NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(1) SIGNIFICANT ACCOUNTING POLICIES
Benham Equity Funds (BEF) is registered under the Investment Company Act of 1940 as an open-end
management investment company. Benham Global Gold Fund (BGGF) and Benham Global Natural Resources
Index Fund (BGNRIF) are two of the five Funds composing BEF. BGGF seeks to realize a total return
consistent with investment in securities of companies that are engaged in mining, processing, fabricating, or
distributing gold or other precious metals worldwide.
On February 12, 1996, shareholders of BGGF approved proposals to change the Fund's investment objective,
name and benchmark index. Prior to that date, the Fund (previously named Benham Gold Equities Index Fund),
focused on investments in North American gold-producing companies. Accordingly, it's benchmark index was
changed from the Benham North American Gold Equities Index to the FT-SE Gold Mines Index, which is
composed of gold company stocks from around the world.
BGNRIF seeks to realize a total return consistent with investment in companies that are engaged in the natural
resources industries. BEF is authorized to issue a total of 20 billion shares of capital stock. Each Fund is
authorized to issue two billion shares. Significant accounting policies followed by BEF are summarized below.
VALUATION OF INVESTMENT SECURITIES--Investment securities, both foreign and domestic, are valued
at market as provided by an independent pricing service. The pricing service values equity securities at the closing
price on their primary exchange. Securities traded over-the-counter are valued at the mean between the latest bid
and asked prices. Prices of non-U.S. dollar denominated securities are converted into U.S. dollars on a daily
basis. When valuations are not readily available, securities are valued at fair value as determined in good faith by
the board of directors. Security transactions are recorded on the date the order to buy or sell is executed.