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<SEC-DOCUMENT>0000930413-05-008375.txt : 20051222
<SEC-HEADER>0000930413-05-008375.hdr.sgml : 20051222
<ACCEPTANCE-DATETIME>20051221200009
ACCESSION NUMBER:		0000930413-05-008375
CONFORMED SUBMISSION TYPE:	N-2
PUBLIC DOCUMENT COUNT:		5
FILED AS OF DATE:		20051222
DATE AS OF CHANGE:		20051221

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DNP SELECT INCOME FUND INC
		CENTRAL INDEX KEY:			0000806628
		IRS NUMBER:				363480989
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		N-2
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-130590
		FILM NUMBER:		051279821

	BUSINESS ADDRESS:	
		STREET 1:		PO BOX 32760
		CITY:			LOUISVILLE
		STATE:			KY
		ZIP:			40232
		BUSINESS PHONE:		3123685510

	MAIL ADDRESS:	
		STREET 1:		PO BOX 32760
		CITY:			LOUISVILLE
		STATE:			KY
		ZIP:			40232

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DUFF & PHELPS SELECTED UTILITIES INC
		DATE OF NAME CHANGE:	19910429

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DNP SELECT INCOME FUND INC
		CENTRAL INDEX KEY:			0000806628
		IRS NUMBER:				363480989
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		N-2
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-04915
		FILM NUMBER:		051279822

	BUSINESS ADDRESS:	
		STREET 1:		PO BOX 32760
		CITY:			LOUISVILLE
		STATE:			KY
		ZIP:			40232
		BUSINESS PHONE:		3123685510

	MAIL ADDRESS:	
		STREET 1:		PO BOX 32760
		CITY:			LOUISVILLE
		STATE:			KY
		ZIP:			40232

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DUFF & PHELPS SELECTED UTILITIES INC
		DATE OF NAME CHANGE:	19910429
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-2
<SEQUENCE>1
<FILENAME>c40133_n2.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
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<BODY bgcolor="#ffffff">


<P align="center">
<FONT size=2 face="serif">As filed with the Securities and Exchange Commission
on December 21, 2005 </FONT></P>
<P align="right">
<FONT size=2 face="serif">1933 Act File No. 333-[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ]</FONT><BR>
<FONT size=2 face="serif">1940 Act File No. 811-04915 </FONT></P>
<hr noshade size=3>
<hr size="1" noshade>
<center>
  <B><FONT size=5 face="serif">SECURITIES AND EXCHANGE COMMISSION</FONT></B><FONT size=2 face="serif"> </FONT><BR>
  <B><FONT size=2 face="serif">Washington, D.C. 20549</FONT></B><FONT size=2 face="serif"> </FONT><BR>
  <B><FONT size=5 face="serif">FORM N-2 </FONT></B><BR>
  <FONT size=2 face="serif">(Check Appropriate Box or Boxes) </FONT><BR>
</center>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</FONT></B>&nbsp;
        </TD>
        <TD align=right>
      <FONT size=2 face="sans-serif">|X|</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=2 face="serif">Pre-Effective Amendment No.</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="sans-serif">|&nbsp;&nbsp;|</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=2 face="serif">Post-Effective Amendment No.</FONT>&nbsp;
        </TD>
        <TD align=right>
      <FONT size=2 face="sans-serif">|&nbsp;&nbsp;|</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940</FONT></B>&nbsp;
        </TD>
        <TD align=right>
      <FONT size=2 face="sans-serif">|X|</FONT>&nbsp;   </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=2 face="serif">Amendment No. 48</FONT>&nbsp;
        </TD>
        <TD align=right>
      <FONT size=2 face="sans-serif">|X|</FONT>&nbsp;   </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=5 face="serif">DNP SELECT INCOME FUND INC.</FONT></B><B><FONT size=5 face="serif"> </FONT></B><BR>
<FONT size=2 face="serif">(Exact Name of Registrant as Specified in Charter)<br>
</FONT> <B><FONT size=2 face="serif">55 East Monroe Street, Suite
3600 </FONT></B><br>
<B><FONT size=2 face="serif">Chicago, Illinois 60603</FONT></B><FONT size=2 face="serif"> </FONT><BR>
  <FONT size=2 face="serif">(Address of Principal Executive Offices) </FONT><BR>
  <B><FONT size=2 face="serif">(312) 368-5510 </FONT></B><BR>
  <FONT size=2 face="serif">(Registrant&#146;s Telephone Number, including Area
  Code) </FONT><BR>
  <B><FONT size=2 face="serif">Nathan I. Partain, CFA </FONT></B><BR>
  <B><FONT size=2 face="serif">DNP Select Income Fund Inc. </FONT></B><BR>
  <FONT face="serif"> </FONT><FONT size=2 face=serif><B>55 East Monroe
  Street, Suite 3600 </B></FONT> <BR>
  <B><FONT size=2 face="serif">Chicago, Illinois 60603</FONT></B><FONT size=2 face="serif"> </FONT><BR>
  <FONT size=2 face="serif">(Name and Address of Agent for Service) </FONT><BR>
  <B><FONT size=2 face="serif">Copies to: </FONT></B><FONT size=2 face="serif"> </FONT><BR>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=50% align=center>
<B><FONT size=2 face="serif">John R. Sagan, Esq.</FONT></B>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Kevin J. Carr, Esq.</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=50% align=center>
<B><FONT size=2 face="serif">Lawrence R. Hamilton, Esq.</FONT></B>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Phoenix Life Insurance Company</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=50% align=center>
<B><FONT size=2 face="serif">Mayer, Brown, Rowe &amp; Maw LLP</FONT></B>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">One American Row</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=50% align=center>
<FONT face="serif"> </FONT><FONT size=2 face="serif"><B>71 South Wacker Drive</B></FONT>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Hartford, Connecticut 06102</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=50% align=center>
<B><FONT size=2 face="serif">Chicago, Illinois 60606</FONT></B>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">(860) 403-5000</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=50% align=center>
<B><FONT size=2 face="serif">(312) 782-0600</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Approximate Date of Proposed Public Offering: </FONT></B><FONT size=2 face="serif">As soon as practicable after the effective date of this Registration Statement. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If any of the securities
being registered on this form will be offered on a delayed or continuous basis
in reliance on Rule 415 under the Securities Act of 1933, other than securities
offered  in connection with a dividend reinvestment plan, check the following
box&nbsp;&nbsp; </FONT><font size="2" face="sans-serif">|&nbsp;&nbsp;|</font> </P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD colspan=3 align=left><FONT size=2 face="serif">It is proposed that this
    filing will become effective (check appropriate box): </FONT></TD>
</TR>
<TR valign="bottom">
        <TD width=2% align=right>
      <div align="left"><font size="2" face="sans-serif">|X|&nbsp;&nbsp;</font>      </div></TD>
        <TD colspan=3 align=left>
<FONT size=2 face="serif">when declared effective pursuant to Section 8(c).</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD colspan=3 align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD colspan=3 align=left>
<FONT size=2 face="serif">If appropriate, check the following box:</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><font size="2" face="sans-serif">|&nbsp;&nbsp;|</font>  </div></TD>
        <TD colspan=3 align=left>
<FONT size=2 face="serif">This post-effective amendment designates a new effective date for a previously filed registration statement.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><font size="2" face="sans-serif">|&nbsp;&nbsp;|</font>  </div></TD>
        <TD colspan=3 align=left>
<FONT size=2 face="serif">This Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD colspan=3 align=left>
<FONT size=2 face="serif">Act and the Securities Act registration statement number of the earlier effective registration statement for the</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD width=79% align=left>
<FONT size=2 face="serif">same offering is</FONT>&nbsp;
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD width=10% align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr valign="bottom">
    <td colspan=8 align=center> <b><font size=2 face="serif">CALCULATION OF REGISTRATION
          FEE UNDER THE SECURITIES ACT OF 1933</font></b>&nbsp; </td>
  </tr>
  <tr>
    <td colspan=8>
      <hr size="1" noshade>
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left>
      <center>
        <b><font size=1 face="serif">Proposed Maximum</font></b>&nbsp;
    </center></td>
    <td>
      <center>
    </center></td>
    <td align=left>
      <center>
        <b><font size=1 face="serif">Proposed Maximum</font></b>&nbsp;
    </center></td>
    <td>
      <center>
    </center></td>
    <td align=center>
      <center>
        <b><font size=1 face="serif">Amount of</font></b>&nbsp;
    </center></td>
  </tr>
  <tr valign="bottom">
    <td align=right>
      <center>
        <b><font size=1 face="serif">Title of Securities</font></b>&nbsp;
    </center></td>
    <td align=center> <b><font size=1 face="serif">Amount Being</font></b>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left>
      <center>
        <b><font size=1 face="serif">Offering Price Per</font></b>&nbsp;
    </center></td>
    <td>
      <center>
    </center></td>
    <td align=left>
      <center>
        <b><font size=1 face="serif">Aggregate Offering</font></b>&nbsp;
    </center></td>
    <td>
      <center>
    </center></td>
    <td align=center>
      <center>
        <b><font size=1 face="serif">Registration</font></b>&nbsp;
    </center></td>
  </tr>
  <tr valign="bottom">
    <td align=right>
      <center>
        <b><font size=1 face="serif">Being Registered</font></b>&nbsp;
    </center></td>
    <td align=center> <b><font size=1 face="serif">Registered</font></b>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=center>
      <center>
        <b><font size=1 face="serif">Unit</font></b>&nbsp;
    </center></td>
    <td>
      <center>
    </center></td>
    <td align=center>
      <center>
        <b><font size=1 face="serif">Price</font></b>&nbsp;
    </center></td>
    <td>
      <center>
    </center></td>
    <td align=center>
      <center>
        <b><font size=1 face="serif">Fee</font></b>&nbsp;
    </center></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign="bottom">
    <td align=center>
      <div align="left"><font size=2 face="serif">Auction Preferred Stock,</font>&nbsp; </div></td>
    <td align=left>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=right>
      <div align="left"><font size=2 face="serif">&#36;0.001 par value per share</font>&nbsp; </div></td>
    <td align=right> <center>
      <font size=2 face="serif">12,000 shares</font>&nbsp;
    </center></td>
    <td>&nbsp; </td>
    <td align=left>
      <center>
        <font size=2 face="serif">&#36;25,000</font>
    </center></td>
    <td>&nbsp; </td>
    <td align=left>
      <center>
        <font size=2 face="serif">&#36;300,000,000</font>
      </center></td>
    <td>
      <center>
    </center></td>
    <td align=left>
      <center>
        <font size=2 face="serif">&#36;32,100</font>
    </center></td>
  </tr>
  <tr>
    <td colspan="8"><hr size="1" noshade>
        <hr size="1" noshade>
    </td>
  </tr>
</table>

<BR>
<P>
<FONT size=2 face="serif"> </FONT><B><FONT size=2 face="serif">The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which
specifically states that this Registration Statement shall thereafter become effective in accordance with section 8(a) of the Securities Act of 1933 or until this Registration Statement shall become effective on such date as the Securities and
Exchange Commission, acting pursuant to section 8(a), may determine. </FONT></B></P>

<hr size="1" noshade>

<HR noshade  width="100%" size=3>

<P align="left" style="page-break-before:always"></P><PAGE>

<p><font color="#FF0000" size="2" face="sans-serif"> The information in this Prospectus is not complete
    and may be changed.A registration statement relating to these securities
    has been filed with theSecurities and Exchange Commission.We may not sell
    these securities until the registration statement is effective.This Prospectus
    is not an offerto sell these securities and it is not soliciting an offer
to buy these securities in any state where the offer or sale is not permitted.</font></p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=33% align=center>
      <div align="left"><font color="#FF0000"><B><FONT size=2 face="sans-serif">PRELIMINARY PROSPECTUS</FONT></B>&nbsp;
    </font></div></TD>
        <TD width=34% align=center>
<B><FONT color="#FF0000" size=2 face="sans-serif">Subject to completion</FONT></B><font color="#FF0000">&nbsp;</font>
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="sans-serif">, 2005</FONT>&nbsp;
          </div></TD>
</TR>
</TABLE>
<hr size="1" noshade>
<B><FONT size=4 face="sans-serif">&#36;300,000,000 </FONT></B>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=21% align=left>&nbsp;</TD>
        <TD width=79% align=left>
<FONT size=6 face="serif">DNP Select Income Fund Inc.</FONT>&nbsp;
        </TD>
  </TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<B><FONT face="sans-serif">Shares</FONT></B>&nbsp;
        </TD>
  </TR>
</TABLE>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><BR>
  <B><FONT size=4 face="sans-serif">Auction Preferred Stock (&#147;APS&#148;) </FONT></B><BR>
    <B><FONT size=4 face="sans-serif">Liquidation Preference &#36;25,000 Per
Share </FONT></B></p>
<hr size="1" noshade>
<P><B><FONT size=2 face="serif">Investment Objectives. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DNP
    Select Income Fund Inc. (the &#147;Fund&#148;) is a diversified, closed-end
    management investment company. The Fund&#146;s primary investment objectives
    are current income and long-term growth of income. Capital appreciation is
    a secondary objective. There can be no assurance that the Fund will achieve
    its investment objectives. </FONT></P>
<P> <B><FONT size=2 face="serif">Investment Adviser. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Duff &amp; Phelps
    Investment Management Co. (the &#147;Adviser&#148;) has acted as the Fund&#146;s
    investment adviser since the Fund&#146;s inception in 1987. As of October
    31, 2005, the Adviser managed approximately &#36;6.0 billion in assets, including
    approximately &#36;2.6 billion in securities of public utility companies.
    The Adviser&#146;s address is 55 East Monroe Street, Suite 3600, Chicago,
    Illinois 60603. </FONT></P>
<P> <B><FONT size=2 face="serif">Portfolio Contents. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
    Fund seeks to achieve its investment objectives by investing primarily in
    a diversified portfolio of equity and fixed income securities of companies
    in the public utilities industry. Under normal conditions, more than 65%
    of the Fund&#146;s total assets will be invested in securities of public
    utility companies engaged in the production, transmission or distribution
    of electric energy, gas or telephone services. </FONT></P>
<P align="right"><I><FONT size=2 face="serif">(continued
      on following page)</FONT></I></P>
<P> <B><FONT size=2 face="serif">Before buying any APS, you should read the discussion
      of material risks of investing in the Fund in the &#147;Risks&#148; section
      beginning on page __ of this Prospectus. Certain of these risks are summarized
      in &#147;Prospectus summary-Risks&#148; beginning on page __.</FONT></B></P>
<P> <B><FONT size=2 face="serif">Neither the Securities and Exchange Commission
      nor any state securities commission has approved or disapproved of these
      securities or determined if this Prospectus is truthful or complete. Any
      representation to the contrary is a criminal offense.</FONT></B><BR>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=21% align=left>&nbsp;

        </TD>
        <TD width=47% align=right>
<B><FONT size=1 face="sans-serif">Price to public</FONT></B>&nbsp;
        </TD>
        <TD width=15% align=right>
<B><FONT size=1 face="sans-serif">Sales load</FONT></B>&nbsp;
        </TD>
        <TD width=17% align=center>
      <div align="right"><B><FONT size=1 face="sans-serif">Proceeds to Fund(1)</FONT></B>&nbsp;
          </div></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="sans-serif">Per share</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="sans-serif">&#36;25,000</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="sans-serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="sans-serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="sans-serif">Total</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="sans-serif">&#36;300,000,000</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="sans-serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="sans-serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr valign="top">
    <td><I><FONT size=1 face="serif">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></I></td>
    <td><I><FONT size=1 face="serif"> Plus accumulated dividends, if any, from
          the date the APS are issued, but before offering expenses payable by
          the Fund estimated to be approximately &#36;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ]. The Fund and the Adviser
          have agreed to indemnify the Underwriters against certain liabilities
    under the Securities Act of 1933, as amended. See Underwriting.</FONT></I></td>
  </tr>
</table>
<P>
<FONT size=2 face="serif">The Underwriters are offering the APS subject to various conditions. The Underwriters expect to deliver the APS in book-entry form, through the facilities of the Depository Trust Company to purchasers on or about [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ],
2006.</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>&nbsp;</P>
<hr size="1" noshade>

