Rockwood 1996 Annual Report
FUND FEATURES
INVESTMENT OBJECTIVE
The Fund seeks long term capital appreciation.
FUND MANAGEMENT
Rockwood Advisers, Inc. acts as general manager of the Fund. Aspen Securities
and Advisory, Inc. is the subadviser. Ross H. Farmer, the Fund's portfolio
manager, is President of the subadviser and has served as portfolio manager of
the Fund since it c ommenced operations on April 30, 1986.
INVESTMENT STRATEGY
The Fund seeks to achieve its objective by investing primarily in common stocks,
which are purchased at prices considered to be less than their intrinsic value
as determined by the portfolio manager. They are selected on the basis of their
potential for long term capital appreciation, and generally will include small
capitalization companies which are expected to achieve above-average growth.
PORTFOLIO BENEFITS
O Long term growth potential through appreciation in the value of the Fund's
carefully selected investments.
O Diversification for stock and bond portfolios seeking a growth investment that
can capitalize on favorable trends in the economy and securities markets through
professional stock selection.
MINIMUM INVESTMENTS
O Regular Accounts, $500
O IRAs, $100
O Automatic Investment Programs, $50
O Subsequent Investments, $50
RETIREMENT PLANS
Tax-advantaged Rockwood retirement plans include No-Fee IRAs, qualified profit
sharing and money purchase plans, and 403(b) plans.
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ROCKWOOD EASY ACCESS
INVESTMENT STRATEGY AND MARKET UPDATE
To hear Portfolio Manager Ross Farmer's weekly report on Rockwood's current
investment strategy and market conditions, dial 1-888-ROCKWOOD (menu item #3)
PROSPECTUS AND APPLICATIONS
For a copy of the Rockwood Prospectus and applications for regular and IRA
accounts, plus an IRA transfer form and disclosure statement, by fax, or by
regular or e-mail, dial 1-888-ROCKWOOD (menu item 1)
MARKET INFORMATION/SHARE PRICE
For market information and the Fund's current closing net asset value per share
at any time, dial 1-888-ROCKWOOD (menu item 2)
CALL FOR HELP
For assistance in completing an application, or for any other questions you may
have, dial 1-888-ROCKWOOD (Menu item 4)
ROCKWOOD ONLINE
Check out our Web page for up-to-date information and more at
http://www.rockwood.com
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A WORD FROM THE ROCKWOOD PORTFOLIO MANAGER
FELLOW SHAREOWNERS:
It is a pleasure to submit this Annual Report for the fiscal year ended
October 31, 1996, and to welcome our many new shareowners who have recently
joined us. I am also pleased to report that the Fund's results for the year
showed a total return of +29.40%, which compares favorably to an average total
return for Morningstar's Growth Fund category of +19.27% and a total return for
Standard & Poor's 500 Stock Index of +24.06%.
SEEKING THE BEST OF BOTH WORLDS
We believe the good results we have achieved for our shareowners are a
direct reflection of the sound, common sense value and growth approach to
investing that we consistently follow.
Our investment objective is very simple: to invest in solid companies at
attractive prices. We are not committed to "growth" only, since many companies
that do not have strong earnings growth trends are attractive investments
because of the value they offer, which may be relative to their stock price or
their assets. Likewise, we do not focus on "value" alone, since many companies
are attractive primarily for their strong and steady earnings growth. Instead,
our goal is to have the best of both worlds, so we carefully consider value as
well as growth stock opportunities.
We invest the Fund's money, your money, in each stock as if we were
negotiating to buy the whole business. We want the optimal blend of earnings,
management talent, financial strength, and growth prospects for the lowest price
possible. We search for companies having proven management teams with a clear
business plan, unique competitive advantages, and the financial resources to
implement the plan and weather temporary set-backs. Then we try to buy the
company's stock at a discount to break-up value, earnings multiples, and/or
projected earnings growth.
Determining when to sell is equally important. We consider ourselves long
term investors, but we will hold a stock only so long as its meets our capital
appreciation objective. We sell when it reaches the objective, when its
potential diminishes due to a change in its fundamentals, or when another
relatively superior investment is identified. Our strategy, then, is not to
attempt to sell at the top, but to buy carefully and sell when we believe a
stock has become overpriced.
