The Emergency Economic Stabilization Act of 2008 requires that Aquila Group of Funds elect a Default Method for Cost Basis Reporting.  Average Cost has been selected as the Cost Basis Reporting Default Method.

The following Cost Basis Reporting methods are available to Aquila Group of Funds shareholders:

1. Average Cost – Cost basis calculated as the average cost of shares based on each purchase date.
2. First-In, First-Out (FIFO) – The oldest shares purchased are redeemed first.
3. Specific Lot – You may specify, by original trade date, the share lot(s) which you are redeeming.
4. Last-In, First-Out (LIFO) – The most recently purchased shares are redeemed first.
5. Highest-In, First-Out (HIFO) – The highest cost shares are redeemed first.
6. Lowest-In, First-Out (LOFO) – The lowest cost shares are redeemed first.
7. Highest Long-Term, First-Out (HILT) – The highest cost long-term shares are redeemed first.
8. Highest Short-Term, First-Out (HIST) – The highest cost short-term shares are redeemed first.
9. Lowest Long-Term, First-Out (LILT) – The lowest cost long-term shares are redeemed first.
10. Lowest Short-Term, First-Out (LIST) – The lowest cost short-term shares are redeemed first.

Consult Your Tax Adviser
We strongly encourage you to consult your professional tax adviser prior to making a Cost Basis Reporting election or redeeming shares, in order to discuss any questions you may have about your Cost Basis Reporting options. 

Neither the Funds nor the Shareholder Servicing Agent are able to provide you with tax or legal advice.

To Elect or Change Your Cost Basis Reporting Method
Please note that when electing or changing your Cost Basis Reporting method you must provide written instructions.  You may do so by completing and signing the Cost Basis Election Form, or by sending a letter of instruction to BNY Mellon, Attn:  Aquila Group of Funds, P.O. Box 9823, Providence, RI 02940 (For overnight delivery:  BNY Mellon, Attn:  Aquila Group of Funds, 4400 Computer Drive, Westborough, MA 01581).