PUTNAM INTERNATIONAL VOYAGER FUND
(a series of Putnam Investment Funds (the "Trust")
FORM N-1A
PART B
STATEMENT OF ADDITIONAL INFORMATION ("SAI")
December 30, 1997, as revised March 18, 1998
This SAI is not a prospectus and is only authorized for
distribution when accompanied or preceded by the prospectus of
the fund dated December 30, 1997, as revised from time to time.
This SAI contains information which may be useful to investors
but which is not included in the prospectus. If the fund has
more than one form of current prospectus, each reference to the
prospectus in this SAI shall include all of the fund's
prospectuses, unless otherwise noted. The SAI should be read
together with the applicable prospectus. Investors may obtain a
free copy of the applicable prospectus from Putnam Investor
Services, Mailing address: P.O. Box 41203, Providence, RI
02940-1203.
Part I of this SAI contains specific information about the fund.
Part II includes information about the fund and the other Putnam
funds.
<PAGE>
Table of Contents
Part I
SECURITIES RATINGS . . . . . . . . . . . . . . . . . . . . . . . . . . I-3
INVESTMENT RESTRICTIONS. . . . . . . . . . . . . . . . . . . . . . . . I-7
CHARGES AND EXPENSES . . . . . . . . . . . . . . . . . . . . . . . . . I-8
INVESTMENT PERFORMANCE . . . . . . . . . . . . . . . . . . . . . . . . I-15
ADDITIONAL OFFICERS . . . . . . . . . . . . . . . . . . . . . . . . . I-16
INDEPENDENT ACCOUNTANTS AND FINANCIAL STATEMENTS . . . . . . . . . . I-16
Part II
MISCELLANEOUS INVESTMENT PRACTICES . . . . . . . . . . . . . . . . . .II-1
TAXES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .II-30
MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .II-36
DETERMINATION OF NET ASSET VALUE . . . . . . . . . . . . . . . . . . .II-46
HOW TO BUY SHARES. . . . . . . . . . . . . . . . . . . . . . . . . . .II-47
DISTRIBUTION PLANS . . . . . . . . . . . . . . . . . . . . . . . . . .II-60
INVESTOR SERVICES. . . . . . . . . . . . . . . . . . . . . . . . . . .II-61
SIGNATURE GUARANTEES . . . . . . . . . . . . . . . . . . . . . . . . .II-66
SUSPENSION OF REDEMPTIONS. . . . . . . . . . . . . . . . . . . . . . .II-67
SHAREHOLDER LIABILITY. . . . . . . . . . . . . . . . . . . . . . . . .II-67
STANDARD PERFORMANCE MEASURES. . . . . . . . . . . . . . . . . . . . .II-67
COMPARISON OF PORTFOLIO PERFORMANCE. . . . . . . . . . . . . . . . . .II-69
DEFINITIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .II-73
<PAGE>
SAI
PART I
SECURITIES RATINGS
The following rating services describe rated securities as
follows:
Moody's Investors Service, Inc.
Bonds
Aaa -- Bonds which are rated Aaa are judged to be of the best
quality. They carry the smallest degree of investment risk and
are generally referred to as "gilt edged." Interest payments are
protected by a large or by an exceptionally stable margin and
principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most
unlikely to impair the fundamentally strong position of such
issues.
Aa -- Bonds which are rated Aa are judged to be of high quality
by all standards. Together with the Aaa group they comprise what
are generally known as high grade bonds. They are rated lower
than the best bonds because margins of protection may not be as
large as in Aaa securities or fluctuation of protective elements
may be of greater amplitude or there may be other elements
present which make the long-term risk appear somewhat larger than
the Aaa securities.
A -- Bonds which are rated A possess many favorable investment
attributes and are to be considered as upper-medium-grade
obligations. Factors giving security to principal and interest
are considered adequate, but elements may be present which
suggest a susceptibility to impairment sometime in the future.
Baa -- Bonds which are rated Baa are considered as medium grade
obligations, (i.e., they are neither highly protected nor poorly
secured). Interest payments and principal security appear
adequate for the present but certain protective elements may be
lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment
characteristics and in fact have speculative characteristics as
well.
Ba -- Bonds which are rated Ba are judged to have speculative
elements; their future cannot be considered as well-assured.
