set forth in the  Prospectus)  offer by us to sell the Securities
specified in such notice,  or such lesser  number of  Securities  as we shall be
required to sell as a result of such  Remarketing,  in accordance with the terms
set forth in the  Prospectus,  and we authorize the  remarketing  agent to sell,
transfer or otherwise dispose of such Securities as set forth in the Prospectus.

        5. We agree  that,  during the  applicable  period as  described  in the
Prospectus, dispositions of Securities can be made only in the denominations set
forth in the Prospectus and we will sell,  transfer or otherwise  dispose of any
Securities  held by us from time to time only  pursuant  to a bid or sell  order
placed in an Auction,  in a Remarketing,  to or through a broker-dealer or, when
permitted in the  Prospectus,  to a person that has signed and  delivered to the
applicable  trust company or a remarketing  agent a letter  substantially in the
form of this letter (or other applicable  purchaser's letter),  provided that in
the case of an transfers  other than pursuant to Auctions or  Remarketings we or
our  broker-dealer  or our agent  member  shall  advise such trust  company or a
remarketing agent of such transfer. We understand that a restrictive legend will
be  placed  on  certificates   representing  the  Securities  and  stop-transfer
instructions will be issued to the transfer agent and/or  registrar,  all as set
forth in the Prospectus.

        6. We agree  that,  during the  applicable  period as  described  in the
Prospectus,  ownership of Securities  shall be represented by one or more global
certificates  registered in the name of the applicable  securities depository or
its  nominee,   that  we  will  not  be  entitled  to  receive  any  certificate
representing  the Securities  and that our ownership of any  Securities  will be
maintained in book-entry  form by the  securities  depository for the account of
our  agent  member,  which  in turn  will  maintain  records  of our  beneficial
ownership.  We  authorize  and  instruct  our agent  member to  disclose  to the
applicable trust company or remarketing  agent such  information  concerning our
beneficial  ownership of Securities as such trust company or  remarketing  agent
shall request.

        7. We  acknowledge  that partial  deliveries of Securities  purchased in
Auctions or Remarketings  may be made to us and such deliveries shall constitute
good delivery as set forth in the Prospectus.

        8. This letter is not a commitment by us to purchase any Securities.

        9.  This  letter  supersedes  any  prior-dated  version  of this  master
purchaser's  letter, and supplements any prior or post-dated  purchaser's letter
specific to any particular Securities,  and this letter may only be revoked by a
signed writing delivered to the original recipients hereof.

        10. The  descriptions of Auction or Remarketing  procedures set forth in
each applicable  Prospectus are  incorporated by reference herein and in case of
any conflict between this letter,  any purchaser's letter specific to particular
Securities and any such description, such description shall control.

        11. Any  xerographic,  or other copy of this  letter  shall be deemed of
equal effect as a signed original.

        12. In the case of each offer to  purchase,  purchase,  offer to sell or
sale by us of Securities  not  registered  under the  Securities Act of 1933, as
amended (the "Act"), we represent and agree as follows:

             (A) We understand and expressly acknowledge that the Securities
have not been and will not be registered under the Act and, accordingly, that
the Securities may not be reoffered, resold or otherwise pledged, hypothecated
or transferred unless an applicable exemption from the registration requirements
of the Act is available.

             (B) We hereby confirm that any purchase of Securities made by us
will be for our own account, or for the account of one or more parties for which
we are acting as trustee or agent with complete investment discretion and with
authority to bind such parties, and not with a view to any public resale or
distribution thereof. We and each other party for which we are acting which will
acquire Securities will be "accredited investors" within the meaning of
Regulation D under the Act with respect to the Securities to be purchased by us
or such party, as the case may be, will have previously invested in similar
types of instruments and will be able and prepared to bear the economic risk of
investing in and holding such Securities.

<PAGE>

             (C) We acknowledge that prior to purchasing any Securities we have
had access to such financial and other information as we deem necessary in
connection with our decision to purchase Securities.

             (D) We recognize that the Company and broker-dealers or remarketing
agents will rely upon the truth and accuracy of the foregoing investment
representations and agreements, and we agree that each of our purchases of
Securities now or in the future shall be deemed to constitute our concurrence in
all of the foregoing which shall be binding on us and each party for which we
are acting as set forth in Subparagraph B above.


Date: ___________________  MLPF&S   Account ____________________________________
                           Number:
                                            By (signature):_____________________
                                            Name (print):_______________________
                                            Title (if applicable):______________
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.13
<SEQUENCE>22
<FILENAME>jeffries-bd_agmt.txt
<DESCRIPTION>EXHIBIT 99.13(F)
<TEXT>
                            BROKER-DEALER AGREEMENT

                                    between

                      DEUTSCHE BANK TRUST COMPANY AMERICAS

                                      and

                                JEFFERIES & CO.

                           Dated as of April 7, 2003

                                  Relating to

                   DUTCH AUCTION RATE TRANSFERABLE SECURITIES

                                PREFERRED STOCK

                                  SERIES A & B

                                       Of

                 JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II


<PAGE>

      BROKER-DEALER  AGREEMENT  dated  as of April 7, 2003 between Deutsche Bank
Trust Company Americas, a New York corporation  (not  in its individual capacity
but solely as agent of the Company pursuant to authority  granted  to  it in the
"Trust Company Agreement) (together with its successors and assigns, the  "Trust
Company"),  and  Jefferies  &  Co.,  a California corporation (together with its
successors and assigns, "BD").

      The  Company has issued 500 shares  of  Dutch  Auction  Rate  Transferable
Securities Preferred  Stock  Series  A  (the Series A "DARTS") and 500 Shares of
Dutch Auction Rate Transferable Securities  Preferred Stock Series B (the Series
B "DARTS" and, together with the Series A DARTS,  the  "DARTS")  pursuant to its
Amended and Restated Agreement and Declaration of Trust ("Declaration of Trust")
and its Amended and Restated By-Laws (the "By-Laws").

      The By-Laws provide that the dividend rate on the shares of each series of
the DARTS for each Dividend Period with respect to such series after the initial
Dividend Period with respect to such series shall be the Applicable  Rate, which
shall, except under certain circumstances, be the rate per annum that  a bank or
trust  company  appointed by the Company advises results from implementation  of
the Auction Procedures  with  respect to the DARTS of such series.  The Board of
Trustees of the Company has adopted  a resolution appointing Deutsche Bank Trust
Company Americas for purposes of implementing the Auction Procedures and related
matters.   Pursuant to Section 2.5 (d)  of  the  Trust  Company  Agreement,  the
Company has requested and directed the Trust Company to execute and deliver this
Agreement.

      The Auction  Procedures  require  the participation of one or more Broker-
Dealers.

      NOW, THEREFORE, in consideration of the mutual covenants contained herein,
the Trust Company and BD agree as follows:

1.    DEFINITIONS AND RULES OF CONSTRUCTION.

1.1.  TERMS  DEFINED  BY  REFERENCES  TO  DECLARATION   OF  TRUST  AND  BY-LAWS.
Capitalized  terms  not  defined  herein  shall  have  the  respective  meanings
specified in the Company's Declaration of Trust and By-Laws.

1.2.  TERMS  DEFINED HEREIN.  As used herein in the Settlement  Procedures,  the
following terms  shall have the following meanings, unless the context otherwise
requires:

      (a)   "Auction" shall have the meaning specified in Section 2.1 hereof.

      (b)   "Auction  Procedures" shall mean the auction procedures as set forth
      in Section 9 of Article VI of the By-Laws.

      (c)   "Authorized  Officer"  shall  mean  each Senior Vice President, Vice
      president, Assistant Vice President, Assistant  Manager  and Trust Officer
      of the Trust Company assigned to its Corporate Trust Department  and every
      other   officer  or  employee  of  the  Trust  Company  designated  as  an
      "Authorized  Officer" for purposes of this Agreement in a communication to
      BD.

<PAGE>

      (d)   "BD Officer" shall mean each officer or employee of BD designated as
      a "BD Officer"  for  purposes  of this Agreement in a communication to the
      Trust Company.

      (e)   "Broker-Dealer  Agreement"   shall   mean  this  Agreement  and  any
      substantially similar agreement between the  Trust  Company  and a Broker-
      Dealer.

      (f)   "By-Laws" shall mean the Company's Amended and Restated  By-Laws  as
      adopted by the Company's Board of Trustees on September 6, 1990, a copy of
      which  is  attached  hereto  as Exhibit A, as the same may be amended from
      time to time.

      (g)   "Company shall mean John Hancock Patriot Premium Dividend Fund II, a
      Massachusetts business trust, and its successors and assigns.

      (h)   "Declaration of Trust" shall  mean  the Agreement and Declaration of
      Trust  of  the  Company  as filed by the Company  in  the  office  of  the
      Secretary of State of the  Commonwealth  of  Massachusetts on December 14,
      1989, and as amended and restated on December 12, 1989, a copy of which is
      attached hereto as Exhibit B.

      (i)   "Prospectus"  shall  mean  the prospectus dated  December  14,  1989
      relating to the issuance and offering of the shares of the DARTS.

      (j)   "Purchaser's  Letter"  shall  mean   a   Master  Purchaser's  Letter
      substantially in the form attached hereto as Exhibit C.

      (k)   "Settlement   Procedures"  shall  mean  the  Settlement   Procedures
      attached hereto as Exhibit D.

      (l)   "Summary" shall  mean  a  summary  description  of the DARTS and the
      Auction Procedures and Settlement Procedures with respect thereto.

      (m)   "Trust  Company  Agreement" shall mean the Trust Company  Agreement,
      dated as of December 21,  1989,  between the Company and the Trust Company
      relating to the DARTS.

1.3.  RULES OF CONSTRUCTION.  Unless the  context  or  use  indicates another or
different meaning or intent, the following rules shall apply to the construction
of this Agreement:

      (a)   Words importing the singular number shall include  the plural number
      and vice versa.

      (b)   The  captions  and  headings  herein  are solely for convenience  of
      reference and shall not constitute a part of this Agreement nor shall they
      affect the meaning, construction or effect of any provision hereof.

      (c)   The words "hereof," "herein," "hereto,"  and  other words of similar
      import refer to this Agreement as a whole.

      (d)   All references herein to a particular time of day  shall  be  to New
      York City time.

                                       2

<PAGE>

2.    THE  AUCTION.   Separate  Auctions will be held for the Series A DARTS and
the Series B DARTS.  Unless the context  otherwise  requires,  references to the
DARTS in this Section shall be deemed references to the Series A  DARTS  or  the
Series B DARTS, as the case may be.

2.1.  PURPOSE;  INCORPORATION  BY REFERENCE OF AUCTION PROCEDURES AND SETTLEMENT
PROCEDURES.

      (a)   The provisions of the  Auction  Procedures  will  be followed by the
      Trust Company for the purpose of determining the Applicable  Rates for the
      DARTS.  Each periodic operation of such Auction Procedures is  hereinafter
      referred to as an "Auction."

      (b)   All  of the provisions contained in the Auction Procedures  and  the
      Settlement Procedures  are  incorporated  herein  by  reference  in  their
      entirety  and  shall  be deemed to be a part of this Agreement to the same
      extent as if such provisions were fully set forth herein.

      (c)   Unless BD has heretofore  done  so,  BD  is  delivering  herewith  a
      Purchaser's  Letter  executed  by  BD.  BD agrees to act as, to assume the
      obligations  of, and to be subject to  the  limitations  and  restrictions
      placed upon, a  Broker-Dealer  under  this Agreement.  BD understands that
      other Persons meeting the requirements  specified  in  the  definition  of
      "Broker-Dealer"  contained  in  Section 6.9 (a) (vii) of Article VI of the
      By-Laws may execute Broker-Dealer  Agreements  and Purchaser's Letters and
      participate as Broker-Dealers in Auctions.  BD agrees  to  handle customer
      orders   in   accordance  with  its  respective  duties  under  applicable
      securities laws and rules.

      (d)   BD and other  Broker-Dealers  may  participate in Auctions for their
      own accounts, provided that BD or such other  Broker-Dealers,  as the case
      may  be,  have executed and deposited with the Trust Company a Purchaser's
      Letter.  However,  the  Company may, by notice to BD and all other Broker-
      Dealers, prohibit all Broker-Dealers  from submitting Bids in Auctions for
      their own account, but the Broker-Dealers  may continue to submit Hold and
      Sell Orders.  The Trust Company shall have no  duty  or  responsibility to
      monitor the provisions of this Section 2.1 (d).

2.2.  PREPARATION FOR EACH AUCTION.

      (a)   Not  later than 9:30 on each Auction Date, the Trust  Company  shall
      advise the Broker-Dealers  by  telephone  of  the  60-day  "AA"  Composite
      Commercial  Paper  Rate,  The  Minimum  Applicable  Rate  and  the Maximum
      Applicable Rate.

      (b)   In the event that the Auction Date for any Auction shall be  changed
      after  the  Trust Company has given notice referred to in clause (vii)  of
      paragraph (a)  of  the  Settlement  Procedures, the Trust Company, by such
      means as the Trust Company deems practicable,  shall  give  notice of such
      change  to  BD not later than the earlier of 9:15 A.M. on the new  Auction
      Date or 9:15  on  the  old  Auction  Date.   Thereafter, BD shall promptly
      notify its customers whom BD believes are Existing  Holders  of  shares of
      the DARTS of such change in Auction Date.

      (c)   For  each Auction Date for which BD submits an Order for any  Bidder
      which is accepted,  BD  shall  maintain,  for a period of at least fifteen
      months, a list of such Holder or Holders and the number of shares of DARTS

                                       3

<PAGE>

      held  by  each such Holder (Holder Lists").   The  Trust  Company  or  the
      Company from  time  to time may request BD and each other Broker-Dealer to
      provide the Trust Company or the Company with any such Holder Lists and/or
      with a list of their  respective customers that BD and such Broker-Dealers
      believe are Existing Holders of shares of the DARTS.  BD shall comply with
      any such request, and the Trust Company and the Company shall not disclose
      any such information so  provided  to any Person except as provided and in
      accordance  with  Sections 2.2 (f), 2.7  and  4.7  of  the  Trust  Company
      Agreement.

      (d)   The Trust Company  is  not required to accept the Purchaser's Letter
      of any Potential Holder who wishes  to  submit a Bid for the first time in
      an  Auction  or any amendment to a Purchaser's  Letter  of  any  Potential
      Holder or Existing  Holder  who  wishes  to  amend  its Purchaser's Letter
      intending  that  such  amendment  is  to take effect with  respect  to  an
      Auction, unless such Purchaser's Letter  or  such amendment is received by
      the Trust Company by 3:00 P.M. on the Business  Day preceding such Auction
      Date.

