NOTES TO FINANCIAL STATEMENTS
redemptions by shareholders of Class B shares, for the six months ended December 31, 2000.
Distribution Services Agreement
The Portfolio has adopted a Distribution Services Agreement (the "Agreement") pursuant to Rule 12b-1 under
the Investment Company Act of 1940. Under the Agreement, the Portfolio pays distribution and servicing fees to
the Distributor at an annual rate of up to .30 of 1% of the Portfolio's average daily net assets attributable to Class
A shares and 1% of the average daily net assets attributable to both Class B and Class C shares. There are no
distribution and servicing fees on the Advisor Class shares. The fees are accrued daily and paid monthly. The
Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and
promotional activities. The Distributor has advised the Portfolio that it has incurred expenses in excess of the
distribution costs reimbursed by the Portfolio in the amount of $2,759 and $210 for Class B and Class C shares,
respectively. Such costs may be recovered from the Portfolio in future periods so long as the Agreement is in
effect. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs
incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that
the Adviser may use its own resources to finance the distribution of the Portfolio's shares.
Purchases and sales of investment securities (excluding short-term investments and U.S. government securities)
aggregated $2,892,736 and $1,243,089, respectively, for the six months ended December 31, 2000. There
were purchases of $17,735,467 and sales of $11,633,370 of U.S. government and government agency
obligations for the six months ended December 31, 2000.
At December 31, 2000, the cost of investments for federal income tax purposes was substantially the same as the
cost for financial reportin