Notes to Financial Statements
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
FEDERAL INCOME TAXES
The Series' policy is to comply with the provisions of the Internal Revenue Code applicable to regulated
investment companies. The Series is not subject to federal income or excise tax to the extent the Series distributes
to shareholders each year its taxable income, including any net realized gains on investments in accordance with
requirements of the Internal Revenue Code. Accordingly, no provision for federal income tax or excise tax has
been made in the financial statements.
DISTRIBUTIONS OF INCOME AND GAINS
Distributions to shareholders of net investment income are made annually. 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 gains or losses, including net
operating losses and losses deferred due to wash sales. 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 financial
At December 31, 2000 the Series, for federal income tax purposes, has a capital loss carry forward of
$1,552,318 which will expire on December 31, 2008.
FOREIGN CURRENCY TRANSLATION
The books and records of the Fund are maintained in U.S. dollars. Foreign currencies, investments and other
assets and liabilities are translated into U.S. dollars at th