NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
INVESTMENTS IN SECURITIES
For federal income tax purposes, the cost of securities owned at May 31, 1999, was substantially the same as
the cost of securities for financial statement purposes.
For the six months ended May 31, 1999, aggregate purchases and sales of portfolio securities, excluding short-
term securities, were $71,075,307 and $70,950,957, respectively.
There are 100,000,000 shares of $0.001 par value capital stock authorized. Of the 20,414,328 shares
outstanding at May 31, 1999 Mitchell Hutchins owned 10,356 shares.
For the six months ended May 31, 1999 and the period September 17, 1998 (commencement of repurchase
program) through November 30, 1998, the Fund repurchased 736,100 and 256,700 shares, respectively, of
common stock at an average market price per share of $11.43 and $11.70, respectively, and a weighted average
discount from net asset value of 13.78% and 12.76% per share, respectively. At May 31, 1999 and November
30, 1998, included in paid-in-capital is net the cost of $8,474,948 and $3,019,634, respectively, of common
FEDERAL INCOME TAX STATUS
The Fund intends to distribute substantially all of its taxable income and to comply with the other requirements of
the Internal Revenue Code applicable to regulated investment companies. Accordingly, no provision for federal
income taxes is required. In addition, by distributing during each calendar year substantially all of its net
investment income, capital gains and certain other amounts, if any, the Fund intends not to be subject to a federal
AtMay 31, 1999, the components of net unrealized depreciation of investments
were as follows:
Gross appreciation (investments having an excess value over cost) ......... $ 3,149,082
Gross depreciation (investments having an excess of cost over value) ...... (16,097,185)