DLJ High Yield Bond Fund--Notes to Financial Statements October 31, 1999
Cash flow information: Cash, as used in the Statement of Cash Flows, is the amount reported in the Statement of
Assets and Liabilities. The Fund invests in securities and distributes dividends from net investment income and net
realized gains (which are either paid in cash or reinvested at the discretion of shareholders). These activities are
reported in the Statement of Changes in Net Assets. Information on cash payments is presented in the Statement
of Cash Flows. Accounting practices that do not affect reporting activities on a cash basis include unrealized gain
or loss on investment securities and accretion income recognized on investment securities.
Use of estimates: The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of income and expenses during the reported period. Actual results could differ from those estimates.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND OTHER RELATED PARTY
The Fund has entered into an investment management agreement (the "Management Agreement") with DLJIM.
The Agreement provides that the Fund will pay DLJIM a fee, computed and payable monthly, at the annual rate
of 1% of the average weekly value of the Fund's total assets minus the sum of accrued liabilities (other than the
aggregate indebtedness constituting leverage) (the "Managed Assets").
The Fund has also entered into an Administration and Support Agreement with PFPC, Inc. to provide all
administrative services to the Fund other than those related to the investment decisions. For these administration
services, the Fund will pay PFPC, Inc. a fee at the annual rate of $50,000 per year.
The Fund pays each Trustee not affiliated w