<P><I><FONT size=1 face="serif">(continued from previous page) </FONT></I></P>
<P>
<FONT size=2 face="serif">The APS is being offered by the underwriters subject to the condition that the shares of APS be rated &#147;Aaa&#148; by Moody&#146;s Investors Service, Inc. (&#147;Moody&#146;s&#148;) and &#147;AAA&#148; by Standard &amp;
Poor&#146;s Ratings Services, a division of The McGraw-Hill Companies, Inc. (&#147;S&amp;P&#148;), as of the time of delivery of the APS to the underwriters, and subject to certain other conditions. </FONT></P>
<P>
<FONT size=2 face="serif">The APS will pay adjustable rate dividends based on shorter-term interest rates, which will be re-determined periodically by an auction process, conducted in accordance with the procedures described in this Prospectus and,
in further detail, in the Statement of Additional Information. The adjustment period for APS dividends could be as short as seven days or as long as a year or more. </FONT></P>
<P><FONT size=2 face="serif">The APS, which has no history of public trading, will not be listed on an exchange
  or automated quotation system. Broker-dealers may maintain a secondary trading market in the APS outside of auctions; however, they have no obligation to do so, and there can be no assurance that a secondary market for the APS will develop or, if it
  does develop, that it will provide holders with a liquid trading market (i.e., trading will depend on the presence of willing buyers and sellers and the trading price will be subject to variables to be determined at the time of the trade by such
  broker-dealers). A general increase in the level of interest rates may have an adverse effect on the secondary market price of the APS, and a selling shareholder that sells APS between auctions may receive a price per share of less than &#36;25,000.
  The Fund may redeem APS as described under &#147;Description of APS&#151;Redemption.&#148;</FONT></P>
<P><FONT size=2 face="serif"> When issued and outstanding, the APS will add further leverage to an investment in the Fund&#146;s common stock. The APS will be senior in liquidation and
    distribution rights to the Fund&#146;s outstanding common stock and equal in liquidation and distribution rights to the Fund&#146;s outstanding remarketed preferred stock (&#147;RPS&#148;), Series A, Series B, Series C, Series D and Series E. The
    Fund&#146;s common stock is traded on the New York Stock Exchange under the symbol &#147;DNP.&#148; </FONT></P>
<P><FONT size=2 face="serif">You should read this Prospectus, which contains
    important information about the Fund, before deciding whether to invest in
    the APS, and retain it for  future reference. A Statement of Additional Information,
    dated , 2005, containing additional information about the Fund, has been
    filed with the SEC and is incorporated by reference in its entirety into
    this Prospectus, which means it is part of the  Prospectus for legal purposes.
    You may request a free copy of the Statement of Additional Information (the
    table of contents of which is on page [ ] of this Prospectus), the Fund&#146;s
    annual and semi-annual reports and other information about the  Fund, or
    make other inquiries by calling the Fund&#146;s administrator at (888) 878-7845,
    by writing to the Fund at 55 East Monroe Street, Suite 3600, Chicago, Illinois
    60603, or by visiting the web site of either the Fund  (http://www.dnpselectincome.com)
    or the Securities and Exchange Commission (&#147;SEC&#148;) (http://www.sec.gov). </FONT></P>
<P>
<FONT size=2 face="serif">You should rely only on the information contained or incorporated by reference in this Prospectus. The Fund has not, and the underwriters have not, authorized anyone to provide you with different information. If anyone
provides you with different or inconsistent information, you should not rely on it. The Fund is not, and the underwriters are not, making an offer in any state where the offer or sale is not permitted. You should not assume that the information in
this Prospectus is accurate as of any date other than the date on the front of this Prospectus. The Fund&#146;s business, financial condition and prospects may have changed since that date. </FONT></P>
<P>
<FONT size=2 face="serif">The Fund&#146;s APS does not represent a deposit or obligation of, and is not guaranteed or endorsed by, any bank or other insured depository institution, and is not federally insured by the Federal Deposit Insurance
Corporation, the Federal Reserve Board or any other government agency.</FONT></P>
<P>&nbsp;</P>
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<P>&nbsp;</P>
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<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="sans-serif">TABLE OF CONTENTS</FONT></B></P>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=38% align=left>&nbsp;</TD>
  <TD width=2%>&nbsp;</TD>
  <TD width=7% align=right>&nbsp;</TD>
  <TD width=5%>&nbsp;</TD>
  <TD width=41% align=left>&nbsp;</TD>
  <TD width=2%>&nbsp;</TD>
  <TD width=5% align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Prospectus summary</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">1</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Certain provisions in the charter</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Financial highlights</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">10</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">and bylaws</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">46</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">The Fund</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">13</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Repurchase of common stock</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">47</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Use of proceeds</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">13</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">U.S. federal income tax matters</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">48</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Capitalization (unaudited)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">14</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Underwriting</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">53</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio composition</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">14</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Custodian, transfer agent and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">The Fund&#146;s investments</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">15</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">auction agent</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">53</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Risks</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">22</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Legal opinions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">54</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Management of the Fund</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">28</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Available information</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">54</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Description of APS</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">31</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Privacy principles of the Fund</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">54</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">The auction</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">40</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Table of contents for the Statement of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Description of capital structure</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">44</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Additional Information</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">55</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividend reinvestment plan</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="sans-serif">46</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
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<p><BR>

</p>
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<P>&nbsp;</P>
<hr size="1" noshade>

<P><FONT size=5 face="sans-serif">Prospectus summary</FONT></P>
<P>
<I><FONT size=2 face="serif">This is only a summary. This summary does not contain all of the information that you should consider before investing in our APS. You should read the more detailed information contained in this Prospectus, the Statement
of Additional Information and the Articles Supplementary attached as Appendix A to the Statement of Additional Information. Unless otherwise noted, any reference in this Prospectus to preferred stock is a reference to both our RPS and APS.
Capitalized terms used but not defined in this Prospectus shall have the meanings given to such terms in the Articles Supplementary. </FONT></I></P>
<P>
<B><FONT size=2 face="sans-serif">THE FUND</FONT></B></P>
<P>
<FONT size=2 face="serif">DNP Select Income Fund Inc. is a diversified, closed-end management investment company that first offered its common stock to the public in January 1987. See &#147;The Fund.&#148; </FONT></P>
<P>
<B><FONT size=2 face="sans-serif">THE OFFERING </FONT></B></P>
<P>
<FONT size=2 face="serif">The Fund is offering an aggregate of [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ] shares of Series [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ] APS, each at a purchase price of &#36;25,000 per share. The APS is being offered by a group of underwriters led by [ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] (collectively, the
&#147;Underwriters&#148;). See &#147;Underwriting.&#148; </FONT></P>
<P>
<FONT size=2 face="serif">In addition to the APS offered by this prospectus, the Fund currently intends to issue an aggregate of [ ] additional shares of Series [ ] APS (collectively, the &#147;Additional APS&#148;). The sale of the APS offered by
this prospectus is not contingent upon the sale of the Additional APS, and there can be no assurance that the Fund will issue all or any of the Additional APS. With respect to liquidation and distribution rights, any Additional APS that is issued
will rank on a parity with the APS offered by this prospectus and with the RPS.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">INVESTMENT OBJECTIVES AND POLICIES </FONT></B></P>
<P>
<FONT size=2 face="serif">The Fund&#146;s primary investment objectives are current income and long-term growth of income. Capital appreciation is a secondary objective. There can be no assurance that the Fund will achieve its investment objectives.
The Fund seeks to achieve its investment objectives by investing primarily in a diversified portfolio of equity and fixed income securities of companies in the public utilities industry. Under normal conditions, more than 65% of the Fund&#146;s
total assets will be invested in securities of public utility companies engaged in the production, transmission or distribution of electric energy, gas or telephone services. See &#147;The Fund&#146;s investments&#151;Investment Objectives and
Policies.&#148; </FONT></P>
<P>
<FONT size=2 face="serif">The Fund&#146;s investment policies have been developed to take advantage of the characteristics and historical performances of securities of companies in the public utilities industry. The investments of the Fund in
securities of public utility companies are diversified not only in terms of issuers but also in terms of types of securities, since the Fund may invest in fixed income securities, such as bonds and preferred stocks, as well as common stocks. The
Fund may vary the percentage of assets invested in any one type of security based upon the Adviser&#146;s evaluation as to the appropriate portfolio structure for achieving the Fund&#146;s investment objectives under prevailing market, economic and
financial conditions. See &#147;The Fund&#146;s investments&#151;Investment Objectives and Policies.&#148; </FONT></P>
<P>
<B><FONT size=2 face="sans-serif">INVESTMENT TECHNIQUES </FONT></B></P>
<P>
<FONT size=2 face="serif">The Fund may from time to time employ a variety of investment techniques, including those described below under the heading &#147;The Fund&#146;s investments&#151;Investment Techniques,&#148; to hedge against fluctuations
in the price of portfolio securities, to enhance total return or to provide a substitute for the purchase or sale of securities. Some of these techniques, such as purchases of put and call options, options on stock indices and stock index futures
and entry into certain credit derivative transactions, are hedges against or substitutes for investments in equity investments. Other techniques, such as the purchase of interest rate futures and entry into transactions involving interest rate
swaps, options on interest rate swaps and certain credit derivatives, are hedges against or substitutes for investments in debt securities. The Fund&#146;s ability to utilize any of the techniques described below may be limited by restrictions
imposed on its operations in connection with obtaining and maintaining its qualification as a regulated investment company under the Internal Revenue Code of 1986, as amended (the &#147;Code&#148;) and by rating agencies rating the preferred
stocks.</FONT></P>
<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">1</FONT></B>
</div>
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<P>&nbsp;</P>
<hr size="1" noshade>

<P><B><FONT size=2 face="sans-serif">USE OF LEVERAGE </FONT></B></P>
<P>
<FONT size=2 face="serif">The Fund uses various forms of financial leverage, currently including: (1) five series of outstanding RPS with an aggregate liquidation preference of &#36;500 million and (2) the ability to issue up to &#36;200 million of
commercial paper notes (&#147;CP Notes&#148;). At June 30, 2005, &#36;200 million of CP Notes were outstanding with an amortized cost of &#36;197,972,806. In addition, the Fund has a &#36;100 million backup credit facility (under which it had no
Borrowings as of June 30, 2005). Throughout this Prospectus, debt securities of the Fund, such as the CP Notes, and debt for borrowed money are sometimes collectively referred to as &#147;Borrowings.&#148; All Borrowings will have seniority over the
APS and payments to holders of APS in liquidation or otherwise will be subject to the prior payment of any Borrowings. The Fund intends to utilize a portion of the net proceeds of this offering to pay in full all amounts outstanding under the CP
Notes, after which the Fund intends to discontinue its CP Note program and terminate the related backup credit facility. See &#147;The Fund&#146;s investments&#151;Use of Leverage&#148; and &#147;Description of capital structure&#151;Description of
Borrowings.&#148; </FONT></P>
<P>
<B><FONT size=2 face="sans-serif">INTEREST RATE TRANSACTIONS</FONT></B></P>
<P>
<FONT size=2 face="serif">In connection with the Fund&#146;s use of leverage through its preferred stock and CP Notes, the Fund may enter into interest rate swap or cap transactions. Interest rate swaps involve the Fund&#146;s agreement with the
swap counterparty to pay a fixed rate payment in exchange for the counterparty paying the Fund a variable rate payment that is intended to approximate the Fund&#146;s variable rate payment obligation on its preferred stock or variable rate
borrowing. The payment obligation would be based on the notional amount of the swap. The Fund&#146;s payment obligations under the swap are general unsecured obligations of the Fund and are ranked senior to distributions under the common stock and
preferred stock. The Fund may use an interest rate cap, which would require it to pay a premium to the cap counterparty and would entitle it, to the extent that a specified variable rate index exceeds a predetermined fixed rate, to receive from the
counterparty payment of the difference based on the notional amount. The Fund would use interest rate swaps or caps only with the intent to reduce or eliminate the risk that an increase in short-term interest rates could have on common share net
earnings as a result of leverage. See &#147;The Fund&#146;s investments&#151;Interest Rate Transactions.&#148; </FONT></P>
<P>
<B><FONT size=2 face="sans-serif">INVESTMENT ADVISER AND ADMINISTRATOR </FONT></B></P>
<P>
<FONT size=2 face="serif">Duff &amp; Phelps Investment Management Co. is the Fund&#146;s investment adviser. The Adviser is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940 (the &#147;Advisers Act&#148;).
The Adviser (together with its predecessor) has been in the investment advisory business for more than 70 years and has acted as the Fund&#146;s investment adviser since the Fund&#146;s inception in 1987. As of October 31, 2005, the Adviser managed
approximately &#36;6.0 billion in assets, including approximately &#36;2.6 billion in securities of public utility companies. The Adviser acts as investment adviser to two other closed-end investment companies registered under the Investment Company
Act of 1940 (the &#147;Investment Company Act&#148;) and three open-end investment companies registered under the Investment Company Act.</FONT></P>
<P>
<FONT size=2 face="serif">J.J.B. Hilliard, W.L. Lyons, Inc. (the &#147;Administrator&#148;) is the Fund&#146;s administrator. The Administrator is a wholly-owned subsidiary of The PNC Financial Services Group, Inc. The Administrator provides
administrative services required in connection with the operation of the Fund.</FONT></P>
<P>
<FONT size=2 face="serif">The Fund pays a quarterly fee to the Adviser for investment advisory services at an annual rate of 0.60% of the Fund&#146;s average weekly net assets up to &#36;1.5 billion and 0.50% of average weekly net assets in excess
of &#36;1.5 billion. The Fund pays a quarterly fee to the Administrator for administrative services at an annual rate of 0.25% of the Fund&#146;s average weekly net assets up to &#36;100 million, 0.20% of the average weekly net assets from &#36;100
million to &#36;1.0 billion and 0.10% of the average weekly net assets over &#36;1.0 billion. </FONT></P>
<P>&nbsp;</P>
<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">2</FONT></B>
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<P align="left" style="page-break-before:always"></P><PAGE>


