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counsel and the custodian; the cost of reports and notices to shareholders; the
cost of calculating net asset value; registration fees; the fees and expenses of
qualifying the Trust and its shares for distribution under federal and state
securities laws; and membership dues in the Investment Company Institute or any
similar organization.
PRINCIPAL UNDERWRITER
Pursuant to an Underwriting Agreement, Berkeley International
Securities Corporation (the "Principal Underwriter") is the principal
underwriter for shares of the Trust and is the Trust's agent for the purpose
of the continuous offering of the Fund's shares. The Pricipal Underwriter is
an affiliate of the Investment Manager. The Fund pays the cost for the
prospectuses and shareholder reports to be prepared and delivered to existing
shareholders. The Principal Underwriter pays such costs when the described
materials are used in connection with the offering of shares to prospective
investors and for supplementary sales literature and advertising. The
Principal Underwriter receives no fee under the Underwriting Agreement.
Terms of continuation, termination, and assignment under the Underwriting
Agreement are identical to those described above with respect to the
Investment Management Agreement.
CUSTODIAN AND FUND ACCOUNTANT
Pursuant to a Custodian Agreement, Firstar Trust Company, the Fund's
transfer agent (the "Custodian"), also serves as the Custodian of the
Fund's assets. Under the terms of the Custodian Agreement, the Custodian
holds and administers the securities and cash in the Fund's portfolio.
Pursuant to a Fund Accounting Servicing Agreement, Firstar Trust
Company also provides fund accounting services to the Trust and the Fund.
INDEPENDENT ACCOUNTANTS AND REPORTS TO SHAREHOLDERS
The Trust's independent accountants, Price Waterhouse LLP, audit and
report on the annual financial statements of the Fund and review the Fund's
federal income tax return. Price Waterhouse LLP may also perform other
professional accounting, auditing, tax, and advisory services when engaged to
do so by the Trust. Shareholders will be sent audited annual and unaudited
semi-annual financial statements. The address of Price Waterhouse LLP is
100 East Wisconsin Avenue, Suite 1500, Milwaukee, Wisconsin 53202.
LEGAL COUNSEL
The validity of the shares of beneficial interest offered hereby will
be passed upon by Paul, Hasting, Janofsky & Walker LLP, 345 California Street,
San Francisco, California 94104.
PORTFOLIO TRANSACTIONS AND TURNOVER
PORTFOLIO TRANSACTIONS
Portfolio transactions are undertaken principally to: pursue the
objective of the Fund in relation to movements in the general level of interest
rates; invest money obtained from the
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