-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, G5QwiMACZdRJEoo8Lkz/Rp/HRm3peNMtX6cf7yN6h/cIEXN8wXn5nLn+hYjFm+pn y6pesmHH60umrkfd81GjVw== 0000928816-04-001458.txt : 20041229 0000928816-04-001458.hdr.sgml : 20041229 20041229162459 ACCESSION NUMBER: 0000928816-04-001458 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041031 FILED AS OF DATE: 20041229 DATE AS OF CHANGE: 20041229 EFFECTIVENESS DATE: 20041229 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JOHN HANCOCK PREFERRED INCOME FUND II CENTRAL INDEX KEY: 0001189740 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-21202 FILM NUMBER: 041231392 BUSINESS ADDRESS: STREET 1: 101 HUNTINGTON AVENUE CITY: BOSTON STATE: MA ZIP: 02199 BUSINESS PHONE: 6173751617 MAIL ADDRESS: STREET 1: 101 HUNTINGTON AVENUE CITY: BOSTON STATE: MA ZIP: 02199-7603 N-Q 1 prefincii1.txt JOHN HANCOCK PREFERRED INCOME FUND II UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-21202 John Hancock Preferred Income Fund II (Exact name of registrant as specified in charter) 101 Huntington Avenue, Boston, Massachusetts 02199 (Address of principal executive offices) (Zip code) Susan S. Newton, Secretary 101 Huntington Avenue Boston, Massachusetts 02199 (Name and address of agent for service) Registrant's telephone number, including area code: 617-375-1702 Date of fiscal year end: July 31 Date of reporting period: October 31, 2004 ITEM 1. SCHEDULE OF INVESTMENTS JOHN HANCOCK Preferred Income Fund II 10.31.2004 Quarterly Portfolio Holdings [A 2" x 1" John Hancock (Signature)/John Hancock Funds logo in lower, center middle of page. A tag line below reads "JOHN HANCOCK FUNDS."]
John Hancock Preferred Income Fund II Securities owned by the Fund on October 31, 2004 (unaudited) Interest Maturity Credit Par value Issuer, description rate (%) date rating (A) ($000) Value - --------------------------------------------------------------------------------------------------------------------------------- Bonds 1.44% $11,349,066 (Cost $11,199,506) Electric Utilities 1.30% 10,230,120 Black Hills Corp., Note 6.500 05-15-2013 BBB- 5,000 5,190,120 Entergy Gulf States, Inc., 1st Mtg Bond 6.200 07-01-2033 BBB 5,000 5,040,000 Government U.S. Agency 0.14% 1,118,946 Federal National Mortgage Assn., Bond 7.125 02-15-2005 AAA 1,103 1,118,946 Credit Par value Issuer, description, maturity date rating (A) ($000) Value - --------------------------------------------------------------------------------------------------------------------------------- Capital preferred securities 12.61% $99,425,319 (Cost $91,735,678) Asset Management & Custody Banks 0.67% 5,268,921 BNY Capital, 7.97%, Ser B, 12-31-26 A- 4,700 5,268,921 Diversified Banks 0.53% 4,160,400 Lloyds TSB Bank Plc, 6.90%, 11-29-49 (United Kingdom) Aa2 4,000 4,160,400 Electric Utilities 3.00% 23,645,125 DPL Capital Trust II, 8.125%, 09-01-31 B 22,150 23,645,125 Gas Utilities 2.93% 23,110,867 KN Capital Trust I, 8.56% Ser B, 04-15-27 BB+ 10,000 11,266,100 KN Capital Trust III, 7.63%, 04-15-28 BB+ 10,673 11,844,767 Integrated Telecommunication Services 1.37% 10,808,496 TCI Communications Financing Trust III, 9.65%, 03-31-27 BBB- 9,243 10,808,496 Multi Utilities & Unregulated Power 1.97% 15,531,316 Dominion Resources Capital Trust I, 7.83%, 12-01-27 BBB- 8,450 9,303,256 Dominion Resources Capital Trust III, 8.40%, 01-15-31 BBB- 5,000 6,228,060 Other Diversified Financial Services 1.67% 13,161,720 JPM Capital Trust I, 7.54%, 01-15-27 A- 12,000 13,161,720 Regional Banks 0.47% 3,738,474 