Notes to Financial Statements
3. TRANSACTIONS WITH AFFILIATES (continued)
The Advisor has voluntarily agreed to waive its fee and, if necessary, pay other expenses of the Fund in order to
maintain total expenses for the Fund at no more than 1.0% of average daily net assets each year. Accordingly,
the Advisor did not impose any of its fee and paid expenses amounting to $11,188 for the year ended October
31, 1997, which is reflected as a reduction of expenses on the Statement of Operations. The fee waiver and
assumption of expenses by the Advisor is voluntary and may be terminated at any time.
The Advisor also acts as the transfer, dividend paying and shareholder servicing agent for the Fund. For these
services, the Fund pays a fee which is calculated as a percentage of the average daily net assets at an annual rate
of 0.024%; this fee amounted to $338 for the year ended October 31, 1997.
Manning & Napier Investor Services, Inc., a registered broker-dealer affiliate of the Advisor, acts as distributor
for the Fund's shares. The services of Manning & Napier Investor Services, Inc. are provided at no additional
cost to the Fund.
The compensation of the non-affiliated Directors totaled $7,345 for the year ended October 31, 1997.
4. PURCHASES AND SALES OF SECURITIES
For the year ended October 31, 1997, purchases and sales of securities, other than United States Government
securities and short-term securities, were $364,915 and $170,496, respectively. Purchases and sales of United
States Government securities were $2,738,204 and $1,986,176, respectively.
5. CAPITAL STOCK TRANSACTIONS
The Advisor owned 33,910 shares on October 31, 1997, and 12,747 shares on October 31, 1996.
Transactions in shares of Defensive Series Class A Common Stock were:
For the Year For the Year
Ended 10/31/97 Ended 10/31/96
Shares Amount Shares Amount