NOTES TO FINANCIAL STATEMENTS
August 31, 1995
(1) SIGNIFICANT ACCOUNTING POLICIES
Benham Prime Money Market Fund is an open-end management investment company registered under the
Investment Company Act of 1940. It is currently the sole fund of Benham Investment Trust. Significant
accounting policies followed by the Fund are summarized below.
Valuation of Investment Securities--Securities are valued at amortized cost, which approximates current market
value. Interest receivable is composed of coupon interest, either purchased or accrued, on investment securities.
Securities transactions are recorded on the date the order to buy or sell is executed. Realized gains and losses
from security transactions are determined on the basis of identified cost.
Income Taxes--The Fund intends to qualify as a regulated investment company under Subchapter M of the
Internal Revenue Code. By complying with these provisions, the Fund will not be subject to federal or state
income taxes to the extent that it distributes substantially all its net investment income and net realized capital gains
Share Valuation--The Fund's net asset value per share is computed by dividing the value of its total assets, less its
liabilities, by the total number of shares outstanding at the beginning of each business day. It is the Fund's policy
to maintain a constant net asset value of $1.00 per share, although there is no guarantee it will be able to do so.
Investment Income, Dividends and Other Distributions--Income and expenses are accrued daily. Discounts and
premiums on securities purchased are amortized on a straight-line basis over the life of the securities. Dividends to
the shareholders are declared and credited daily. Shareholders may elect to receive distributions in cash or to
reinvest them in additional shares. Cash dividends are distributed on the last business day of the month.
(2) INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Benham Management Corporation (BMC