Summit Capital Trust I, 8.40%, Ser B, 03-15-27 A- 3,300 3,738,474 Issuer Shares Value - --------------------------------------------------------------------------------------------------------------------------------- Common stocks 2.53% $19,963,666 (Cost $16,027,906) Electric Utilities 2.53% 19,963,666 Alliant Energy Corp. 220,000 5,803,600 CH Energy Group, Inc. 42,000 1,874,460 Progress Energy, Inc. 160,000 6,608,000 Scottish Power Plc, American Depositary Receipt (ADR) (United Kingdom) 175,343 5,677,606 Credit Issuer, description rating (A) Shares Value - --------------------------------------------------------------------------------------------------------------------------------- Preferred stocks 81.39% $641,899,162 (Cost $611,995,794) Agricultural Products 1.45% 11,437,500 Ocean Spray Cranberries, Inc., 6.25%, Ser A (S) BB+ 150,000 11,437,500 Asset Management & Custody Banks 0.13% 994,000 BNY Capital V, 5.95%, Ser F A- 40,000 994,000 Automobile Manufacturers 2.91% 22,917,573 Ford Motor Co., 7.50% BBB- 50,000 1,288,000 General Motors Corp., 7.25%, Ser 4-15-41 BBB 87,900 2,229,144 General Motors Corp., 7.25%, Ser 7-15-41 BBB 233,500 5,881,865 General Motors Corp., 7.25%, Ser 2-15-52 BBB 447,300 11,213,811 General Motors Corp., 7.375% BBB 91,025 2,304,753 Broadcasting & Cable TV 1.27% 10,024,504 Shaw Communications, Inc., 8.45%, Ser A (Canada) B+ 172,000 4,361,920 Shaw Communications, Inc., 8.50% (Canada) B+ 223,200 5,662,584 Consumer Finance 1.80% 14,198,733 Ford Motor Credit Co., 7.375% BBB- 30,000 764,700 Ford Motor Credit Co., 7.60% A3 100,000 2,623,000 Household Finance Corp., 6.00% A 72,200 1,805,000 Household Finance Corp., 6.875% A 338,700 9,006,033 Diversified Banks 7.22% 56,931,931 BAC Capital Trust IV, 5.875% A- 46,150 1,131,598 Comerica Capital Trust I, 7.60% BBB+ 120,400 3,190,600 Fleet Capital Trust VII, 7.20% A- 459,900 12,224,142 Fleet Capital Trust VIII, 7.20% A- 310,000 8,326,600 Republic New York Corp., 6.25% Ser HSBC A 50,000 1,287,500 Royal Bank of Scotland Group Plc, 5.75%, Ser L (United Kingdom) A 475,500 11,373,960 USB Capital III, 7.75% A- 134,300 3,552,235 USB Capital IV, 7.35% A- 152,800 4,044,616 USB Capital V, 7.25% A- 252,000 6,738,480 Wells Fargo Capital Trust IV, 7.00% A 140,800 3,731,200 Wells Fargo Capital Trust VI, 6.95% A- 50,000 1,331,000 Electric Utilities 19.73% 155,578,440 Ameren Corp., 9.75%, Conv BBB+ 193,000 5,577,700 American Electric Power Co., Inc., 9.25%, Conv BBB 135,000 6,423,300 Boston Edison Co., 4.78% BBB+ 15,143 1,347,727 Cinergy Corp., 9.50%, Conv Baa2 110,000 6,778,200 Cleveland Electric Financing Trust I, 9.00% BB 210,000 5,785,500 Detroit Edison Co., 7.375% BBB- 50,000 1,274,500 Detroit Edison Co., 7.54% BBB- 18,700 476,289 DTE Energy Co., 8.75%, Conv BBB 224,200 5,824,716 DTE Energy Trust I, 7.80% BBB- 253,000 6,836,060 Entergy Mississippi, Inc., 7.25% BBB+ 50,500 1,358,450 Enterprise Capital Trust I, 7.44%, Ser A BB+ 35,400 892,434 FPC Capital I, 7.10%, Ser A BB+ 559,503 14,166,616 FPL Group Capital Trust I, 5.875% BBB+ 436,800 10,758,384 FPL Group, Inc., 8.00%, Conv A- 140,000 7,945,000 Georgia Power Capital Trust V, 7.125% BBB+ 176,200 4,757,400 Georgia Power Capital Trust VII, 5.875% BBB+ 116,500 2,868,230 HECO Capital Trust III, 6.50% (W) BBB- 120,000 3,169,200 Indiana Michigan Power Co., 6.875% BB+ 27,330 2,758,963 Interstate Power & Light Co., 8.375%, Ser B BBB- 700,000 22,400,000 Monongahela Power Co., $7.73, Ser L B- 55,500 5,369,625 Monongahela Power Co., 4.50%, Ser C CCC+ 