AFFORDABLE PLANS FOR GROWING YOUR ACCOUNT
With this all-weather approach, the Fund is an ideal vehicle for a program
of steady monthly investing. For regular, gifts/transfers to minors, or
tax-sheltered retirement plan accounts, investing on a regular monthly basis
also permits investors to take advantage of dollar cost averaging. To make
investing in the Fund as easy, safe, convenient and affordable as possible, we
offer the Rockwood Automatic Investment Program, with three different Plans to
facilitate an automatic monthly investment of $50 or more into your Fund
account.
o The Rockwood Bank Transfer Plan lets you purchase Fund shares on a certain day
each month by transferring electronically a specified dollar amount from your
regular checking account, NOW account, or bank money market deposit account.
o In the Rockwood Salary Investing Plan, part or all of your salary may be
invested electronically in shares of the Fund on each pay date, depending upon
your employer's direct deposit program.
o The Rockwood Government Direct Deposit Plan allows you to deposit
automatically part or all of certain U.S. Government payments into your Fund
account. Eligible U.S. Government payments include Social Security, pension
benefits, military or retirement benefits, salary, veteran's benefits and most
other recurring payments.
If you would like more information on any of these Plans, or the Rockwood
No-Fee IRA, we would be pleased to hear from you. Just call toll-free
1-888-ROCKWOOD and an Investor Service Representative will be glad to assist
you, as always, without any obligation on your part.
We appreciate and value your confidence and support, and look forward to
buying many solid businesses at attractive prices for you in the years ahead.
Sincerely,
Ross H. Farmer
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THE ROCKWOOD GROWTH FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
OCTOBER 31, 1996
Shares COMMON STOCKS (100%) Market Value
AUTOMATIC CONTROLS FOR REGULATING ENVIRONMENTS (5.9%)
2,600 Oak Industries, Inc. $ 65,975
BIOLOGICAL PRODUCTS (3.0%)
2,000 Lifecore Biomedical, Inc.* 33,625
CABLE & OTHER PAY TELEVISION SERVICES (1.7%)
1,500 Tele-Communications, Inc. Series A* 18,656
CRUDE PETROLEUM & NATURAL GAS (4.1%)
12,500 Tipperary Corp.* 46,094
COMPUTER INTEGRATED SYSTEMS DESIGN (6.2%)
2,000 ICG Communications, Inc.* 37,500
11,000 Sidus Systems, Inc.* 31,989
------
69,489
DRILLING OIL & GAS WELLS (5.0%)
3,000 Noble Drilling Corp.* 55,875
EDUCATIONAL (3.3%)
11,000 Lab-Volt Systems, Inc.* 37,125
FOREST & OFFICE PRODUCTS (5.0%)
1,800 Boise Cascade Corp. 55,800
METALWORKING MACHINERY & EQUIPMENT (5.7%)
27,500 Devlieg-Bullard, Inc.* 63,594
ORTHOPEDIC, PROSTHETIC & SURGICAL PRODUCTS (4.4%)
23,500 Lifequest Medical, Inc.* 48,469
PETROLEUM REFINING (3.9%)
2,500 Horsham Corp.* 43,125
RETAIL - EATING PLACES (7.2%)
9,000 Host Marriott Services Corp.* 79,875
REAL ESTATE (4.9%)
8,500 Blue Ridge Real Estate Company* $ 54,719
SERVICES - ALLIED TO MOTION PICTURE PRODUCTION (12.4%)
13,200 Todd-AO Corp. Class A 138,600
SERVICES - COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH (4.6%)
1,000 Cygnus, Inc.* 14,375
3,000 U.S. Diagnostic Inc.* 36,187
------
50,562
SERVICES - PREPACKAGED SOFTWARE (6.7%)
9,000 Cimetrix Inc.* 74,250
SURGICAL & MEDICAL INSTRUMENTS & APPARATUS (15.3%)
6,000 Aksys, Ltd.* 51,750
18,300 Innerdyne, Inc.* 55,471
10,000 Quest Medical, Inc.* 63,750
------
170,971
TRUCKING (0.7%)
35,000 U.S. Environmental Solutions, Inc.* 7,654
TOTAL INVESTMENTS (COST: $968,038) (100.0%) $ 1,114,458
* Indicates non-income producing security.
