NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies The Fund is registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management company. The following is a summary of significant accounting
policies consistently followed by the Fund in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.
Investments in securities traded on a national securities exchange are valued at the last reported sales price on the
last business day of the period; securities traded on the over-the-counter market and listed securities for which no
sale was reported on that date are valued at the mean between the last reported bid and asked prices.
Sales of Securities
In determining the net realized gain or loss from sales of securities, the cost of securities sold is determined on the
basis of identifying the specific certificates delivered.
The Fund follows the accounting practice known as equalization by which a portion of the proceeds from sales
and costs of repurchases of capital shares, equivalent on a per-share basis to the amount of distributable net
investment and operating income on the date of the transaction, is credited or charged to undistributed net
investment and operating income.
It is the Fund's policy to manage its assets so as to avoid the necessity of making annual taxable distributions. Net
investment and operating income and net realized gains are not distributed, but rather are accumulated within the
Fund and added to the value of the Fund shares.
Inventory is valued at the lower of cost (determined by the first in/ first out method) or market.
The Fund files its tax returns as a regular corporation and accordingly the financial statements include provisions
for current and deferred income taxes.
Security transactions are accounted for on the date the securities are purchased or sold.