Notes to Financial Statements
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
DISTRIBUTIONS OF INCOME AND GAINS
Distributions to shareholders of net investment income are made quarterly. Distributions of net realized gains are
made annually. An additional distribution may be necessary to avoid taxation of the Series. Distributions are
recorded on the ex-dividend date.
The timing and characterization of certain income and capital gains are determined in accordance with federal
income tax regulations which may differ from generally accepted accounting principles. These differences are
primarily due to differing book and tax treatments in timing of the recognition of investment income or gains and
losses. As a result, net investment income
(loss) and net investment gain (loss) on investment transactions for a reporting period may differ from distributions
to shareholders during such period. As a result, the Series may periodically make reclassifications among its
capital accounts without impacting the Series' net asset value. Any such reclassifications are not reflected in the
The Series hereby designates 100% of its ordinary distribution as tax-exempt dividends for the year ended
December 31, 2000.
At December 31, 2000 the Series, for federal income tax purposes, has a capital loss carry forward of $206,767
which will expire on December 31, 2008.
The preparation of financial statements, in conformity with generally accepted accounting principles, requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the
disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of
the revenues and expenses during the reporting period. Actual results could differ from those estimates.
CHANGE IN ACCOUNTING POLICY
In November 2000, a revised AICPA Audit and Accounting Guide, Audits of Investment Companies, was
issued, and is effective for fiscal years beginn