Notes to Financial Statements
NOVEMBER 30, 1998
pursuant to criteria adopted by the Board of Directors. Each repurchase agreement is recorded at cost. The
Funds require that the collateral, represented by securities, received in a repurchase transaction be transferred to
the custodian in a manner sufficient to enable the Funds to obtain those securities in the event of a default under
the repurchase agreement. ACIM monitors, on a daily basis, the securities transferred to ensure the value,
including accrued interest, of the securities under each repurchase agreement is equal to or greater than amounts
owed to the Funds under each repurchase agreement.
JOINT TRADING ACCOUNT--Pursuant to an Exemptive Order issued by the Securities and Exchange
Commission, the Funds, along with other registered investment companies having management agreements with
ACIM, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or
more repurchase agreements that are collateralized by U.S. Treasury or Agency obligations.
INCOME TAX STATUS--It is the policy of the Funds to distribute all net investment income and net realized
gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal
Revenue Code. Accordingly, no provision has been made for federal or state income taxes.
DISTRIBUTIONS TO SHAREHOLDERS--Distributions to shareholders are recorded on the ex-dividend
date. Distributions from net investment income are declared and paid quarterly, with the exception of those for
Aggressive, which are declared and paid annually. Distributions from net realized gains are declared and paid
annually, usually in December, but the funds may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code, in all events in a manner consistent with provisions of the
Investment Company Act.
On December 18, 1998, Strategic Allocation: