NOTES TO FINANCIAL STATEMENTS
60 days or less are valued at amortized cost unless this method does not represent fair value. Securities for which
market quotations are not readily available are valued at fair value as determined in good faith by, or in
accordance with procedures approved by, the Board of Directors. Fixed income securities may be valued on the
basis of prices provided by a pricing service when such prices are believed to reflect the fair market value of such
It is the policy of the Portfolio to meet the requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its investment company taxable income and net realized gains, if any,
to shareholders. Therefore, no provisions for federal income or excise taxes are required.
3. Investment Income and Investment Transactions
Dividend income is recorded on ex-dividend date. Interest income is accrued daily. Investment transactions are
accounted for on the trade date securities are purchased or sold. The Portfolio accretes discounts as adjustments
to interest income. Investment gains and losses are determined on the identified cost basis.
4. Income and Expenses
All income earned and expenses incurred by the Portfolio are borne on a pro-rata basis by each settled class of
shares, based on proportionate interest in the Portfolio represented by the net assets of such class, except that the
Portfolio's Class B and Class C shares bear higher distribution and transfer agent fees than Class A shares.
5. Dividends and Distributions
Dividends and distributions to shareholders are recorded on the ex-dividend date.
Income dividends and capital gains distributions are determined in accordance with federal tax regulations and
may differ from those determined in accordance with accounting principles gernerally accepted in the United
States. To the extent these differences are permanent, such amounts are reclassified within the capital accounts
based on their federal