Notes to Financial Statements (unaudited)
1. Significant Accounting Policies
The Fund is registered as a non-diversified, open-end management investment company under the Investment
Company Act of 1940, as amended. The Fund's primary objective is to achieve above-average long-term capital
appreciation. Current income is a secondary objective. The following is a summary of significant accounting
policies consistently followed by the Fund in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles ("GAAP"). The preparation of financial statements in
accordance with GAAP requires management to make estimates of certain reported amounts in the financial
statements. Actual amounts could differ from those estimates.
(a) Securities Valuation. Portfolio securities listed or traded on national securities exchanges, or reported on the
NASDAQ national market system, are valued at the last sale price, or if there have been no sales on that day, at
the mean of the current bid and ask price which represents the current value of the security. Over-the-counter
securities are valued at the mean of the current bid and ask price. If no quotations are readily available (as may
be the case for securities of limited marketability), such portfolio securities are valued at a fair value determined
pursuant to procedures established by the Board of Directors. Corporate short-term notes with maturities of 60
days or less at date of purchase are valued at cost plus interest earned, which approximates market value.
(b) Federal Income Taxes. The Fund has complied and intends to continue to comply with the requirements of
the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute
all of its taxable income to its shareholders. Therefore, no Federal income tax or excise tax provision is required.
(c) Other. Securities transactions are recorded as of the trade date. Dividend income and dividends payable are