Note 6
New accounting pronouncement

As required, the fund has adopted the provisions of the
AICPA Audit and Accounting Guide, Audits of Investment
Companies.  This Guide requires that the fund amortize
premium and accrete discount on all fixed-income
securities, and classify as interest income gains and
losses realized on paydowns on mortgage-backed securities.
Prior to August 1, 2001, the fund did not amortize premium
and accrete discounts for certain fixed income securities
and characterized as realized gains and losses paydowns on
mortgage backed securities.  Adopting these accounting
principles did not affect the fund's net asset value, but
did change the classification of certain amounts between
interest income and realized and unrealized gain/loss in
the Statement of operations.  The adoption of this
principle was not  material to the financial statements.