Notes to Financial Statements
1. Significant Accounting Policies The Company is registered under the Investment Company Act of 1940 as a
diversified, open-end management investment company. The following is a summary of significant accounting
policies consistently followed by the Company. The policies are in conformity with generally accepted accounting
(a) Market value is determined as follows: Securities listed or admitted to trading privileges on any national
securities exchange are valued at the last sales price on the principal securities exchange on which such securities
are traded, or, if there is no sale, at the mean between the last bid and asked prices on such exchange. Securities
traded only in the over-the-counter market are valued at the mean between the last bid and asked prices in such
market, except that securities admitted to trading on the NASDAQ National Market System are valued at the
last sales price if it is determined that such price more accurately reflects the value of such securities. Securities
for which market quotations are not available are valued at fair value under procedures approved by the Board of
(b) It is the policy of the Company to meet the requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income in taxable distributions. Therefore, no income tax
provision is required.
(c) Security transactions are accounted for on the date that the securities are purchased or sold (trade date).
Dividend income and distributions to shareholders are recorded on the ex-dividend date. Interest income is
accrued on a daily basis.
(d) A portion of proceeds from sales and costs of repurchases of capital shares, equivalent to the amount of
distributable net investment income on the date of the transaction, is credited or charged to undistributed income.
Undistributed net investment income per share thus is unaffected by sales or repurchases of shares.
2. Distributions Taxable