Notes to Financial Statements
currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference
between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar
equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency
denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation and
depreciation of investments and foreign currency denominated assets and liabilities.
It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and
to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no
provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it
invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to
net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.
In accordance with FASB Interpretation No. 48, “Accounting for Uncertainties in Income Taxes” (“FIN 48”), management has
analyzed the Fund’s tax positions taken on federal and state income tax returns for all open tax years (the current and the prior
three tax years) and has concluded that no provision for income tax is required in the Fund’s financial statements.
5. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is
accrued daily. Investment transactions are accounted for on the date securities are purchased or sold. Investment gains and
losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adj