<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">RISKS</FONT></B><BR>
<P>
<FONT size=2 face="serif">The following describes various principal risks of investing in the APS and the Fund. A more detailed description of these and other risks of investing in the APS and the Fund are described under &#147;Risks&#148; in this
Prospectus.</FONT></P>
<B><FONT size=2 face="sans-serif">Risks of investing in the APS</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">Auction risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The dividend rate for the APS normally is set through an auction process. In the auction, holders of APS may indicate the dividend rate at which they would be willing to
hold or sell their APS or purchase additional APS. The auction also provides liquidity for the sale of APS. An auction fails if there are more shares of APS offered for sale than there are buyers for shares of APS. You may not be able to sell your
APS at an auction if the auction fails. Finally, if you buy APS or elect to retain APS without specifying a dividend rate below which you would not wish to buy or continue to hold those APS, you could receive a lower rate of return on your APS than
the market rate. See &#147;Risks&#151;Auction Risk.&#148; </FONT></P>
<P>
<B><FONT size=2 face="serif">Secondary market risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you try to sell shares of your APS between auctions you may not be able to sell any or all of your APS or you may not be able to sell them for &#36;25,000
per share plus accumulated dividends. If the Fund has designated a special dividend period, changes in interest rates could affect the price you would receive if you sold your shares in the secondary market. Broker-dealers that maintain a secondary
trading market for the APS are not required to maintain this market, and the Fund is not required to redeem shares either if an auction or an attempted secondary market sale fails because of a lack of buyers. The APS are not listed on a stock
exchange or traded on the NAS-DAQ stock market. If you sell your APS to a broker-dealer between auctions, you may receive less than the price you paid for them, especially if market interest rates have risen since the last auction. See
&#147;Risks&#151;Secondary Market Risk.&#148; </FONT></P>
<P>
<B><FONT size=2 face="serif">Ratings and asset coverage risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While it is expected that Moody&#146;s will assign a rating of &#147;Aaa&#148; and S&amp;P will assign a rating of &#147;AAA&#148; to the APS, such
ratings do not eliminate or necessarily mitigate the risks of investing in the APS. Moody&#146;s or S&amp;P could withdraw or downgrade the APS, which may make your shares less liquid at an auction or in the secondary market. If Moody&#146;s or
S&amp;P withdraws its rating or downgrades the APS, the Fund may alter its portfolio or redeem shares of APS in an effort to reinstate or improve, as the case may be, the rating, although there is no assurance that it will be able to do so to the
extent necessary to restore the prior rating. The Fund also may voluntarily redeem APS under certain circumstances. See &#147;Risks&#151;Ratings and Asset Coverage Risk.&#148; </FONT></P>
<P>
<B><FONT size=2 face="serif">Subordination risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While holders of APS will have equal liquidation and distribution rights to the holders of RPS, they will be subordinated to the rights of both the holders of the
CP Notes and the lenders under the Fund&#146;s credit facility. Therefore, dividends, distributions and other payments to holders of APS in liquidation or otherwise may be subject to prior payments due to the holders of CP Notes and the lenders
under the Fund&#146;s credit facility. In the event of a default on the Fund&#146;s CP Notes or under the credit facility, the Fund would not be permitted to declare, pay or set apart for payment any dividend or other distribution in respect of the
APS, or call for redemption or redeem any shares of APS. </FONT></P>
<P>
<B><FONT size=2 face="serif">Restrictions on dividends and other distributions. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restrictions imposed on the declaration and payment of dividends or other distributions to the holders of the Fund&#146;s common
stock or preferred stock, both by the Investment Company Act and by requirements imposed by rating agencies, might impair the Fund&#146;s ability to comply with minimum distribution requirements that it must satisfy to maintain its favorable tax
treatment as a regulated investment company for U.S. federal income tax purposes. </FONT></P>
<P>
<B><FONT size=2 face="serif">Interest rate risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The APS pays dividends based on short-term interest rates. If short-term interest rates rise, dividend rates on the APS will also rise. A sharp increase in
short-term interest rates could cause a &#147;negative arbitrage&#148; situation, where the dividend rate on the APS would exceed the yield on the Fund&#146;s portfolio securities. In addition, rising market interest rates could negatively impact
the value of the Fund&#146;s investment portfolio, reducing the amount of assets serving as asset coverage for the APS.</FONT></P>
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<div align="right"><B><FONT size=2 face="sans-serif">3</FONT></B>
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<B><FONT size=2 face="sans-serif">Risks of investing in the Fund</FONT></B><BR>
<P>
<B><FONT size=2 face="serif">Investment and market risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An investment in the Fund is subject to investment risk, including the possible loss of the entire amount invested. An investment in the Fund represents an
indirect investment in the securities owned by the Fund, which are generally traded on a securities exchange or in the over-the-counter markets. The value of these securities, like other market investments, may move up or down, sometimes rapidly and
unpredictably. </FONT></P>
<P>
<B><FONT size=2 face="serif">Income risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The income that holders of preferred stock and common stock receive from the Fund is based primarily on the dividends and interest the Fund earns from its investments,
which can vary widely over the short and long term. If prevailing market interest rates drop, distribution rates of the Fund&#146;s preferred stock holdings and any bond holdings and preferred and common shareholders&#146; income from the Fund could
drop as well. The Fund&#146;s income also would likely be affected adversely when prevailing short-term interest rates increase and the Fund is utilizing leverage. </FONT></P>
<P>
<B><FONT size=2 face="serif">Management risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is subject to management risk because it is an actively managed portfolio. The Adviser and the individual portfolio managers apply investment techniques and
risk analyses in making investment decisions for the Fund, but there can be no guarantee that these will produce the desired results.</FONT></P>
<P>
<B><FONT size=2 face="serif">Utilities industry risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund invests a significant portion of its assets in securities of issuers in the public utilities industry. This may make the Fund more susceptible to
adverse economic, political or regulatory occurrences affecting this sector. As concentration in a sector increases, so does the potential for fluctuation in the net asset value of the Fund&#146;s assets. </FONT></P>
<P>
<FONT size=2 face="serif">Certain segments of the public utilities industry and individual companies within such segments may not perform as well as the sector as a whole. The public utilities industry historically has been subject to risks of
increases in fuel, purchased power and other operating costs, high interest costs on borrowings needed for capital improvement programs and costs associated with compliance with and changes in environmental and other governmental regulations.
Telecommunications companies in particular have been subject to risks associated with increasing levels of competition, technology substitution (i.e. wireless, broadband and voice over Internet protocol, or VoIP), industry overcapacity,
consolidation and regulatory uncertainty.</FONT></P>
<P>
<B><FONT size=2 face="serif">Investments in securities of foreign issuers. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While the Fund is prohibited from investing 15% or more of its assets in securities of foreign issuers, the Fund may be exposed to
certain risks as a result of foreign investments. When the Fund invests in securities of foreign issuers, it is subject to risks not typically associated with investing in securities of U.S. companies. These risks can include currency devaluations
and other fluctuations in foreign currencies, foreign currency exchange controls, greater price volatility, substantially less liquidity and significantly smaller market capitalization of securities markets, more substantial government involvement
in the economy, higher rates of inflation, differences in securities regulation and trading, political uncertainty and other risks.</FONT></P>
<P>
<FONT size=2 face="serif">In addition, accounting, auditing and financial reporting standards in foreign countries are different from U.S. standards. As a result, certain material disclosures may not be made and less information may be available to
the Fund and other investors than would be the case if the Fund&#146;s investments were restricted to securities of U.S. issuers. Moreover, it may be more difficult to obtain a judgment in a court outside the United States. Interest and dividends
paid on securities held by the Fund and gains from the disposition of such securities may be subject to withholding taxes imposed by foreign countries. </FONT></P>
<P>
<B><FONT size=2 face="serif">Common stock risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has substantial exposure to common stocks. Although common stocks have historically generated higher average returns than fixed-income securities over the
long-term, common stocks also have experienced significantly more volatility in returns. An adverse event, such as an unfavorable earnings report, may depress the value of a particular common stock held by the Fund. Also, the price of common stocks
are sensitive to general movements in the stock market and a drop in the stock market may depress the price of common stocks to which the Fund has expo-</FONT></P>
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<B><FONT size=2 face="sans-serif">4</FONT></B>
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<P align="left" style="page-break-before:always"></P><PAGE>


<P>&nbsp;</P>
<hr size="1" noshade>

<P><FONT size=2 face="serif">sure. Common stock prices fluctuate for many reasons, including changes in investors&#146; perceptions of the financial condition of an issuer or the general condition of the relevant stock market, or when political or
  economic events affecting the issuer occur. In addition, common stock prices may be sensitive to rising interest rates, as the costs of capital rise and borrowing costs increase.</FONT></P>
<P>
<B><FONT size=2 face="serif">Small and mid cap stock risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may invest its portfolio of equity securities in companies of any market capitalization. The Fund&#146;s investments in small and medium-sized
companies may be subject to more abrupt or erratic movements in price than its investments in larger, more established companies because the securities of such companies are less well-known, held primarily by insiders or institutional investors or
may trade less frequently and in lower volume. Furthermore, small and medium-sized companies are more likely to experience greater or more unexpected changes in their earnings and growth prospects. Such companies often have limited financial
resources or may depend on a few key employees, and the products or technologies of such companies may be at a relatively early stage of development or not fully tested.</FONT></P>
<P>
<B><FONT size=2 face="serif">Preferred stock risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund has exposure to preferred stocks. Preferred stocks involve credit risk, which is the risk that a preferred stock will decline in price, or fail to pay
dividends when expected, because the issuer experiences a decline in its financial status. In addition to credit risk, investment in preferred stocks involves certain other risks. Certain preferred stocks contain provisions that allow an issuer
under certain conditions to skip distributions (in the case of &#147;non-cumulative&#148; preferred stocks) or defer distributions (in the case of &#147;cumulative&#148; preferred stocks). If the Fund owns a preferred stock that is deferring its
distributions, the Fund may be required to report income for tax purposes while it is not receiving income on this position. Preferred stocks often contain provisions that allow for redemption in the event of certain tax or legal changes or at the
issuers&#146; call. In the event of redemption, the Fund may not be able to reinvest the proceeds at comparable rates of return. </FONT><FONT size=2 face="serif">Preferred stocks typically do not provide any voting rights, except in cases when dividends are in arrears beyond a certain time period, which varies by issue. Preferred stocks are subordinated to bonds and other debt
instruments in a company&#146;s capital structure in terms of priority to corporate income and liquidation payments, and therefore are subject to greater credit risk than those debt instruments. Preferred stocks may be significantly less liquid than
many other securities, such as U.S. government securities, corporate debt or common stock.</FONT></P>
<P>
<B><FONT size=2 face="serif">Issuer risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The value of common and preferred stocks may decline for a number of reasons which directly relate to the issuer, such as management performance, leverage and reduced
demand for the issuer&#146;s goods and services.</FONT></P>
<P>
<B><FONT size=2 face="serif">Debt securities risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to credit risk, investment in debt securities carries certain risks, including:</FONT></P>
<UL>
<LI>
<I><FONT size=2 face="serif">Redemption risk </FONT></I><FONT size=2 face="serif">&#151; Debt securities sometimes contain provisions that allow for redemption in the</FONT> <FONT size=2 face="serif">event of tax or security law changes in addition
to call features at the option of the issuer. In the</FONT> <FONT size=2 face="serif">event of a redemption, the Fund may not be able to reinvest the proceeds at comparable rates of</FONT> <FONT size=2 face="serif">return.<br>
<br>
</FONT></LI>
<LI>
<I><FONT size=2 face="serif">Limited voting rights </FONT></I><FONT size=2 face="serif">&#151; Debt securities typically do not provide any voting rights, except in cases</FONT> <FONT size=2 face="serif">when interest payments have not been made and
the issuer is in default.<br>
<br>
</FONT></LI>
<LI>
<I><FONT size=2 face="serif">Liquidity </FONT></I><FONT size=2 face="serif">&#151; Certain debt securities may be substantially less liquid than many other securities,</FONT> <FONT size=2 face="serif">such as U.S. government securities or common
stocks.</FONT></LI>
</UL>
<P>
<B><FONT size=2 face="serif">Credit risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit risk is the risk that an issuer of a preferred or debt security will become unable to meet its obligation to make dividend, interest and principal payments. In
general, lower rated preferred or debt securities carry a greater degree of credit risk. If rating agencies lower their ratings of preferred or debt securities in the Fund&#146;s portfolio, the value of those obligations could decline, which could
jeopardize the rating agencies&#146; ratings of the preferred stock issued by the Fund. In addition, the underlying revenue source for a preferred or debt security may be insufficient to pay dividends, interest or principal in a timely manner.
Because a primary source of income for the Fund is</FONT></P>
<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">5</FONT></B>
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<P>&nbsp;</P>
<hr size="1" noshade>

<P><FONT size=2 face="serif">the dividend, interest and principal payments on the preferred or debt securities in which it invests, any default by an issuer of a preferred or debt security could have a negative impact on the Fund&#146;s ability to pay
  dividends to its investors. Even if the issuer does not actually default, adverse changes in the issuer&#146;s financial condition may negatively affect its credit rating or presumed creditworthiness. These developments would adversely affect the
  market value of the issuer&#146;s obligations or the value of credit derivatives if the Fund has sold credit protection.</FONT></P>
<P>
<B><FONT size=2 face="serif">Hedging strategy risk.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><FONT size=2 face="serif">Certain of the investment techniques that the Fund may employ for hedging or, under certain circumstances, to increase income or total return, will expose the
Fund to risks. Such investment techniques may include entering into interest rate and stock index futures contracts and options on interest rate and stock index futures contracts, purchasing and selling put and call options on securities and stock
indices, purchasing and selling securities on a when-issued or delayed delivery basis and lending portfolio securities. The Fund intends to comply with regulations of the SEC involving &#147;covering&#148; or segregating assets in connection with
the Fund&#146;s use of options and futures contracts.</FONT></P>
<P>
<FONT size=2 face="serif">There are economic costs of hedging reflected in the pricing of futures, swaps, options and contracts related to options on positions in interest rate swaps which can be significant, particularly when long-term interest
rates are substantially above short-term interest rates. There may be an imperfect correlation between changes in the value of the Fund&#146;s portfolio holdings and hedging positions entered into by the Fund, which may prevent the Fund from
achieving the intended hedge or expose the Fund to risk of loss. In addition, the Fund&#146;s success in using hedge instruments is subject to the Adviser&#146;s ability to predict correctly changes in the relationships of such hedge instruments to
the Fund&#146;s portfolio holdings, and there can be no assurance that the Adviser&#146;s judgment in this respect will be accurate. Consequently, the use of hedging transactions might result in a poorer overall performance for the Fund, whether or
not adjusted for risk, than if the Fund had not hedged its portfolio holdings.</FONT></P>
<P>
<B><FONT size=2 face="serif">Derivatives risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent the Fund enters into derivatives transactions (such as futures contracts and options thereon, options and swaps), the Fund will be subject to increased
risk of principal loss due to imperfect correlation or unexpected price or interest rate movements. The Fund also will be subject to credit risk with respect to the counterparties to the derivatives contracts purchased by the Fund. If a counterparty
becomes bankrupt or otherwise fails to perform its obligations under a derivative contract due to financial difficulties, the Fund may experience significant delays in obtaining any recovery under the derivative contract in a bankruptcy or other
reorganization proceeding. The Fund may obtain only a limited recovery or may obtain no recovery in such circumstances. As a general matter, dividends received on hedged stock positions are characterized as ordinary income and are not eligible for
favorable tax treatment. In addition, use of derivatives may give rise to short-term capital gains and other income that would not qualify for payments by the Fund of qualified dividends, as described under &#147;U.S. federal income tax
matters&#151;Taxation of Shareholders.&#148; </FONT></P>
<P>
<B><FONT size=2 face="serif">Dividend capture risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may seek to increase its dividend income using a strategy called &#147;dividend capture.&#148; In a dividend capture trade, the Fund sells a stock that
it held past its ex-dividend date to purchase another stock paying a dividend before the next dividend of the stock being sold. The use of dividend capture strategies exposes the Fund to increased trading costs and the potential for capital loss. In
2003, dividend captures accounted for approximately 37% of the Fund&#146;s net investment income and had a impact on the Fund&#146;s net asset value (including both transaction costs and capital losses) of -0.49% . In 2004, the Fund substantially
reduced its use of dividend captures, with the result that in 2004 dividend captures accounted for approximately 5.41% of the Fund&#146;s net investment income and had an impact on the Fund&#146;s net asset value (including both transaction costs
and capital losses) of -0.02% . The Fund does not currently make significant use of dividend captures but may decide to do so in the future. </FONT></P>
<P>
<B><FONT size=2 face="serif">Portfolio turnover risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The techniques and strategies contemplated by the Fund might result in a high degree of portfolio turnover. The Fund cannot accurately predict its securities
portfolio turnover rate, but anticipates that its annual portfolio turnover rate will not exceed 100% (excluding turnover</FONT></P>
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<B><FONT size=2 face="sans-serif">6</FONT></B>
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<P>&nbsp;</P>
<hr size="1" noshade>

<P><FONT size=2 face="serif">of securities having a maturity of one year or less) under normal market conditions, although it could be materially higher under certain conditions. A high turnover rate (100% or more) necessarily involves greater expenses
  to the Fund and may result in realization of net short-term capital gains.</FONT></P>
<P>
<B><FONT size=2 face="serif">Inflation risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inflation risk is the risk that the purchasing power of assets or income from investment will be worth less in the future as inflation decreases the value of money. As
inflation increases, the real value of the Fund&#146;s preferred stock and common stock, and distributions thereon, can decline. In addition, during any periods of rising inflation, dividend rates of preferred stock issued by the Fund would likely
increase, which would tend to further reduce returns to the Fund&#146;s common shareholders.</FONT></P>
<P>
<B><FONT size=2 face="serif">Tax risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund&#146;s investment program and the tax treatment of Fund distributions may be affected by Internal Revenue Service (&#147;IRS&#148;) interpretations of the Code and
future changes in tax laws and regulations, including changes as a result of the &#147;sunset&#148; provisions that currently apply to the favorable tax treatment of qualified dividends. There can be no assurance that any portion of the Fund&#146;s
income distributions will not be fully taxable as ordinary income. In order for the Fund to avoid corporate-level income tax, the Fund must qualify each year as a regulated investment company under the Code and distribute all of its net income.
</FONT></P>
<P>
<B><FONT size=2 face="serif">Market disruption risk. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The war with Iraq and the continuing occupation of that country by coalition forces have had a substantial impact on the U.S. and world economies and
securities markets. The duration and nature of the war and occupation and the potential costs of rebuilding the Iraqi infrastructure and political systems cannot be predicted with any certainty. The war and occupation, terrorism and related
geopolitical risks have led, and may in the future lead, to increased short-term market volatility and may have adverse long-term effects on U.S. and world economies and markets generally. Those events could also have an acute effect on individual
issuers or related groups of issuers. These risks could also adversely affect securities markets, interest rates, auctions, secondary trading, ratings, credit risk, inflation, deflation and other factors relating to the APS. </FONT></P>
<P>
<FONT size=2 face="serif">Anti-takeover provisions. Certain provisions of the Fund&#146;s charter and bylaws may be regarded as &#147;anti-takeover&#148; provisions because they could have the effect of limiting the ability of other entities or
persons to acquire control of the Fund. See &#147;Certain provisions in the charter and bylaws.&#148; </FONT></P>
<B><FONT size=2 face="sans-serif">TRADING MARKET</FONT></B><BR>
<P>
<FONT size=2 face="serif">The shares of APS will not be listed on an exchange. Instead, you may buy or sell shares of APS at an auction that normally is held weekly, by submitting orders to a broker-dealer that has entered into an agreement with the
auction agent and the Fund (a &#147;Broker-Dealer&#148;), or to a broker-dealer that has entered into a separate agreement with a Broker-Dealer. In addition to the auctions, Broker-Dealers and other broker-dealers may maintain a secondary trading
market in APS outside of auctions, but may discontinue this activity at any time. There is no assurance that a secondary market will provide shareholders with liquidity. You may transfer shares outside of auctions only to or through a Broker-Dealer
or a broker-dealer that has entered into a separate agreement with a Broker-Dealer.</FONT></P>
<P>
<FONT size=2 face="serif">The table below shows the first auction date for the APS and the day on which each subsequent auction will normally be held for the APS. The first auction date for the APS will be the business day before the dividend
payment date for the initial dividend period for the APS. The start date for subsequent dividend periods will normally be the business day following the auction dates unless the then-current dividend period is a special dividend period or the first
day of the subsequent dividend period is not a business day. </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=21% align=left>&nbsp;

