NOTE 11 -- REORGANIZATIONS
On May 17, 2002 certain Funds, as listed below (each an: "Acquiring Fund"), acquired the assets and certain
liabilities of other Funds, also listed below (each an "Acquired Fund"), in a tax-free reorganization in exchange for
shares of the Acquiring Fund, pursuant to a plan of reorganization approved by the Acquired Fund's
shareholders. The number and value of shares issued by the Acquiring Fund are presented in Note 9 -- Capital
Shares. Net assets and unrealized appreciation/(depreciation) as of the reorganization dates were as follows:
The net assets of MidCap Opportunities Fund and SmallCap Opportunities after the acquisition were
approximately $302,632,500 and $511,791,033 respectively.
NOTE 12 -- FEDERAL INCOME TAXES
Dividends paid by the Funds from net investment income and distributions of net realized short-term capital gains
are, for federal income tax purposes, taxable as ordinary income to shareholders. The tax composition of
dividends and distributions to shareholders for the six months ended November 30, 2002 was as follows:
The amount of distributions from net investment income and net realized capital gain are determined in
accordance with federal income tax regulations, which may differ from generally accepted accounting principles.
These "book/tax" differences are either considered temporary or permanent in nature. Key differences are the
treatment of short-term capital gains, foreign currency transactions, organization costs and other temporary
differences. To the extent that these differences are permanent in nature, such amounts are reclassified within the
capital accounts, presented on the Statements of Assets and Liabilities, based on their federal tax-basis treatment;
temporary differences do not require reclassifications. To the extent distributions exceed net investment income
and/or net realized capital gains for tax purposes, they are reported as distributions of paid-in capital.