Often the protection of interest and principal payments may be
very moderate, and thereby not well safeguarded during both good
and bad times over the future. Uncertainty of position
characterizes bonds in this class.
B -- Bonds which are rated B generally lack characteristics of
the desirable investment. Assurance of interest and principal
payments or of maintenance of other terms of the contract over
any long period of time may be small.
Caa -- Bonds which are rated Caa are of poor standing. Such
issues may be in default or there may be present elements of
danger with respect to principal or interest.
Ca -- Bonds which are rated Ca represent obligations which are
speculative in a high degree. Such issues are often in default
or have other marked shortcomings.
C -- Bonds which are rated C are the lowest rated class of bonds,
and issues so rated can be regarded as having extremely poor
prospects of ever attaining any real investment standing.
Standard & Poor's
Bonds
AAA -- An obligation rated AAA has the highest rating
assigned by Standard & Poor's. The obligor's capacity to
meet its financial commitments on the obligation is extremely
strong.
AA -- An obligation rated AA differs from the
highest-rated obligations only in small degree. The
obligor's capacity to meet its financial commitment on the
obligation is very strong.
A -- An obligation rated A is somewhat more susceptible
to the adverse effects of changes in circumstances and economic
conditions than obligations in higher-rated categories.
However, the obligor's capacity to meet its financial commitment
on the obligation is still strong.
BBB -- An obligation rated BBB exhibits adequate
protection parameters. However, adverse economic conditions or
changing circumstances are more likely to lead to a weakened
capacity of the obligor to meet its financial commitment on the
obligation.
Obligations rated BB, B, CCC, CC and C are regarded as
having significant speculative characteristics. BB indicates the
lowest degree of speculation and C the highest. While such
obligations will likely have some quality and protective
characteristics, these may be outweighed by large uncertainties
or major exposures to adverse conditions.
BB -- An obligation rated BB is less vulnerable to
nonpayment than other speculative issues. However, it faces major
ongoing uncertainties or exposure to adverse business, financial,
or economic conditions which could lead to the obligor's
inadequate capacity to meet its financial commitment on
the obligation.
B -- An obligation rated B is more vulnerable to
nonpayment than obligations rated BB, but the
obligor currently has the capacity to meet its financial
commitment on the obligations. Adverse business,
financial, or economic conditions will likely impair the
obligor's capacity or willingness to meet its financial
commitment on the obligation.
<PAGE>
CCC -- An obligation rated CCC is currently vulnerable to
nonpayment, and is dependent upon favorable business, financial,
and economic conditions for the obligor to meet it financial
commitment on the obligation. In the event of adverse business,
financial, or economic conditions, the obligor is not likely to
have the capacity to meet it financial commitment on the
obligation.
CC -- An obligation rated CC is currently highly
vulnerable to nonpayment.
C -- The C rating may be used to cover a situation where
a bankruptcy petition has been filed, or similar action has been
taken, but payments on this obligation are being continued.
D -- An obligation rated D are in payment default. The
D rating category is used when payments are not made on
the date due even if the applicable grace period has not expired,
unless Standard & Poor's believes that such payments will
be made during such grace period. The D rating will also
be used upon the filing of a bankruptcy petition, or the
taking of a similiar action if payments on an obligation are
jeopardized.
Duff & Phelps Corporation
Long-Term Debt
AAA -- Highest credit quality. The risk factors are negligible,
being only slightly more than for risk-free U.S. Treasury debt.
AA+, AA, AA- -- High credit quality. Protection factors are
strong. Risk is modest but may vary slightly from time to time
because of economic conditions.
A+, A, A- -- Protection factors are average but adequate.
However, risk factors are more variable and greater in periods of
economic stress.
BBB+, BBB, BBB- -- Below-average protection factors but still
considered sufficient for prudent investment. Considerable
variability in risk during economic cycles.
BB+, BB, BB- -- Below investment grade but deemed likely to meet
obligations when due. Present or prospective financial
protection factors fluctuate according to industry conditions or
company fortunes. Overall quality may move up or down frequently
within this category.
B+, B, B- -- Below investment grade and possessing risk that
obligations will not be met when due. Financial protection
factors will fluctuate widely according to economic cycles,
industry conditions and/or company fortunes. Potential exists
for frequent changes in the rating within this category or into a
higher or lower rating grade.