2.3.  Auction Schedule: Method of Submission of Orders.

      (a)   The  Trust  Company shall conduct Auctions in  accordance  with  the
      schedule set forth  below.   Such  schedule  may  be  changed by the Trust
      Company  with  the  consent  of the Company, which consent  shall  not  be
      unreasonably withheld.  The Trust Company shall give written notice of any
      such change to BD.  Such notice  shall  be  received  prior  to  the first
      Auction Date on which any such change shall be effective.

Time on Auction Date                                     Event

By 9:30 A.M.                            Trust Company advises Company and
                                        Broker-Dealers of 60-day "AA" Composite
                                        Commercial Paper Rate, the Minimum
                                        Applicable Rate and the Maximum
                                        Applicable Rate as set forth in Section
                                        2.2 (a) hereof.

Between 9:30 A.M. and 12:30 P.M.        Trust Company assembles information
                                        communicated to it by Broker-Dealers as
                                        provided in Section 6.9 (c) of Article
                                        VI of the By-Laws.

                                        Submission Deadline is 12:30 P.M. or
                                        such other time on any Auction Date as
                                        the Trust Company specifies.

After 1:00 P.M.                         Trust Company makes determinations
                                        pursuant to Section 6.9 (d) (i) of
                                        Article VI of the By-Laws.

                                       4
<PAGE>

By approximately 3:00 P.M.              Trust Company advises Company of results
                                        of Auction as provided in Section 6.9
                                        (d) (ii) of Article VI of the By-Laws.

                                        Submitted Bids and Submitted Sell Orders
                                        are accepted and rejected and shares of
                                        the DARTS allocated as provided in
                                        Section 6.9 (e) of Article VI of the
                                        By-Laws. The Trust Company gives notice
                                        of Auction results as set forth in
                                        Section 2.4 (a) hereof.

      (b)   BD  agrees  to  maintain a list of Potential Holders to contact  the
      Potential Holders on such  list  on  or prior to each Auction Date for the
      purposes set forth in Section 6.9 of Article  VI  of  the  By-Laws, and to
      deliver to each Potential Holder prior to such Potential Holder's  initial
      participation  in an Auction (i) a Prospectus, if such delivery is in  the
      90-day period following  the date of the Prospectus, or (ii) a Summary, if
      such delivery is thereafter.

      (c)   BD agrees not to sell,  assign or dispose of any shares of the DARTS
      to any Person who has not delivered  a  signed  Purchaser's  Letter to the
      Trust Company.

      (d)   BD   shall  submit  Orders  to  the  Trust  Company  in  writing  in
      substantially  the  form  attached  hereto  as  Exhibit E or by electronic
      transmission of a type acceptable to the Trust Company.   BD  shall submit
      separate Orders to the Trust Company for each Potential Holder or Existing
      Holder  on  whose  behalf BD is submitting an Order and shall not  net  or
      aggregate the Orders of different Potential Holders or Existing Holders on
      whose behalf BD is submitting Orders.

      (e)   BD shall deliver to Trust Company a written notice, substantially in
      the form attached hereto as Exhibit F, of transfers of shares of the DARTS
      made  through BD by an  Existing  Holder  to  another  Person  other  than
      pursuant  to  an  Auction  and,  subject  to  the terms of Section 2.2 (d)
      hereof,  shall deliver or cause to be delivered  the  related  Purchaser's
      Letter executed  by  such  Person  if  such  Person  has not previously so
      delivered  or  caused  to  be  delivered a Purchaser's Letter.   BD  shall
      deliver a written notice, substantially  in  the  form  attached hereto as
      Exhibit G, of the failure of any shares of the DARTS to be  transferred to
      or  by  any  Person that purchased or sold shares of the DARTS through  BD
      pursuant to the  Auction.  The Trust Company is not required to accept any
      notice specified in  this  section  2.3  (e)  intended to take effect with
      respect to an Auction unless it is received by  the  Trust Company by 3:00
      P.M. on the business Day preceding the related Auction Date.

      (f)   BD on or prior to the Date of Original Issue shall provide the Trust
      Company with a list of the initial Existing Holders of  the  shares of the
      DARTS  who purchased such shares through BD, if any.  In order  to  verify
      the accuracy  and authenticity of the list of Existing Holders so provided
      or the Holder Lists  provided  pursuant  to  Section  2.2  (c),  the Trust
      Company may confirm those lists by sending confirmation notices containing
      lists ("confirmation lists") of the Existing Holders or prior Holders,  as
      the  case  may  be,  to BD within ten Business Days of the Trust Company's

                                       5
<PAGE>

      receipt thereof.  If the lists contained in any confirmation list received
      by BD shall not conform  to  the  original  list  of  Existing  Holders or
      Holders  Lists  provided  by BD to the Trust Company, BD shall notify  the
      Trust Company of such discrepancy  within  two  Business  Days  after  its
      receipt  of the Trust Company's confirmation lists.  Subject to any change
      based on any  discrepancy  notified  to  the  Trust  Company  by  BD,  the
      confirmation  lists  sent  by  the  Trust Company shall, in the absence of
      manifest error, be binding and conclusive on the Company and BD.

      (g)   BD agrees to handle its customer's  Orders  in  accordance  with its
      duties under applicable securities laws and rules.

2.4.  NOTICES.

      (a)   On each Auction Date, the Trust Company shall notify BD by telephone
      as   provided   in   paragraph  (a)  of  the  Settlement  Procedures.   By
      approximately 10:30 A.M.  on the Business Day next succeeding such Auction
      Date, the Trust Company shall  notify  BD in writing of the disposition of
      all Orders submitted by BD in the Auction held on such Auction Date.

      (b)   BD shall notify each Existing Holder  or  Potential  Holder on whose
      behalf  BD  has  submitted  an Order as provided in paragraph (b)  of  the
      Settlement Procedures and take  such  other  action  as  is required of BD
      pursuant to the Settlement Procedures.

      (c)   If  the number of Dividend Period Days is increased as  provided  in
      Section 6.4  (b) (i) of Article VI of the By-Laws, the Trust Company shall
      provide BD with  a  form of notice of such change not later than five days
      after the receipt of  such  form  of  notice by the Trust Company from the
      Company.  BD shall mail a copy of such notice (at the address specified in
      such Existing Holder's Purchaser's Letter)  to  each Existing Holder which
      acquired through BD, and, to the knowledge of BD,  has not disposed of its
      shares  of  the  DARTS,  at least 10 days prior to the first  day  of  the
      Dividend Period for which such change is to be effective.

2.5.  SERVICE CHARGE TO BE PAID  TO  BD.   On each Dividend Payment Date for the
DARTS, the Trust Company shall pay to BD from  monies  received from the Company
an amount equal to the product of (i) a fraction, the numerator  of which is the
number  of  days in the Dividend Period beginning on such Dividend Payment  Date
(calculated by  counting  the  first  day  but  excluding  the  last day of such
Dividend  Period)  and  the denominator of which is 360, (ii) 1/4 of  1%,  (iii)
$100,000 and (iv) the sum of (A) the aggregate number of the shares of the DARTS
placed by BD in such Auction  that  were  (x)  the  subject of Submitted Bids of
Existing Holders submitted by BD and continued to be  held  as  a result of such
submission and (y) the subject of Submitted Bids of Potential Holders  submitted
by  BD  and  were  purchased  as  a result of such submission, (B) the aggregate
number of shares of the DARTS subject  to  valid  Hold  Orders  submitted to the
Trust Company by BD and (C) the number of shares of the DARTS that  were covered
by Hold Orders deemed to have been submitted by Existing Holders and  that  were
acquired  by  such  Existing Holders through BD.  For purposes of subclause (iv)
(C) of the foregoing sentence, if any Existing Holder who acquired shares of the
DARTS through BD transfers those shares to another Person other than pursuant to

                                       6
<PAGE>

an Auction, then BD shall  continue  to  be  the Broker-Dealer for the shares so
transferred; provided, however, that if the transfer  was effected by, or if the
transferee  is,  a  Broker-Dealer other than BD, then such  other  Broker-Dealer
shall be the Broker-Dealer for such shares.

2.6.  SETTLEMENT.

      (a)   If any Existing  Holder  on  whose  behalf BD has submitted a Bid or
      Sell Order that was accepted in whole or in  part  fails  to  instruct its
      Agent  Member to deliver shares of the DARTS against payment therefor,  BD
      shall instruct  such  Agent  Member  to  deliver to it such shares against
      payment  therefor  and BD may deliver to the  Potential  Holder  on  whose
      behalf BD submitted  a  Bid that was accepted in whole or in part a number
      of shares of the DARTS that is less than the number of shares of the DARTS
      specified  in  such  Bid  to  the  purchaser  by  such  Potential  Holder.
      Notwithstanding the foregoing  terms of this Section 2.6 (a), any delivery
      or non-delivery of shares of DARTS which represents any departure from the
      results of an Auction, as determined  by the Trust Company, shall be of no
      effect unless and until the Trust Company shall have been notified of such
      delivery or non-delivery in accordance  with  Section 2.3 (e) hereof.  The
      Trust Company shall have no duty or liability with  respect to enforcement
      of this Section 2.6 (a).

      (b)   Neither   the  Trust  Company  nor  the  Company  shall   have   any
      responsibility or  liability  with  respect  to the failure of an Existing
      Holder,  a  Potential  Holder or its respective Agent  Member  to  deliver
      shares of the DARTS or to  pay  for  shares of the DARTS sold or purchased
      pursuant to the Auction Procedures or otherwise.

2.7.  DISBURSEMENT OF ADDITIONAL DIVIDENDS.   If  the Company provides the Trust
Company  and  BD  with  a  notice  of  its  intent  to pay Additional  Dividends
substantially  in  the  form  set  forth  in Exhibit H hereto  with  appropriate
insertions (the "Additional Dividend Notice"),  and  not  later than noon on the
Business  day  immediately  preceding  the  Additional  Dividend   Payment  Date
specified in such notice, the Trust Company or the Company irrevocably  deposits
with BD sufficient funds for the payment of such Additional Dividends, BD  shall
disburse such funds to Existing Holders and former Holders in the amounts and in
accordance  with  instructions  specified in the Additional Dividend Notice.  BD
shall have no duty or liability with  respect  to this Section 2.7 other than to
disburse the amounts received by it from the Trust Company or the Company in the
manner specified in the Additional Dividend Notice.

3.    THE TRUST COMPANY.

3.1.  DUTIES AND RESPONSIBILITIES.

      (a)   The Trust Company is acting solely as agent of the Company hereunder
      and  owes  no  fiduciary duties to any other  Person  by  reason  of  this
      Agreement.

      (b)   The Trust  Company  undertakes  to perform such duties and only such
      duties as are specifically set forth in  this  Agreement,  and  no implied
      covenants  or  obligations  shall be read into this Agreement against  the
      Trust Company.

                                       7
<PAGE>

      (c)   In the absence of bad faith  or  negligence  on  its part, the Trust
      Company shall not be liable for any action taken, suffered  or  omitted or
      for  any  error  of  judgment  made by it in the performance of its duties
      under this Agreement.  The Trust Company shall not be liable for any error
      of judgment made in good faith unless  the  Trust  Company shall have been
      negligent in ascertaining the pertinent facts.

3.2.  RIGHTS OF THE TRUST COMPANY.

      (a)   The  Trust  Company  may rely and shall be protected  in  acting  or
      refraining from acting upon any communication authorized by this Agreement
      and upon any written instruction,  notice,  request,  direction,  consent,
      report,  certificate,  share  certificate  or other instrument, paper,  or
      document believed by it to be genuine.  The  Trust  Company  shall  not be
      liable  for  acting  upon  any  telephone communication authorized by this
      Agreement which the Trust Company  believes  in  good  faith  to have been
      given by the Company or by a Broker-Dealer.  The Trust Company  may record
      by tape or otherwise telephone communications with the Broker-Dealers.

      (b)   The  Trust  Company may consult with counsel and the advice of  such
      counsel shall be full and complete authorization and protection in respect
      of any action taken, suffered or omitted by it hereunder in good faith and
      in reliance thereon.

      (c)   The Trust Company  shall  not be required to advance, expend or risk
      its own funds or otherwise incur  or become exposed to financial liability
      in the performance of its duties hereunder.

      (d)   The Trust Company may perform  its  duties  and  exercise its rights
      hereunder either directly or by or through agents or attorneys.

3.3.  TRUST COMPANY'S DISCLAIMER.  The Trust Company makes no  representation as
to the validity or adequacy of this Agreement or the shares of the DARTS.

4.    MISCELLANEOUS.

4.1.  TERMINATION.   Either party may terminate this Agreement at  any  time  on
five  days'  notice  to  the   other  party.   This  Agreement  shall  terminate
automatically upon termination of the Trust Company Agreement.

4.2.  AGENT MEMBER.  At the date hereof BD is, and shall remain for the terms of
this Agreement, a participant in, or member of, the Securities Depository.

4.3.  COMMUNICATIONS.   Except  for  (i)  communications  authorized  to  be  by
telephone by this Agreement or the  Auction Procedures or (ii) communications in
connection with the Auctions (other than  those  expressly  required  to  be  in
writing),  all  notices,  requests  and  other  communications  to  either party
hereunder shall be in writing (including telecopy or similar writing)  and shall
be given to such party, addressed to it, at its address or telecopier number set
forth below:

                                       8
<PAGE>

If to BD:                Jefferies & Co.
addressed:               520 Madison Avenue
                         11th Floor
                         New York, NY 10022
                         Attention: Tony Russo
                         Telecopier No: 212-284-1790
                         Telephone No: 212-284-1795

If to the Auction Agent: Deutsche Bank Trust Company Americas
                         280 Park Avenue
                         New York, New York 10017
                         Attn: Linda Reale
                         Telecopier No: (212) 454-2033
                         Telephone No: (212) 454-4039

or  such  other  address,  telephone  or  telecopier  number  as  such party may
hereafter  specify  for  such  purpose by notice to the other party.  Each  such
notice, request or communication  shall be effective (i) if given by telex, when
such  telex  is  transmitted  to  the telex  number  specified  herein  and  the
appropriate answer back is received  or  (ii)  if given by any other means, when
delivered at the address specified herein.  Communications  shall  be  given  on
behalf of BD by a BD Officer and on behalf of the Trust Company by an Authorized
Officer.  BD may record telephone communications with the Trust Company.