        </TD>
        <TD width=63% align=right>
<B><FONT size=1 face="sans-serif">Initial auction</FONT></B>&nbsp;
        </TD>
        <TD width=16% align=right>
<B><FONT size=1 face="sans-serif">Subsequent</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><B><FONT size=1 face="sans-serif">Series</FONT></B>&nbsp;
          </div></TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">date</FONT></B>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">auction day</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<BR>
<P>&nbsp;</P>

<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">7</FONT></B>
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<B><FONT size=2 face="sans-serif">DIVIDENDS AND DIVIDEND PERIODS</FONT></B><BR>
<P>
<FONT size=2 face="serif">The table below shows the dividend rate for the initial dividend period on the APS. For subsequent dividend periods, the APS will pay dividends based on a rate set at auctions, normally held weekly. In most instances,
dividends are paid weekly, on the day following the end of the dividend period. The rate set at auction will not exceed the maximum applicable rate. See &#147;Description of APS&#151;Dividends and Dividend Periods.&#148; </FONT></P>
<P>
<FONT size=2 face="serif">In addition, the table below also shows the date from which dividends on the APS will accumulate at the initial rate, the dividend payment date for the initial dividend period and the day on which dividends will normally be
paid. If the day on which dividends otherwise would be paid is not a business day, then your dividends will be paid on the first business day that falls after that day.</FONT></P>
<P>
<FONT size=2 face="serif">Finally, the table below shows the number of days of the initial dividend period for the APS.<br>
</FONT><FONT size=2 face="serif">Subsequent dividend periods generally will be seven days. The dividend payment date for special dividend periods of more than seven days will be set out in the notice designating a special dividend period. See &#147;Description of APS&#151;Dividends and Dividend Periods&#151;Declaration of Special Dividend Periods.&#148; </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Number of</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Days of</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<B><FONT size=1 face="sans-serif">Initial</FONT></B>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Date of</FONT></B>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Dividend Rate</FONT></B>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Subsequent</FONT></B>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Initial</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<B><FONT size=1 face="sans-serif">Dividend</FONT></B>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Accumulation</FONT></B>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">for Dividend</FONT></B>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Dividend</FONT></B>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Dividend</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<B><FONT size=1 face="sans-serif">Rate</FONT></B>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">at Initial Rate</FONT></B>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Period</FONT></B>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Payment Date</FONT></B>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Period</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<p>&nbsp;</p>
<p><BR>
<B><FONT size=2 face="sans-serif">REDEMPTION</FONT></B></p>
<P>
<FONT size=2 face="serif">The Fund may be required to redeem all or a portion of the APS if, for example, the Fund does not meet an asset coverage ratio required by law or to correct a failure to meet a rating agency guideline in a timely manner.
The Fund voluntarily may redeem shares of APS under certain conditions. See &#147;Description of APS&#151;Redemption&#148; and &#147;Description of APS&#151;Rating Agency Guidelines and Asset Coverage.&#148; </FONT></P>
<B><FONT size=2 face="sans-serif">LIQUIDATION PREFERENCE</FONT></B><BR>
<P>
<FONT size=2 face="serif">The liquidation preference of the APS will be &#36;25,000 per share, plus an amount equal to accumulated but unpaid dividends. See &#147;Description of APS&#151;Liquidation.&#148; </FONT></P>
<B><FONT size=2 face="sans-serif">RATINGS</FONT></B><BR>
<P>
<FONT size=2 face="serif">The APS is expected to be issued with a rating of &#147;Aaa&#148; from Moody&#146;s and &#147;AAA&#148; from S&amp;P. In order to maintain these ratings, the Fund must own portfolio securities of a sufficient value and with
adequate credit quality and diversification to meet the rating agencies&#146; guidelines. See &#147;Description of APS&#151;Rating Agency Guidelines and Asset Coverage.&#148; </FONT></P>
<B><FONT size=2 face="sans-serif">VOTING RIGHTS</FONT></B><BR>
<P>
<FONT size=2 face="serif">The Investment Company Act requires that the holders of the Fund&#146;s preferred stock, voting as a separate class, have the right to elect at least two directors at all times and to elect a majority of the directors at
any time when two years&#146; dividends on the preferred stock are unpaid. In each case, the remaining directors are elected by holders of the Fund&#146;s common stock, voting as a separate class. The holders of preferred stock vote as a separate
class or classes on certain other matters as required under the Fund&#146;s charter, the Investment Company Act and Maryland law. See &#147;Description of APS&#151;Voting Rights&#148; and &#147;Certain provisions in the charter and
bylaws.&#148;</FONT></P>
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<B><FONT size=2 face="sans-serif">8</FONT></B>
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<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">U.S. FEDERAL INCOME TAX STATUS</FONT></B><BR>
<P>
<FONT size=2 face="serif">The Fund has elected to be treated, has qualified and intends to continue to qualify as a regulated investment company for U.S. federal income tax purposes. As a regulated investment company, the Fund generally is not
required to pay corporate-level federal income taxes on any ordinary income or capital gains that it distributes to its shareholders as dividends. To maintain its regulated investment company status, the Fund must meet specified source-of-income and
asset diversification requirements and distribute annually at least 90% of its ordinary income and realized net short-term capital gains in excess of realized net long-term capital losses, if any. See &#147;U.S. federal income tax matters.&#148; </FONT></P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">9</FONT></B>
</div>
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<P align="left" style="page-break-before:always"></P><PAGE>


<P>&nbsp;</P>
<hr size="1" noshade>

<P><FONT size=5 face="sans-serif">Financial highlights </FONT></P>
<P>
<B><FONT size=2 face="sans-serif">SELECTED PER SHARE DATA AND RATIOS </FONT></B></P>
<P>
<FONT size=2 face="serif">The selected financial data below sets forth per share operating performance data, total investment return, ratios and supplemental data for the six months ended June 30, 2005 and for each year in the ten-year period ended
December 31, 2004. The financial information should be read in conjunction with the financial statements of the Fund incorporated by reference into this Prospectus and the Statement of Additional Information. For the years ended December 31, 2002,
2003 and 2004, the financial information set forth below was audited by Ernst &amp; Young LLP. For prior years, the financial information set forth below was audited by other independent accountants, whose reports expressed an unqualified opinion on
such financial information. </FONT></P>
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</TR>
<TR valign="bottom">
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right> <B><FONT size=1 face="sans-serif">Six Months</FONT></B> </TD>
        <TD align=left>&nbsp;

        </TD>
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  <TD align=right><B><FONT size=1 face="sans-serif">Ended June</FONT></B> </TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="39" align=left> <center>
    <B><FONT size=1 face="sans-serif">For the Year
    Ended December 31,</FONT></B>  </center></TD>
</TR>
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<B><FONT size=1 face="sans-serif">30, 2005</FONT></B>
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        </TD>
        <TD>&nbsp;
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        <TD colspan="39" align=left><hr size="1" noshade>
        </TD>
  </TR>
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        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">(unaudited)</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">2004</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">2003</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">2002</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">2001</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">2000</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">1999</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">1998</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">1997</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">1996</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">1995</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
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<HR noshade size=1>
        </TD>
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<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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<HR noshade size=1>
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        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
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<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
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<HR noshade size=1>
        </TD>
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<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD colspan=45>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Net asset value:</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=45>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">Beginning of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=1 face="serif">&#36;</FONT>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">8.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">7.94</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">7.37</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">9.18</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">10.51</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">8.77</FONT>    </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left><FONT size=1 face="serif">&#36;</FONT></TD>
        <TD align=right><FONT size=1 face="serif">10.36</FONT></TD>
        <TD align=left>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">9.90</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">8.44</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">8.85</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">7.23</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD><hr noshade size=1></TD>
        <TD><hr noshade size=1></TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Net investment</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">income(1)(2)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.22</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.54</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.79</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.77</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.88</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.89</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.88</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.85</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.84</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.85</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Net realized and</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">unrealized gain (loss)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">on investments</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.52</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.06</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.62</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(1.78</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(1.23</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.76</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(1.59</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.46</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.46</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.41</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.62</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
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  <TD align=left>&nbsp;</TD>
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  <TD align=left></TD>
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  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
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  <TD align=left></TD>
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  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Dividends on preferred</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">stock from net</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">investment income(1)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.04</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.12</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD><hr noshade size=1></TD>
  <TD><hr noshade size=1></TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Total from investment</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">operations applicable to</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">common shares</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.74</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.60</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.37</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(1.03</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.54</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2.53</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.80</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.24</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2.21</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.33</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2.35</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left">
      <div align="left"><FONT size=1 face="serif">Dividends on common stock</FONT>
      </div></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">from and in excess of net</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">investment income</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.39</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.79</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.80</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.78</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.79</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.79</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.79</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.78</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.75</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.74</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.73</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>
        </TD>
</TR>
<TR>
  <TD> </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD><hr noshade size=1></TD>
  <TD><hr noshade size=1></TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
  <TD> </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>
    <HR noshade size=1>
  </TD>
  <TD>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Net asset value</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">End of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=1 face="serif">&#36;</FONT>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">9.10</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">8.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">7.94</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">7.37</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">9.18</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">10.51</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">8.77</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">10.36</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">9.90</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">8.44</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">8.85</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=2 noshade>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Per share market value</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">End of period</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right> <FONT size=1 face="serif">11.56</FONT></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right><FONT size=1 face="serif">11.92</FONT></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left><FONT size=1 face="serif">&#36;</FONT></TD>
        <TD align=right><FONT size=1 face="serif">10.96</FONT></TD>
        <TD align=left>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">9.90</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">11.06</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">10.50</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">8.31</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">11.25</FONT>    </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left><FONT size=1 face="serif">&#36;</FONT></TD>
        <TD align=right><FONT size=1 face="serif">10.13</FONT></TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">8.63</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=1 face="serif">&#36;</FONT>    </TD>
        <TD align=right>
<FONT size=1 face="serif">9.00</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left">
      <div align="left"><FONT size=1 face="serif">Ratio of expenses to average</FONT>
      </div></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">net assets applicable to</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">common stock(1)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right><FONT size=1 face="serif">2.12</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%*</FONT></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=right><FONT size=1 face="serif">1.86</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
        <TD>&nbsp;</TD>
        <TD align=left></TD>
        <TD align=right><FONT size=1 face="serif">1.89</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
        <TD>&nbsp;</TD>
        <TD align=left></TD>
        <TD align=right><FONT size=1 face="serif">1.44</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right><FONT size=1 face="serif">1.57</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right><FONT size=1 face="serif">1.79</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
        <TD>&nbsp;</TD>
        <TD align=left></TD>
        <TD align=right><FONT size=1 face="serif">1.66</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right><FONT size=1 face="serif">1.46</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
        <TD>&nbsp;</TD>
        <TD align=left></TD>
        <TD align=right><FONT size=1 face="serif">1.45</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
        <TD>&nbsp;</TD>
        <TD align=left></TD>
        <TD align=right><FONT size=1 face="serif">1.53</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
        <TD>&nbsp;</TD>
        <TD align=left></TD>
        <TD align=right><FONT size=1 face="serif">1.62</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left">
      <div align="left"><FONT size=1 face="serif">Ratio of net investment</FONT>
      </div></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">income to average</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">net assets applicable to</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=1 face="serif">common stock(1)(2)</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right><FONT size=1 face="serif">4.87</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%*</FONT></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right><FONT size=1 face="serif">5.63</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
        <TD>&nbsp;</TD>
        <TD align=left></TD>
        <TD align=right><FONT size=1 face="serif">9.88</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
        <TD>&nbsp;</TD>
        <TD align=left></TD>
        <TD align=right><FONT size=1 face="serif">9.63</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right><FONT size=1 face="serif">8.63</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right><FONT size=1 face="serif">9.73</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
        <TD>&nbsp;</TD>
        <TD align=left></TD>
        <TD align=right><FONT size=1 face="serif">9.40</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right><FONT size=1 face="serif">8.85</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
        <TD>&nbsp;</TD>
        <TD align=left></TD>
        <TD align=right><FONT size=1 face="serif">9.87</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
        <TD>&nbsp;</TD>
        <TD align=left></TD>
        <TD align=right><FONT size=1 face="serif">7.79</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
        <TD>&nbsp;</TD>
        <TD align=left></TD>
        <TD align=right><FONT size=1 face="serif">8.13</FONT></TD>
        <TD align=left><FONT size=1 face="serif">%</FONT></TD>
</TR>
</TABLE>
<BR>
<P>&nbsp;</P>

<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">10</FONT></B>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<hr size="1" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  <TD nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  <TD nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Six Months</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Year</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Year</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Year</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Year</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Year</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Year</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Year</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Year</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Year</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Year</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Ended June</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Ended</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Ended</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Ended</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Ended</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Ended</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Ended</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Ended</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Ended</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Ended</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">Ended</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">30, 2005</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">December</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">December</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">December</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">December</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">December</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">December</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">December</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">December</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">December</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">December</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">(unaudited)</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">31, 2004</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">31, 2003</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">31, 2002</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">31, 2001</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">31, 2000</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">31, 1999</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">31, 1998</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">31, 1997</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">31, 1996</FONT></B>
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=right nowrap>
<B><FONT size=1 face="sans-serif">31, 1995</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Total investment return on</FONT></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif"> &nbsp; &nbsp;&nbsp;market value</FONT></TD>
        <TD align=right>
<FONT size=1 face="serif">0.52</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">17.35</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">19.82</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">(3.04</FONT>
        </TD>
        <TD align=left>
             <FONT size=1 face="serif">%)</FONT><font size="1">&nbsp;
             </font></TD>
        <TD align=right>
<FONT size=1 face="serif">13.67</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">37.37</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">(19.85</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)%</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">19.95</FONT>
        </TD>
        <TD>
<FONT size=1 face="serif">%</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">27.69</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">4.68</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">24.77</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=right><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=right><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=right><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=right><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=right><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=right><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=right><font size="1">&nbsp;</font></TD>
  <TD align=right><font size="1">&nbsp;</font></TD>
  <TD align=right><font size="1">&nbsp;</font></TD>
  <TD><font size="1">&nbsp;</font></TD>
  <TD align=right><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=right><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=right><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
             <FONT size=1 face="serif">Portfolio turnover rate (2)</FONT><font size="1">&nbsp;
             </font></TD>
        <TD align=right>
<FONT size=1 face="serif">16.69</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">43.71</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">242.69</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">197.27</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">213.48</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">229.70</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">223.78</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">251.19</FONT>
        </TD>
        <TD><FONT size=1 face="serif">%</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">213.57</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">226.21</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">188.28</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
  <TD align=left><font size="1">&nbsp;</font></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Net assets applicable to</FONT></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD nowrap>
<FONT size=1 face="serif">&nbsp;&nbsp;&nbsp; common stock, end of period</FONT></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 <FONT size=1 face="serif">&nbsp; &nbsp;&nbsp;(000s omitted)</FONT></TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;2,024,916</FONT>
        </TD>
        <TD align=left><font size="1">&nbsp;</font>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;1,935,437</FONT>
        </TD>
        <TD align=left><font size="1">&nbsp;</font>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;1,738,286</FONT>
        </TD>
        <TD align=left><font size="1">&nbsp;</font>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;1,592,970</FONT>
        </TD>
        <TD align=left><font size="1">&nbsp;</font>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;1,959,697</FONT>
        </TD>
        <TD align=left><font size="1">&nbsp;</font>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;2,216,014</FONT>
        </TD>
        <TD align=left><font size="1">&nbsp;</font>

        </TD>
        <TD align=right>
             <FONT size=1 face="serif">&#36;1,828,128</FONT><font size="1">&nbsp;
          </font></TD>
        <TD><font size="1">&nbsp;</font>
        </TD>
        <TD align=right>
             <FONT size=1 face="serif">&#36;2,131,692</FONT><font size="1">&nbsp;
          </font></TD>
        <TD><font size="1">&nbsp;</font>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;2,010,035</FONT>
        </TD>
        <TD align=left><font size="1">&nbsp;</font>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;1,686,443</FONT>
        </TD>
        <TD align=left><font size="1">&nbsp;</font>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;1,739,331</FONT>
        </TD>
        <TD align=left><font size="1">&nbsp;</font>