See accompanying notes to financial statements.
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THE ROCKWOOD GROWTH FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1996
ASSETS:
Investment at market value (cost: $968,038) (note 1) $1,114,458
Cash 41,384
Receivables:
Investment securities sold 46,456
Fund shares sold 2,145
Prepaid expenses 10,484
Other assets 5,928
TOTAL ASSETS 1,220,855
LIABILITIES:
Payables:
Investment securities purchased 15,250
Accrued expenses6,015
TOTAL LIABILITIES 21,265
NET ASSETS:
(applicable to 49,491 outstanding shares: 100,000,000 shares of
$.10 par value authorized)$1,199,590
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
($1,199,590 / 49,491) $24.24
At October 31, 1996 net assets consisted of:
Paid-in capital $ 807,459
Accumulated net realized gain on investments 245,711
Net unrealized appreciationon investments 146,420
$1,199,590
See accompanying notes to financial statement
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THE ROCKWOOD GROWTH FUND, INC.
STATEMENT OF OPERATIONS
Year Ended October 31, 1996
INVESTMENT INCOME:
Dividends $ 2,213
Interest 1,359
Total investment incom0 3,572
EXPENSES:
Professional (note 3) 14,778
Registration (note 3) 12,300
Investment management (note 3) 8,497
Transfer agent 4,509
Custodian 3,737
Shareholder administration (note 3) 2,210
Distribution (note 3) 613
Other 2,738
Total expenses 49,382
Expenses reimbursed (note 3) (21,014)
Net expenses 28,368
Net invesment loss (24,796)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain form security transactions 253,710
Unrealized depreciation of investments during the period (36,721)
Net realized and unrealized gain on investments 216,989
Net increase in assets resulting from operations $192,193
See accompanying notes to financial statements.
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THE ROCKWOOD GROWTH FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
For the years ended October 31,
1996 1995
---- ----
OPERATIONS:
Net investment $ (24,796) (12,922)
Net realized gain security transactions 253,710 15,079
Unrealized appreciation (depreciation) of
investments during period (36,721) 82,217
Net increase in assets resulting from operations 192,193 84,374
CAPITAL SHARE TRANSACTIONS:
Increase (decrease) in net assets resulting
from capital sansactions (a) 233,526 (24,658)
Total change in net assets 425,719 59,716
NET ASSETS:
Beginning of year 773,871 714,155
End of year (including accumulated deficit in
net investment 0f $44,589 in 1995) $1,199,590 773,871
(a) Transactions in capital shares were as follows:
1995 1996
SHARES VALUE SHARES VALUE
Shares sold 15,308 $412,362 1,780 $33,986
Shares redeemed (7,125) (178,836) (3,467) (58,644)
Net increase (decrease) 8,183 $233,526 (1,687) $(24,658)
See accompanying notes to financial
statements.
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(1) The Fund is registered under the Investment Company Act of 1940, as amended,
("1940 Act"), as a non-diversified, open-end management investment company. The
investment objective of the Fund is capital appreciation. The Fund seeks capital
appreciation by investing, depending on the assessment of economic and market
factors, in equity securities, securities convertible into common stocks and
preferred stocks. The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of its financial
statements. With respect to security valuation, securities traded on a national
securities exchange and securities traded on the Nasdaq National Market System
("NMS") are valued at the last reported sales price on the day the valuations
are made. Such securities that are not traded on a particular day and securities
traded in the over-the counter market that are not on NMS are valued at the mean
between the current bid and asked prices. Securities for which quotations are
not readily available and other assets are valued at fair value as determined in
good faith by or under the direction of the Board of Directors. Securities
denominated in foreign currencies are translated into U.S. dollars at prevailing
exchange rates. Investment transactions are accounted for on the trade date
(date the order to buy or sell is executed). Dividend income and distributions
to shareholders are recorded on the ex-dividend date and interest income is
recorded on the accrual basis. In preparing financial statements in conformity
with generally accepted accounting principles, management makes estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements, as well as the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those
estimates.
