NOTE 1 -- ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Utility Portfolio (the "Portfolio") is registered under the Investment Company Act of 1940 ("the Act"), as
amended, as an open-end management investment company. The Portfolio was organized on December 11,
1991 as an unincorporated trust under the laws of New York, and commenced operations on August 3, 1992.
The Declaration of Trust permits the Board of Trustees (the "Trustees") to issue beneficial interests in the
B. SECURITY VALUATION
The Portfolio's investments are valued each business day by an independent pricing service approved by the
Trustees. Securities traded on national exchanges or traded in the NASDAQ National Market System are valued
at the last sales prices reported at the close of business each day. Over-the-counter securities not included in the
NASDAQ National Market System and listed securities for which no sale was reported are valued at the mean
of the bid and asked prices. Short-term obligations with remaining maturities of 60 days or less, are valued at
amortized cost which with accrued interest approximates value. Securities for which quotations are not available
are stated at fair value as determined by the Trustees.
C. SECURITY TRANSACTIONS AND INTEREST INCOME
Security transactions are accounted for on a trade date basis. Dividend income is recorded on the ex-dividend
date. Interest income is recorded on the accrual basis and includes amortization of premium and discount on
investments. Realized gains and losses from securities transactions are recorded on the identified cost basis.
All of the net investment income and realized and unrealized gains and losses from the security transactions of the
Portfolio are allocated pro rata among the investors in the Portfolio at the time of such determination.
D. FEDERAL INCOME TAXES
It is the Portfolio's policy to comply with the requirements of the Internal Revenue Code. Therefore, no federal
income tax provision is required.