On September 26, 2008, the fund entered into Agreements with
other registered
investment companies (each a Seller) managed by Xxxxxx
Management. Under
the Agreements, the Seller sold to the fund the right to receive,
in the aggregate,
$2,948,825 in net payments from Xxxxxx Brothers Special
Financing, Inc. in connection
with certain terminated derivatives transactions (the
Receivable), in
each case 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. and is included in the Statement of
assets and liabilities
under Payable for securities purchased. Future payments under the
Agreements
are valued at fair value following procedures approved by the
Trustees and are
included in the Statement of assets and liabilities. All
remaining payments under
the Agreements will be recorded as realized gain or loss.
