Change in Investment Policies
At a meeting held January 23, 2002, the Board of Directors voted to
eliminate the Fund's non-fundamental investment policy which prohibited the
Fund from investing for purposes of control or management of any company.
Removal of this restriction provides the Fund with flexibility to consider
a full range of reasonable investment options when the Advisers consider a
particular investment. The Advisers currently do not intend to pursue this
type of investment in most circumstances.

The Board also voted to eliminate the Fund's non-fundamental investment
policy which prohibited the Fund from investing in other investment
companies. In the Advisers' view, investing in other registered investment
companies ("RICs") can be a good way to indirectly purchase assets or a
class of assets held by such companies. Under current law, the Fund is able
to purchase up to 3% of the voting securities of any one RIC and invest up
to an aggregate of 10% of the Fund's assets in RICs.