Notes to Pro Forma Financial Statement of Mid Cap Fund and Equity Appreciation Fund Unaudited
1. Basis of Combination The pro forma combined schedule of assets and liabilities, including pro forma combined
schedule of investments, and the related pro forma combined statement of operations reflect the accounts of Mid
Cap Fund and Capital Appreciation Portfolio, into which Mid Cap Fund invests all of its investable assets, and
Equity Appreciation Fund (collectively the "Funds") for the 12 months ended September 30, 1999 and for the six
months ended March 31, 2000.
The pro forma combined financial statements give effect to the proposed transfer of assets and liabilities of the
Equity Appreciation Fund in exchange for shares of the Mid Cap Fund. The historical cost of investment
securities will be carried forward to the surviving portfolio and the results of operations of the surviving portfolio
for pre-combining periods will not be restated. The pro- forma statements reflect expenses of the Funds in
carrying out the reorganization under the Plan of Reorganization, and are reflected as an adjustment to accrued
The accompanying pro forma financial statements should be read in conjunction with the historical financial
statements of the Funds.
2. Pro Forma Operations The pro forma combined statement of operations assumes historical rates of gross
investment income for the investments of the Funds. Accordingly, the combined gross investment income is equal
to the sum of each fund's gross investment income. Certain expenses have been adjusted to reflect the expected
expenses of the combined net assets. Pro forma operating expenses include actual expenses of the funds as if the
funds had been combined for the entire 12 month period ended September 30, 1999 and the 6 month period
ended March 31, 2000.
3. Surviving Entity The Mid Cap Fund will be the surviving entity for accounting purposes.
Pro Forma Combined Schedule of Portfolio Investments As of September 30, 1999