24,100 1,928,000 Northern States Power Co., 8.00% BBB- 175,800 4,825,710 NVP Capital III, 7.75% CCC+ 108,500 2,711,415 Puget Sound Energy Capital Trust II, 8.40% BB 232,060 6,168,155 Southern Co. Capital Trust VI, 7.125% BBB+ 30,000 803,400 TECO Capital Trust I, 8.50% Ba3 490,434 12,721,858 Vectren Utillity Holdings, Inc., 7.25% A- 56,500 1,505,725 Virginia Power Capital Trust, 7.375% BBB 304,519 8,145,883 Gas Utilities 4.17% 32,859,246 AGL Capital Trust II, 8.00% BBB 41,000 1,078,710 KeySpan Corp., 8.75%, Conv A 325,000 17,420,000 SEMCO Capital Trust I, 10.25% B- 203,800 5,237,660 Southern Union Co., 5.75%, Conv Baa3 12,000 804,000 Southern Union Co., 7.55% BB+ 190,000 5,187,000 Southwest Gas Capital II, 7.70% BB 116,600 3,131,876 Hotels, Resorts & Cruise Lines 0.30% 2,375,100 Hilton Hotels Corp., 8.00% BBB- 90,000 2,375,100 Industrial Conglomerates 0.39% 3,075,264 Grand Metropolitan Delaware, L.P., 9.42%, Gtd Ser A BBB+ 121,600 3,075,264 Integrated Telecommunication Services 2.54% 20,014,471 Telephone & Data Systems, Inc., 7.60%, Ser A A- 605,967 16,046,006 Verizon New England, Inc., 7.00%, Ser B Aa3 150,150 3,968,465 Investment Banking & Brokerage 8.33% 65,670,067 Bear Stearns Cos., Inc. (The), 5.49%, Depositary Shares, Ser G BBB 27,400 1,374,110 Bear Stearns Cos., Inc. (The), 5.72%, Ser F BBB 64,400 3,381,000 Bear Stearns Cos., Inc. (The), 6.15%, Depositary Shares, Ser E BBB 248,600 13,175,800 Lehman Brothers Holdings Capital Trust III, 6.375%, Ser K BBB+ 170,000 4,316,300 Lehman Brothers Holdings, Inc., 5.94%, Depositary Shares, Ser C BBB+ 145,200 7,405,200 Merrill Lynch Preferred Capital Trust III, 7.00% A- 360,400 9,579,432 Merrill Lynch Preferred Capital Trust IV, 7.12% A- 167,400 4,508,082 Merrill Lynch Preferred Capital Trust V, 7.28% A- 273,200 7,444,700 Morgan Stanley Capital Trust III, 6.25% A- 215,000 5,458,850 Morgan Stanley Capital Trust IV, 6.25% A- 47,000 1,184,870 Morgan Stanley Capital Trust V, 5.75% A1 329,900 7,841,723 Life & Health Insurance 1.27% 10,046,124 Great-West Life & Annuity Insurance Capital I, 7.25%, Ser A A- 42,400 1,073,992 PLC Capital Trust IV, 7.25% BBB+ 331,075 8,972,132 Multi-Line Insurance 2.47% 19,506,312 ING Groep N.V., 7.05% (Netherlands) A- 737,200 19,506,312 Multi-Media 0.33% 2,623,920 Newscorp Overseas Ltd., 8.625%, Ser A (Cayman Islands) BB 104,000 2,623,920 Multi-Utilities & Unregulated Power 13.18% 103,929,347 Baltimore Gas & Electric Co., 6.99%, Ser 1995 Baa1 39,870 4,211,269 BGE Capital Trust II, 6.20% A3 525,000 13,282,500 Consumers Energy Co. Financing I, 8.36% B 92,000 2,348,760 Consumers Energy Co. Financing II, 8.20% B 212,500 5,457,000 Consumers Energy Co. Financing III, 9.25% B 265,100 6,714,983 Consumers Energy Co. Financing IV, 9.00% Ba2 217,000 5,763,520 Dominion CNG Capital Trust I, 7.80% BBB- 150,000 3,988,500 Dominion Resources, Inc., 9.50%, Conv BBB+ 21,000 1,127,280 Energy East Capital Trust I, 8.25% BBB- 424,800 11,299,680 Great Plains Energy, Inc., 8.00% Baa2 340,300 8,422,425 ONEOK, Inc., 8.50%, Conv A- 470,000 15,829,600 PSEG Funding Trust II, 8.75% BB+ 680,000 18,904,000 Public Service Electric & Gas Co., 4.18%, Ser B BB+ 7,900 592,500 Public Service Enterprise Group, Inc., 10.25%, Conv BBB- 75,450 4,398,735 South Carolina Electric & Gas Co., 6.52% Baa1 15,000 1,588,595 Oil & Gas Exploration & Production 3.86% 30,468,990 Anadarko Petroleum Corp., 5.46%, Depositary Shares, Ser B BBB- 62,000 6,279,441 Apache Corp., 5.68%, Depositary Shares, Ser B BBB 25,000 2,518,750 Devon Energy