        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1">
<I><FONT size=1 face="serif">*Annualized</FONT></I>
<table border=0 cellspacing=0 cellpadding=0>
  <tr>
    <td nowrap valign=top>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td nowrap valign=top> <i><font size=1 face="serif">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></i></td>
    <td> <i><font size=1 face="serif">Upon the adoption of FAS 150 in 2003, dividends
          on preferred stock are included in interest expense and are part of
          net investment income. Absent this change in accounting, per share
          net investment income and dividends on preferred stock would have been &#36;0.25
          and &#36;0.03, respectively for the six months ended June 30, 2005, &#36;0.58
          and &#36;0.03, respectively in 2004 and &#36;0.78 and &#36;0.03, respectively
          in 2003.</font></i></td>
  </tr>
  <tr>
    <td colspan=2>&nbsp;</td>
  </tr>
  <tr>
    <td nowrap valign=top> <i><font size=1 face="serif">(2)</font></i></td>
    <td> <i><font size=1 face="serif">Beginning in 2004, the Fund reduced its
          use of short-term trading strategies designed to capture dividend income
          and made increased use of realized gains to supplement its investment
          income. Until the Fund utilizes all of its tax loss carryforwards,
          distributions to shareholders are expected to be treated as ordinary
          income for federal income tax purposes. In addition, the reduced use
          of short-term trading strategies reduced the Fund&#146;s portfolio
          turnover rate during the six months ended June 30, 2005 and the year
          ended December 31, 2004.</font></i></td>
  </tr>
  <tr>
    <td colspan=2>&nbsp;</td>
  </tr>
</table>
<P>&nbsp;</P>
<P>&nbsp;</P>
<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">11</FONT></B>
</div>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>&nbsp;</P>
<hr size="1" noshade>

<P><B><FONT size=2 face="sans-serif">INFORMATION REGARDING SENIOR SECURITIES</FONT></B></P>
<P>
<FONT size=2 face="serif">The following table provides information about the Fund&#146;s CP Notes and RPS as of the dates indicated. Except as noted in the table, for the years ended December 31, 2002, 2003 and 2004, the information was audited by
Ernst &amp; Young LLP. For prior years, except as noted in the table, the financial information set forth below was audited by other independent accountants, whose reports expressed an unqualified opinion on such financial information.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="5" align=left>
      <center>
        <B><FONT size=1 face="sans-serif">CP Notes</FONT></B>
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="5" align=left>
      <center>
        <B><FONT size=1 face="sans-serif">RPS</FONT></B>&nbsp;
    </center></TD>
  </TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Average Market</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Asset Coverage</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><B><FONT size=1 face="sans-serif">Liquidation</FONT></B>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Value</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">per &#36;1,000 of</FONT></B></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><B><FONT size=1 face="sans-serif">Preference</FONT></B>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Aggregate</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">per &#36; 100,000 of </FONT></B></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Principal</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Aggregate</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><B><FONT size=1 face="sans-serif">and Average</FONT></B>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Asset Coverage</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Principal</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Amount (2)</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><B><FONT size=1 face="sans-serif">Market Value</FONT></B>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">per Share (4)</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Outstanding</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Amount (1)</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">(unaudited)</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Outstanding</FONT></B>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><B><FONT size=1 face="sans-serif">per Share (3)</FONT></B>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">(unaudited)</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><hr size="1" noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">June 30, 2005</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

          <div align="right"></div></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">(unaudited)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;197,972,806</FONT>&nbsp;
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;100,000</FONT>
        </TD>
        <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;13,754</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;500,000,000</FONT>&nbsp;
        </TD>
        <TD align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">&#36;100,000</FONT>&nbsp;
          </div></TD>
        <TD align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;504,983</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">December 31, 2004</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">198,361,375</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">13,278</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">500,000,000</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">100,000</FONT>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">487,087</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">December 31, 2003</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">198,974,940</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">12,249</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">500,000,000</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">100,000</FONT>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">447,657</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">December 31, 2002</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">197,955,439</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">11,573</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">500,000,000</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">100,000</FONT>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">418,594</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">December 31, 2001</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">196,827,285</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">13,497</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">500,000,000</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">100,000</FONT>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">491,939</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">December 31, 2000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">193,187,392</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">15,059</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">500,000,000</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">100,000</FONT>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">543,203</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">December 31, 1999</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">193,842,781</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">13,010</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">500,000,000</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">100,000</FONT>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">465,626</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">December 31, 1998</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">171,002,097</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">16,390</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">500,000,000</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">100,000</FONT>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">526,338</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">December 31, 1997</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">98,441,884</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">26,498</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">500,000,000</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">100,000</FONT>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">502,007</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">December 31, 1996</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">98,360,808</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">23,229</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">500,000,000</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">100,000</FONT>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">437,289</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">December 31, 1995</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">113,310,612</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">20,763</FONT>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">500,000,000</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=center>
      <div align="right"><FONT size=1 face="serif">100,000</FONT>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">447,866</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1">
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
        <TD nowrap valign=top>
<I><FONT size=1 face="serif">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></I></TD>
        <TD>
<I><FONT size=1 face="serif">Average market value is calculated as the face value of the CP Notes.</FONT></I></TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<I><FONT size=1 face="serif">(2)</FONT></I></TD>
        <TD>
<I><FONT size=1 face="serif">Asset coverage is calculated by subtracting the
Fund&#146;s total liabilities (not including the CP Notes or the RPS) from the
Fund&#146;s total assets and dividing that amount by the total number of units
of CP Notes,  where one unit equals &#36;1,000 of CP Notes.</FONT></I></TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<I><FONT size=1 face="serif">(3)</FONT></I></TD>
        <TD>
<I><FONT size=1 face="serif">Liquidation preference per share of RPS refers to the amount that holders of RPS are entitled to receive per share before any distributions are made to the holders of the common stock, in the event the Fund is ever
liquidated. The average mar- ket value per share is the price at which shares of RPS are remarketed, which is equal to the liquidation preference per share.</FONT></I></TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<I><FONT size=1 face="serif">(4)</FONT></I></TD>
        <TD>
<I><FONT size=1 face="serif">Asset coverage is calculated by subtracting the Fund&#146;s total liabilities (not including the RPS) from the Fund&#146;s total assets and dividing that amount by the number of RPS outstanding.</FONT></I></TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P>&nbsp;</P>
<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">12</FONT></B>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<hr size="1" noshade>
<FONT size=5 face="sans-serif">The Fund</FONT><BR>
<P>
<FONT size=2 face="serif">The Fund is a closed-end, diversified management investment company that is registered under the Investment Company Act. The Fund was incorporated in the State of Maryland on November 26, 1986 and first offered its common
stock to the public on January 21, 1987. The Fund&#146;s common stock is traded on the New York Stock Exchange under the symbol &#147;DNP.&#148; In 1988, the Fund issued 5,000 shares of RPS in five series of 1,000 shares each. The Fund&#146;s
principal office is located at 55 East Monroe Street, Suite 3600, Chicago, Illinois 60603, and its telephone number is (312) 368-5510.</FONT></P>
<P>
<FONT size=2 face="serif">The Fund&#146;s board of directors has authorized the Fund to issue up to &#36;200,000,000 of CP Notes in minimum denominations of &#36;100,000 with maturities up to 270 days. The CP Notes are generally sold on a discount
basis, but may be sold on an interest-bearing basis. During 2004, interest rates on the CP Notes ranged from 1.21% to 2.71% . At June 30, 2005, &#36;200 million of CP Notes were outstanding with an amortized cost of &#36;197,972,806. The Fund
intends to utilize a portion of the net proceeds of this offering to pay in full all amounts outstanding under the CP Notes, after which the Fund intends to discontinue its CP Note program and terminate the related backup credit facility. </FONT></P>
<P><FONT size=2 face="serif">The
  following table provides information about the Fund&#146;s outstanding stock as of September 30, 2005:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=42% align=left>&nbsp;

        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD width=16% align=right>
<B><FONT size=1 face="sans-serif">Number of Shares</FONT></B>&nbsp;
        </TD>
        <TD width=18% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Number of Shares</FONT></B>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Held by the Fund</FONT></B>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Number of Shares</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=1 face="sans-serif">Title of Class</FONT></B>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Authorized</FONT></B>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">or for its Account</FONT></B>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Outstanding</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Common Stock</FONT>&nbsp;
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">250,000,000</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">223,181,435</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Preferred Stock</FONT>&nbsp;
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">100,000,000</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RPS, Series A</FONT>&nbsp;
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RPS, Series B</FONT>&nbsp;
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RPS, Series C</FONT>&nbsp;
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RPS, Series D</FONT>&nbsp;
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RPS, Series E</FONT>&nbsp;
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<FONT size=5 face="sans-serif">Use of proceeds</FONT><BR>
<P>
<FONT size=2 face="serif">The net proceeds of this offering will be approximately &#36; [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ] after payment of the sales loads and estimated offering expenses. The Fund will utilize a portion of the net proceeds of this offering to pay in full all
amounts outstanding under the CP Notes, and the remaining net proceeds will be invested in accordance with the Fund&#146;s investment objectives and policies as stated below. We currently anticipate that the Fund will be able to invest substantially
all of the net proceeds of this offering in securities that meet the Fund&#146;s investment objectives and policies within three months after the completion of this offering. Pending such investment, it is anticipated that the proceeds will be
invested in short-term securities.</FONT></P>
<P>&nbsp;</P>
<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">13</FONT></B>
</div>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<hr size="1" noshade>
<br>
<FONT size=5 face="sans-serif">Capitalization (unaudited)</FONT><BR>
<P>
<FONT size=2 face="serif">The following table sets forth the capitalization of the Fund as of June 30, 2005, and as adjusted to give effect to the issuance of the APS offered hereby (including estimated offering expenses and
sales loads of &#36;[ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]):</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="60%" align=left>&nbsp;

        </TD>
        <TD width="14%">&nbsp;
        </TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
        <TD width="8%" align=right>
<B><FONT size=1 face="sans-serif">Actual</FONT></B>
        </TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
        <TD width="5%">&nbsp;
        </TD>
        <TD width="1%" align=left>

        </TD>
        <TD width="9%" align=right>
<B><FONT size=1 face="sans-serif">As adjusted</FONT></B>
        </TD>
        <TD width="1%" align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Preferred stock, &#36;0.001 par value, 100,000,000 shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">authorized, 5,000 shares issued and outstanding</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">APS offered hereby, &#36;25,000 stated value per share,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">at liquidation value, 12,000 shares issued and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">outstanding, as adjusted</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">300,000,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade>      </TD>
        <TD>
      <hr noshade>
        </TD>
        <TD>&nbsp;

        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade>
        </TD>
        <TD>
      <hr noshade>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">RPS, &#36;100,000 stated value per share,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">at liquidation value, 5,000 shares issued and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">outstanding</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">500,000,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">500,000,000</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade>
        </TD>
        <TD>
      <hr noshade>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade>
        </TD>
        <TD>
      <hr noshade>
        </TD>
        <TD>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=2 face="serif">Shareholders&#146; equity:</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Common stock, &#36;0.001 par value, 250,000,000 shares</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;authorized, 222,577,846 shares issued and outstanding(1)</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">222,578</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">222,578</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Paid-in surplus</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,848,934,081</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">1,848,934,081</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Accumulated net realized loss on investments</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(194,291,400</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(194,291,400</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Distributions in excess of book net investment income</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(31,652,817</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">(31,652,817</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net unrealized appreciation (depreciation) on</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">investments and foreign currency translation</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right> <FONT size=2 face="serif">401,703,758</FONT> </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">401,703,758</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Net assets applicable to common stock</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right> <FONT size=2 face="serif">2,024,916,200</FONT> </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=2 face="serif">2,024,916,200</FONT>
        </TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade>
        </TD>
        <TD>
      <hr noshade>
        </TD>
        <TD>&nbsp;</TD>
        <TD>
        </TD>
        <TD>
      <hr noshade>
        </TD>
        <TD>
      <hr noshade>
        </TD>
        <TD>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1">
<I><FONT size=1 face="serif">(1) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None of these
outstanding shares are held by or for the account of the Fund.</FONT></I>
<p><FONT size=5 face="sans-serif">Portfolio
composition</FONT></p>
<P>
<FONT size=2 face="serif">As of September 30, 2005, approximately 78% of the market value of the Fund&#146;s portfolio, exclusive of short-term instruments, was invested in equity securities and approximately 22% was invested in other securities.
The following table sets forth certain information with respect to the composition as of September 30, 2005 of the fixed income portion of the Fund&#146;s investment portfolio, exclusive of short-term instruments, based on the highest rating
assigned to each investment.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=12% align=left>&nbsp;

        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=12% align=center>
      <div align="right"><B><FONT size=1 face="sans-serif">Number of</FONT></B>&nbsp;
          </div></TD>
        <TD width=15%>&nbsp;
        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=6% align=left>&nbsp;

        </TD>
        <TD width=15%>&nbsp;
        </TD>
        <TD width=3% align=left>

        </TD>
        <TD width=5% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=1 face="sans-serif">S&amp;P(1)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<B><FONT size=1 face="sans-serif">Moody&#146;s(1)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><B><FONT size=1 face="sans-serif">Issues</FONT></B>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Value</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=right>      <div align="left"><B><FONT size=1 face="sans-serif">Percentage</FONT></B>
    </div></TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR align="right" size=1 noshade>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">0</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>&nbsp;
          </div></TD>
        <TD align=right>
<FONT size=2 face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.0</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">Aa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">1</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">22,025,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.7</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">25</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">314,214,717</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">53.0</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">Baa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">17</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">234,446,342</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">39.5</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">Ba</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">1</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">22,693,535</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.8</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Unrated</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp;<FONT size=2 face="serif">Unrated</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center> <div align="right"><FONT size=2 face="serif">0</FONT>&nbsp; </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right> <FONT size=2 face="serif">0</FONT>&nbsp; </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">0.0</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="right" width="30" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Total:</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="right"><FONT size=2 face="serif">44</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">593,379,594</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">100.0</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
      <HR align="right" width="30" size=2 noshade>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade>      </TD>
        <TD>
      <hr noshade>
        </TD>
        <TD>
        </TD>
        <TD>
      <hr noshade>
        </TD>
        <TD>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<hr align="left" noshade width="100" size="1">
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
        <TD nowrap valign=top>
<I><FONT size=1 face="serif">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></I></TD>
        <TD>
<I><FONT size=1 face="serif">S&amp;P rating categories may be modified further by a plus (+) or minus (-) in the case of AA, A, BBB and BB ratings. Moody&#146;s rating categories may be modified further by a 1, 2 or 3 in the case of Aa, A, Baa and
Ba ratings.</FONT></I></TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">14</FONT></B>
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<P align="left" style="page-break-before:always"></P><PAGE>