4.4.  ENTIRE  AGREEMENT.   This  Agreement contains the entire agreement between
the parties relating to the subject  matter  hereof,  and  there  are  no  other
representations,  endorsements,  promises,  agreements  or understandings, oral,
written or inferred, between the parties relating to the subject matter hereof.

4.5.  BENEFITS.  Nothing in this Agreement, express or implied,  shall  give  to
any  person,  other  than  the  Company,  the  Trust  Company  and  BD and their
respective successors and assigns any benefits of any legal or equitable  right,
remedy or claim under this Agreement.

4.6.  AMENDMENT; WAIVER.

      (a)   This  Agreement  shall  not  be  deemed or construed to be modified,
      amended, rescinded, canceled or waived,  in  whole or in part, except by a
      written  instrument  signed  by  duly  authorized representatives  of  the
      parties hereto.

      (b)   Failure of either party to this Agreement  to  exercise any right or
      remedy hereunder in the event of a breach of this Agreement  by  the other
      party  shall  not  constitute  a  waiver  of any such right or remedy with
      respect to any subsequent breach.

4.7.  SUCCESSORS AND ASSIGNS.  This Agreement shall  be  binding  upon, inure to
the benefit of, and be enforceable by, the respective successors and  assigns of
BD and the Trust Company.

4.8.  SEVERABILITY.  If any clause, provision or Section of this Agreement shall
be  ruled  invalid or unenforceable by any court of competent jurisdiction,  the
invalidity or  unenforceability  of  such clause, provision or Section shall not
affect any of the remaining clauses, provisions and sections hereof.

                                       9
<PAGE>

4.9.  EXECUTION IN COUNTERPARTS.  This  Agreement  may  be  executed  in several
counterparts,  each  of  which  shall  be  an  original  and  all of which shall
constitute but one and the same instrument.

5.    GOVERNING  LAW.   This  Agreement  shall  be governed by and construed  in
accordance with the laws of the State of New York.

IN WITNESS WHEREOF, the parties hereto have caused  this  Agreement  to  be duly
executed  and  delivered by their proper and duly authorized officers as of  the
date first above written.

                                     Deutsche Bank Trust Company Americas



                                     By  /s/ Tony Gomez
                                     ------------------------------------
                                         Name:   Tony Gomez
                                         Title:  Associate



                                     Jefferies & Co.



                                     By  /s/ Anthony J. Russo
                                     ------------------------------------
                                        Name:   Anthony J. Russo
                                        Title:  Managing Director

                                       10
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.13
<SEQUENCE>23
<FILENAME>administrativeagmt.txt
<DESCRIPTION>EXHIBIT 99.13(H)
<TEXT>
                            ADMINISTRATIVE AGREEMENT


      THIS AGREEMENT is made this 6th day of May, 1992 by and between PATRIOT
PREMIUM DIVIDEND FUND II, a Massachusetts business trust (the "Fund"), and John
Hancock Advisers, Inc., a corporation organized under the laws of the State of
Delaware (the "Administrator"). The parties hereto intending so to be legally
bound, agree with each other as follows:

1.    SERVICES RENDERED BY THE ADMINISTRATOR

      The Administrator, subject to the control, direction and supervision of
the Fund's trustees and in conformity with applicable laws, the Fund's Agreement
and Declaration of Trust, By-Laws, and Registration Statements, shall furnish
the services of such members of its organization as may be duly elected officers
of the Fund and shall supervise and manage the provision of custodial, auditing,
valuation, bookkeeping, legal, stock transfer and dividend disbursing services,
and such other, similar operational activities as may benefit the Fund and its
shareholders and shall, in addition, provide public relations activities for the
Fund, including communications with shareholders as may benefit the Fund and its
shareholders. The Fund hereby engages the Administrator to provide it with such
services.

      The Administrator shall furnish to the Fund office space, facilities,
equipment and personnel adequate to provide the services described in the
foregoing paragraph and shall be reimbursed by the Fund for the total costs of
such services.

2.    EXPENSES TO BE PAID BY THE FUND

      Except as otherwise agreed, or as otherwise provided herein, the Fund
shall pay, or arrange for others to pay, all its expenses other than those
expressly stated to be payable by the Administrator pursuant to this Agreement
and the Investment Advisory Agreement of even date herewith, which expenses
payable by the Fund shall include: (i) interest and taxes; (ii) brokerage
commissions and other costs in connection with the purchase and sale of
portfolio investments; (iii) compensation of its trustees and officers other
than those who are affiliated persons of the Administrator; (iv) fees of outside
counsel to and of independent accountants of the Fund selected by the Board of
Trustees; (v) custodian, transfer agent, and dividend disbursing agent fees and
expenses; (vi) expenses related to the repurchase or redemption of its shares;
(vii) expenses related to the issuance of its shares against payment therefor by
or on behalf of the subscribers thereto; (viii) fees and related expenses of
registering and qualifying the Fund and its shares for distribution under state
and federal securities laws; (ix) expenses of printing and mailing of
registration statements, prospectuses, reports, notices and proxy solicitation
materials of the Fund; (x) all other expenses incidental to holding meetings of
the Fund's shareholders including proxy solicitations therefor; (xi) expenses
for servicing accounts (including the provision of accounting and tax
information to shareholders); (xii) insurance premiums for fidelity coverage,
errors and omissions insurance and officers and directors insurance; (xiii) dues
for the Fund's membership in trade associations approved by the Board of
Trustees; and (xiv) such nonrecurring expenses as may arise, including those
associated with actions, suits, or proceedings to which the Fund is a party and
arising from any legal obligation which the Fund may have to indemnify its
officers and trustees with respect thereto. To the extent that any of the


<PAGE>
                                       2

foregoing expenses are allocated between the Fund and any other party, such
allocations shall be pursuant to methods approved by the trustees.

3.    ROLE OF ADMINISTRATOR

      The Administrator, and any person controlled by or under common control
with the Administrator, shall be free to render similar services to others and
engage in other activities, so long as the services rendered to the Fund are not
impaired.

      Except as otherwise agreed, in the absence of willful misfeasance, bad
faith, gross negligence, or reckless disregard of obligations or duties
hereunder on the part of the Administrator, the Administrator shall not be
subject to liability to the Fund, or to any partner or security holder of the
Fund, for any act or omission in the course of, or connected with, rendering
services hereunder.

4. COMPENSATION OF THE ADMINISTRATOR BY THE FUND

      The Fund shall reimburse the Administrator for its total "cost," as that
term is more fully described herein. The "cost" of services provided to the Fund
hereunder shall be deemed to include both the relevant direct expenditures by
the Administrator (including the cost of goods and services obtained from
others) and the related overhead costs, such as depreciation, interest, employee
supervision, rent and like costs. Such reimbursement shall be payable for each
calendar month as soon as practicable after the end of that month. To the extent
that any of the foregoing costs are allocated between the Fund and other
activities of the Administrator, such costs will be allocated on the basis of
reasonable approximations, provided the Board of Trustees of the Fund, including
a majority of the trustees who are not interested persons of the Fund, approve
the basis upon which such allocations are made.

5.    DURATION OF AGREEMENT

      This Agreement shall become effective on the date hereof and shall
continue in force from year to year thereafter, but only so long as such
continuance is approved at least annually by the vote of a majority of the
Fund's trustees who are not parties to this Agreement or interested persons of
any such parties, cast in person at a meeting called for the purpose of voting
on such approval, and by a vote of a majority of the Fund's trustees or the
holders of a majority of the Fund's outstanding voting securities.

      This Agreement shall terminate automatically in the event of its
assignment. This Agreement may be terminated at any time by the Fund's trustees,
by vote of the holders of a majority of the Fund's outstanding voting
securities, or by the Administrator, on not more than sixty (60) days', nor less
than thirty (30) days' written notice, or upon such shorter notice as may be
mutually agreed upon. Such termination shall be without payment of any penalty.

6. LIMITATION OF LIABILITY OF TRUSTEES AND SHAREHOLDERS

      A copy of the Agreement and Declaration of Trust of the Fund is on file
with the Secretary of The Commonwealth of Massachusetts, and notice is hereby
given that this written instrument is executed on behalf of the trustees of the
Fund as trustees and not individually and that the obligations of or arising out

<PAGE>
                                       3


of this instrument are not binding upon any of the trustees or shareholders
individually but are binding only upon the assets and property of the Fund.

7.    MISCELLANEOUS PROVISIONs

      For the purposes of this Agreement, the terms "affiliated person,"
"assignment," "interested person," and "majority of the outstanding voting
securities" shall have their respective meanings defined in the Investment
Company Act of 1940 and the Rules and Regulations thereunder, subject, however,
to such exemptions as may be granted to either the Administrator or the Fund by
the Securities and Exchange Commission, or such interpretive positions as may be
taken by the Commission or its staff under said Act.

      IN WITNESS WHEREOF, the parties hereto each have caused this Agreement to
be signed in duplicate on its behalf by its duly authorized officer on the above
date.

                                     PATRIOT PREMIUM DIVIDEND FUND II



                                     By  /s/Andrew F. St. Pierre
                                         ---------------------------
                                            Vice President



                                     JOHN HANCOCK ADVISERS, INC.



                                     By  /s/John A. Moran
                                         ---------------------------
                                            Vice President
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.13
<SEQUENCE>24
<FILENAME>amendmentnumberone.txt
<DESCRIPTION>EXHIBIT 99.13(I)
<TEXT>
                               AMENDMENT NUMBER 1
                               ------------------
                         TO THE ADMINISTRATIVE AGREEMENT
                         -------------------------------

Amendment  Number 1, dated  December 8, 1992,  to the  Administrative  Agreement
dated  May 6,  1992,  by  and  between  Patriot  Premium  Dividend  Fund  II,  a
Massachusetts  business trust (the "Fund"),  and John Hancock Advisers,  Inc., a
corporation   organized   under  the  laws  of  the  state  of   Delaware   (the
"Administrator").

Whereas,  the Fund and the  Administrator  desire  to amend  the  Administrative
Agreement to reflect changes made to Section 4 in such agreement.

Now,  therefore,  in consideration of the foregoing  recitals and for other good
and  valuable  consideration,  the receipt and  sufficiency  of which are hereby
acknowledged, the parties hereto agree as follows:

Amendment to Paragraph 4
Paragraph 4 of the  Administrative  Agreement is hereby  deleted in its entirety
and the following new Paragraph 4 shall be substituted therefore:

4.       Compensation of the Administrator by the Fund

         (a) As full compensation for the services rendered, facilities
         furnished and expenses paid by the Administrator under this Agreement,
         the Fund agrees to pay to the Administrator a fee at the annual rate of
         .10 of 1% of the Fund's average weekly net assets. Such fee shall be
         accrued weekly and paid monthly as soon as practicable after the end of
         each month. For purposes of calculating such fee, the Fund's average
         weekly net assets are determined by taking the average of all the
         weekly determinations of net assets (total assets, less all
         liabilities, but not the aggregate liquidation preference of the
         outstanding DARTS) during a given calendar month.

         (b) If the Administrator shall serve for less than the whole of any
         month the foregoing compensation shall be prorated.


The effective date of this Amendment shall be January 1, 1993.

In witness whereof, the parties hereto each have caused this Amendment to be
signed in duplicate on Its behalf by Its duly authorized officer on the above
date.


                                               Patriot Premium Dividend Fund II



                                               By:   /s/ Andrew T. St. Pierre
                                                     ------------------------
                                                     Senior Vice President


                                               John Hancock Advisers, Inc.

                                               By:   /s/ John A. Morin
                                                     ------------------------
                                                     Vice President

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.16
<SEQUENCE>25
<FILENAME>poa.txt
<DESCRIPTION>EXHBIT 99.16
<TEXT>
                 JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II

                               POWER OF ATTORNEY


      I  do  hereby  constitute and appoint George Boyd, John J. Danello, Thomas
Kinzler, Betsy Anne Seel,  Gordon  M.  Shone,  Alfred  P.  Ouellette,  Genevieve
Pluhowski,  or  any  one  of  them,  my  true  and  lawful  attorneys to execute
registration statements to be filed with the Securities and Exchange  Commission
("SEC") under the Securities Act of 1933, as amended (the "1933 Act") and/or the
Investment Company Act of 1940, as amended (the "1940 Act"), and to do  any  and
all acts and things and to execute any and all instruments for me and in my name
in  the  capacities  indicated  below, which said attorneys, or any of them, may
deem necessary or advisable to enable John Hancock Patriot Premium Dividend Fund
II (the "Fund") to comply with the  1933  Act  and  the 1940 Act, and any rules,
regulations and requirements of the SEC, in connection  with  such  registration
statements, including specifically, but without limitation, power and  authority
to  sign  for  me  in  the  capacity  indicated  below,  the Fund's registration
statement  on  Form  N-14  relating  to  the fund merger listed  below  and  any
amendments (including pre- and post-effective  amendments)  thereto;  and  I  do
hereby  ratify and confirm all that the said attorneys, or any of them, shall do
or cause to be done by virtue of this power of attorney.

Fund Merger
- -----------
John Hancock Patriot Premium Dividend Fund I, John Hancock Patriot Select
Dividend Trust, John Hancock Patriot Global Dividend Fund, John Hancock Patriot
Preferred Dividend Fund, into John Hancock Patriot Premium Dividend Fund II

<TABLE>
<CAPTION>
NAME                    SIGNATURE                   TITLE                                                 DATE
- ----                    ---------                   -----                                                 ----

<S>                     <C>                         <C>                                                   <C>
Keith F. Hartstein      /s/ Keith F. Hartstein      President and Chief Executive Officer                 December 13, 2006
                        ----------------------

John G. Vrysen          /s/ John G. Vrysen          Executive Vice President and Chief Financial Officer  December 13, 2006
                        ----------------------

Ronald R. Dion          /s/ Ronald R. Dion          Chairman                                              *
                        ----------------------

James R. Boyle          /s/ James R. Boyle          Trustee                                               *
                        ----------------------

James F. Carlin         /s/ James F. Carlin         Trustee                                               *
                        ----------------------

Richard P. Chapman, Jr. /s/ Richard P. Chapman, Jr. Trustee                                               December 14, 2006
                        ----------------------

William H. Cunningham   /s/ William H. Cunningham   Trustee                                               *
                        ----------------------

<PAGE>

NAME                    SIGNATURE                   TITLE                                                 DATE
- ----                    ---------                   -----                                                 ----

Charles L. Ladner       /s/ Charles L. Ladner       Trustee                                               *
                        ----------------------

Dr. John A. Moore       /s/ Dr. John A. Moore       Trustee                                               December 14, 2006
                        ----------------------

Patti McGill Peterson   /s/ Patti McGill Peterson   Trustee                                               *
                        ----------------------

Steven R. Pruchansky    /s/ Steven R. Pruchansky    Trustee                                               *
                        ----------------------

</TABLE>

*September 12, 2006






























</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.17
<SEQUENCE>26
<FILENAME>acquiringfundproxycard.txt
<DESCRIPTION>EXHIBIT 99.17(A)
<TEXT>

                  JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II
                         ANNUAL MEETING OF SHAREHOLDERS
                                 APRIL [ ], 2007

        The undersigned holder of common shares of beneficial interest of John
Hancock Patriot Premium Dividend Fund II (the "Fund") hereby appoints KEITH F.
HARTSTEIN, GORDON SHONE and THOMAS KINZLER, and each of them singly, proxies and
attorneys of the undersigned, with full power of substitution to each, for and
in the name of the undersigned, to vote and act upon all matters at the Annual
Meeting of Shareholders of the Fund to be held on [ ], April [ ], 2007 at the
offices of the Fund, 601 Congress Street, Boston, Massachusetts, at 9:00 a.m.,
Eastern time, and at any and all adjournments thereof, in respect of all common
shares of the Fund held by the undersigned or in respect of which the
undersigned would be entitled to vote or act, with all powers the undersigned
would possess if personally present. All proxies previously given by the
undersigned in respect of said meeting are hereby revoked.