Corp., 6.49%, Ser A BB+ 32,355 3,408,399 Nexen, Inc., 7.35% (Canada) BBB- 702,400 18,262,400 Other Diversified Financial Services 4.24% 33,471,946 ABN AMRO Capital Funding Trust V, 5.90% A 251,400 6,063,768 ABN AMRO Capital Funding Trust VII, 6.08% A 184,000 4,554,000 Citigroup Capital VII, 7.125% A 61,700 1,644,305 Citigroup Capital VIII, 6.95% A 285,000 7,501,200 Citigroup Capital IX, 6.00% A 140,000 3,519,600 General Electric Capital Corp., 6.10% AAA 22,863 592,609 J.P. Morgan Chase Capital IX, 7.50% A- 73,800 1,957,914 J.P. Morgan Chase Capital X, 7.00%, Ser J A2 259,000 6,902,350 J.P. Morgan Chase Capital XI, 5.875% A- 30,000 736,200 Real Estate Investment Trusts 4.21% 33,175,113 Duke Realty Corp., 6.50%, Depositary Shares, Ser K BBB 100,000 2,500,000 Duke Realty Corp., 6.625%, Depositary Shares, Ser J BBB 449,400 11,351,844 Duke Realty Corp., 7.99%, Depositary Shares, Ser B BBB 10,650 568,111 Kimco Realty Co., 6.65%, Depositary Shares, Ser F BBB+ 37,030 973,889 Public Storage, Inc, 6.45%, Depositary Shares, Ser X BBB+ 30,000 744,300 Public Storage, Inc, 7.50%, Depositary Shares, Ser V BBB+ 307,100 8,221,067 Public Storage, Inc, 8.00%, Depositary Shares, Ser R BBB+ 304,500 8,102,745 Public Storage, Inc, 8.60%, Depositary Shares, Ser Q BBB+ 26,700 713,157 Thrifts & Mortgage Finance 1.39% 10,995,581 Abbey National Plc, 7.25% (United Kingdom) A- 275,620 7,179,901 Abbey National Plc, 7.375% (United Kingdom) A- 140,800 3,815,680 Wireless Telecommunication Service 0.20% 1,605,000 United States Cellular, 7.50% A- 60,000 1,605,000 Interest Maturity Credit Par value Issuer, description rate (%) date rating (A) ($000) Value - --------------------------------------------------------------------------------------------------------------------------------- Short-term investments 2.03% $16,000,000 (Cost $16,000,000) Government U.S. Agency 2.03% 16,000,000 Federal Home Loan Bank, Disc Note Zero 11-01-2004 Aaa 16,000 16,000,000 Total investments 100.00% $788,637,213
John Hancock Preferred Income Fund II Financial futures contracts October 31, 2004 (unaudited) Number of Appreciation Open contracts contracts Position Expiration (depreciation) - ---------------------------------------------------------------------------------------------------------- U.S. 10 Yr Note 600 Short Dec 2004 ($1,297,481)
John Hancock Preferred Income Fund II Footnotes to Schedule of Investments October 31, 2004 (unaudited) (A) Credit ratings are unaudited and are rated by Moody's Investors Service where Standard & Poor's ratings are not available. (S) This security is exempt from registration under rule 144A of the Securities Act of 1933. Such securities may be resold, normally to qualified institutional buyers, in transactions exempt from registration. Rule 144A securities amounted to $11,437,500 or 1.45% of the Fund's total investments as of October 31, 2004. (W) Issuer is an affiliate of John Hancock Advisers, LLC. Parenthetical disclosure of a foreign country in the security description represents country of a foreign issuer; however, security is U.S. dollar-denominated. The percentage shown for each investment category is the total value of that category as a percentage of the total investments of the Fund. The cost of investments owned on October 31, 2004, including short-term investments, was $746,958,884. Gross unrealized appreciation and depreciation of investments aggregated $44,886,141 and $3,207,812, respectively, resulting in net unrealized appreciation of $41,678,329.