<hr size="1" noshade>
<FONT size=5 face="sans-serif"><br>
The Fund&#146;s investments</FONT><BR>
<P>
<FONT size=2 face="serif">The following section describes the Fund&#146;s investment objectives and policies, fundamental investment restrictions, portfolio contents and investment techniques. More complete information describing the Fund&#146;s
investments can be found in the Statement of Additional Information, which is incorporated into this Prospectus by reference.</FONT></P>
<B><FONT size=2 face="sans-serif">INVESTMENT OBJECTIVES AND POLICIES</FONT></B><BR>
<P>
<FONT size=2 face="serif">The Fund&#146;s primary investment objectives are current income and long-term growth of income. Capital appreciation is a secondary objective. There can be no assurance that the Fund will achieve its investment
objectives.</FONT></P>
<P>
<FONT size=2 face="serif">The Fund seeks to achieve its investment objectives by investing primarily in a diversified portfolio of equity and fixed income securities of companies in the public utilities industry. Under normal conditions, more than
65% of the Fund&#146;s total assets will be invested in securities of public utility companies engaged in the production, transmission or distribution of electric energy, gas or telephone services. The Fund&#146;s investment objectives stated in the
preceding paragraph and its policy of concentrating its investments in the public utilities industry are fundamental policies and may not be changed without the approval of the holders of a &#147;majority&#148; (as defined in the Investment Company
Act) of the outstanding shares of the Fund&#146;s common stock and preferred stock voting together as a single class, which means the lesser of (i) 67% of the shares represented at a meeting at which more than 50% of the outstanding shares are
represented or (ii) more than 50% of the outstanding shares. </FONT></P>
<P><FONT size=2 face="serif">The Fund&#146;s investment policies have been developed to take advantage of the characteristics and historical performances of securities of companies in the public utilities industry.
  Many of these companies have established a reputation for paying regular dividends and for increasing their common stock dividends over time. Investment decisions are made by the Adviser&#146;s experienced team of portfolio managers and research
  analysts primarily on the basis of fundamental research. In evaluating particular issuers, the Adviser considers a number of factors, including historical growth rates and rates of return on capital, financial condition and resources, management
  skills and strategies and factors specific to the public utilities industry, such as regulatory environment, energy sources and environmental compliance measures. With respect to investments in equity securities, the Adviser seeks stocks that are
  attractively valued and produce an attractive level of dividend income. The Adviser also considers the prospective growth in earnings and dividends in relation to price/earnings ratios, yield and risk. The Adviser believes that above-average
  dividend returns and below-average price/earnings ratios are factors that not only provide current income but also generally tend to moderate risk and to afford opportunity for appreciation of securities owned by the Fund. In keeping with its value
  approach, the Adviser selects securities selling at what it believes are discounts to their underlying values and then may hold such securities until the market values reflect their intrinsic values or longer.</FONT></P>
<P>
<FONT size=2 face="serif">The investments of the Fund in securities of public utility companies are diversified not only in terms of issuers but also in terms of types of securities since the Fund may invest in fixed income securities, such as bonds
and preferred stocks, as well as common stocks. The Fund may vary the percentage of assets invested in any one type of security based upon the Adviser&#146;s evaluation as to the appropriate portfolio structure for achieving the Fund&#146;s
investment objectives under prevailing market, economic and financial conditions. Certain securities (such as fixed income securities) are selected on the basis of their current yield, while other securities are purchased for their income growth
potential.</FONT></P>
<P>
<FONT size=2 face="serif">See &#147;Investment Policies, Techniques and Restrictions&#151;Fundamental Investment Restrictions&#148; in the Statement of Additional Information for a complete list of the fundamental investment restrictions of the
Fund.</FONT></P>
<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">15</FONT></B>
</div>
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<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT size=2 face="sans-serif">The Fund&#146;s investments</FONT></B>
<hr size="1" noshade>
<BR>
<B><FONT size=2 face="sans-serif">PORTFOLIO CONTENTS</FONT></B><BR>
<P>
<FONT size=2 face="serif">The Fund&#146;s portfolio is composed principally of the following types of equity and fixed-income securities.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Common stocks<br>
</FONT></B><FONT size=2 face="serif">Common
stock represents an equity ownership interest in an issuer. The Fund has substantial
exposure to common stocks. Although common stocks have historically generated
higher average returns than fixed-income securities over the long-term, common
stocks also have experienced significantly more volatility in returns. An adverse
event, such as an unfavorable earnings report, may depress the value of a particular
common stock held by the Fund. Also, the price of common stocks are sensitive
to general movements in the stock market and a drop in the stock market may depress
the price of common stocks to which the Fund has exposure. Common stock prices
fluctuate for many reasons, including changes in investors&#146; perceptions
of the financial condition of an issuer or the general condition of the relevant
stock market, or when political or economic events affecting the issuers occur.
In addition, common stock prices may be sensitive to rising interest rates, as
the costs of capital rise and borrowing costs increase.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Preferred stocks<br>
</FONT></B><FONT size=2 face="serif">Preferred stock, like common stock, represents an equity ownership in an issuer. Generally, preferred stock has a priority of claim over common stock in dividend payments and upon liquidation of the issuer. Unlike common
stock, preferred stock does not usually have voting rights. Preferred stock in some instances is convertible into common stock.</FONT></P>
<P>
<FONT size=2 face="serif">Although they are equity securities, preferred stocks have certain characteristics of both debt and common stock. They are debt-like in that their promised income is usually contractually fixed. They are common stock-like
in that they do not have rights to precipitate bankruptcy proceedings or collection activities in the event of missed payments. Furthermore, they have many of the key characteristics of equity due to their subordinated position in an issuer&#146;s
capital structure and because their quality and value are heavily dependent on the profitability of the issuer rather than on any legal claims to specific assets or cash flows.</FONT></P>
<P>
<FONT size=2 face="serif">In order to be payable, dividends on preferred stock must be declared by the issuer&#146;s board of directors or trustees. In addition, distributions on preferred stock may be subject to deferral and thus may not be
automatically payable. Income payments on some preferred stocks are cumulative, causing dividends and distributions to accrue even if not declared by the board of directors or trustees or otherwise made payable. Other preferred stocks are
non-cumulative, meaning that skipped dividends and distributions do not continue to accrue. There is no assurance that dividends on preferred stocks in which the Fund invests will be declared or otherwise made payable. The Fund may invest in
non-cumulative preferred stock, although the Adviser would consider, among other factors, their non-cumulative nature in making any decision to purchase or sell such securities.</FONT></P>
<P>
<FONT size=2 face="serif">Shares of preferred stock have a liquidation value that generally equals the original purchase price at the date of issuance. The market values of preferred stock may be affected by favorable and unfavorable changes
impacting the issuers&#146; industries or sectors. They may also be affected by actual and anticipated changes or ambiguities in the tax status of the security and by actual and anticipated changes or ambiguities in tax laws, such as changes in
corporate and individual income tax rates and in the dividends received deduction or the characterization of dividends as qualified dividends as described below under &#147;U.S. federal income tax matters&#151;Taxation of Shareholders.&#148; </FONT></P>
<P><FONT size=2 face="serif">Because
  the claim on an issuer&#146;s earnings represented by preferred stock may become onerous when interest rates fall below the rate payable on the stock or for other reasons, the issuer may redeem preferred stock, generally after an initial period of
  call protection in which the stock is not redeemable. Thus, in declining interest rate environments in particular, the Fund&#146;s holdings of higher dividend-</FONT></P>
<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">16</FONT></B>
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<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT size=2 face="sans-serif">The Fund&#146;s investments</FONT></B>
<hr size="1" noshade>
<BR>
<P>
<FONT size=2 face="serif">paying preferred stocks may be reduced and the Fund may be unable to acquire securities paying comparable rates with the redemption proceeds.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Corporate bonds and other debt securities<br>
</FONT></B><FONT size=2 face="serif">The
Fund also invests in corporate bonds, debentures and other debt securities of
companies in the public utilities industry or other industries and sectors. Debt
securities in which the Fund invests may pay fixed or variable rates of interest.
Bonds and other debt securities generally are issued by corporations and other
issuers to borrow money from investors. The issuer pays the investor a fixed
or variable rate of interest and normally must repay the amount borrowed on or
before maturity. Certain debt securities are &#147;perpetual&#148; in that they
have no maturity date.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Convertible securities and bonds with warrants attached<br>
</FONT></B><FONT size=2 face="serif">The Fund may invest in preferred stocks and fixed-income obligations that are convertible into common stocks of domestic and foreign issuers, and bonds issued as a unit with warrants to purchase equity or fixed-income
securities. Convertible securities in which the Fund may invest, comprised of both convertible debt and convertible preferred stock, may be converted at either a stated price or at a stated rate into underlying shares of common stock. Because of
this feature, convertible securities generally enable an investor to benefit from increases in the market price of the underlying common stock. Convertible securities often provide higher yields than the underlying equity securities, but generally
offer lower yields than non-convertible securities of similar quality. The value of convertible securities fluctuates in relation to changes in interest rates like bonds, and, in addition, fluctuates in relation to the market price of the underlying
common stock.</FONT></P>
<P>
<FONT size=2 face="serif">Bonds with warrants attached to purchase equity securities have many characteristics of convertible bonds and their prices may, to some degree, reflect the performance of the underlying stock. Bonds may also be issued with
warrants attached to purchase additional fixed-income securities at the same coupon rate. A decline in interest rates would permit the Fund to buy additional bonds at a favorable rate or to sell the warrants at a profit. If interest rates rise, the
warrants would generally expire with no value.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Real estate investment trusts<br>
</FONT></B><FONT size=2 face="serif">The
Fund may invest in companies that are treated as real estate investment trusts
for federal income tax purposes (&#147;REITs&#148;). REITs are financial vehicles that pool investors&#146; capital
to acquire, develop and/or finance real estate and provide services to their
tenants. REITs may concentrate their investments in specific geographic areas
or in specific property types, e.g., regional malls, shopping centers, office
buildings, apartment buildings and industrial warehouses. The market value of
REIT shares and the ability of REITs to distribute income may be adversely affected
by numerous factors, including rising interest rates, changes in the national,
state and local economic climate and real estate conditions, perceptions of prospective
tenants of the safety, convenience and attractiveness of the properties, the
ability of the owners to provide adequate management, maintenance and insurance,
the cost of complying with the Americans with Disabilities Act, increasing competition
and compliance with environmental laws, changes in real estate taxes and other
operating expenses, adverse changes in governmental rules and fiscal policies,
adverse changes in zoning laws, and other factors beyond the control of the issuers.
In addition, distributions received by the Fund from REITs may consist of dividends,
capital gains and/or return of capital. REIT income distributions received by
the Fund generally will not be treated as qualified dividends.</FONT></P>
<P>&nbsp;</P>