(2) The Fund intends to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute
substantially all its taxable investment income and net capital gains, if any,
after utilization of any capital loss carryforward, to its shareholders and
therefore no Federal income tax provision is required. Based on Federal income
tax cost of $968,038, gross unrealized appreciation and gross unrealized
depreciation were $289,161 and $142,741, respectively at October 31, 1996.
(3) The Fund retains Rockwood Advisers, Inc. (the "Investment Manager") as its
Investment Manager. Under the Investment Management Agreement, dated August 19,
1996, the Investment Manager receives a management fee, payable monthly, based
on the average daily net assets of the Fund at the annual rate of 1% on the
first $200 million, .95% from $200 million to $400 million, .90% from $400
million to $600 million, .85% from $600 million to $800 million, .80% from $800
million to $1 billion and .75% over $1 billion. The Investment Manager has
undertaken that the operating expenses of the Fund for each fiscal year
(including management fees but excluding taxes, interest, brokerage commissions
and distribution plan expenses), expressed as a percentage of average daily net
assets, will not exceed an annual rate of 2.5% of the first $30 million of such
assets, 2% of the next $70 million and 1.5% of the remaining net assets and if
the Fund's expenses exceed such rates, the Investment Manager will reimburse the
Fund for any excess, although the Investment Manager may discontinue this
undertaking at any time. Reimbursement for the year ended October 31, 1996 was
$21,014. Pursuant to the Investment Management Agreement, the Investment Manager
retains Aspen Securities and Advisory, Inc. (the "Subadviser") regarding
portfolio investments. Pursuant to the Subadvisory agreement, the Subadviser
advises and consults with the Investment Manager regarding the selection,
clearing and safekeeping of the Fund's portfolio investments and assists in
pricing and generally monitoring such investments. The Subadviser also provides
the Investment Manager with advice as to allocating the Fund's portfolio assets,
among equities, and other types of investments, including recommendations of
specific investments. The Investment Manager, not the Fund, pays the Subadviser
monthly a percentage of the Investment Manager's net fees based upon the Fund's
performance and net assets. Certain officers and directors of the Fund are
officers and directors of the Investment Manager and Investor Service Center,
Inc., the Fund's Distributor. For the year ended October 31, 1996, the Fund paid
$122 to Bull & Bear Securities, Inc., an affiliate of the Investment Manager as
commissions for brokerage services. The Fund reimbursed the Investment Manager
$72 for providing certain administrative and accounting services at cost for the
year ended October 31, 1996. The Fund has adopted a plan of distribution
pursuant to Rule 12b-1 under the 1940 Act (the "Plan"). Pursuant to the Plan,
the Fund pays the Distributor a distribution fee in an amount of one-quarter of
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one percent per annum of the Fund's average daily net assets as compensation for
distribution and service activities. The fee is intended to cover personal
services provided to shareholders in the Fund and the maintenance of shareholder
accounts and all other activities and expenses primarily intended to result in
the sale of the Fund's shares. Investor Service Center also received $2,210 for
shareholder administration services which it provided to the Fund at cost for
the year ended October 31, 1996. Prior to August 19, 1996, the Fund retained
Aspen Securities and Advisory, Inc. ("Aspen") as its investment adviser. On that
date at a special meeting of the Fund's shareholders, a majority of the
shareholders approved all proposed matters including the Investment Management
Agreement with the Investment Manager, the subadvisory agreement with Aspen
described above, the new plan of distribution with the Distributor, and elected
a new board of directors.
(4) Purchases and proceeds of sales of securities other than short term notes
aggregated $617,906 and $436,292, respectively.
(5) The Fund has a committed bank line of credit. At October 31, 1996, there was
no balance outstanding and the interest rate was equal to the Federal Reserve
Funds Rate plus 1.75 percentage points.