<PAGE>
CCC -- Well below investment-grade securities. Considerable
uncertainty exists as to timely payment of principal, interest or
preferred dividends. Protection factors are narrow and risk can
be substantial with unfavorable economic/industry conditions,
and/or with unfavorable company developments.
DD -- Defaulted debt obligations. Issuer failed to meet
scheduled principal and/or interest payments.
Fitch Investors Service, Inc.
AAA -- Bonds considered to be investment grade and of the highest
credit quality. The obligor has an exceptionally strong ability
to pay interest and repay principal, which is unlikely to be
affected by reasonably foreseeable events.
AA -- Bonds considered to be investment grade and of very high
credit quality. The obligor's ability to pay interest and repay
principal is very strong, although not quite as strong as bonds
rated AAA.
A -- Bonds considered to be investment grade and of high credit
quality. The obligor's ability to pay interest and repay
principal is considered to be strong, but may be more vulnerable
to adverse changes in economic conditions and circumstances than
bonds with higher ratings.
BBB -- Bonds considered to be investment grade and of
satisfactory credit quality. The obligor's ability to pay
interest and repay principal is considered to be adequate.
Adverse changes in economic conditions and circumstances,
however, are more likely to have adverse impact on these bonds,
and therefore impair timely payment. The likelihood that the
ratings of these bonds will fall below investment grade is higher
than for bonds with higher ratings.
BB -- Bonds considered to be speculative. The obligor's ability
to pay interest and repay principal may be affected over time by
adverse economic changes. However, business and financial
alternatives can be identified which could assist the obligor in
satisfying its debt service requirements.
B -- Bonds are considered highly speculative. Bonds in this class
are lightly protected as to the obligor's ability to pay interest
over the life of the issue and repay principal when due.
CCC -- Bonds have certain characteristics which, with passing of
time, could lead to the possibility of default on either
principal or interest payments.
CC -- Bonds are minimally protected. Default in payment of
interest and/or principal seems probable.
C -- Bonds are in actual or imminent default in payment of
interest or principal.
DDD -- Bonds are in default and in arrears in interest and/or
principal payments. Such bonds are extremely speculative and
should be valued only on the basis of their value in liquidation
or reorganization of the obligor.
INVESTMENT RESTRICTIONS
As fundamental investment restrictions, which may not be changed
without a vote of a majority of the outstanding voting
securities, the fund may not and will not:
(1) Borrow money in excess of 10% of the value (taken at the
lower of cost or current value) of its total assets (not
including the amount borrowed) at the time the borrowing is made,
and then only from banks as a temporary measure to facilitate the
meeting of redemption requests (not for leverage) which might
otherwise require the untimely disposition of portfolio
investments or for extraordinary or emergency purposes. Such
borrowings will be repaid before any additional investments are
purchased.
(2) Underwrite securities issued by other persons except to the
extent that, in connection with the disposition of its portfolio
investments, it may be deemed to be an underwriter under certain
federal securities laws.
(3) Purchase or sell real estate, although it may purchase
securities of issuers which deal in real estate, securities which
are secured by interests in real estate, and securities which
represent interests in real estate, and it may acquire and
dispose of real estate or interests in real estate acquired
through the exercise of its rights as a holder of debt
obligations secured by real estate or interests therein.
(4) Purchase or sell commodities or commodity contracts, except
that the fund may purchase and sell financial futures contracts
and options.
(5) Make loans, except by purchase of debt obligations in which
the fund may invest consistent with its investment policies, by
entering into repurchase agreements with respect to not more than
25% of its total assets (taken at current value) or through the
lending of its portfolio securities with respect to not more than
25% of its total assets (taken at current value).
(6) With respect to 75% of its total assets, invest in
securities of any issuer if, immediately after such investment,
more than 5% of the total assets of the fund (taken at current
value) would be invested in the securities of such issuer;
provided that this limitation does not apply to obligations
issued or guaranteed as to interest or principal by the U.S.
government or its political subdivisions.
(7) With respect to 75% of its total assets, acquire more than
10% of the voting securities of any issuer.
(8) Purchase securities (other than securities of the U.S.
government, its agencies or instrumentalities) if, as a result of
such purchase, more than 25% of the fund's total assets would be
invested in any one industry.