<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">17</FONT></B>
</div>
<HR noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>
<B><FONT size=2 face="sans-serif">The Fund&#146;s investments</FONT></B>
<hr size="1" noshade>
<BR>
<B><FONT size=2 face="sans-serif">INVESTMENT TECHNIQUES</FONT></B><BR>
<P>
<FONT size=2 face="serif">The Fund may from time to time employ a variety of investment techniques, including those described below, to hedge against fluctuations in the price of portfolio securities, to enhance total return or to provide a
substitute for the purchase or sale of securities. Some of these techniques, such as purchases of put and call options, options on stock indices and stock index futures and entry into certain credit derivative transactions, are hedges against or
substitutes for investments in equity investments. Other techniques, such as the purchase of interest rate futures and entry into transactions involving interest rate swaps, options on interest rate swaps and certain credit derivatives, are hedges
against or substitutes for investments in debt securities. The Fund&#146;s ability to utilize any of the techniques described below may be limited by restrictions imposed on its operations in connection with obtaining and maintaining its
qualification as a regulated investment company under the Code.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Lending of portfolio securities<br>
</FONT></B><FONT size=2 face="serif">In order to generate additional income, the Fund from time to time lends securities from its portfolio, with an aggregate value not in excess of 33</FONT><FONT size=1 face="serif"><SUP> 1 </SUP>/<SUB> 3 </SUB></FONT><FONT
size=2 face="serif">% of its total assets, to brokers, dealers and financial
institutions such as banks and trust companies. At June 30, 2005, the Fund had
loaned portfolio securities with a market value of &#36;509,720,050 to a broker-dealer and
received &#36;526,878,180 of cash collateral. In connection with all loans of securities, the Fund receives collateral in cash, U.S. government securities, irrevocable letters of credit or various other specified types of investment-grade
securities. The collateral is required to be maintained in an amount equal to at least 100% of the current market value of the loaned securities. The Fund receives a portion of the income earned on the securities held as collateral and continues to
earn income on the loaned securities. Loans of the Fund&#146;s securities are
terminable at any time. The Fund has the right to regain record ownership of
loaned securities to exercise beneficial rights such as voting rights and rights
to interest or other distributions. The Fund may pay reasonable fees to persons
unaffiliated with the Fund for services in arranging such loans. With respect
to lending of portfolio securities, there is the risk of failure by the borrower
to return the securities involved in such transactions, in which event the Fund
may incur a loss.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Dividend capture trading<br>
</FONT></B><FONT size=2 face="serif">The Fund may seek to enhance the level of dividend income it receives by engaging in dividend capture trading. In a dividend capture trade, the Fund sells a stock that it held past its ex-dividend date to purchase another
stock paying a dividend before the next dividend of the stock being sold. By entering into such trades, the Fund could augment the amount of dividend income it receives over the course of a year. The use of dividend capture strategies exposes the
Fund to increased trading costs and the potential for capital loss.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">When-issued and delayed delivery transactions<br>
</FONT></B><FONT size=2 face="serif">New
issues of preferred and debt securities may be offered on a when-issued or delayed
delivery basis, which means that delivery and payment for the securities normally
take place within 45 days after the date of the commitment to purchase. The payment
obligation and the dividends that will be received on the securities are fixed
at the time the buyer enters into the commitment. The Fund will make commitments
to purchase securities on a when-issued or delayed delivery basis only with the
intention of acquiring the securities, but may sell these securities before the
settlement date if the Adviser deems it advisable. No additional when-issued
or delayed delivery commitments will be made if more than 20% of the Fund&#146;s total assets would be so committed. Securities purchased on a when-issued or delayed delivery basis may be subject to changes in value based upon the public&#146;s
perception of the creditworthiness of the issuer and changes, real or anticipated,
in the level of interest rates. Securities purchased or sold on a when-issued
or delayed delivery basis may expose the Fund to risk because they may experience
these fluctuations prior to their actual delivery. The Fund will not accrue income
with respect to a debt security it has purchased on a when-issued or delayed
delivery basis prior to its stated delivery date but will accrue income on a
delayed delivery security it has sold.</FONT></P>
<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">18</FONT></B>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT size=2 face="sans-serif">The Fund&#146;s investments</FONT></B>
<hr size="1" noshade>
<BR>
<FONT size=2 face="serif">Purchasing or selling securities on a when-issued or
delayed delivery basis can involve the additional risk that the yield available
in the market when the delivery takes place actually may be higher than that
obtained in the transaction itself. A segregated account of the Fund consisting
of liquid securities equal at all times to the amount of the Fund&#146;s when-issued and delayed delivery purchase commitments will be established and maintained with the
Fund&#146;s custodian. Placing securities rather than cash in the segregated account may have a leveraging effect on the Fund&#146;s
net asset value per share; that is, to the extent that the Fund remains substantially
fully invested in securities at the same time that it has committed to purchase
securities on a when-issued or delayed delivery basis, greater fluctuations in
its net asset value per share may occur than if it has set aside cash to satisfy
its purchase commitments.</FONT>
<P>
<B><FONT size=2 face="sans-serif">Temporary investments<br>
</FONT></B><FONT size=2 face="serif">During
unusual market circumstances, the Fund may invest temporarily in cash, money
market securities, money market mutual funds or cash equivalents, which may be
inconsistent with the Fund&#146;s investment objectives.
Cash equivalents are highly liquid, short-term securities such as commercial
paper, time deposits, certificates of deposit, short-term notes and short-term
U.S. government obligations. To the extent that the Fund engages in such defensive
investments, it may not achieve its investment objectives.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Portfolio turnover<br>
</FONT></B><FONT size=2 face="serif">The Fund may sell securities to realize capital losses that can be used to offset capital gains (but not dividends or other ordinary income) or in connection with dividend capture strategies. Use of these strategies will
increase portfolio turnover. The Fund cannot accurately predict its securities portfolio turnover rate, but anticipates that its annual portfolio turnover rate will not exceed 100% (excluding turnover of securities having a maturity of one year or
less) under normal market conditions, although it could be materially higher under certain conditions. A high turnover rate (100% or more) necessarily involves greater expenses to the Fund and may result in realization of net short-term capital
gains.</FONT></P>
<B><FONT size=2 face="sans-serif">USE OF LEVERAGE</FONT></B><BR>
<P>
<FONT size=2 face="serif">The Fund uses various forms of financial leverage, currently including: (1) five series of outstanding RPS with an aggregate liquidation preference of &#36;500 million and (2) the ability to issue up to &#36;200 million of
CP Notes. At June 30, 2005, &#36;200 million of CP Notes were outstanding with an amortized cost of &#36;197,972,806. In addition, the Fund has a &#36;100 million backup credit facility (under which it had no Borrowings as of June 30, 2005). The
Fund&#146;s fundamental investment restrictions limit the Fund&#146;s Borrowings to an aggregate amount not exceeding 15% of the value of the Fund&#146;s total assets at the time of any such Borrowing (exclusive of all obligations on amounts held as
collateral for securities loaned to other persons to the extent that such obligations are secured by assets of at least equivalent value). However, for so long as the Fund&#146;s preferred stock is rated by S&amp;P, the Fund will limit the aggregate
amount of its Borrowings to 10% of the value of its total assets and will not incur any Borrowings, unless advised by S&amp;P that such Borrowings would not adversely affect S&amp;P&#146;s then-current rating of the preferred stock.</FONT></P>
<P>
<FONT size=2 face="serif">The Fund&#146;s use of leverage is premised upon the expectation that the Fund&#146;s preferred stock dividends and borrowing cost on the CP Notes will be lower than the return the Fund achieves on its investments with the
proceeds of the issuance of preferred stock and CP Notes. Such difference in return may result from the Fund&#146;s higher credit rating or the short-term nature of its borrowing compared to the long-term nature of its investments. Since the total
assets of the Fund (including the assets obtained from leverage) will be invested in the potentially higher yielding portfolio investments or portfolio investments with the potential for capital appreciation, the holders of common stock should be
the beneficiaries of the incremental return. Should the differential between the underlying assets</FONT></P>
<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">19</FONT></B>
</div>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT size=2 face="sans-serif">The Fund&#146;s investments</FONT></B>
<hr size="1" noshade>
<BR>
<FONT size=2 face="serif">and cost of leverage narrow, the incremental return to common shareholders will be reduced. Furthermore,
if long-term rates rise or the Fund otherwise incurs losses on its investments,
the Fund&#146;s net asset value attributable to its common stock will reflect
the decline in the value of portfolio holdings resulting therefrom.</FONT>
<P>
<FONT size=2 face="serif">To the extent the income or capital appreciation derived from securities purchased with funds received from leverage exceeds the cost of leverage, the Fund&#146;s return to common shareholders will be greater than if
leverage had not been used. Conversely, if the income or capital appreciation from the securities purchased with such funds is not sufficient to cover the cost of leverage or if the Fund incurs capital losses, the return of the Fund to common
shareholders will be less than if leverage had not been used. Capital raised through the issuance of preferred stock and CP Notes is subject to dividend payments and interest costs that may or may not exceed the income and appreciation on the assets
purchased. In addition, the Fund is also required to pay a fee to maintain its credit facility, which increases the cost of borrowing over the stated interest rate of the CP Notes.</FONT></P>
<P>
<FONT size=2 face="serif">Under the Investment Company Act, the Fund is not permitted to issue preferred stock unless immediately after such issuance the net asset value of the Fund&#146;s portfolio is at least 200% of the liquidation value of the
outstanding shares of preferred stock (i.e., such liquidation value may not exceed 50% of the value of the Fund&#146;s total assets). In addition, the Fund is not permitted to declare any cash dividend or other distribution on its common stock
unless, at the time of such declaration, the net asset value of the Fund&#146;s portfolio (determined after deducting the amount of such dividend or distribution) is at least 200% of such liquidation value. So long as the Fund has preferred stock
outstanding, the Fund intends, to the extent possible, to purchase or redeem shares of preferred stock from time to time to maintain coverage of any outstanding shares of preferred stock of at least 200%.</FONT></P>
<P>
<FONT size=2 face="serif">Under the Investment Company Act, the Fund is not permitted to incur indebtedness unless immediately after such borrowing the Fund has an asset coverage of at least 300% of the aggregate outstanding principal balance of
indebtedness (i.e., such indebtedness may not exceed 33 1/3% of the value of the Fund&#146;s total assets). Additionally, under the Investment Company Act, the Fund may not declare any dividend or other distribution upon any class of its stock, or
purchase any such stock, unless the aggregate indebtedness of the Fund has, at the time of the declaration of any such dividend or distribution or at the time of any such purchase, an asset coverage of at least 300% after deducting the amount of
such dividend, distribution, or purchase price, as the case may be.</FONT></P>
<P>
<FONT size=2 face="serif">The CP Notes and the credit facility contain customary restrictive financial covenants. Among other things, the Fund is required to maintain eligible portfolio property having a discounted value of at least 4.05 times the
Fund&#146;s liabilities. The Fund is also required to maintain total assets equal to at least four times its liabilities, and net assets (defined as total assets less liabilities other than senior securities representing indebtedness) equal to at
least four times the value of its senior securities representing indebtedness. In addition, the Fund may not declare, pay or set apart for payment any dividend or other distribution in respect of its common or preferred stock, or call for redemption
or redeem any of its common or preferred stock, when loans are outstanding under the credit facility, or when an event of default exists or would result under the credit facility. The Adviser does not anticipate that these covenants or restrictions
will adversely affect its ability to manage the Fund&#146;s portfolio in accordance with the Fund&#146;s investment objectives and strategies. However, due to these covenants or restrictions, the Fund could be forced to liquidate investments at
times and at prices that are not favorable to the Fund, or to forgo investments that the Adviser otherwise views as favorable.</FONT></P>
<B><FONT size=2 face="sans-serif">INTEREST RATE TRANSACTIONS</FONT></B><BR>
<P>
<FONT size=2 face="serif">In connection with the Fund&#146;s use of leverage through its preferred stock and CP Notes, the Fund may enter into interest rate swap or cap transactions. Interest rate swaps involve the Fund&#146;s agree-</FONT></P>
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<B><FONT size=2 face="sans-serif">The Fund&#146;s investments</FONT></B>
<hr size="1" noshade>
<BR>
<FONT size=2 face="serif">ment with the swap counterparty to pay a fixed rate
payment in exchange for the counterparty paying the Fund a variable rate payment
that is intended to approximate the Fund&#146;s variable rate payment obligation on its
preferred stock or variable rate Borrowing. The payment obligation would be based on the notional amount of the swap. The Fund&#146;s
payment obligations under the swap are general unsecured obligations of the Fund
and are ranked senior to distributions under the common stock and preferred stock.</FONT>
<P>
<FONT size=2 face="serif">The Fund may use an interest rate cap, which would require it to pay a premium to the cap counter-party and would entitle it, to the extent that a specified variable rate index exceeds a predetermined fixed rate, to receive
from the counterparty payment of the difference based on the notional amount. The Fund would use interest rate swaps or caps only with the intent to reduce or eliminate the risk that an increase in short-term interest rates could have on common
share net earnings as a result of leverage. </FONT></P>
<P><FONT size=2 face="serif">The Fund will usually enter into swaps or caps on a net basis; that is, the two payment streams will be netted out in a cash settlement on the payment date or dates specified in the instrument, with the
  Fund receiving or paying, as the case may be, only the net amount of the two payments. The Fund intends to maintain in a segregated account with its custodian cash or liquid securities having a value at least equal to the Fund&#146;s net payment
  obligations under any swap transaction, marked to market daily. Under certain circumstances, the Fund may be required to pledge the assets in such segregated account to the counterparty. Any such pledge will result in the counterparty having a lien
  on the assets in the segregated account and the Fund&#146;s ability to make use of those assets will be limited. </FONT></P>
<P><FONT size=2 face="serif">The use of interest rate swaps and caps is a highly
    specialized activity that involves investment techniques and risks different
    from those associated with ordinary portfolio security transactions. Depending
    on the state of interest rates in general, the Fund&#146;s use of interest rate swaps or caps could enhance or harm the overall performance on the common stock. To the extent there is a decline in interest rates,
the value of the interest rate swap or cap could decline, and could result in a decline in the net asset value of the common stock. In addition, if short-term interest rates are lower than the Fund&#146;s fixed rate of payment on the interest rate
swap, the swap will reduce common stock net earnings. If, on the other hand, short-term interest rates are higher than the fixed rate of payment on the interest rate swap, the swap will enhance common stock net earnings. Buying interest rate caps
could enhance the performance of the common stock by providing a maximum leverage expense. Buying interest rate caps could also decrease the net earnings of the common stock in the event that the premium paid by the Fund to the counterparty exceeds
the additional amount the Fund would have been required to pay had it not entered into the cap agreement. The Fund has no current intention of selling an interest rate swap or cap. The Fund will not enter into interest rate swap or cap transactions
in an aggregate notional amount that exceeds the outstanding amount of the Fund&#146;s
leverage. </FONT></P>
<P><FONT size=2 face="serif">Interest rate swaps and caps do not involve the delivery of securities
  or other underlying assets or principal. Accordingly, the risk of loss with respect
  to interest rate swaps is limited to the net amount of interest payments that
  the Fund is contractually obligated to make. If the counterparty defaults, the
  Fund would not be able to use the anticipated net receipts under the swap or
  cap to offset the dividend payments on its preferred stock or interest payments
  on its Borrowings. Depending on whether the Fund would be entitled to receive
  net payments from the counterparty on the swap or cap, which in turn would depend
  on the general state of short-term interest rates at that point in time, such
  a default could negatively impact the performance of the common stock.</FONT></P>
<P>
<FONT size=2 face="serif">Although this will not guarantee that the counterparty does not default, the Fund will not enter into an interest rate swap or cap transaction with any counterparty that the Adviser believes does not have the financial
resources to honor its obligation under the interest rate swap or cap transaction. Further, the Adviser will continually monitor the financial stability of a counterparty to an interest rate swap or cap transaction in an effort to proactively
protect the Fund&#146;s investments.</FONT></P>
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<B><FONT size=2 face="sans-serif">The Fund&#146;s investments</FONT></B>
<hr size="1" noshade>
<BR>
<FONT size=2 face="serif">In addition, at the time the interest rate swap or cap transaction reaches its scheduled termination date, there is a risk that the Fund will not be able to obtain a replacement transaction or that the terms of the
replacement will not be as favorable as on the expiring transaction. If this occurs, it could have a negative impact on the performance of the common stock.</FONT>
<P>
<FONT size=2 face="serif">The Fund may choose or be required to redeem some or all of its preferred stock or prepay any of its Borrowings. This redemption would likely result in the Fund seeking to terminate early all or a portion of any swap or cap
transaction. Such early termination of a swap could result in a termination payment by or to the Fund. A termination payment by the Fund would result in a reduction in common share net earnings. An early termination of a cap could result in a
termination payment to the Fund.</FONT></P>
<FONT size=5 face="sans-serif">Risks</FONT><BR>
<P>
<FONT size=2 face="serif">Risk is inherent in all investing. Investing in any investment company security involves risk, including the risk that you may receive little or no return on your investment or that you may lose part or all of your
investment. Therefore, before investing you should consider carefully the following risks that you assume when you invest in the APS.</FONT></P>
<B><FONT size=2 face="sans-serif">RISKS OF INVESTING IN THE APS</FONT></B><BR>
<P>
<B><FONT size=2 face="sans-serif">Auction Risk<br>
</FONT></B><FONT size=2 face="serif">The
dividend rate for the APS normally is set through an auction process. In the
auction, holders of APS may indicate the dividend rate at which they would be
willing to hold or sell their APS or purchase additional APS. The auction also
provides liquidity for the sale of APS. An auction fails if there are more shares
of APS offered for sale than there are buyers for shares of APS. You may not
be able to sell your APS at an auction if the auction fails. Finally, if you
buy APS or elect to retain APS without specifying a dividend rate below which
you would not wish to buy or continue to hold such APS, you could receive a lower
rate of return on your APS than the market rate. See &#147;Description of APS&#148;
and &#147;The auction&#151;Auction Procedures.&#148;</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Secondary market risk<br>
</FONT></B><FONT size=2 face="serif">If
you try to sell shares of your APS between auctions you may not be able to sell
any or all of your shares of APS or you may not be able to sell them for &#36;25,000
per share plus accumulated dividends. If the Fund has designated a special dividend
period, changes in interest rates could affect the price you would receive if
you sold your shares in the secondary market. Broker-Dealers that maintain a
secondary trading market for the APS are not required to maintain this market,
and the Fund is not required to redeem shares either if an auction or an attempted
secondary market sale fails because of a lack of buyers. The APS is not listed
on a stock exchange or traded on the NASDAQ stock market. If you sell your APS
to a Broker-Dealer between auctions, you may receive less than the price you
paid for them, especially if market interest rates have risen since the last
auction.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Ratings and asset coverage risk<br>
</FONT></B><FONT size=2 face="serif">While
it is expected that Moody&#146;s will assign a rating of &#147;Aaa&#148; and S&amp;P will assign a rating of &#147;AAA&#148; to the APS, such ratings will not eliminate or necessarily mitigate the risks of investing
in the APS. Moody&#146;s or S&amp;P could withdraw or downgrade the ratings it assigns to the APS, which may make your APS less liquid at an auction or in the secondary market. If Moody&#146;s or S&amp;P withdraws its rating or downgrades the APS,
the Fund may alter its portfolio or redeem shares of APS in an effort to reinstate or improve, as the case may be, the rating, although there is no assurance that it will be able to do so to the extent necessary to restore the prior rating. The Fund
also may voluntarily redeem shares of APS under certain circumstances. See &#147;Description of APS&#151;Rating Agency Guidelines and Asset Coverage&#148; for
a description of the asset maintenance tests the Fund must meet.</FONT></P>
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<B><FONT size=2 face="sans-serif">22</FONT></B>
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<B><FONT size=2 face="sans-serif">Risks</FONT></B>
<hr size="1" noshade>

<P>
<B><FONT size=2 face="sans-serif">Subordination risk<br>
</FONT></B><FONT size=2 face="serif">As
permitted by its fundamental investment policies, the Fund uses various forms
of financial leverage. The issuance of the APS is only one component of the Fund&#146;s use of leverage, which also includes: (1) five series
of outstanding RPS with an aggregate liquidation preference of &#36;500 million and (2) the ability to issue up to &#36;200 million of CP Notes. At June 30, 2005, &#36;200 million of CP Notes were outstanding with an amortized cost of
&#36;197,972,806. In addition, the Fund has a &#36;100 million backup credit facility (under which it had no Borrowings as of June 30, 2005). While holders of APS will have equal liquidation and distribution rights to the holders of RPS, they will
be subordinated to the rights of both the holders of the CP Notes and the lenders under the Fund&#146;s credit facility. Therefore, dividends, distributions and other payments to holders of APS in liquidation or otherwise may be subject to prior
payments due to the holders of CP Notes and the lenders under the Fund&#146;s credit facility. In the event of a default on the Fund&#146;s
CP Notes or under the credit facility, the Fund would not be permitted to declare,
pay or set apart for payment any dividend or other distribution in respect of
the APS, or call for redemption or redeem any shares of APS.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Restrictions on dividends and other distributions<br>
</FONT></B><FONT size=2 face="serif">Restrictions
imposed on the declaration and payment of dividends or other distributions to
the holders of the Fund&#146;s common stock and preferred stock, both by the Investment Company Act and by requirements imposed by
Moody&#146;s, S&amp;P or a substitute rating agency, might impair the Fund&#146;s ability to satisfy minimum distribution requirements that it must satisfy to receive favorable treatment as a regulated investment company for federal income tax
purposes. While the Fund has the ability to redeem shares of APS to enable the Fund to distribute its income to the extent required to maintain its favorable tax treatment as a regulated investment company under the Code, there can be no assurance
that such redemptions can be effected in time to meet the requirements of the Code. See &#147;U.S.
federal income tax matters.&#148;</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Interest rate risk<br>
</FONT></B><FONT size=2 face="serif">The
APS pays dividends based on short-term interest rates. If short-term interest
rates rise, dividend rates on the APS will also rise. A sharp increase in short-term
interest rates could cause a &#147;negative
arbitrage&#148; situation, where the dividend rate on the APS would exceed the yield on the Fund&#146;s portfolio securities. In addition, rising market interest rates could negatively impact the value of the Fund&#146;s investment portfolio,
reducing the amount of assets serving as asset coverage for the APS. See &#147;The Fund&#146;s investments&#151;Use
of Leverage.&#148;</FONT></P>
<B><FONT size=2 face="sans-serif">RISKS OF INVESTING IN THE FUND</FONT></B><BR>
<P>
<B><FONT size=2 face="sans-serif">Investment and market risk<br>
</FONT></B><FONT size=2 face="serif">An investment in the Fund is subject to investment risk, including the possible loss of the entire amount invested. An investment in the Fund represents an indirect investment in the securities owned by the Fund, which are
generally traded on a securities exchange or in the over-the-counter markets. The value of these securities, like other market investments, may move up or down, sometimes rapidly and unpredictably.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Income risk<br>
</FONT></B><FONT size=2 face="serif">The
income that holders of preferred stock and common stock receive from the Fund
is based primarily on the dividends and interest the Fund earns from its investments,
which can vary widely over the short and long term. If prevailing market interest
rates drop, distribution rates of the Fund&#146;s preferred stock holdings and any bond holdings and preferred and common shareholders&#146; income from the Fund could drop as well. The Fund&#146;s
income also would likely be affected adversely when prevailing short-term interest
rates increase and the Fund is utilizing leverage.</FONT></P>
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<div align="right"><B><FONT size=2 face="sans-serif">23</FONT></B>
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<B><FONT size=2 face="sans-serif">Risks</FONT></B>
<hr size="1" noshade>

