Note 1 Significant accounting policies
The Fund is registered under the Investment Company Act of 1940, as amended, as a diversified, closed-end
management investment company. The Fund's primary investment objective is high current income; its secondary
objective is capital appreciation. The Fund invests in high-yielding convertible securities. The Fund seeks to
augment current income by investing in nonconvertible high-yielding, lower-rated, or nonrated debt securities,
which are believed not to involve undue risk to income or principal.
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.
A) Security valuation Investments for which market quotations are readily available are stated at market value,
which is determined using the last reported sale price, or, if no sales are reported--as in the case of some
securities traded over-the-counter--the last reported bid price, except that certain U.S. government obligations
are stated at the mean between the last reported bid and asked prices. Securities quoted in foreign currencies are
translated into U.S. dollars at the current exchange rate. Market quotations are not considered to be readily
available for long-term corporate bonds and notes; such investments are stated at fair value on the basis of
valuations furnished by a pricing service, approved by the Trustees, which determines valuations for normal,
institutional-size trading units of such securities using methods based on market transactions for comparable
securities and various relationships between securities that are generally recognized by institutional traders. Short-
term investments having remaining maturities of 60 days or less are stated at amortized cost, which approximates
market value, and other investments, including restricted securities, are stated at fair value following procedures
approved by the Trustees.