(9) Issue any class of securities which is senior to the fund's
shares of beneficial interest.
Although certain of the fund's fundamental investment
restrictions permit it to borrow money to a limited extent, the
fund does not currently intend to do so and did not do so last
year.
The Investment Company Act of 1940 provides that a "vote of a
majority of the outstanding voting securities" of a fund means
the affirmative vote of the lesser of (1) more than 50% of the
outstanding fund shares, or (2) 67% or more of the shares present
at a meeting if more than 50% of the outstanding fund shares are
represented at the meeting in person or by proxy.
It is contrary to the fund's present policy, which may be changed
without shareholder approval, to:
Invest in (a) securities which are not readily
marketable, (b) securities restricted as to resale (excluding
securities determined by the Trustees of the Trust (or the person
designated by the Trustees of the Trust to make such
determinations) to be readily marketable), and (c) repurchase
agreements maturing in more than seven days, if, as a result,
more than 15% of the fund's net assets (taken at current value)
would be invested in securities described in (a), (b) and (c)
above.
------------------------
All percentage limitations on investments (other than pursuant to
the non-fundamental
restriction
)
will apply at the time of
the making of an investment and shall not be considered violated
unless an excess or deficiency occurs or exists immediately after
and as a result of such investment.
-------------------------
CHARGES AND EXPENSES
Management fees
Under a Management Contract dated December 2, 1994, as revised
July 14, 1995, the fund pays a quarterly fee to Putnam Management
based on the average net assets of the fund, as determined at the
close of each business day during the quarter, at the annual rate
of 1.20% of the first $500
million of average net assets;
1.10%
of the next $500 million; 1.05% of the next $500 million; 1.00%
of the next $5 billion; 0.975% of the next $5 billion; 0.955% of
the next $5 billion; 0.94% of the next $5 billion; and 0.93%
thereafter. For the past two fiscal years, pursuant to the
Management Contract the fund incurred the following fees:
Reflecting a
reduction in the
following amounts
Fiscal Management pursuant to an
year fee paid expense limitation
1997 $400,173 $61,415
1996 $ 18,596 $19,557
Expense limitation. In order to limit the fund's expenses,
Putnam Management has agreed to limit its compensation (and, to
the extent necessary, bear other expenses of the fund) through
August 31, 1998 to the extent that expenses of the fund
(exclusive of brokerage, interest, taxes, deferred organizational
and extraordinary expenses and payments under the fund's
distribution plans) would exceed an annual rate of 1.85% of the
fund's average net assets. For the purpose of determining any
such limitation on Putnam Management's compensation, expenses of
the fund do not reflect the application of commissions or cash
management credits that may reduce designated fund expenses.
With Trustee approval, this expense limitation may be terminated
earlier, in which event shareholders would be notified and this
SAI would be revised.
Brokerage commissions
The following table shows brokerage commissions paid during the
fiscal periods indicated:
Fiscal Brokerage
year commissions
1997 $373,395
1996 $ 19,727
The following table shows transactions placed with brokers and
dealers during the most recent fiscal year to recognize research,
statistical and quotation services received by Putnam Management
and its affiliates:
Dollar
value Percent of
of these total Amount of
transactions transactions commissions
$112,415,939 84.66% $340,009
<PAGE>
Administrative expense reimbursement
The fund reimbursed Putnam Management for administrative services
during fiscal 1997, including compensation of certain fund
officers and contributions to the Putnam Investments, Inc. Profit
Sharing Retirement Plan for their benefit, as follows:
Portion of total
reimbursement for
compensation
Total
and
reimbursement
contributions
$3,494
$3,080
<PAGE>
Trustee fees
Each Trustee receives a fee for his or her services. Each
Trustee also receives fees for serving as Trustee of other Putnam
funds. The Trustees periodically review their fees to assure