- -------------------------------------------------------------------------
PLEASE VOTE, DATE AND SIGN ON REVERSE AND RETURN PROMPTLY IN THE ENCLOSED
ENVELOPE.
- -------------------------------------------------------------------------


Please complete, sign, date and return this proxy in the enclosed envelope as
soon as possible. Please sign exactly as your name or names appear in the box on
the reverse. When signing as Attorney, Executor, Administrator, Trustee or
Guardian, please give your full title as such. If a corporation, please sign in
full corporate name by president or other authorized officer. If a partnership,
please sign in partnership name by authorized person.


- --------------------------------------------------------------------------------
Address Change/Comments (Mark the corresponding box on the reverse side)
- --------------------------------------------------------------------------------

<PAGE>

[ ] Please Mark Here for Address Change or Comments.  SEE REVERSE SIDE

THIS PROXY IS SOLICITED BY THE BOARD OF TRUSTEES

 (1)(a)    To approve the issuance of additional Fund common shares in
           connection with each Reorganization.

    FOR [ ]                       AGAINST  [ ]                   ABSTAIN [ ]

(1)(b)  Not applicable to holders of common shares.

(2)     Not applicable to the Fund.

(3)     To elect the following nominees as Trustees of the Fund:
        (1)   James R. Boyle; and
        (2)   Steven R. Pruchansky.

                        FOR ALL [ ]                    WITHHOLD ALL [ ]

                [ ] ________________________________________________
                     For all nominees except as noted above

Specify your vote by marking the appropriate spaces. If no specification is
made, this proxy will be voted for the nominees named in the proxy statement and
in favor of the proposals. The persons named as proxies have discretionary
authority, which they intend to exercise in favor of the proposals referred to
and according to their best judgment as to the other matters which may properly
come before the meeting.

Please be sure to sign and date this Proxy.

Signature: ___________ Date: ___________

________________________________________________________________________________
                   [arrow up] FOLD AND DETACH HERE [arrow up]

                      Vote by Internet or Telephone or Mail
                          24 Hours a Day, 7 Days a Week

      Internet and telephone voting is available through 11PM Eastern Time
                  the business day prior to annual meeting day.

    Your Internet or telephone vote authorizes the named proxies to vote your
shares in the same manner as if you marked, signed and returned your proxy card.

<TABLE>
<CAPTION>
______________________________________________________________________________________
        Internet                         Telephone                        Mail
http://www.proxyvoting.com/pdt         866-540-5760
<S>                          <C>                                   <C>
Use  the   Internet   to     Use any  touch-tone  telephone to     Mark,   sign   and
vote  your  proxy.  Have     vote   your   proxy.   Have  your     date  your   proxy
your  proxy card in hand     proxy  OR card in hand  when  you     card  and   return
when you  access the web     call.  You  will be  prompted  to     it     in      the
site.    You   will   be     enter   your   control    number,     enclosed
prompted  to enter  your     located  in the  box  below,  and     postage-paid
control number,  located     then follow the directions given.     envelope.
in  the  box  below,  to
create   and  submit  an
electronic ballot.
______________________________________________________________________________________
</TABLE>

               If you vote your proxy by Internet or by telephone,
                  you do NOT need to mail back your proxy card.

<PAGE>

                                                                       P R O X Y

                  JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II

      The undersigned holder of Dutch Auction Rate Transferable Securities of
beneficial interest ("Preferred Shares") of John Hancock Patriot Premium
Dividend Fund II (the "Fund") hereby constitutes and appoints Keith F.
Hartstein, Gordon Shone and Thomas Kinzler, and each of them singly, proxies and
attorneys of the undersigned, with full power of substitution to each, for and
in the name of the undersigned, to vote and act upon all matters at the Annual
Meeting of Shareholders of the Fund to be held on [ ], April [ ], 2007 at the
offices of the Fund, 601 Congress Street, Boston, Massachusetts, at 9:00 a.m.,
Eastern Time, and at any and all adjournments thereof, in respect to all
Preferred Shares of the Fund held by the undersigned or in respect of which the
undersigned would be entitled to vote or act, with all the powers the
undersigned would possess if personally present. All proxies previously given by
the undersigned in respect of said meeting are hereby revoked.

(1)(a)      Not applicable to holders of Preferred Shares.
(1)(b)      To approve the issuance of additional series of Preferred Shares in
            connection with each Reorganization.

    FOR [ ]                       AGAINST [ ]                    ABSTAIN [ ]

(2)   Not applicable to the Fund.

(3)   To elect the following nominee as Trustee of the Fund:
         (1)      Patti McGill Peterson.

                    FOR [ ]                        WITHHOLD [ ]

Specify your vote by check marks in the appropriate space. This proxy will be
voted as specified. If no specification is made, the proxy will be voted for the
nominee named in the Proxy Statement and in favor of the proposals and nominees
listed above. The persons named as proxies have discretionary authority, which
they intend to exercise in favor of the proposals referred to and according to
their best judgment as to the other matters which properly come before the
meeting.

PLEASE COMPLETE, SIGN, DATE AND RETURN THIS PROXY IN THE ENCLOSED ENVELOPE AS
SOON AS POSSIBLE. PLEASE SIGN EXACTLY AS YOUR NAME OR NAMES APPEAR IN THE BOX ON
THE LEFT. WHEN SIGNING AS ATTORNEY, EXECUTOR, ADMINISTRATOR, TRUSTEE OR
GUARDIAN, PLEASE GIVE YOUR FULL TITLE AS SUCH. IF A CORPORATION, PLEASE SIGN IN
FULL CORPORATE NAME BY PRESIDENT OR OTHER AUTHORIZED OFFICER. IF A PARTNERSHIP,
PLEASE SIGN IN PARTNERSHIP NAME BY AUTHORIZED PERSON.

Date:____________, 2007

______________________________
Signature(s) of Shareholder(s)

THIS PROXY IS SOLICITED BY THE BOARD OF TRUSTEES

<PAGE>

John Hancock                                                              Mellon
- -----------------                                       Mellon Investor Services
JOHN HANCOCK FUNDS                                    A Mellon Financial Company
________________________________________________________________________________


                                 Welcome to the
                  John Hancock Patriot Premium Dividend Fund II
                             2007 Proxy Voting Site

                         Annual Meeting of Shareholders
                                 April [ ], 2007


         The undersigned holder of common shares of beneficial interest of John
Hancock Patriot Premium Dividend Fund II (the "Fund") hereby appoints KEITH F.
HARTSTEIN, GORDON SHONE and THOMAS KINZLER, and each of them singly, proxies and
attorneys of the undersigned, with full power of substitution to each, for and
in the name of the undersigned, to vote and act upon all matters at the Annual
Meeting of Shareholders of the Fund to be held on [ ], April [ ], 2007 at the
offices of the Fund, 601 Congress Street, Boston, Massachusetts, at 9:00 a.m.,
Eastern time, and at any and all adjournments thereof, in respect of all common
shares of the Fund held by the undersigned or in respect of which the
undersigned would be entitled to vote or act, with all powers the undersigned
would possess if personally present. All proxies previously given by the
undersigned in respect of said meeting are hereby revoked.

      --------------------------------------------------------------------
                Click here to continue to the secure voting site.
      --------------------------------------------------------------------
          If your browser does not support SSL encryption, click here.
    -------------------------------------------------------------------------

<PAGE>


John Hancock                                                              Mellon
- -----------------                                       Mellon Investor Services
JOHN HANCOCK FUNDS                                    A Mellon Financial Company
________________________________________________________________________________

          Welcome to the John Hancock Patriot Premium Dividend Fund II
                             2007 Proxy Voting Site

    Your Internet vote authorizes the Proxies to vote your shares in the same
         manner as if you marked, signed, and returned your Proxy Card.

                     The Board of Trustees recommends a vote
                          FOR the following Proposals.

       -------------------------------------------------------------------
             Click Here To Vote As The Board Of Trustees Recommends
       -------------------------------------------------------------------

         ---------------------------------------------------------------
                Click Here To Vote Individually On Each Proposal
         ---------------------------------------------------------------


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

<PAGE>

John Hancock                                                              Mellon
- -----------------                                       Mellon Investor Services
JOHN HANCOCK FUNDS                                    A Mellon Financial Company
________________________________________________________________________________

          To Vote Separately On Each Proposal - Check The Boxes Below:
          ------------------------------------------------------------

 ===============================================================================
               The Board recommends a vote FOR Proposals 1 and 2.
 ===============================================================================

================================================================================
  PROPOSAL 1(a)
To approve the issuance of additional Fund common shares in connection with each
Reorganization.

  For[ ]                  Against[ ]            Abstain[ ]
================================================================================

================================================================================
  PROPOSAL 2
Not applicable to the Fund.
================================================================================

================================================================================
  PROPOSAL 3
To elect the following nominees as Trustees of the Fund:
      (1)   James R. Boyle; and
      (2)   Steven R. Pruchansky.

================================================================================

FOR ALL [ ]                 WITHHOLD ALL [ ]        FOR ALL EXCEPT[ ]
                                                      [ ]01 James R. Boyle
                                                      [ ]02 Steven R. Pruchansky


In their discretion, the Proxies are authorized to vote upon such other business
as  may  properly  come  before  the  meeting,  or at any  adjournment  thereof.
   -------------------------------------------------------------------

                        --------------------------------
                        Click Here To Register Your Vote
                        --------------------------------

BACK
- ----

================================================================================

<PAGE>

John Hancock                                                              Mellon
- -----------------                                       Mellon Investor Services
JOHN HANCOCK FUNDS                                    A Mellon Financial Company
________________________________________________________________________________

                       THANK YOU FOR VOTING ELECTRONICALLY

                                 Voting Summary

                              Your Control Number:

Trustees:
You Voted:
Proposal 2:
You Voted:
To change your address click here.

                              THANK YOU FOR VOTING

Your vote has been successfully recorded and will be tabulated by Mellon
Investor Services within 24 hours. It is not necessary for you to mail back your
voting card.

If any of the above information is incorrect, return to the proxy ballot form by
using the BACK feature of your browser program.

To vote another Proxy - CLICK HERE
Please exit your browser program as you normally do.



</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.17
<SEQUENCE>27
<FILENAME>acqfundproxycard.txt
<DESCRIPTION>EXHIBIT 99.17(B)
<TEXT>
                  JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND I
                         ANNUAL MEETING OF SHAREHOLDERS
                                 April [ ], 2007

        The undersigned holder of common shares of beneficial interest of John
Hancock Patriot Premium Dividend Fund I (the "Fund") hereby appoints KEITH F.
HARTSTEIN, GORDON SHONE and THOMAS KINZLER, and each of them singly, proxies and
attorneys of the undersigned, with full power of substitution to each, for and
in the name of the undersigned, to vote and act upon all matters at the Annual
Meeting of Shareholders of the Fund to be held on [ ], April [ ], 2007 at the
offices of the Fund, 601 Congress Street, Boston, Massachusetts, at 9:00 a.m.,
Eastern time, and at any and all adjournments thereof, in respect of all common
shares of the Fund held by the undersigned or in respect of which the
undersigned would be entitled to vote or act, with all powers the undersigned
would possess if personally present. All proxies previously given by the
undersigned in respect of said meeting are hereby revoked.

- --------------------------------------------------------------------------------
PLEASE VOTE, DATE AND SIGN ON REVERSE AND RETURN PROMPTLY IN THE ENCLOSED
ENVELOPE.
- --------------------------------------------------------------------------------

Please complete, sign, date and return this proxy in the enclosed envelope as
soon as possible.  Please sign exactly as your name or names appear in the box
on the reverse.  When signing as Attorney, Executor, Administrator, Trustee or
Guardian, please give your full title as such.  If a corporation, please sign in
full corporate name by president or other authorized officer.  If a partnership,
please sign in partnership name by authorized person.

- --------------------------------------------------------------------------------
Address Change/Comments (Mark the corresponding box on the reverse side)
- --------------------------------------------------------------------------------





<PAGE>


[  ] Please Mark Here for Address Change or Comments.  SEE REVERSE SIDE

THIS PROXY IS SOLICITED BY THE BOARD OF TRUSTEES

(1)(a) Not applicable to the Fund.

(1)(b) Not applicable to the Fund.

(2)   To approve an Agreement and Plan of Reorganization between the Fund and
John Hancock Patriot Premium Dividend Fund II, the termination of the Fund's
registration under the Investment Company Act of 1940, as amended, and the
dissolution of the Fund under applicable state law.

         FOR  [_]                AGAINST [_]            ABSTAIN  [_]

(3)   To elect the following nominees as Trustees of the Fund:
         (1)  James R. Boyle; and
         (2)  Steven R. Pruchansky.

                   FOR ALL [_]        WITHHOLD ALL [_]


          [_] --------------------------------------------
                For all nominees except as noted above

Specify your vote by marking the appropriate spaces.  If no specification is
made, this proxy will be voted for the nominees named in the proxy statement and
in favor of the proposals. The persons named as proxies have discretionary
authority, which they intend to exercise in favor of the proposals referred to
and according to their best judgment as to the other matters which may properly
come before the meeting.

Please be sure to sign and date this Proxy.