FINANCIAL HIGHLIGHTS
<TABLE>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C> <C>
PER SHARE DATA* 1996 1995 1994 1993 1992
Net asset value at beginning of period $18.73 $16.61 $16.32 $12.42 $11.32
Income from investment operations:
Net investment loss (.56) (.31) (.22) (.26) (.12)
Net realized and unrealized gain
(loss) on investments 6.07 2.43 .51 4.16 1.22
Total from investment operations 5.51 2.12 .29 3.90 1.10
Net asset value at end of period $24.24 $18.73 $16.61 $16.32 $12.42
TOTALRETURN 29.42% 12.76% 1.78% 31.40% 9.72%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS AT END OF PERIOD (000's omitted) $1,200 $774 $714 $738 $600
Ratio of expenses to average net assets(a) 2.55% 2.30% 2.00% 2.81% 2.46%
Ratio of net investment loss to average
net assets (b) (2.23%) (1.77%) (1.38%) (1.67%) (1.09%)
Portfolio turnover rate 42.48% 30.04% 18.26% 19.28% 13.28%
Average commission per share $.0562
</TABLE>
* Per share net investment loss and net realized and unrealized gain (loss) on
investments have been computed using the average number of shares outstanding.
These computations had no effect on net
asset value per share.
(a) Ratio prior to reimbursement by the manager was 4.44%, 3.00%, 2.82%, 2.90%
and 2.49% for the years ended October 31, 1996, 1995, 1994, 1993 and 1992,
respectively.
(b) Ratio prior to reimbursement by the manager was (4.12%), (2.47%), (2.20%),
(1.76%) and (1.12%) for the years ended October 31, 1996, 1995, 1994, 1993
and 1992, respectively.
The Board of Directors and Shareholders of The Rockwood Growth Fund, Inc.:
We have audited the accompanying statement of assets and liabilities of The
Rockwood Growth Fund, Inc. including the schedule of portfolio investments as of
October 31, 1996, and the related statement of operations, the statement of
changes in net assets and the financial highlights for the year then ended.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit. The financial
statements of The Rockwood Growth Fund, Inc. as of and for the year ended
October 31, 1995, were audited by other auditors whose report dated December 13,
1995, expressed an unqualified opinion on those statements.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of October 31, 1996, by
correspondence with the custodian and brokers. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Rockwood Growth Fund, Inc. as of October 31, 1996, the results of its
operations, the changes in its net assets, and the financial highlights for the
year then ended, in conformity with generally accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
November 14, 1996
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GROWTH OF $10,000 INVESTED NOV. 1, 1986 THROUGH OCT. 31, 1996
Average
Fund/Index Final Value Total Return Annual Return
Rockwood $24,693 146.93% 9.46%
Russell 2000 $29,181 191.81% 11.30%
PLOT POINTS
11/86 87 88 89 90 91 92
Rockwood 10000 9451 12654 14661 9683 11532 12652
Russell 2000 10000 8636 10977 12687 9224 14630 16017
93 94 95 11/96
16635 16920 19080 24693
21207 21141 25016 29181
The Russell 2000 is a small company index that is unmanaged and fully invested
in common stocks. The Fund invests in common stocks and may also own fixed
income securities and options. The $10,000 Performance Graphs are from November
1, 1986 through October 31, 1996 and results in each case reflect reinvestment
of dividends and distributions. Past performance does not guarantee future
results. Investment return will fluctuate, so shares when redemed may be worth
more or less than their cost. Dollar cost averaging does not assure a profit or
protect against loss in a declining market, and investors should consider their
ability to make purchases when prices are low.
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the Fund. The report is not
authorized for distribution to prospective investors in the Fund unless preceded
or accompanied by an effective Prospectus. Investor Service Center, Inc.,
Distributor.
<PAGE>
ROCKWOOD ACCOUNT APPLICATION
Use this Account Application to open a regular Rockwood account. For a Rockwood
IRA Application, call 1-888-ROCKWOOD.
1. REGISTRATION If you need assistance in completing this Account Application,
please call 1-888-ROCKWOOD
INDIVIDUAL:
FIRST NAME MIDDLE INITIAL LAST NAME SOCIAL SECURITY NUMBER
JOINT OWNER (IF ANY):
FIRST NAME MIDDLE INITIAL LAST NAME SOCIAL SECURITY NUMBER
Note: Registration will be Joint Tenants with Right of Survivorship, unless
otherwise specified.
GIFT/TRANSFER TO A MINOR:
as Custodian for
NAME OF CUSTODIAN (ONLY ONE) NAME OF MINOR (ONLY ONE)
under the Uniform Gifts/Transfers to Minors Act.
