NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2007 (CONTINUED)
The Fund accrues foreign taxes on realized gains and repatriation taxes in an amount equal to what the Fund would owe if the
securities were sold and the proceeds repatriated on the valuation date as a liability and reduction of realized/unrealized gains.
Taxes on foreign income are recorded when the related income is recorded. For the year ended December 31, 2007, the Fund
incurred $472,140 of such expense.
Foreign Currency Translations: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts
are translated into U.S. dollars on the following basis:
(I) market value of investment securities, assets and liabilities at the valuation date rate of exchange; and
(II) purchases and sales of investment securities, income and expenses at the relevant rates of exchange prevailing on the
respective dates of such transactions.
The Fund does not isolate that portion of gains and losses on investments in equity securities which is due to changes in the
foreign exchange rates from that which is due to changes in market prices of equity securities. Accordingly, realized and
unrealized foreign currency gains and losses with respect to such securities are included in the reported net realized and
unrealized gains and losses on investment transactions balances.
The Fund reports certain foreign currency related transactions and foreign taxes withheld on security transactions as
components of realized gains for financial reporting purposes, whereas such foreign currency related transactions are treated as
ordinary income for U.S. income tax purposes.
Net unrealized currency gains or losses from valuing foreign currency denominated assets and liabilities at period end exchange
rates are reflected as a component of net unrealized appreciation/depreciation in value of investments, and translation of other
assets and liabilities denominated in foreign currencies.
Net realized foreign exchange gains or losses