Signature: ___________ Date: ___________

<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
                   [arrow up] FOLD AND DETACH HERE [arrow up]

                     Vote by Internet or Telephone or Mail
                         24 Hours a Day, 7 Days a Week

      Internet and telephone voting is available through 11PM Eastern Time
                 the business day prior to annual meeting day.

Your Internet or telephone vote authorizes the named proxies to vote your shares
                               in the same manner
             as if you marked, signed and returned your proxy card.

- ----------------------------------------------------------------------------------------------------------------------------------
                   Internet                                 Telephone                                  Mail
      http://www.proxyvoting.com/pdf                      866-540-5760
<S>                                          <C>                                         <C>
Use the  Internet  to vote  your  proxy.     Mark,  sign and date your proxy card and    Mark,  sign and date your proxy card and
Have  your  proxy  card in hand when you     return it in the enclosed  postage- paid    return it in the enclosed  postage- paid
access   the  web  site.   You  will  be     envelope.                                   envelope.
prompted to enter your  control  number,
located in the box below,  to create and
submit an electronic ballot.


- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

              If you vote your proxy by Internet or by telephone,
                 you do NOT need to mail back your proxy card.

<PAGE>


                                                                       P R O X Y

                  JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND I

      The undersigned holder of Dutch Auction Rate Transferable Securities of
beneficial interest ("Preferred Shares") of John Hancock Patriot Premium
Dividend Fund I (the "Fund") hereby constitutes and appoints Keith F. Hartstein,
Gordon Shone and Thomas Kinzler, and each of them singly, proxies and attorneys
of the undersigned, with full power of substitution to each, for and in the name
of the undersigned, to vote and act upon all matters at the Annual Meeting of
Shareholders of the Fund to be held on [ ], April [ ], 2007 at the offices of
the Fund, 601 Congress Street, Boston, Massachusetts, at 9:00 a.m., Eastern
Time, and at any and all adjournments thereof, in respect to all Preferred
Shares of the Fund held by the undersigned or in respect of which the
undersigned would be entitled to vote or act, with all the powers the
undersigned would possess if personally present. All proxies previously given by
the undersigned in respect of said meeting are hereby revoked.

(1)(a)  Not applicable to the Fund.

(1)(b)  Not applicable to the Fund.

(2)   To approve an Agreement and Plan of Reorganization between the Fund and
John Hancock Patriot Premium Dividend Fund II, the termination of the Fund's
registration under the Investment Company Act of 1940, as amended, and the
dissolution of the Fund under applicable state law.

         FOR  [_]                AGAINST  [_]           ABSTAIN  [_]

(3)   To elect the following nominee as a Trustee of the Fund:
         (1)Patti McGill Peterson.

                 FOR [_]                  WITHHOLD [_]

Specify your vote by check marks in the appropriate space.  This proxy will be
voted as specified.  If no specification is made, the proxy will be voted for
the nominee named in the Proxy Statement and in favor of the proposals and
nominees listed above.  The persons named as proxies have discretionary
authority, which they intend to exercise in favor of the proposals referred to
and according to their best judgment as to the other matters which properly come
before the meeting.

PLEASE COMPLETE, SIGN, DATE AND RETURN THIS PROXY IN THE ENCLOSED ENVELOPE AS
SOON AS POSSIBLE.  PLEASE SIGN EXACTLY AS YOUR NAME OR NAMES APPEAR IN THE BOX
ON THE LEFT.  WHEN SIGNING AS ATTORNEY, EXECUTOR, ADMINISTRATOR, TRUSTEE OR
GUARDIAN, PLEASE GIVE YOUR FULL TITLE AS SUCH.  IF A CORPORATION, PLEASE SIGN IN
FULL CORPORATE NAME BY PRESIDENT OR OTHER AUTHORIZED OFFICER.  IF A PARTNERSHIP,
PLEASE SIGN IN PARTNERSHIP NAME BY AUTHORIZED PERSON.

Date:____________, 2007

- -----------------------------
Signature(s) of Shareholder(s)

THIS PROXY IS SOLICITED BY THE BOARD OF TRUSTEES


<PAGE>


 John Hancock                                                          Mellon
 -----------------                                   Mellon Investor Services
 JOHN HANCOCK FUNDS                                A Mellon Financial Company
- -------------------------------------------------------------------------------


                                 Welcome to the
                  John Hancock Patriot Premium Dividend Fund I
                             2007 Proxy Voting Site

                         Annual Meeting of Shareholders
                                 April [ ], 2007


        The undersigned holder of common shares of beneficial interest of John
Hancock Patriot Premium Dividend Fund I (the "Fund") hereby appoints KEITH F.
HARTSTEIN, GORDON SHONE and THOMAS KINZLER, and each of them singly, proxies and
attorneys of the undersigned, with full power of substitution to each, for and
in the name of the undersigned, to vote and act upon all matters at the Annual
Meeting of Shareholders of the Fund to be held on [ ], April [ ], 2007 at the
offices of the Fund, 601 Congress Street, Boston, Massachusetts, at 9:00 a.m.,
Eastern time, and at any and all adjournments thereof, in respect of all common
shares of the Fund held by the undersigned or in respect of which the
undersigned would be entitled to vote or act, with all powers the undersigned
would possess if personally present. All proxies previously given by the
undersigned in respect of said meeting are hereby revoked.

      --------------------------------------------------------------------
               Click here to continue to the secure voting site.
      --------------------------------------------------------------------
          If your browser does not support SSL encryption, click here.
- --------------------------------------------------------------------------------


<PAGE>





 John Hancock                                                          Mellon
 -----------------                                   Mellon Investor Services
 JOHN HANCOCK FUNDS                                A Mellon Financial Company
- --------------------------------------------------------------------------------

          Welcome to the John Hancock Patriot Premium Dividend Fund I
                             2007 Proxy Voting Site

   Your Internet vote authorizes the Proxies to vote your shares in the same
         manner as if you marked, signed, and returned your Proxy Card.

                    The Board of Trustees recommends a vote
                          FOR the following Proposals.

      -------------------------------------------------------------------
             Click Here To Vote As The Board Of Trustees Recommends
      -------------------------------------------------------------------

        ---------------------------------------------------------------
                Click Here To Vote Individually On Each Proposal
        ---------------------------------------------------------------

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



<PAGE>




 John Hancock                                                          Mellon
 -----------------                                   Mellon Investor Services
 JOHN HANCOCK FUNDS                                A Mellon Financial Company
- -------------------------------------------------------------------------------


          To Vote Separately On Each Proposal - Check The Boxes Below:
          ------------------------------------------------------------

================================================================================
               The Board recommends a vote FOR Proposals 1 and 2.
================================================================================

================================================================================
  PROPOSAL 1(a)
Not applicable to the Fund.
================================================================================

================================================================================
  PROPOSAL 2
To approve an Agreement and Plan of Reorganization between the Fund and John
Hancock Patriot Premium Dividend Fund II, the termination of the Fund's
registration under the Investment Company Act of 1940, as amended, and the
dissolution of the Fund under applicable state law.

  For[ ]                  Against[ ]            Abstain[ ]
================================================================================

================================================================================
  PROPOSAL 3
To elect the following nominees as Trustees of the Fund:
      (1)   James R. Boyle; and
      (2)   Steven R. Pruchansky.
================================================================================

 FOR ALL [ ]           WITHHOLD ALL [ ]            FOR ALL EXCEPT[ ]
                                                     [ ]01 James R. Boyle
                                                     [ ]02 Steven R. Pruchansky

In their discretion, the Proxies are authorized to vote upon such other business
as may properly come before the meeting, or at any adjournment thereof.
                ----------------------------------------------------

                        --------------------------------
                        Click Here To Register Your Vote
                        --------------------------------

BACK
- ----

================================================================================


<PAGE>



 John Hancock                                                          Mellon
 -----------------                                   Mellon Investor Services
 JOHN HANCOCK FUNDS                                A Mellon Financial Company
- -------------------------------------------------------------------------------



                      THANK YOU FOR VOTING ELECTRONICALLY

                                 Voting Summary

                              Your Control Number:

Trustees:
You Voted:
Proposal 2:
You Voted:
To change your address click here.

                              THANK YOU FOR VOTING

Your vote has been successfully recorded and will be tabulated by Mellon
Investor Services within 24 hours.  It is not necessary for you to mail back
your voting card.

If any of the above information is incorrect, return to the proxy ballot form by
using the BACK feature of your browser program.

To vote another Proxy - CLICK HERE
Please exit your browser program as you normally do.


<PAGE>


                   JOHN HANCOCK PATRIOT SELECT DIVIDEND TRUST
                         ANNUAL MEETING OF SHAREHOLDERS
                                 April [ ], 2007

        The undersigned holder of common shares of beneficial interest of John
Hancock Patriot Select Dividend Trust (the "Fund") hereby appoints KEITH F.
HARTSTEIN, GORDON SHONE and THOMAS KINZLER, and each of them singly, proxies and
attorneys of the undersigned, with full power of substitution to each, for and
in the name of the undersigned, to vote and act upon all matters at the Annual
Meeting of Shareholders of the Fund to be held on [ ], April [ ], 2007 at the
offices of the Fund, 601 Congress Street, Boston, Massachusetts, at 9:00 a.m.,
Eastern time, and at any and all adjournments thereof, in respect of all common
shares of the Fund held by the undersigned or in respect of which the
undersigned would be entitled to vote or act, with all powers the undersigned
would possess if personally present. All proxies previously given by the
undersigned in respect of said meeting are hereby revoked.

- --------------------------------------------------------------------------------
PLEASE VOTE, DATE AND SIGN ON REVERSE AND RETURN PROMPTLY IN THE ENCLOSED
ENVELOPE.
- --------------------------------------------------------------------------------

Please complete, sign, date and return this proxy in the enclosed envelope as
soon as possible.  Please sign exactly as your name or names appear in the box
on the reverse.  When signing as Attorney, Executor, Administrator, Trustee or
Guardian, please give your full title as such.  If a corporation, please sign in
full corporate name by president or other authorized officer.  If a partnership,
please sign in partnership name by authorized person.

- --------------------------------------------------------------------------------
Address Change/Comments (Mark the corresponding box on the reverse side)
- --------------------------------------------------------------------------------


<PAGE>


[  ] Please Mark Here for Address Change or Comments.  SEE REVERSE SIDE

THIS PROXY IS SOLICITED BY THE BOARD OF TRUSTEES

(1)(a)  Not applicable to the Fund.

(1)(b)  Not applicable to the Fund.

(2)   To approve an Agreement and Plan of Reorganization between the Fund and
John Hancock Patriot Premium Dividend Fund II, the termination of the Fund's
registration under the Investment Company Act of 1940, as amended, and the
dissolution of the Fund under applicable state law.

         FOR  [_]         AGAINST  [_]           ABSTAIN  [_]

(3)   To elect the following nominees as Trustees of the Fund:
         (1)James R. Boyle;and
         (2)Steven R. Pruchansky.

                   FOR ALL [_]          WITHHOLD ALL [_]

       [_]  ---------------------------------------------
            For all nominees except as noted above

Specify your vote by marking the appropriate spaces.  If no specification is
made, this proxy will be voted for the nominees named in the proxy statement and
in favor of the proposals.  The persons named as proxies have discretionary
authority, which they intend to exercise in favor of the proposals referred to
and according to their best judgment as to the other matters which may properly
come before the meeting.

Please be sure to sign and date this Proxy.

Signature: ___________ Date: ___________

<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
                   [arrow up] FOLD AND DETACH HERE [arrow up]

                     Vote by Internet or Telephone or Mail
                         24 Hours a Day, 7 Days a Week

      Internet and telephone voting is available through 11PM Eastern Time
                 the business day prior to annual meeting day.

Your Internet or telephone vote authorizes the named proxies to vote your shares
                               in the same manner
             as if you marked, signed and returned your proxy card.

- ---------------------------------------------------------------------------------------------------------------------------------
               Internet                                   Telephone                              Mail
    http://www.proxyvoting.com/div                       866-540-5760
<S>                                         <C>                                         <C>

Use the  Internet  to vote  your  proxy.    Use  any  touch-tone  telephone  to vote    Mark,  sign and date your proxy card and
Have  your  proxy  card in hand when you    your  proxy.  Have your proxy OR card in    return it in the enclosed  postage- paid
access   the  web  site.   You  will  be    hand when you call. You will be prompted    envelope.
prompted to enter your  control  number,    to enter your control number, located in
located in the box below,  to create and    the  box  below,  and  then  follow  the
submit an electronic ballot.                directions given.
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                             If you vote your proxy by Internet or by telephone,
                                 you do NOT need to mail back your proxy card.


<PAGE>

                                                                       P R O X Y

                   JOHN HANCOCK PATRIOT SELECT DIVIDEND TRUST

      The undersigned holder of Auction Market Preferred Shares of beneficial
interest ("Preferred Shares") of John Hancock Patriot Select Dividend Trust (the
"Fund") hereby constitutes and appoints Keith F. Hartstein, Gordon Shone and
Thomas Kinzler, and each of them singly, proxies and attorneys of the
undersigned, with full power of substitution to each, for and in the name of the
undersigned, to vote and act upon all matters at the Annual Meeting of
Shareholders of the Fund to be held on [ ], April [ ], 2007 at the offices of
the Fund, 601 Congress Street, Boston, Massachusetts, at 9:00 a.m., Eastern
Time, and at any and all adjournments thereof, in respect to all Preferred
Shares of the Fund held by the undersigned or in respect of which the
undersigned would be entitled to vote or act, with all the powers the
undersigned would possess if personally present. All proxies previously given by
the undersigned in respect of said meeting are hereby revoked.

(1)(a)  Not applicable to the Fund.

(1)(b)  Not applicable to the Fund.

(2)  To approve an Agreement and Plan of Reorganization between the Fund and
John Hancock Patriot Premium Dividend Fund II, the termination of the Fund's
registration under the Investment Company Act of 1940, as amended, and the
dissolution of the Fund under applicable state law.

         FOR  [_]        AGAINST  [_]           ABSTAIN  [_]

(3) To elect the following nominee as a Trustee of the Fund:
      (1)   Patti McGill Peterson.

                 FOR [_]         WITHHOLD [_]

Specify your vote by check marks in the appropriate space.  This proxy will be
voted as specified.  If no specification is made, the proxy will be voted for
the nominee named in the Proxy Statement and in favor of the proposals and
nominees listed above.  The persons named as proxies have discretionary
authority, which they intend to exercise in favor of the proposals referred to
and according to their best judgment as to the other matters which properly come
before the meeting.