that such fees continue to be appropriate in light of their
responsibilities as well as in relation to fees paid to trustees
of other mutual fund complexes. The Trustees meet monthly over a
two-day period, except in August. The Compensation Committee,
which consists solely of Trustees not affiliated with Putnam
Management and is responsible for recommending Trustee
compensation, estimates that Committee and Trustee meeting time
together with the appropriate preparation requires the equivalent
of at least three business days per Trustee meeting. The
following table shows the year each Trustee was first elected a
Trustee of the Putnam funds, the fees paid to each Trustee by the
fund for fiscal 1997 and the fees paid to each Trustee by all of
the Putnam funds during calendar
1996:
<TABLE> <CAPTION>
<S> <C> <C> <C> <C>
COMPENSATION TABLE
Pension on Estimated Total
Aggregate retirement annual benefits compensation
compensation benefits accrued from all from all
from the as part of Putnam funds Putnam
Trustees fund(1) fund expenses(2) upon retirement(3) funds(4)
- ------------------------------------------------------------------------------------------
Jameson A. Baxter/1994 $242 $15 $85,646 $172,291(5)
Hans H. Estin/1972 240 37 85,646 171,291
John A. Hill/1985 241 14 85,646 170,791(5)
Ronald J. Jackson/1996(6) 242 6 85,646 94,807(5)
Paul L. Joskow(9) N/A N/A 85,646 N/A
Elizabeth T. Kennan/1992 237 19 85,646 171,291
Lawrence J. Lasser/1992 228 14 85,646 169,791
John H. Mullin, III(9) N/A N/A 85,646 N/A
Robert E. Patterson/1984 243 11 85,646 182,291
Donald S. Perkins/1982 242 40 85,646 170,291
William F. Pounds/1971(7) 246 41 98,146 197,291
George Putnam/1957 238 42 85,646 171,291
George Putnam, III/1984 233 7 85,646 171,291
A.J.C. Smith/1986 226 25 85,646 169,791
W. Thomas Stephens/1997(8)
N/A
N/A
85,646
N/A
W. Nicholas Thorndike/1992 243 27 85,646 181,291
(1) Includes an annual retainer and an attendance fee for each meeting attended.
(2)
The Trustees approved a Retirement Plan for Trustees of the Putnam funds on October
1, 1996. Prior to that date, voluntary retirement benefits were paid to certain
retired Trustees.
(3) Assumes that each Trustee retires at the normal retirement date. Estimated benefits
for each Trustee are based on Trustee fee rates in effect during calendar 1996.
(4) As of December 31, 1996, there were 96 funds in the Putnam family.
(5) Includes compensation deferred pursuant to a Trustee Compensation Deferral Plan.
(6) Elected as a Trustee in May 1996.
(7) Includes additional compensation for service as Vice Chairman of the Putnam funds.
(8) Elected as a Trustee in September 1997.
(9) Elected as a Trustee in November 1997.
</TABLE>
Under a Retirement Plan for Trustees of the Putnam funds (the
"Plan"), each Trustee who retires with at least five years of
service as a Trustee of the funds is entitled to receive an
annual retirement benefit equal to one-half of the average annual
compensation paid to such Trustee for the last three years of
service prior to retirement. This retirement benefit is payable
during a Trustee's lifetime, beginning the year following
retirement, for a number of years equal to such Trustee's years
of service. A death benefit is also available under the Plan
which assures that the Trustee and his or her beneficiaries will
receive benefit payments for the lesser of an aggregate period of
(i) ten years or (ii) such Trustee's total years of service.
The Plan Administrator (a committee comprised of Trustees that
are not "interested persons" of the fund, as defined in the
Investment Company Act of 1940) may terminate or amend the Plan
at any time, but no termination or amendment will result in a
reduction in the amount of benefits (i) currently being paid to a
Trustee at the time of such termination or amendment, or (ii) to
which a current Trustee would have been entitled had he or she
retired immediately prior to such termination or amendment.
For additional information concerning the Trustees, see
"Management" in Part II of this SAI.
Share ownership
At
November 30
, 1997,
the officers and Trustees of
the
fund as a
group owned less than 1% of the outstanding shares of each class
of the fund,
and, except as noted below, to
the knowledge of the
fund no person owned of record or beneficially 5% or more of any
class of shares of
the
fund.
