NOTES TO FINANCIAL STATEMENTS
Revenue Code and thus will reduce the amount of distributions to shareholders which would otherwise be
necessary to relieve the Fund of any liability for federal income tax. Such capital loss carryover is $42,835,858
which expires on December 31, 2007. The Fund elected to defer to its fiscal year ending December 31, 2000
$3,104,760 of losses recognized during the period November 1, 1999 to December 31, 1999.
E. FOREIGN CURRENCY TRANSACTIONS
Investment security valuations, other assets, and liabilities initially expressed in foreign currencies are converted
into U.S. dollars based upon current exchange rates. Purchases and sales of foreign investment securities and
income and expenses are converted into U.S. dollars based upon currency exchange rates prevailing on the
respective dates of such transactions.
Section 988 of the Internal Revenue Code provides that gains or losses on certain transactions attributable to
fluctuations in foreign currency exchange rates must be treated as ordinary income or loss. For financial statement
purposes, such amounts are included in net realized gains or losses.
F. DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded on ex-dividend date. Distributions in excess of net realized gain on
investments, written options, and foreign currency arise because of certain timing differences. Dividends from net
investment income and distributions from capital gains, if any, are reinvested in additional shares of the Fund
unless the shareholder elects to receive them in cash. Distributions to shareholders are recorded on the ex-
dividend date. Income and capital gain distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing treatments for foreign currency transactions, passive
foreign investment companies (PFIC), litigation proceeds, market dis