PLEASE COMPLETE, SIGN, DATE AND RETURN THIS PROXY IN THE ENCLOSED ENVELOPE AS
SOON AS POSSIBLE.  PLEASE SIGN EXACTLY AS YOUR NAME OR NAMES APPEAR IN THE BOX
ON THE LEFT.  WHEN SIGNING AS ATTORNEY, EXECUTOR, ADMINISTRATOR, TRUSTEE OR
GUARDIAN, PLEASE GIVE YOUR FULL TITLE AS SUCH.  IF A CORPORATION, PLEASE SIGN IN
FULL CORPORATE NAME BY PRESIDENT OR OTHER AUTHORIZED OFFICER.  IF A PARTNERSHIP,
PLEASE SIGN IN PARTNERSHIP NAME BY AUTHORIZED PERSON.

Date:____________, 2007

- -----------------------------
Signature(s) of Shareholder(s)

THIS PROXY IS SOLICITED BY THE BOARD OF TRUSTEES



<PAGE>

 John Hancock                                                          Mellon
 -----------------                                   Mellon Investor Services
 JOHN HANCOCK FUNDS                                A Mellon Financial Company
- -------------------------------------------------------------------------------


                                 Welcome to the
                   John Hancock Patriot Select Dividend Trust
                             2007 Proxy Voting Site

                         Annual Meeting of Shareholders
                                 April [ ], 2007


        The undersigned holder of common shares of beneficial interest of John
Hancock Patriot Select Dividend Trust (the "Fund") hereby appoints KEITH F.
HARTSTEIN, GORDON SHONE and THOMAS KINZLER, and each of them singly, proxies and
attorneys of the undersigned, with full power of substitution to each, for and
in the name of the undersigned, to vote and act upon all matters at the Annual
Meeting of Shareholders of the Fund to be held on [ ], April [ ], 2007 at the
offices of the Fund, 601 Congress Street, Boston, Massachusetts, at 9:00 a.m.,
Eastern time, and at any and all adjournments thereof, in respect of all common
shares of the Fund held by the undersigned or in respect of which the
undersigned would be entitled to vote or act, with all powers the undersigned
would possess if personally present. All proxies previously given by the
undersigned in respect of said meeting are hereby revoked.

      --------------------------------------------------------------------
               Click here to continue to the secure voting site.
      --------------------------------------------------------------------
          If your browser does not support SSL encryption, click here.
- --------------------------------------------------------------------------------


<PAGE>





 John Hancock                                                          Mellon
 -----------------                                   Mellon Investor Services
 JOHN HANCOCK FUNDS                                A Mellon Financial Company
- -------------------------------------------------------------------------------


           Welcome to the John Hancock Patriot Select Dividend Trust
                             2007 Proxy Voting Site

   Your Internet vote authorizes the Proxies to vote your shares in the same
         manner as if you marked, signed, and returned your Proxy Card.

                    The Board of Trustees recommends a vote
                          FOR the following Proposals.

      -------------------------------------------------------------------
             Click Here To Vote As The Board Of Trustees Recommends
      -------------------------------------------------------------------

        ---------------------------------------------------------------
                Click Here To Vote Individually On Each Proposal
        ---------------------------------------------------------------


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





<PAGE>





 John Hancock                                                          Mellon
 -----------------                                   Mellon Investor Services
 JOHN HANCOCK FUNDS                                A Mellon Financial Company
- -------------------------------------------------------------------------------


          To Vote Separately On Each Proposal - Check The Boxes Below:
          ------------------------------------------------------------

================================================================================
               The Board recommends a vote FOR Proposals 1 and 2.
================================================================================

================================================================================
  PROPOSAL 1(a)
Not applicable to the Fund.
================================================================================

================================================================================
  PROPOSAL 2
To approve an Agreement and Plan of Reorganization between the Fund and John
Hancock Patriot Premium Dividend Fund II, the termination of the Fund's
registration under the Investment Company Act of 1940, as amended, and the
dissolution of the Fund under applicable state law.

  For[ ]                  Against[ ]            Abstain[ ]
================================================================================

================================================================================
  PROPOSAL 3
To elect the following nominees as Trustees of the Fund:
      (1)  James R. Boyle; and
      (2)  Steven R. Pruchansky.
================================================================================

 FOR ALL [ ]            WITHHOLD ALL [ ]        FOR ALL EXCEPT[ ]
                                                  [ ]01 James R. Boyle
                                                  [ ]02 Steven R. Pruchansky

In their discretion, the Proxies are authorized to vote upon such other business
as  may  properly  come  before  the  meeting,  or at any  adjournment  thereof.
                              --------------------------------------------------

                        --------------------------------
                        Click Here To Register Your Vote
                        --------------------------------

BACK
- ----

================================================================================


<PAGE>


 John Hancock                                                          Mellon
 -----------------                                   Mellon Investor Services
 JOHN HANCOCK FUNDS                                A Mellon Financial Company
- -------------------------------------------------------------------------------




                      THANK YOU FOR VOTING ELECTRONICALLY

                                 Voting Summary

                              Your Control Number:

Trustees:
You Voted:
Proposal 2:
You Voted:
To change your address click here.

                              THANK YOU FOR VOTING

Your vote has been successfully recorded and will be tabulated by Mellon
Investor Services within 24 hours.  It is not necessary for you to mail back
your voting card.

If any of the above information is incorrect, return to the proxy ballot form by
using the BACK feature of your browser program.

To vote another Proxy - CLICK HERE
Please exit your browser program as you normally do.



<PAGE>


                   JOHN HANCOCK PATRIOT GLOBAL DIVIDEND FUND
                         ANNUAL MEETING OF SHAREHOLDERS
                                 April [ ], 2007

        The undersigned holder of common shares of beneficial interest of John
Hancock Patriot Global Dividend Fund (the "Fund") hereby appoints KEITH F.
HARTSTEIN, GORDON SHONE and THOMAS KINZLER, and each of them singly, proxies and
attorneys of the undersigned, with full power of substitution to each, for and
in the name of the undersigned, to vote and act upon all matters at the Annual
Meeting of Shareholders of the Fund to be held on [ ], April [ ], 2007 at the
offices of the Fund, 601 Congress Street, Boston, Massachusetts, at 9:00 a.m.,
Eastern time, and at any and all adjournments thereof, in respect of all common
shares of the Fund held by the undersigned or in respect of which the
undersigned would be entitled to vote or act, with all powers the undersigned
would possess if personally present. All proxies previously given by the
undersigned in respect of said meeting are hereby revoked.

- --------------------------------------------------------------------------------
PLEASE VOTE, DATE AND SIGN ON REVERSE AND RETURN PROMPTLY IN THE ENCLOSED
ENVELOPE.
- --------------------------------------------------------------------------------

Please complete, sign, date and return this proxy in the enclosed envelope as
soon as possible.  Please sign exactly as your name or names appear in the box
on the reverse.  When signing as Attorney, Executor, Administrator, Trustee or
Guardian, please give your full title as such.  If a corporation, please sign in
full corporate name by president or other authorized officer.  If a partnership,
please sign in partnership name by authorized person.

- --------------------------------------------------------------------------------
Address Change/Comments (Mark the corresponding box on the reverse side)
- --------------------------------------------------------------------------------




<PAGE>


[  ] Please Mark Here for Address Change or Comments.  SEE REVERSE SIDE

THIS PROXY IS SOLICITED BY THE BOARD OF TRUSTEES

(1)(a)  Not applicable to the Fund.

(1)(b)  Not applicable to the Fund.

(2)   To approve an Agreement and Plan of Reorganization between the Fund and
John Hancock Patriot Premium Dividend Fund II, the termination of the Fund's
registration under the Investment Company Act of 1940, as amended, and the
dissolution of the Fund under applicable state law.

         FOR  [_]               AGAINST  [_]            ABSTAIN  [_]

(3)   To elect the following nominees as Trustees of the Fund:
         (1)James R. Boyle;and
         (2)Steven R. Pruchansky.

                   FOR ALL [_]              WITHHOLD ALL [_]

                [_] ----------------------------------------
                    For all nominees except as noted above

Specify your vote by marking the appropriate spaces.  If no specification is
made, this proxy will be voted for the nominees named in the proxy statement and
in favor of the proposals.  The persons named as proxies have discretionary
authority, which they intend to exercise in favor of the proposals referred to
and according to their best judgment as to the other matters which may properly
come before the meeting.

Please be sure to sign and date this Proxy.

Signature: ___________ Date: ___________

<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
                   [arrow up] FOLD AND DETACH HERE [arrow up]

                     Vote by Internet or Telephone or Mail
                         24 Hours a Day, 7 Days a Week

      Internet and telephone voting is available through 11PM Eastern Time
                 the business day prior to annual meeting day.

Your Internet or telephone vote authorizes the named proxies to vote your shares
                               in the same manner
             as if you marked, signed and returned your proxy card.

- -----------------------------------------------------------------------------------------------------------------------------------
                Internet                              Telephone                                       Mail
     http://www.proxyvoting.com/pgd                 866-540-5760

<S>                                         <C>                                          <C>
Use the  Internet  to vote  your  proxy.    Use  any  touch-tone  telephone  to vote     Mark,  sign and date your proxy card and
Have  your  proxy  card in hand when you    your  proxy.  Have your proxy OR card in     return it in the enclosed  postage- paid
access   the  web  site.   You  will  be    hand when you call. You will be prompted     envelope.
prompted to enter your  control  number,    to enter your control number, located in
located in the box below,  to create and    the  box  below,  and  then  follow  the
submit an electronic ballot.                directions given.
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>


              If you vote your proxy by Internet or by telephone,
                 you do NOT need to mail back your proxy card.



<PAGE>


                                                                       P R O X Y

                   JOHN HANCOCK PATRIOT GLOBAL DIVIDEND FUND

      The undersigned holder of Dutch Auction Rate Transferable Securities of
beneficial interest ("Preferred Shares") of John Hancock Global Dividend Fund
(the "Fund") hereby constitutes and appoints Keith F. Hartstein, Gordon Shone
and Thomas Kinzler, and each of them singly, proxies and attorneys of the
undersigned, with full power of substitution to each, for and in the name of the
undersigned, to vote and act upon all matters at the Annual Meeting of
Shareholders of the Fund to be held on [ ], April [ ], 2007 at the offices of
the Fund, 601 Congress Street, Boston, Massachusetts, at 9:00 a.m., Eastern
Time, and at any and all adjournments thereof, in respect to all Preferred
Shares of the Fund held by the undersigned or in respect of which the
undersigned would be entitled to vote or act, with all the powers the
undersigned would possess if personally present. All proxies previously given by
the undersigned in respect of said meeting are hereby revoked.

(1)(a)Not applicable to the Fund.

(1)(b)Not applicable to the Fund.

(2)   To approve an Agreement and Plan of Reorganization between the Fund and
John Hancock Patriot Premium Dividend Fund II, the termination of the Fund's
registration under the Investment Company Act of 1940, as amended, and the
dissolution of the Fund under applicable state law.

         FOR  [_]               AGAINST  [_]            ABSTAIN  [_]

(3)   To elect the following nominee as a Trustee of the Fund:
         (1)Patti McGill Peterson.

                 FOR [_]          WITHHOLD [_]

Specify your vote by check marks in the appropriate space.  This proxy will be
voted as specified.  If no specification is made, the proxy will be voted for
the nominee named in the Proxy Statement and in favor of the proposals and
nominees listed above.  The persons named as proxies have discretionary
authority, which they intend to exercise in favor of the proposals referred to
and according to their best judgment as to the other matters which properly come
before the meeting.

PLEASE COMPLETE, SIGN, DATE AND RETURN THIS PROXY IN THE ENCLOSED ENVELOPE AS
SOON AS POSSIBLE.  PLEASE SIGN EXACTLY AS YOUR NAME OR NAMES APPEAR IN THE BOX
ON THE LEFT.  WHEN SIGNING AS ATTORNEY, EXECUTOR, ADMINISTRATOR, TRUSTEE OR
GUARDIAN, PLEASE GIVE YOUR FULL TITLE AS SUCH.  IF A CORPORATION, PLEASE SIGN IN
FULL CORPORATE NAME BY PRESIDENT OR OTHER AUTHORIZED OFFICER.  IF A PARTNERSHIP,
PLEASE SIGN IN PARTNERSHIP NAME BY AUTHORIZED PERSON.

Date:____________, 2007

- -----------------------------
Signature(s) of Shareholder(s)

THIS PROXY IS SOLICITED BY THE BOARD OF TRUSTEES


<PAGE>


 John Hancock                                                          Mellon
 -----------------                                   Mellon Investor Services
 JOHN HANCOCK FUNDS                                A Mellon Financial Company
- -------------------------------------------------------------------------------


                                 Welcome to the
                   John Hancock Patriot Global Dividend Fund
                             2007 Proxy Voting Site

                         Annual Meeting of Shareholders
                                 April [ ], 2007


        The undersigned holder of common shares of beneficial interest of John
Hancock Global Dividend Fund (the "Fund") hereby appoints KEITH F. HARTSTEIN,
GORDON SHONE and THOMAS KINZLER, and each of them singly, proxies and attorneys
of the undersigned, with full power of substitution to each, for and in the name
of the undersigned, to vote and act upon all matters at the Annual Meeting of
Shareholders of the Fund to be held on [ ], April [ ], 2007 at the offices of
the Fund, 601 Congress Street, Boston, Massachusetts, at 9:00 a.m., Eastern
time, and at any and all adjournments thereof, in respect of all common shares
of the Fund held by the undersigned or in respect of which the undersigned would
be entitled to vote or act, with all powers the undersigned would possess if
personally present. All proxies previously given by the undersigned in respect
of said meeting are hereby revoked.

      --------------------------------------------------------------------
               Click here to continue to the secure voting site.
      --------------------------------------------------------------------
          If your browser does not support SSL encryption, click here.
- --------------------------------------------------------------------------------



<PAGE>






 John Hancock                                                          Mellon
 -----------------                                   Mellon Investor Services
 JOHN HANCOCK FUNDS                                A Mellon Financial Company
- -------------------------------------------------------------------------------


            Welcome to the John Hancock Patriot Global Dividend Fund
                             2007 Proxy Voting Site

   Your Internet vote authorizes the Proxies to vote your shares in the same
         manner as if you marked, signed, and returned your Proxy Card.

                    The Board of Trustees recommends a vote
                          FOR the following Proposals.