Shareholder name Percentage
Classand address owned
APutnam Investments 5.30%
One Post Office Square
Boston, MA 02109
Distribution
fees
During fiscal
1997,
the
fund
paid the following 12b-1 fees to
Putnam Mutual Funds:
Class A Class B Class M
$45,045
$131,534
$12,546
<PAGE>
Class A sales charges and contingent deferred sales charges
Putnam Mutual Funds received sales charges with respect to class
A shares in the following
amount
during the
period
indicated:
Sales Charges
retained by Putnam Contingent
Total Mutual Funds deferred
front-end after sales
sales chargesdealer concessions charges
Fiscal year
1997
$940,469
$100,075
$0
1996
$0
$0
$0
Class B contingent deferred sales charges
Putnam Mutual Funds received contingent deferred sales charges
upon redemptions of class B shares in the following
amount
during
the
period
indicated:
Contingent deferred
sales charges
Fiscal
year
1997
$23,795
Class M sales charges
Putnam Mutual Funds received sales charges with respect to class
M shares in the following
amount
during the
period
indicated:
Sales charges
retained by Putnam
Mutual Funds
Total after
sales charges dealer concessions
Fiscal
year
1997
$54,750
$7,722
Investor servicing and custody fees and expenses
During the
1997 fiscal
year,
the
fund incurred
$177,790
in fees
and out-of-pocket expenses for investor servicing and custody
services provided by Putnam Fiduciary Trust
Company.
<PAGE>
INVESTMENT PERFORMANCE
Standard performance measures
(for periods ended August 31, 1997)
Class A Class B Class M
Inception date: 12/28/95 10/30/96 10/30/96
Average annual total return
1 year+ 17.26 18.63 19.56
Life of fund+ 17.25 18.54 18.32
+Reflecting an expense limitation in effect during the period.
In the absence of the expense limitation, total return shown
would have been lower. The per share amount of the expense
limitation is set forth in the section of the prospectus entitled
"Financial highlights."
Returns for class A and class M shares reflect the deduction of
the current maximum initial sales charges of 5.75% for class A
shares and 3.50% for class M shares.
Returns for class B shares reflect the deduction of the
applicable contingent deferred sales charge ("CDSC"), which is 5%
in the first year, declining to 1% in the sixth year, and is
eliminated thereafter.
Returns shown for class B and class M shares for periods prior to
their inception are derived from the historical performance of
class A shares, adjusted to reflect both the deduction of the
initial sales charge or CDSC, if any, currently applicable to
each class and the higher operating expenses applicable to such
shares.
Returns shown for class A shares have not been adjusted to
reflect payments under the class A distribution plan prior to its
implementation. All returns assume reinvestment of distributions
at net asset value and represent past performance; they do not
guarantee future results. Investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
See "Standard Performance measures" in Part II of this SAI for
information on how performance is calculated.
<PAGE>
ADDITIONAL OFFICERS
In addition to the persons listed as fund officers in Part II of
this SAI, each of the following persons is also a Vice President
of the fund and certain of the other Putnam funds, the total
number of which is noted parenthetically. Officers of Putnam
Management hold the same offices in Putnam Management's parent
company, Putnam Investments, Inc.
Brett C. Browchuk (age 34) (52 funds). Managing Director of
Putnam Management.
Joshua L. Byrne (age 33) (1 fund). Vice President of Putnam
Management.
Ian C. Ferguson (age 40) (55 funds). Senior Managing Director of
Putnam Management.
Nigel P. Hart (age 30) (2 funds). Senior Managing Director of
Putnam Management.
Omid Kamshad (age 35) (6 funds). Senior Vice President of Putnam
Management.
John J. Morgan (age 57) (18 funds). Managing Director of Putnam
Management. Managing Director of Putnam Fiduciary Trust Company.
Justin M. Scott (age 40) (9 funds). Managing Director of Putnam
Management.
INDEPENDENT ACCOUNTANTS AND FINANCIAL STATEMENTS
Coopers & Lybrand L.L.P., One Post Office Square, Boston, MA
02109, are the fund's independent accountants, providing audit
services, tax return review and other tax consulting services and
assistance and consultation in connection with the review of
various Securities and Exchange Commission filings. The Report
of Independent Accountants, financial highlights and financial
statements included in the fund's Annual Report for the fiscal
period ended August 31, 1997, filed electronically on October 28,
1997 (File No. 811-7237), are incorporated by reference into this
SAI. The financial highlights included in the prospectus and
incorporated by reference into this SAI and the financial
statements incorporated by reference into the prospectus and this
SAI have been so included and incorporated in reliance upon the
report of the independent accountants, given on their authority
as experts in auditing and accounting.
