NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. AGGREGATE INFORMATION FOR FEDERAL INCOME TAX PURPOSES
At February 28, 2009 the aggregate cost of securities for federal income tax purposes was $1,020,843,238, the
aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost was
$5,090,951 and the aggregate gross unrealized depreciation for all securities in which there is an excess of tax
cost over value was $499,095,447.
2. ADDITIONAL ACCOUNTING STANDARDS
Statement of Financial Accounting Standards No. 157 "FAIR VALUE
MEASUREMENTS" ("SFAS 157")
In September 2006, the Financial Accounting Standards Board ("FASB") issued Statement of Financial
Accounting Standards No. 157 "Fair Value Measurements" ("SFAS 157") effective for fiscal years beginning
after November 15, 2007. This standard clarifies the definition of fair value for financial reporting, establishes a
framework for measuring fair value and requires additional disclosures about the use of fair value measurements.
The Fund has adopted SFAS 157 as of December 1, 2007. The three levels of the fair value hierarchy under
SFAS 157 are described below:
- Level 1 - quoted prices in active markets for identical securities
- Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates,
prepayment speeds, credit risk, etc.)
- Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of
investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with
investing in those securities. A summary of the inputs used to value the Fund's net assets as of February 28, 2009
is as follows:
* Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as
futures, forwards and swaps which are valued at the unrealized appreciation/depreciation on the investment. As
of February 28, 2009 the Fun