John Hancock Preferred Income Fund II Transactions in securities of affiliated issuers October 31, 2004 (unaudited) Affiliated issuers, as defined by the Investment Company Act of 1940, are those in which the Fund's holdings of an issuer represent 5% or more of the outstanding voting securities of the issuer. A summary of the Fund's transactions in the securities of these issuers during the period ended October 31, 2004, is set forth below. Beginning Ending share share Realized Dividend Ending Affiliate amount amount gain (loss) income Value - -------------------------------------------------------------------------------------------------------------- HECO Capital Trust III, 6.50% bought: 20,000, sold: none 100,000 120,000 -- 40,625 3,169,200 Totals $-- $40,625 $3,169,200
For more information Trustees Charles L. Ladner, Chairman* James F. Carlin William H. Cunningham Ronald R. Dion Dr. John A. Moore* Patti McGill Peterson* Steven R. Pruchansky James A. Shepherdson Lt. Gen. Norman H. Smith, USMC (Ret.) John P. Toolan* *Members of the Audit Committee Officers James A. Shepherdson President and Chief Executive Officer Susan S. Newton Senior Vice President and Secretary William H. King Vice President and Treasurer Investment Adviser John Hancock Advisers, LLC 101 Huntington Avenue Boston, Massachusetts 02199-7603 Custodian The Bank of New York One Wall Street New York, New York 10286 Transfer Agent and Dividend Disburser Mellon Investor Services 85 Challenger Road Overpeck Centre Ridgefield Park, New Jersey 07660 Transfer Agent for DARTS Deutsche Bank Trust Company Americas 280 Park Avenue New York, New York 10017 Legal Counsel Wilmer Cutler Pickering Hale and Dorr LLP 60 State Street Boston, Massachusetts 02109-1803 Stock Symbol Listed New York Stock Exchange: HPF How to contact us Internet www.jhfunds.com Mail Regular mail: Mellon Investor Services 85 Challenger Road Overpeck Centre Ridgefield Park, NJ 07660 Phone Customer service representatives 1-800-852-0218 Portfolio commentary 1-800-344-7054 24-hour automated information 1-800-843-0090 TDD line 1-800-231-5469 This report is for the information of the shareholders of the John Hancock Preferred Income Fund II. P11Q1 10/04 12/04 ITEM 1. SCHEDULE OF INVESTMENTS ITEM 2. CONTROLS AND PROCEDURES. (a) Based upon their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this Form N-Q, the registrant's principal executive officer and principal accounting officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 3. EXHIBITS. Separate certifications for the registrant's principal executive officer and principal accounting officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. John Hancock Preferred Income Fund II By: ------------------------------ James A. Shepherdson President and Chief Executive Officer Date: December 21, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: ------------------------------ James A. Shepherdson President and Chief Executive Officer Date: December 21, 2004 By: ------------------------------ William H. King Vice President and Treasurer Date: December 21, 2004 EX-99.CERT 2 exnn2.txt CERTIFICATION CERTIFICATION I, James A. Shepherdson, certify that: 1. I have reviewed this report on Form N-Q of John Hancock Preferred Income Fund II; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: December 21, 2004 - --------------------------------- James A. Shepherdson President and Chief Executive Officer CERTIFICATION I, William H. King, certify that: 1. I have reviewed this report on Form N-Q of John Hancock Preferred Income Fund II; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: December 21, 2004 - --------------------------------- William H. King Vice President and Treasurer -----END PRIVACY-ENHANCED MESSAGE-----