Custodian's State of Residence
Minor's Social Security Number
Minor's Date of Birth
CORPORATIONS, PARTNERSHIPS, TRUSTS AND OTHERS:
Name of Corporation, Partnership, or other Organization
Name of Individual(s) Authorized to Act for the Corporation, Partnership,
or other Organization
Tax I.D. Number Name of Trustee(s) Date of Trust Instrument
2. MAILING ADDRESS, TELEPHONE NUMBER, AND CITIZENSHIP
Street City State/Zip Daytime Telephone E-mail Address
Citizen of:( ) U.S. ( ) Other: Citizen of: ( )U.S. ( )Other:
Owner Joint Owner
3. AMOUNT INVESTED ($500 MINIMUM) Note: The $500 minimum initial investment is
waived if you elect to invest through th Rockwood Bank Transfer Plan, the
Rockwood Salary Investing Plan, and/or the Rockwood Government Direct Deposit
Plan (see Section 4).
Investment: $ ( )By Check ( )By Wire
unt Number Date+++ * Please make your check(s) payable to ROCKWOOD and enclose
with this Application.
+ Indicate date on which money was wired.
++ Please call 1-888-ROCKWOOD to be assigned an account number before making an
initial investment by wire.
4. ROCKWOOD AUTOMATIC INVESTMENT PROGRAM
( ) ROCKWOOD BANK TRANSFER PLAN Automatically purchase shares each month by
transferring the dollar amount you specify from your regular checking account,
NOW account, or bank money market account. Please attach a voided bank account
check.
Amount $ Day of month: ( ) 10th ( )
$50 Minimum
( ) ROCKWOOD SALARY INVESTING PLAN The enrollment form will be sent to the above
address or call 1-888-ROCKWOOD to have the form sent to your place of
employment. ( ) ROCKWOOD GOVERNMENT DIRECT DEPOSI PLAN Your request will be
processed and you will receive the enrollment form.
5. DISTRIBUTIONS If no circle is checked, the Automatic Compounding Option will
be assigned to reinvest all dividends and distributions in your account to
increase the shares you own.
( ) AUTOMATIC COMPOUNDING OPTION Dividends and distributions reinvested in
additional shares.
( ) PAYMENT OPTION ( ) Dividends in cash, distributions reinvested.
6. INVESTMENTS AND REDEMPTIONS BY TELEPHONE
Shareholders automatically enjoy the privilege of calling 1-888-ROCKWOOD to
purchase additional shares of Rockwood or to expedite a redemptionand have the
proceeds sent directly to their address or to their bank account, unless
declined by checking the following circle ( ). The Rockwood link with your bank
offers flexible access to your money. Transfers occur only when you initiate
them an may be made by either bank wire or bank clearinghouse transfer with
Rockwood's Electronic Funds Transfer service. To establish the Rockwood link to
your bank, please attach a voided check from your bank account. One common name
must appear on your Rock
7. SIGNATURE AND CERTIFICATION TO AVOID BACKUP WITHHOLDING
"I certify that I have received and read the prospectus for Rock
purchase its shares. I understand telephone conversations with Investor Service
Center, Inc. ("ISC") representatives are recorded and hereby consent to such
recording. I agree that neither the Fund nor ISC will be liable for acting on
instructions believed genuine and under reasonable procedures designed to
prevent unauthorized transactions. I certify (1) the Social Security or taxpayer
identification number provided above is correct, and (2) I am not subject to
backup withholding because (a) I am exempt from backup withholding, or (b) I
have not been notified by the IRS that I am subject to backup withholding, or
(c) I have been notified by the IRS that I am no longer subject to backup
withholding." (Please cross out item 2 if it does not apply to you.) The
Internal Revenue Service does not require your consent to any provision of this
document other than the certifications required to avoid backup withholding.
Signature of ( ) Owner ( ) Trustee ( ) Custodian Date
Signature of Joint Owner (if any) Date
PLEASE MAIL THIS COMPLETED ACCOUNT APPLICATION TO:
INVESTOR SERVICE CENTER
BOX 419789
KANSAS CITY, MO 64141-6789.
ROCKWOOD
11 HANOVER SQUARE
NEW YORK, NY 10005
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