      -------------------------------------------------------------------
             Click Here To Vote As The Board Of Trustees Recommends
      -------------------------------------------------------------------

        ---------------------------------------------------------------
                Click Here To Vote Individually On Each Proposal
        ---------------------------------------------------------------


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




<PAGE>


 John Hancock                                                          Mellon
 -----------------                                   Mellon Investor Services
 JOHN HANCOCK FUNDS                                A Mellon Financial Company
- -------------------------------------------------------------------------------



          To Vote Separately On Each Proposal - Check The Boxes Below:
          ------------------------------------------------------------

================================================================================
               The Board recommends a vote FOR Proposals 1 and 2.
================================================================================

================================================================================
  PROPOSAL 1(a)
Not applicable to the Fund.
================================================================================

================================================================================
  PROPOSAL 2
To approve an Agreement and Plan of Reorganization between the Fund and John
Hancock Patriot Premium Dividend Fund II, the termination of the Fund's
registration under the Investment Company Act of 1940, as amended, and the
dissolution of the Fund under applicable state law.

  For[ ]                  Against[ ]            Abstain[ ]
================================================================================

================================================================================
  PROPOSAL 3
To elect the following nominees as Trustees of the Fund:
================================================================================

 FOR ALL [ ]          WITHHOLD ALL [ ]              FOR ALL EXCEPT[ ]
                                                     [ ]01 James R. Boyle
                                                     [ ]02 Steven R. Pruchansky

In their discretion, the Proxies are authorized to vote upon such other business
as  may  properly  come  before  the  meeting,  or at any  adjournment  thereof.
- --------------------------------------------------------------------------------

                        --------------------------------
                        Click Here To Register Your Vote
                        --------------------------------

BACK
- ----

================================================================================


<PAGE>




 John Hancock                                                          Mellon
 -----------------                                   Mellon Investor Services
 JOHN HANCOCK FUNDS                                A Mellon Financial Company
- -------------------------------------------------------------------------------


                      THANK YOU FOR VOTING ELECTRONICALLY

                                 Voting Summary

                              Your Control Number:

Trustees:
You Voted:
Proposal 2:
You Voted:
To change your address click here.

                              THANK YOU FOR VOTING

Your vote has been successfully recorded and will be tabulated by Mellon
Investor Services within 24 hours.  It is not necessary for you to mail back
your voting card.

If any of the above information is incorrect, return to the proxy ballot form by
using the BACK feature of your browser program.

To vote another Proxy - CLICK HERE
Please exit your browser program as you normally do.



<PAGE>


                  JOHN HANCOCK PATRIOT PREFERRED DIVIDEND FUND
                         ANNUAL MEETING OF SHAREHOLDERS
                                 April [ ], 2007

        The undersigned holder of common shares of beneficial interest of John
Hancock Patriot Preferred Dividend Fund (the "Fund") hereby appoints KEITH F.
HARTSTEIN, GORDON SHONE and THOMAS KINZLER, and each of them singly, proxies and
attorneys of the undersigned, with full power of substitution to each, for and
in the name of the undersigned, to vote and act upon all matters at the Annual
Meeting of Shareholders of the Fund to be held on [ ], April [ ], 2007 at the
offices of the Fund, 601 Congress Street, Boston, Massachusetts, at 9:00 a.m.,
Eastern time, and at any and all adjournments thereof, in respect of all common
shares of the Fund held by the undersigned or in respect of which the
undersigned would be entitled to vote or act, with all powers the undersigned
would possess if personally present. All proxies previously given by the
undersigned in respect of said meeting are hereby revoked.

- --------------------------------------------------------------------------------
PLEASE VOTE, DATE AND SIGN ON REVERSE AND RETURN PROMPTLY IN THE ENCLOSED
ENVELOPE.
- --------------------------------------------------------------------------------

Please complete, sign, date and return this proxy in the enclosed envelope as
soon as possible.  Please sign exactly as your name or names appear in the box
on the reverse.  When signing as Attorney, Executor, Administrator, Trustee or
Guardian, please give your full title as such.  If a corporation, please sign in
full corporate name by president or other authorized officer.  If a partnership,
please sign in partnership name by authorized person.

- --------------------------------------------------------------------------------
Address Change/Comments (Mark the corresponding box on the reverse side)
- --------------------------------------------------------------------------------



<PAGE>


[  ] Please Mark Here for Address Change or Comments.  SEE REVERSE SIDE

THIS PROXY IS SOLICITED BY THE BOARD OF TRUSTEES

(1)(a)   Not applicable to the Fund.

(1)(b)   Not applicable to the Fund.

(2)     To approve an Agreement and Plan of Reorganization between the Fund and
John Hancock Patriot Premium Dividend Fund II, the termination of the Fund's
registration under the Investment Company Act of 1940, as amended, and the
dissolution of the Fund under applicable state law.

                 FOR  [_]        AGAINST  [_]          ABSTAIN  [_]

(3)     To elect the following nominees as Trustees of the Fund:
         (1)    James R. Boyle;and
         (2)    Steven R. Pruchansky.

                   FOR ALL [_]        WITHHOLD ALL [_]

                   [_]  ----------------------------------------
                          For all nominees except as noted above

Specify your vote by marking the appropriate spaces.  If no specification is
made, this proxy will be voted for the nominees named in the proxy statement and
in favor of the proposals.  The persons named as proxies have discretionary
authority, which they intend to exercise in favor of the proposals referred to
and according to their best judgment as to the other matters which may properly
come before the meeting.

Please be sure to sign and date this Proxy.

Signature: ___________ Date: ___________

<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
                   [arrow up] FOLD AND DETACH HERE [arrow up]

                     Vote by Internet or Telephone or Mail
                         24 Hours a Day, 7 Days a Week

      Internet and telephone voting is available through 11PM Eastern Time
                 the business day prior to annual meeting day.

Your Internet or telephone vote authorizes the named proxies to vote your shares
                               in the same manner
             as if you marked, signed and returned your proxy card.

- ---------------------------------------------------------------------------------------------------------------------------------
                 Internet                                    Telephone                              Mail
      http://www.proxyvoting.com/ppf                        866-540-5760

<S>                                         <C>                                          <C>
Use the  Internet  to vote  your  proxy.    Use  any  touch-tone  telephone  to vote     Mark,  sign and date your proxy card and
Have  your  proxy  card in hand when you    your  proxy.  Have your proxy OR card in     return it in the enclosed  postage- paid
access   the  web  site.   You  will  be    hand when you call. You will be prompted     envelope.
prompted to enter your  control  number,    to enter your control number, located in
located in the box below,  to create and    the  box  below,  and  then  follow  the
submit an electronic ballot.                directions given.
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

              If you vote your proxy by Internet or by telephone,
                 you do NOT need to mail back your proxy card.


<PAGE>


                                                                       P R O X Y

                  JOHN HANCOCK PATRIOT PREFERRED DIVIDEND FUND

      The undersigned holder of Auction Rate Preferred Shares of beneficial
interest ("Preferred Shares") of John Hancock Patriot Preferred Dividend Fund
(the "Fund") hereby constitutes and appoints Keith F. Hartstein, Gordon Shone
and Thomas Kinzler, and each of them singly, proxies and attorneys of the
undersigned, with full power of substitution to each, for and in the name of the
undersigned, to vote and act upon all matters at the Annual Meeting of
Shareholders of the Fund to be held on [ ], April [ ], 2007 at the offices of
the Fund, 601 Congress Street, Boston, Massachusetts, at 9:00 a.m., Eastern
Time, and at any and all adjournments thereof, in respect to all Preferred
Shares of the Fund held by the undersigned or in respect of which the
undersigned would be entitled to vote or act, with all the powers the
undersigned would possess if personally present. All proxies previously given by
the undersigned in respect of said meeting are hereby revoked.

(1)(a)  Not applicable to the Fund.

(1)(b)  Not applicable to the Fund.

(2)     To approve an Agreement and Plan of Reorganization between the Fund and
John Hancock Patriot Premium Dividend Fund II, the termination of the Fund's
registration under the Investment Company Act of 1940, as amended, and the
dissolution of the Fund under applicable state law.

         FOR  [_]         AGAINST  [_]          ABSTAIN  [_]

(3)     To elect the following nominee as a Trustee of the Fund:
         (1)    Patti McGill Peterson.

                 FOR [_]              WITHHOLD [_]

Specify your vote by check marks in the appropriate space.  This proxy will be
voted as specified.  If no specification is made, the proxy will be voted for
the nominee named in the Proxy Statement and in favor of the proposals and
nominees listed above.  The persons named as proxies have discretionary
authority, which they intend to exercise in favor of the proposals referred to
and according to their best judgment as to the other matters which properly come
before the meeting.

PLEASE COMPLETE, SIGN, DATE AND RETURN THIS PROXY IN THE ENCLOSED ENVELOPE AS
SOON AS POSSIBLE.  PLEASE SIGN EXACTLY AS YOUR NAME OR NAMES APPEAR IN THE BOX
ON THE LEFT.  WHEN SIGNING AS ATTORNEY, EXECUTOR, ADMINISTRATOR, TRUSTEE OR
GUARDIAN, PLEASE GIVE YOUR FULL TITLE AS SUCH.  IF A CORPORATION, PLEASE SIGN IN
FULL CORPORATE NAME BY PRESIDENT OR OTHER AUTHORIZED OFFICER.  IF A PARTNERSHIP,
PLEASE SIGN IN PARTNERSHIP NAME BY AUTHORIZED PERSON.

Date:____________, 2007

- -----------------------------
Signature(s) of Shareholder(s)

THIS PROXY IS SOLICITED BY THE BOARD OF TRUSTEES


<PAGE>



 John Hancock                                                          Mellon
 -----------------                                   Mellon Investor Services
 JOHN HANCOCK FUNDS                                A Mellon Financial Company
- -------------------------------------------------------------------------------


                                 Welcome to the
                 John Hancock Patriot Preferred Dividend Fund
                             2007 Proxy Voting Site

                         Annual Meeting of Shareholders
                                 April [ ], 2007


        The undersigned holder of common shares of beneficial interest of John
Hancock Preferred Dividend Fund (the "Fund") hereby appoints KEITH F. HARTSTEIN,
GORDON SHONE and THOMAS KINZLER, and each of them singly, proxies and attorneys
of the undersigned, with full power of substitution to each, for and in the name
of the undersigned, to vote and act upon all matters at the Annual Meeting of
Shareholders of the Fund to be held on [ ], April [ ], 2007 at the offices of
the Fund, 601 Congress Street, Boston, Massachusetts, at 9:00 a.m., Eastern
time, and at any and all adjournments thereof, in respect of all common shares
of the Fund held by the undersigned or in respect of which the undersigned would
be entitled to vote or act, with all powers the undersigned would possess if
personally present. All proxies previously given by the undersigned in respect
of said meeting are hereby revoked.

      --------------------------------------------------------------------
               Click here to continue to the secure voting site.
      --------------------------------------------------------------------
          If your browser does not support SSL encryption, click here.
   ---------------------------------------------------------------------------



<PAGE>





- -------------------------------------------------------------------------------
 John Hancock                      |                                  Mellon
 -----------------                 |                Mellon Investor Services
 JOHN HANCOCK FUNDS                |              A Mellon Financial Company
- -------------------------------------------------------------------------------

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

          Welcome to the John Hancock Patriot Preferred Dividend Fund
                             2007 Proxy Voting Site

   Your Internet vote authorizes the Proxies to vote your shares in the same
         manner as if you marked, signed, and returned your Proxy Card.

                    The Board of Trustees recommends a vote
                          FOR the following Proposals.

      -------------------------------------------------------------------
             Click Here To Vote As The Board Of Trustees Recommends
      -------------------------------------------------------------------

        ---------------------------------------------------------------
                Click Here To Vote Individually On Each Proposal
        ---------------------------------------------------------------


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







<PAGE>

- -------------------------------------------------------------------------------
 John Hancock                      |                                  Mellon
 -----------------                 |                Mellon Investor Services
 JOHN HANCOCK FUNDS                |              A Mellon Financial Company
- -------------------------------------------------------------------------------

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



          To Vote Separately On Each Proposal - Check The Boxes Below:
          ------------------------------------------------------------

================================================================================
               The Board recommends a vote FOR Proposals 1 and 2.
================================================================================

================================================================================
  PROPOSAL 1(a)
Not applicable to the Fund.
================================================================================

================================================================================
  PROPOSAL 2
To approve an Agreement and Plan of Reorganization between the Fund and John
Hancock Patriot Premium Dividend Fund II, the termination of the Fund's
registration under the Investment Company Act of 1940, as amended, and the
dissolution of the Fund under applicable state law.
================================================================================

================================================================================
  PROPOSAL 3
To elect the following nominees as Trustees of the Fund:
================================================================================

 FOR ALL [ ]            WITHHOLD ALL  [ ]           FOR ALL EXCEPT[ ]
                                                    [ ]01 James R. Boyle
                                                    [ ]02 Steven R. Pruchansky

In their discretion, the Proxies are authorized to vote upon such other business
as  may  properly  come  before  the  meeting,  or at any  adjournment  thereof.
- --------------------------------------------------------------------------------

                        --------------------------------
                        Click Here To Register Your Vote
                        --------------------------------

BACK
- ----

================================================================================



<PAGE>


- -------------------------------------------------------------------------------
 John Hancock                      |                                  Mellon
 -----------------                 |                Mellon Investor Services
 JOHN HANCOCK FUNDS                |              A Mellon Financial Company
- -------------------------------------------------------------------------------




                      THANK YOU FOR VOTING ELECTRONICALLY

                                 Voting Summary

                              Your Control Number:

Trustees:
You Voted:
Proposal 2:
You Voted:
To change your address click here.

                              THANK YOU FOR VOTING

Your vote has been successfully recorded and will be tabulated by Mellon
Investor Services within 24 hours.  It is not necessary for you to mail back
your voting card.

If any of the above information is incorrect, return to the proxy ballot form by
using the BACK feature of your browser program.

To vote another Proxy - CLICK HERE
Please exit your browser program as you normally do.


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.17
<SEQUENCE>28
<FILENAME>dividendreinvestplan.txt
<DESCRIPTION>EXHIBIT 99.17(D)
<TEXT>
JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II
DIVIDEND REINVESTMENT PLAN

DEAR FELLOW SHAREHOLDER:
We are pleased that you have chosen to invest in John Hancock Patriot Premium
Dividend Fund II and are happy to offer you a Plan for the reinvestment of your
dividends and net capital gains distributions in shares of the Fund. The
features of the Plan are described in this brochure.

If you decide to use this service, Mellon Bank, N.A., as your Plan Agent, will
automatically invest your dividends and net capital gains distributions in
shares of the Fund for your account.

This service is entirely voluntary and, subject to the terms of the Plan, you
may join or withdraw at any time.

