Notes to Financial Statements (unaudited)
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
FEDERAL INCOME TAXES
The Fund's policy is to comply with the provisions of the Internal Revenue Code applicable to regulated
investment companies. The Fund is not subject to federal income or excise tax to the extent the Fund distributes
to shareholders each year its taxable income, including any net realized gains on investments in accordance with
requirements of the Internal Revenue Code.
Accordingly, no provision for federal income tax or excise tax has been made in the financial statements.
The Fund uses the identified cost method for determining realized gain or loss on investments for both financial
statement and federal income tax reporting purposes.
DISTRIBUTION OF INCOME AND GAINS
Distributions to shareholders of net investment income are made semi-annually. Distributions are recorded on the
ex-dividend date. Distributions of net realized gains are distributed annually. An additional distribution may be
necessary to avoid taxation of the Fund.
The timing and characterization of certain income and capital gains are determined in accordance with federal
income tax regulations which may differ from generally accepted accounting principles. The differences may be a
result of deferral of certain losses, foreign denominated investments or character reclassification between net
income and net gains. As a result, net investment income (loss) and net investment gain (loss) on investment
transactions for a reporting period may differ significantly from distributions to shareholders during such period.
As a result, the Fund may periodically make reclassification among its capital accounts without impacting the
Fund's net asset value.
FOREIGN CURRENCY TRANSLATION
The accounting records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into
U.S. dollars on the following basis: a) investment securities, other assets and liabilities are converted to U.S.