NOTES TO FINANCIAL STATEMENTS
March 31, 2001
could result in a return of capital to shareholders if the amount of the distribution exceeds the Fund's net
investment income and realized capital gains. It is anticipated that net realized capital gains in excess of the total
distributed under this policy would be included in the December distribution.
If a distribution were to be declared in cash, it would then be subject to the Dividend Reinvestment Plan. Under
the Dividend Reinvestment Plan, distributions will automatically be paid in additional shares of the Fund, unless
State Street Bank is otherwise instructed.
Shareholders may request to be paid in cash instead of shares by responding to the bank, brokerage or nominee
who holds the shares if the shares are in "street name" or by filling out a form received from State Street Bank if
the shares are in registered form.
(2) PURCHASES AND SALES OF INVESTMENT SECURITIES
The aggregate cost of purchases and proceeds from sales of investment securities (other than temporary cash
investments) for the period from October 1, 2000 through March 31, 2001 totaled $27,684,259 and
(3) TAX BASIS OF SECURITIES
At March 31, 2001, the total cost of securities for Federal income tax purposes was $156,666,722. The
aggregate gross unrealized gain on securities in which there was an excess of market value over cost was
$132,416,394. The aggregate gross unrealized loss on securities in which there was an excess of cost over
market value was $28,895,378. The net unrealized gain on securities held by the Fund was $103,521,016.
(4) ADVISORY AGREEMENT
The Fund has entered into an Investment Advisory Agreement (the Advisory Agreement) with Hambrecht &
Quist Capital Management Incorporated (the Adviser). Pursuant to the terms of the Advisory Agreement, the
Fund pays the Adviser a monthly fee at the rate when annualized of (i) 2.5% of the average net assets for the
month of its venture capital and other restricted secu