On September 26, 2008, the fund entered into an Agreement
with another registered investment company (each a Seller)
managed by Xxxxxx Management. Under the Agreements, the
Seller sold to the fund the right to receive, in the
aggregate, $2,002,118 in net payments from Xxxxxx Brothers
Special Financing, Inc. in connection with certain
terminated derivatives transactions(the Receivable),
in exchange for an initial payment plus
(or minus) additional amounts based on the funds ultimate
realized gain (or loss) with respect to the Receivable. The
Receivable will be offset against the funds net payable to
Xxxxxx Brothers Special Financing, Inc. The Agreement,
which is included in the statement of assets and
liabilities, is valued at fair value following procedures
approved by the Trustees. All remaining payments under the
agreement will be recorded as realized gain or loss.
