On September 26, 2008, the Growth Portfolio entered into
Agreements with other registered investment companies (each a
Purchaser) managed by Xxxxxx Management. Under the Agreements,
the fund sold to the Purchasers the funds right to receive, in
the aggregate, $1,559,858 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 applicable Purchasers ultimate realized gain
(or loss) on the Receivable. The Agreements, which are included
in the Statement of assets and liabilities, are valued at fair
value following procedures approved by the Trustees. All
remaining payments under the agreement will be recorded as
realized gain or loss.
On September 26, 2008, the Balanced Portfolio entered into
Agreements and the Conservative Portfolio entered into an
Agreement 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,
$2,881,684 and $1,630,648 (for Balanced Portfolio and
Conservative Portfolio, respectively) 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. The Agreements, which are included in the
Statement of assets and liabilities, are valued at fair value
following procedures approved by the Trustees. All remaining
payments under the Agreement will be recorded as realized gain or
loss.