We invite you to review the Plan. If you wish to participate and your shares are
held in your own name, complete and mail the authorization form to Mellon Bank,
N.A., c/o Mellon Investor Services, P. O. Box 3339, South Hackensack, NJ 07606-
1939, or notify the Agent by telephone or by visiting the Plan Agent'sWeb site
at www.melloninvestor.com. If your shares are held in the name of a brokerage
firm, bank or other nominee, you should contact your nominee to see if they will
participate in the Plan on your behalf. If you wish to participate in the Plan,
but your brokerage firm, bank or other nominee is unable to participate on your
behalf, you should request to re-register your shares in your own name, which
will enable your participation in the Plan.

Sincerely,
Keith F. Hartstein
President and Chief Executive Officer

<PAGE>

WHAT IS THE DIVIDEND REINVESTMENT PLAN?
The Dividend Reinvestment Plan offers shareholders of John Hancock Patriot
Premium Dividend Fund II a prompt and simple way to reinvest their dividend and
net capital gains distributions in shares of the Fund. The Fund will declare
monthly dividends out of net income.

Mellon Bank, N.A. acts as Plan Agent for shareholders in administering the Plan.
Certain administrative support will be provided to the Plan Agent by Mellon
Investor Services, a registered transfer agent. The complete Terms and
Conditions of the Plan appear later in this brochure.

WHO CAN PARTICIPATE IN THE PLAN?
If you own shares in your own name, you can participate directly in the Plan. If
you own shares that are held in the name of a brokerage firm, bank or other
nominee, you should instruct your nominee to participate on your behalf. IF YOU
WISH TO PARTICIPATE IN THE PLAN, BUT YOUR BROKERAGE FIRM, BANK OR OTHER NOMINEE
IS UNABLE TO PARTICIPATE ON YOUR BEHALF, YOU SHOULD REQUEST TO RE-REGISTER YOUR
SHARES IN YOUR OWN NAME, WHICH WILL ENABLE YOUR PARTICIPATION IN THE PLAN.

The Plan Agent will administer the Plan on the basis of the number of shares
certified from time to time by you as representing the total amount registered
in your name and held for your account by your nominee.

HOW DOES THE PLAN WORK?
If you choose to participate in the Plan, your dividends and net capital gains
distributions will be promptly invested for you, automatically increasing your
holdings in the Fund. If the Fund declares a dividend or net capital gains
distribution payable either in cash or in shares of the Fund, and the market
price of shares on the valuation date equals or exceeds the net asset value, the
Fund will issue new shares to you at the greater of net asset value or 95% of
the current market price. If the market price is lower than net asset value, or
if dividends or net capital gains distributions are payable only in cash, then
you will receive shares purchased by the Plan Agent on your behalf, on the New
York Stock Exchange or otherwise on the open market. If the market price exceeds
net asset value before the Plan Agent has completed its purchases, the average
purchase price may exceed net asset value, resulting in fewer shares being
acquired than if the Fund had issued new shares. All reinvestments are in full
and fractional shares, carried to four decimal places.

To enroll in the Plan, please review the Terms and Conditions in this brochure.
Your participation in the Plan will begin with the next dividend or net capital
gains distribution payable after Mellon Bank, N.A. receives your authorization,
provided it is received prior to the record date. Should your authorization
arrive after the record date, your participation in the Plan will begin with the
following dividend or distribution.

IS THERE A COST TO PARTICIPATE?
There are no brokerage charges for shares issued directly by the Fund. However,
whenever shares are purchased on the New York Stock Exchange or otherwise on the
open market, each participant will pay a pro rata portion of brokerage
commissions. Brokerage charges for purchasing shares through the Plan are
expected to be lower than the annual brokerage charges for individual
transactions, because the Plan Agent will purchase shares for all participants
in blocks, resulting in lower commissions for each individual participant.
Brokerage commissions will be deducted from amounts to be invested.

WHAT ARE THE TAX IMPLICATIONS FOR PARTICIPANTS?
The automatic reinvestment of dividends and net capital gains distributions does
not relieve you of any income tax which may be payable on dividends or
distributions. The amount of the dividend to be reported on Form 1099-DIV should
be (1) in the case of shares issued by the Fund, the fair market value of such
shares on the dividend payment date, and (2) in the case of shares purchased by
the Plan Agent in the open market, the amount of cash used to purchase them

<PAGE>

(including the amount of cash allocated to brokerage commissions paid on such
purchases). You will receive tax information annually for your personal records
and to help you prepare your federal income tax return.

ONCE ENROLLED IN THE PLAN, MAY I WITHDRAW FROM IT?
You may withdraw from the Plan at any time by contacting the Plan Agent by
telephone, in writing or by visiting the Plan Agent's Web site at
www.melloninvestor.com. Your withdrawal will be effective as specified in
Paragraph 10 of the Terms and Conditions.

If you withdraw, you will receive, without charge, share certificates issued in
your name for all full shares; or, if you wish, Mellon Bank, N.A. will sell your
shares and send you the proceeds, less a service fee of $5.00 and less brokerage
commissions. Mellon Bank, N.A. will convert any fractional shares you hold at
the time of your withdrawal to cash at current market price and send you a check
for the proceeds.

HOW DO PARTICIPATING SHAREHOLDERS BENEFIT?
You will build holdings in the Fund easily and automatically, at no brokerage
cost or at reduced brokerage costs.

You will receive a detailed account statement from Mellon Bank, N.A., your Plan
Agent, showing total dividends and distributions, date of investment, shares
acquired and price per share, and total shares of record held by you and by the
Plan Agent for you. You will receive a proxy for your existing shares as well as
the shares purchased for you by the Plan Agent according to the Plan.

As long as you participate in the Plan, Mellon Bank, N.A., as your Plan Agent,
will hold the shares it has acquired for you in safekeeping, in noncertificated
form. This convenience provides added protection against loss, theft or
inadvertent destruction of certificates. However, you may request that a
certificate representing your full reinvested shares be issued to you.

WHOM SHOULD I CONTACT FOR ADDITIONAL INFORMATION? If you hold shares in your own
name, you may address all notices, correspondence, questions or other
communications regarding the Plan to the following:

TELEPHONE
Customer Service (within the U.S. and Canada): 1-800-852-0218

International Telephone Inquiries: 1-201-329-8660

An automated voice response system is available 24 hours a day, 7 days a week.
Customer Service Representatives are available from 9:00 A.M. to 7:00 P.M., ET,
Monday through Friday (except holidays).

INTERNET
You can enroll in the program, obtain information, and perform certain
transactions on your Fund account online via Investor
ServiceDirect{reg-trade-mark}. To gain access, you will need a password, which
you may establish when you visit the Web site. If you have forgotten your
password, call 1-877-978-7778 to have it reset.

To access Investor ServiceDirect{reg-trade-mark}, please visit the Mellon
Investor Services Web site at www.melloninvestor.com.

<PAGE>

IN WRITING
You may also write to the Agent at the following address:

Mellon Bank, N.A.
c/o Mellon Investor Services
P. O. Box 3338 South Hackensack, NJ 07606-1938

Be sure to include your name, address, daytime telephone number, social security
or tax I.D. number and a reference to the John Hancock Patriot Premium Dividend
Fund II on all correspondence.

If your shares are not held in your name, you should contact your brokerage
firm, bank or other nominee for more information and to see if your nominee will
participate in the plan on your behalf.

JOHN HANCOCK PATRIOT PREMIUM DIVIDEND FUND II AND MELLON BANK, N.A. MAY AMEND OR
TERMINATE THE PLAN. PARTICIPANTS WILL GENERALLY RECEIVE WRITTEN NOTICE AT LEAST
90 DAYS BEFORE THE EFFECTIVE DATE OF ANY AMENDMENT. IN THE CASE OF TERMINATION,
PARTICIPANTS WILL RECEIVE WRITTEN NOTICE AT LEAST 90 DAYS BEFORE THE RECORD DATE
FOR THE PAYMENT OF ANY DIVIDEND OR NET CAPITAL GAINS DISTRIBUTION BY THE FUND.

             TERMS AND CONDITIONS OF THE DIVIDEND REINVESTMENT PLAN

Please study the information and the Terms and Conditions of the Dividend
Reinvestment Plan carefully to determine which alternative is best for you. You
may also want to review the Dividends and Distributions section of the John
Hancock Patriot Premium Dividend Fund II Prospectus or contact the Plan Agent.

1. You, Mellon Bank, N.A., will act as Agent (the "Plan Agent") for me, and will
open an account for me under the Dividend Reinvestment Plan (the "Plan") in the
same name as my present shares are registered, and put the Plan into effect for
me as of the first record date for a dividend or capital gains distribution.

2. Whenever John Hancock Patriot Premium Dividend Fund II (the "Fund") declares
any dividend or capital gains distribution and the market price of the common
shares on the payment date for the distribution or dividend payable is equal to
or exceeds its net asset value as determined on the payment date, the Fund will
issue, and you will receive as my agent, common shares at a value equal to the
higher of net asset value or 95% of the market price. The number of additional
shares to be credited to my account shall be determined by dividing the
equivalent dollar amount of the distribution or dividend payable to me by the
higher of net asset value or 95% of the market price.

3. Whenever the Fund declares any dividend or capital gains distribution and the
net asset value per share of the common shares exceeds the market price of the
common shares on the dividend payment date, or if the Board of Directors
declares a dividend payable only in cash, you will, as agent for me, apply the
amount of such dividend or distribution payable to me (less my pro rata share of
brokerage commissions incurred with respect to open-market purchases in
connection with the reinvestment of such dividend or distribution) to the
purchase on the open market of shares for my account. Such purchases will be
made on or shortly after the payable date for such dividend or distribution, and
in no event later than the day preceding the next ex-dividend date except where
temporary curtailment or suspension of purchase is necessary to comply with
applicable provisions of federal securities laws.

4. For all purposes of the Plan: (a) the market price of the Fund's shares on a
particular date shall be the last sales price on the New York Stock Exchange on
that date, or, if there is no sale on such exchange on that date, then the mean

<PAGE>

between the closing bid and asked quotations for such shares on such exchange on
such date and (b) the net asset value per share of the Fund's shares on a
particular date shall be as determined by or on behalf of the Fund.

5. Open-market purchases provided for above may be made on any securities
exchange where the Fund's shares are traded, in the over-the-counter market or
in negotiated transactions, and may be on such terms as to price, delivery and
otherwise as you shall determine. It is understood that, in any event, you shall
have no liability in connection with any inability to purchase shares within 30
days after the initial date of such purchases as herein provided, or with the
timing of any purchases effected. You shall have no responsibility as to the
value of the Fund's shares acquired for my account. For the purposes of
purchases in the open market, you may aggregate my purchases with those of other
shareholders of the Fund for whom you similarly act as Plan Agent, and the
average price (including brokerage commissions) of all shares purchased by you
as Plan Agent shall be the price per share allocable to me in connection
therewith.

6. You may hold my shares acquired, together with the shares of other
shareholders of the Fund acquired pursuant to similar authorizations, in
noncertificated form in your name or that of your nominee. You will forward to
me any proxy solicitation material and will vote any shares so held for me only
in accordance with the proxy returned by me to the Fund. Upon my request, you
will deliver to me, without charge, a certificate or certificates for the full
shares.

7. You will confirm to me each acquisition made for my account as soon as
practicable but not later than 60 days after the date thereof. Although I may
from time to time have an undivided fractional interest (computed to four
decimal places) in a share of the Fund, no certificate for a fractional share
will be issued. However, dividends and distributions on fractional shares will
be credited to my account. In the event of termination of my account under the
Plan, you will adjust for any such undivided fractional interest in cash at the
market value of the Fund's shares at the time of termination, less the pro rata
expense of any sale required to make such an adjustment.

8. Any share dividends or split shares distributed by the Fund on shares held by
you for me will be credited to my account. In the event that the Fund makes
available to its shareholders rights to purchase additional shares or other
securities, the shares held for me under the Plan will be added to other shares
held by me in calculating the number of rights to be issued to me.

9. Your service fee for handling capital gains distributions or income dividends
will be paid by the Fund. I will be charged a pro rata share of brokerage
commissions on all open-market purchases.

10. I may terminate my account under the Plan by notifying you in writing, by
telephone or by visiting your Web site at www.melloninvestor.com. Such
termination will be effective immediately if my notice is received by you prior
to any dividend or distribution record date; otherwise such termination will be
effective on the first trading day after the payment date for such dividend or
distribution, with respect to any subsequent dividend or distribution. The Plan
may be terminated by you or the Fund upon notice in writing mailed to me at
least 90 days prior to any record date for the payment of any dividend or
distribution by the Fund. Upon any termination, you will cause a certificate or
certificates for the full shares held for me under the Plan and cash adjustment
for any fraction to be delivered to me without charge. If I elect by notice to
you in advance of such termination to have you sell part or all of my shares and
remit the proceeds to me, you are authorized to deduct from the proceeds a $5.00
fee plus brokerage commission for this transaction.

11. After terminating my account under the Plan, I may reopen my account at any
time by notifying you in writing, by telephone or by visiting your Web site. In
such case, you will reopen my account in the same manner as set forth in
Paragraph 1 above and will put the Plan into effect for me as of the first
record date for a dividend or capital gains distribution after you receive
authorization from me.

<PAGE>

12. These Terms and Conditions may be amended or supplemented by you or the Fund
at any time or times but, except when necessary or appropriate to comply with
applicable law or the rules or policies of the Securities and Exchange
Commission or any other regulatory authority, only by mailing to me appropriate
written notice at least 90 days prior to the effective date thereof. The
amendment or supplement shall be deemed to be accepted by me unless, prior to
the effective date thereof, you receive notice of the termination of my account
under the Plan. Any such amendment may include an appointment by you in your
place and stead of a successor Plan Agent under these Terms and Conditions, with
full power and authority to perform all or any of the acts to be performed by
the Plan Agent under these Terms and Conditions. Upon any such appointment of
any Plan Agent for the purpose of receiving dividends and distributions, the
Fund will be authorized to pay such successor Plan Agent, for my account, all
dividends and distributions payable on shares of the Fund held in my name or
under the Plan for retention or application by such successor Plan Agent as
provided in these Terms and Conditions.

13. You shall at all times act in good faith and agree to use your best efforts
within reasonable limits to ensure the accuracy of all services performed under
this Agreement and to comply with applicable law, but assume no responsibility
and shall not be liable for loss or damage due to errors unless such error is
caused by your negligence, bad faith or willful misconduct or that of your
employees.

14. This agreement shall be governed by the laws of the Commonwealth of
Massachusetts.



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