NOTES TO THE FINANCIAL STATEMENTS
to shareholders from net investment income of the Money Market Fund are declared daily and distributed
monthly. Distributions to shareholders from any net realized capital gains are declared and distributed annually,
generally in December.
Due to the timing of dividend distributions and the differences in accounting for income and realized gains (losses)
for financial statement and federal income tax purposes, the fiscal year in which amounts are distributed may differ
from the year in which the income and realized gains (losses) were recorded by the Fund.
FEDERAL INCOME TAXES
Each Fund of the Company is treated as a separate entity for federal income tax purposes. It is the policy of each
Fund of the Company to continue to qualify as a regulated investment company by complying with the provisions
applicable to regulated investment companies, as defined in the Code, and to make distributions of substantially
all of its investment company taxable income and any net realized capital gains (after reduction for capital loss
carryforwards) sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision
for federal income taxes was required at December 31, 1996. The following funds had net capital loss
carryforwards at December 31, 1996:
No capital gain distribution shall be made in any of the Funds until the respective capital loss carryforward has
been fully utilized or expires.
Stephens Inc. ("Stephens"), the Funds' co-administrator and distributor, has paid all the expenses in connection
with the organization and initial registration of the various Funds.
Year Net Capital
Fund Expires Loss Carryforward
Bond Index Fund 2002 $ 144,965
Bond Index Fund 2003 316,656
Bond Index Fund 2004