NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES -- The financial statements have been prepared in conformity
with generally accepted accounting principles which require management to make certain estimates and
assumptions at the date of the financial statements. The following summarizes the significant accounting policies of
a. SECURITY VALUATION -- Investments in stocks, limited partnership interests, and short-term holdings
maturing in more than 60 days are valued at current market values or, in their absence, fair value determined in
accordance with procedures approved by the Board of Directors. Securities traded on an exchange are valued at
last sales prices or, in their absence and in the case of over-the-counter securities, at the mean of bid and asked
prices. Short-term holdings maturing in 60 days or less are valued at amortized cost.
b. FOREIGN CURRENCY TRANSACTIONS -- The books and records of the Corporation are maintained in
US dollars. The market value of investment securities, other assets and liabilities denominated in foreign
currencies are translated into US dollars at the daily rate of exchange as reported by a pricing service. Purchases
and sales of investment securities, income, and expenses are translated into US dollars at the rate of exchange
prevailing on the respective dates of such transactions.
The Corporation separates that portion of the results of operations resulting from changes in the foreign exchange
rates from the fluctuations arising from changes in the market prices of securities held in the portfolio. Similarly,
the Corporation separates the effect of changes in foreign exchange rates from the fluctuations arising from
changes in the market prices of portfolio securities sold during the period.
c. FORWARD CURRENCY CONTRACTS -- The Corporation may enter into forward currency contracts in
order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, or
other amounts receiva