NOTE 1 - ORGANIZATION
The O'Shaughnessy Dogs of the Market(TM) Fund (the "Fund") is a series of shares of O'Shaughnessy Funds,
Inc., which is registered under the Investment Company Act of 1940 as a diversified, open-end management
investment company. The Fund began operations on November 1, 1996. The Fund seeks total return, consisting
of capital appreciation and current income. The Fund seeks to achieve its objective utilizing the distinct process of
Strategy Indexing(TM) developed by the investment advisor.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund. These policies are
in conformity with generally accepted accounting principles.
A. Security Valuation: The Fund's investments are carried at market value. Securities listed on an exchange or
quoted on a national market system are valued at the last sale price. Other securities are valued at the mean
between the last bid and asked prices. Securities for which market quotations are not readily available, if any, are
valued following procedures approved by the Board of Directors. Short-term investments are valued at
amortized cost, which approximates market value.
B. Federal Income Taxes: It is the Fund's policy to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute substantially all of its taxable income to its
shareholders. Therefore, no federal income tax provision is required.
C. Security Transactions, Dividends and Distributions: Security transactions are accounted for on the trade date.
Dividend income and distributions to shareholders are recorded on the ex-dividend date. Realized gains and
losses on securities sold are determined under the identified cost basis.
D. Deferred Organization Costs: The Fund has incurred expenses of $25,191 in connection with its organization.
These costs have been deferred and are being amortized on a straight-line basis over a period of sixty