NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
(e) 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 and
disclosures in the financial statements. Actual results could differ from those estimates.
(f) Other - Dividend income is recorded on the ex-dividend date, except that certain dividends from foreign
securities are recorded as soon as the information becomes available to the Fund. Interest income is reported on
the accrual basis. Distributions to shareholders are recorded on the ex-dividend date. Generally accepted
accounting principles require that certain differences between financial reporting and tax purposes be reclassified
to capital stock.
(3) Transactions with affiliates:
Artisan Partners Limited Partnership (the "Adviser"), with which certain officers and directors of the Fund are
affiliated, provides investment advisory and administrative services to the Fund. In exchange for these services,
the Fund pays a monthly management fee to the Adviser as follows:
The Fund also incurs other expenses for services such as maintaining shareholder records and furnishing
shareholder statements and reports.
At June 30, 1997, the Fund owned 5% or more of the outstanding voting securities of each of the issuers listed
below. A summary of open market transactions in the securities of each such issuer, gain realized on sales and
dividends received for the fiscal year follows:
Purchases Sales -------------------- -------------- Realized Dividend
(4) Organization costs and prepaid registration expenses:
Organization costs are amortized over sixty months. These expenses were paid by the Adviser which will be
reimbursed by the Fund over the same time period. The proceeds of any redemption of the initial shares by the
original shareholder will be reduced by a pro-rata portion of any unamortized expenses at the time of redemption.