NOTES TO FINANCIAL STATEMENTS
Income and capital gain distributions, if any, are determined in accordance with federal income tax regulations,
which may differ from accounting principles generally accepted in the United States of America. Taxable
distributions from income and realized capital gains in the Funds differ from book amounts earned during the
period due to differences in the timing of capital recognition, and due to the reclassification of certain gains or
losses from capital to income. Dividends from net investment income are determined on a class level. Capital
gains are determined on a fund level.
5. SECURITIES TRANSACTIONS
For the year ended October 31, 2004, aggregate cost of purchases and proceeds from sales of securities, other
than short-term investments, were as follows:
6. FOREIGN SECURITIES
Each fund may invest in foreign securities, although only the High Income Fund, Multi-Cap Growth Fund and
International Stock Fund anticipate having significant investments in such securities. The International Stock Fund,
High Income Fund and Multi-Cap Growth Fund may invest 100%, 50% and 25%, respectively, of their assets in
foreign securities.
Foreign securities means securities that are: (1) issued by companies organized outside the U.S. or whose
principal operations are outside the U.S. ("foreign issuers"), (2) issued by foreign governments or their agencies
or instrumentalities (also "foreign issuers"), (3) principally traded outside the U.S., or (4) quoted or denominated
in a foreign currency ("non-U.S. Dollar securities"). Foreign securities include ADRs, EDRs, GDRs, SDRs and
foreign money market securities.
7. RESTRICTED SECURITIES
Each fund may invest in restricted securities. A restricted security is one that is originally issued in a private
placement rather than a public offering and has a contractual restriction on resale or cannot be resold publicly until
it is registered under the Securities Act of 1933 (the "1933 Act"). If and when such securities are regi