<P>
<B><FONT size=2 face="sans-serif">Management risk<br>
</FONT></B><FONT size=2 face="serif">The Fund is subject to management risk because it is an actively managed portfolio. The Adviser and the individual portfolio managers apply investment techniques and risk analyses in making investment decisions for the
Fund, but there can be no guarantee that these will produce the desired results.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Utilities industry risk<br>
</FONT></B><FONT size=2 face="serif">The
Fund invests a significant portion of its assets in securities of issuers in
the public utilities industry. This may make the Fund more susceptible to adverse
economic, political or regulatory occurrences affecting this sector. As concentration
in a sector increases, so does the potential for fluctuation in the value of
the Fund&#146;s assets.</FONT></P>
<P>
<FONT size=2 face="serif">Certain segments of the industry and individual companies within such segments may not perform as well as the industry as a whole. Many public utility companies historically have been subject to risks of increases in fuel
and other operating costs, high interest costs on borrowings needed for capital improvement programs and costs associated with compliance with and changes in environmental and other governmental regulations. Telecommunications companies in
particular have been subject to risks associated with increasing levels of competition, technology substitution (i.e. wireless, broadband and voice over Internet protocol, or VoIP), industry overcapacity, consolidation and regulatory uncertainty.
Regulatory changes with respect to nuclear and conventionally fueled power generating and transmission facilities could increase costs or impair the ability of public utility companies to operate and utilize such facilities, thus reducing public
utility companies&#146; earnings or resulting in losses. </FONT></P>
<P><FONT size=2 face="serif">Rates of return on investment of certain public
    utility companies are subject to review by government regulators. There can
    be no assurance that changes in regulatory policies or accounting standards
    will not negatively affect public utility companies&#146; earnings or dividends. Costs incurred by public utility companies, such as fuel and purchased power costs, often are subject to immediate market action resulting from such things as
  political or military forces operating in geographic regions where oil production is concentrated or global or regional weather conditions, such as droughts. Rates of return of public utility companies generally are subject to review and limitation
  by state public utility commissions, which ordinarily results in a lag or an absence of correlation between costs and return. It is also possible that costs may not be offset by return.</FONT></P>
<P>
<FONT size=2 face="serif">Public utility companies have, in recent years, been affected by increased competition, which could adversely affect the profitability or viability of such companies. Electric public utility companies may also be subject to
increasing economic pressures due to deregulation of generation, transmission and other aspects of their business.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Investments in securities of foreign issuers<br>
</FONT></B><FONT size=2 face="serif">While
the Fund is prohibited from investing 15% or more of its assets in securities
of foreign issuers, the Fund may be exposed to certain risks as a result of foreign
investments. Investing in securities of foreign issuers involves certain considerations
not typically associated with investing in securities of U.S. companies, including
(a) controls on foreign investment and limitations on repatriation of invested
capital and on the Fund&#146;s ability to exchange
local currencies for U.S. dollars, (b) greater price volatility, substantially
less liquidity and significantly smaller market capitalization of securities
markets, (c) currency devaluations and other currency exchange rate fluctuations,
(d) more substantial government involvement in the economy, (e) higher rates
of inflation, (f) less government supervision and regulation of the securities
markets and participants in those markets and (g) political uncertainty and other
considerations. The Fund will treat investments in countries with repatriation
restrictions as illiquid for purposes of any applicable limitations under the
Investment Company Act; however, as a closed-end fund, the Fund is not currently
limited under the Investment Company Act in the amount of illiquid securities
it may acquire. Because of the limited forward market for the purchase of U.S.
dollars in most foreign countries and the limited circumstances in which the
Fund expects to hedge against declines in the value of foreign country currencies
generally, the Fund will be</FONT></P>
<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">24</FONT></B>
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<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT size=2 face="sans-serif">Risks</FONT></B>
<hr size="1" noshade>
<p><BR>
    <FONT size=2 face="serif">adversely affected by devaluations of foreign country
  currencies against the U.S. dollar to the extent the Fund is invested in securities
  denominated in currencies experiencing a devaluation. The Fund&#146;s fundamental
investment policies permit the Fund to enter into currency hedging transactions. </FONT></p>
<p><FONT size=2 face="serif">In addition, accounting, auditing and financial reporting standards in foreign countries are different from U.S. standards. As a result, certain material disclosures
    may not be made and less information may be available to the Fund and other investors than would be the case if the Fund&#146;s
    investments were restricted to securities of U.S. issuers. Moreover, it may be
    more difficult to obtain a judgment in a court outside the United States. Interest
    and dividends paid on securities held by the Fund and gains from the disposition
    of such securities may be subject to withholding taxes imposed by foreign countries.</FONT>
</p>
<P>
<B><FONT size=2 face="sans-serif">Common stock risk<br>
</FONT></B><FONT size=2 face="serif">The
Fund has exposure to common stocks. Although common stocks have historically
generated higher average returns than fixed-income securities over the long-term,
common stocks also have experienced significantly more volatility in returns.
An adverse event, such as an unfavorable earnings report, may depress the value
of a particular common stock held by the Fund. Also, the price of common stocks
are sensitive to general movements in the stock market and a drop in the stock
market may depress the price of common stocks to which the Fund has exposure.
Common stock prices fluctuate for many reasons, including changes in investors&#146; perceptions
of the financial condition of an issuer or the general condition of the relevant
stock market, or when political or economic events affecting the issuers occur.
In addition, common stock prices may be sensitive to rising interest rates, as
the costs of capital rise and borrowing costs increase.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Small and mid cap stock risk<br>
</FONT></B><FONT size=2 face="serif">The
Fund may invest its portfolio of equity securities in companies of any market
capitalization. The Fund&#146;s investments in small and medium-sized companies
may be subject to more abrupt or erratic movements in price than its investments
in larger, more established companies because the securities of such companies
are less well-known, held primarily by insiders or institutional investors or
may trade less frequently and in lower volume. Furthermore, small and medium-sized
companies are more likely to experience greater or more unexpected changes in
their earnings and growth prospects. Such companies often have limited financial
resources or may depend on a few key employees, and the products or technologies
of such companies may be at a relatively early stage of development or not fully
tested.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Preferred stock risk<br>
</FONT></B><FONT size=2 face="serif">The
Fund has exposure to preferred stocks. Preferred stocks involve credit risk,
which is the risk that a preferred stock will decline in price, or fail to pay
dividends when expected, because the issuer experiences a decline in its financial
status. In addition to credit risk, investment in preferred stocks involves certain
other risks. Certain preferred stocks contain provisions that allow an issuer
under certain conditions to skip distributions (in the case of &#147;non-cumulative&#148; preferred stocks) or defer distributions (in the case of &#147;cumulative&#148; preferred stocks). If the Fund owns a preferred stock that is deferring its distributions, the Fund may be required to report income for tax
purposes while it is not receiving income on this position. Preferred stocks often contain provisions that allow for redemption in the event of certain tax or legal changes or at the issuers&#146; call. In the event of redemption, the Fund may not
be able to reinvest the proceeds at comparable rates of return. Preferred stocks typically do not provide any voting rights, except in cases when dividends are in arrears beyond a certain time period, which varies by issue. Preferred stocks are
subordinated to bonds and other debt instruments in a company&#146;s capital
structure in terms of priority to corporate income and liquidation payments,
and therefore are subject to greater credit risk than those debt instruments.
Preferred stocks may be significantly less liquid than many other securities,
such as U.S. government securities, corporate debt or common stock.</FONT></P>
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<div align="right"><B><FONT size=2 face="sans-serif">25</FONT></B>
</div>
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<B><FONT size=2 face="sans-serif">Risks</FONT></B>
<hr size="1" noshade>

<P>
<B><FONT size=2 face="sans-serif">Issuer risk<br>
</FONT></B><FONT size=2 face="serif">The
value of common and preferred stocks may decline for a number of reasons which
directly relate to the issuer, such as management performance, leverage and reduced
demand for the issuer&#146;s goods and
services.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Debt securities risk<br>
</FONT></B><FONT size=2 face="serif">In addition to credit risk, investment in debt securities carries certain risks, including:</FONT></P>
<UL>
<LI>
<I><FONT size=2 face="serif">Redemption risk </FONT></I><FONT size=2 face="serif">&#151; Debt securities sometimes contain provisions that allow for redemption</FONT> <FONT size=2 face="serif">in the event of tax or security law changes in addition
to call features at the option of the</FONT> <FONT size=2 face="serif">issuer. In the event of a redemption, the Fund may not be able to reinvest the proceeds at</FONT> <FONT size=2 face="serif">comparable rates of return.<br>
<br>
</FONT></LI>
<LI>
<I><FONT size=2 face="serif">Limited voting rights </FONT></I><FONT size=2 face="serif">&#151; Debt securities typically have limited voting rights, except in cases</FONT> <FONT size=2 face="serif">when interest payments have not been made and the
issuer is in default.<br>
<br>
</FONT></LI>
<LI>
<I><FONT size=2 face="serif">Liquidity </FONT></I><FONT size=2 face="serif">&#151; Certain debt securities may be substantially less liquid than many other securi-</FONT> <FONT size=2 face="serif">ties, such as U.S. government securities or common
stocks.</FONT></LI>
</UL>
<P>
<B><FONT size=2 face="sans-serif">Credit risk<br>
</FONT></B><FONT size=2 face="serif">Credit
risk is the risk that an issuer of a preferred or debt security will become unable
to meet its obligation to make dividend, interest and principal payments. In
general, lower rated preferred or debt securities carry a greater degree of credit
risk. If rating agencies lower their ratings of preferred or debt securities
in the Fund&#146;s portfolio, the value of those obligations could decline, which could jeopardize the rating agencies&#146; ratings of the
preferred stock issued by the Fund. In addition, the underlying revenue source for a preferred or debt security may be insufficient to pay dividends, interest or principal in a timely manner. Because the primary source of income for the Fund is the
dividend, interest and principal payments on the preferred or debt securities in which it invests, any default by an issuer of a preferred or debt security could have a negative impact on the Fund&#146;s ability to pay dividends to its investors.
Even if the issuer does not actually default, adverse changes in the issuer&#146;s financial condition may negatively affect its credit rating or presumed creditworthiness. These developments would adversely affect the market value of the
issuer&#146;s obligations or the value of credit derivatives if the Fund has
sold credit protection.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Hedging strategy risk<br>
</FONT></B><FONT size=2 face="serif">Certain
of the investment techniques that the Fund may employ for hedging or, under certain
circumstances, to increase income or total return will expose the Fund to risks.
In addition to the hedging techniques described elsewhere (i.e., positions in
Treasury Bond or Treasury Note futures contracts, use of options on these positions,
positions in interest rate swaps, options thereon (&#147;swaptions&#148;) and credit derivatives), such investment techniques may
include entering into interest rate and stock index futures contracts and options on interest rate and stock index futures contracts, purchasing and selling put and call options on securities and stock indices, purchasing and selling securities on a
when-issued or delayed delivery basis and lending portfolio securities. The Fund intends to comply with regulations of the SEC involving &#147;covering&#148; or segregating assets in connection with the Fund&#146;s
use of options and futures contracts.</FONT></P>
<P>
<FONT size=2 face="serif">There are economic costs of hedging reflected in the pricing of futures, swaps, options and swaption contracts which can be significant, particularly when long-term interest rates are substantially above short-term interest
rates. The desirability of moderating these hedging costs will be a factor in the Adviser&#146;s choice of hedging strategies, although costs will not be the exclusive consideration in selecting hedge instruments. In addition, the Fund may select
individual investments based upon their potential for appreciation without regard to the effect on current income in an attempt to mitigate the impact on the Fund&#146;s assets of the expected normal cost of hedging.</FONT></P>
<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">26</FONT></B>
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<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT size=2 face="sans-serif">Risks</FONT></B>
<hr size="1" noshade>
<BR>
<FONT size=2 face="serif">There may be an imperfect correlation between changes
in the value of the Fund&#146;s portfolio holdings and hedging positions entered into by the Fund, which may prevent the Fund from achieving the intended hedge or expose
the Fund to risk of loss. In addition, the Fund&#146;s success in using hedge instruments is subject to the Adviser&#146;s ability to predict correctly changes in the relationships of such hedge instruments to the Fund&#146;s portfolio holdings, and
there can be no assurance that the Adviser&#146;s judgment in this respect will
be accurate. Consequently, the use of hedging transactions might result in a
poorer overall performance for the Fund, whether or not adjusted for risk, than
if the Fund had not hedged its portfolio holdings.</FONT>
<P>
<B><FONT size=2 face="sans-serif">Derivatives risk<br>
</FONT></B><FONT size=2 face="serif">To the extent the Fund enters into derivative transactions (such as futures contracts and options thereon, options and swaps), the Fund will be subject to increased risk of principal loss due to imperfect correlation or
unexpected price or interest rate movements. The Fund also will be subject to credit risk with respect to the counterparties to the derivatives contracts purchased by the Fund. If a counterparty becomes bankrupt or otherwise fails to perform its
obligations under a derivative contract due to financial difficulties, the Fund may experience significant delays in obtaining any recovery under the derivative contract in a bankruptcy or other reorganization proceeding. The Fund may obtain only a
limited recovery or may obtain no recovery in such circumstances. As a general matter, dividends received on hedged stock positions are characterized as ordinary income and are not eligible for favorable tax treatment. In addition, use of
derivatives may give rise to short-term capital gains and other income that would not qualify for payments by the Fund of qualified dividends.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Dividend capture risk<br>
</FONT></B><FONT size=2 face="serif">The
Fund may seek to increase its dividend income using a strategy called &#147;dividend capture.&#148; In a dividend capture trade, the Fund sells a stock that it held past its ex-dividend date to purchase another stock
paying a dividend before the next dividend of the stock being sold. The use of dividend capture strategies exposes the Fund to increased trading costs and the potential for capital loss. In 2003, dividend captures accounted for approximately 37% of
the Fund&#146;s net investment income and had a impact on the Fund&#146;s net asset value (including both transaction costs and capital losses) of -0.49% . In 2004, the Fund substantially reduced its use of dividend captures, with the result that in
2004 dividend captures accounted for approximately 5.41% of the Fund&#146;s net investment income and had a impact on the Fund&#146;s
net asset value (including both transaction costs and capital losses) of -0.02%
.. The Fund does not currently make significant use of dividend captures but may
decide to do so in the future.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Portfolio turnover risk<br>
</FONT></B><FONT size=2 face="serif">The techniques and strategies contemplated by the Fund might result in a high degree of portfolio turnover. The Fund cannot accurately predict its securities portfolio turnover rate, but anticipates that its annual
portfolio turnover rate will not exceed 100% (excluding turnover of securities having a maturity of one year or less) under normal market conditions, although it could be materially higher under certain conditions. A high turnover rate (100% or
more) necessarily involves greater expenses to the Fund and may result in realization of net short-term capital gains.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Inflation risk<br>
</FONT></B><FONT size=2 face="serif">Inflation
risk is the risk that the purchasing power of assets or income from investments
will be worth less in the future as inflation decreases the value of money. As
inflation increases, the real value of the Fund&#146;s
preferred stock and common stock, and distributions thereon, can decline. In addition, during any periods of rising inflation, the interest rate payable on any debt owed by the Fund would likely increase, which would tend to further reduce returns
to the Fund&#146;s common shareholders.</FONT></P>
<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">27</FONT></B>
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<P align="left" style="page-break-before:always"></P><PAGE>



<B><FONT size=2 face="sans-serif">Risks</FONT></B>
<hr size="1" noshade>

<P>
<B><FONT size=2 face="sans-serif">Tax risk<br>
</FONT></B><FONT size=2 face="serif">The
Fund&#146;s investment program and the tax treatment of Fund distributions may be affected by IRS interpretations of the Code and future changes in tax laws and regulations, including changes as a result of the
&#147;sunset&#148; provisions that currently apply to the favorable tax treatment of qualified dividends. There can be no assurance that any portion of the Fund&#146;s
income distributions will not be fully taxable as ordinary income. In order for
the Fund to avoid corporate-level income tax, the Fund must qualify each year
as a regulated investment company under the Code and distribute all of its net
income.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Market disruption risk<br>
</FONT></B><FONT size=2 face="serif">The war with Iraq and the continuing occupation of that country by coalition forces have had a substantial impact on the U.S. and world economies and securities markets. The duration and nature of the war and occupation and
the potential costs of rebuilding the Iraqi infrastructure and political systems cannot be predicted with any certainty. The war and occupation, terrorism and related geopolitical risks have led, and may in the future lead, to increased short-term
market volatility and may have adverse long-term effects on U.S. and world economies and markets generally. Those events could also have an acute effect on individual issuers or related groups of issuers. These risks could also adversely affect
securities markets, interest rates, auctions, secondary trading, ratings, credit risk, inflation, deflation and other factors relating to the APS.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Anti-takeover provisions<br>
</FONT></B><FONT size=2 face="serif">Certain
provisions of the Fund&#146;s charter and bylaws may be regarded as &#147;anti-takeover&#148; provisions because they could have the effect of limiting the ability of other entities or persons to acquire control of
the Fund. See &#147;Certain provisions in the charter and bylaws.&#148;</FONT></P>
<P>
<FONT size=5 face="sans-serif">Management of the Fund</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">BOARD OF DIRECTORS AND OFFICERS</FONT></B></P>
<P>
<FONT size=2 face="serif">The business and affairs of the Fund are managed under the direction of the board of directors. For information concerning the Fund&#146;s officers and directors, see &#147;Management of the Fund&#148; in the Statement of
Additional Information.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">INVESTMENT ADVISER</FONT></B></P>
<P>
<FONT size=2 face="serif">The Fund&#146;s investment adviser is Duff &amp; Phelps Investment Management Co., 55 East Monroe Street, Suite 3600, Chicago, Illinois 60603. The Adviser (together with its predecessor) has been in the investment advisory
business for more than 70 years and, excluding the Fund, currently has more than &#36;3.3 billion in client accounts under discretionary management. The Adviser acts as adviser to two other closed-end investment companies registered under the
Investment Company Act and as adviser to three open-end investment companies registered under the Investment Company Act. The Adviser is a wholly owned subsidiary of Phoenix Investment Partners, Ltd. (&#147;Phoenix Investment Partners&#148;), which
is an indirect, wholly-owned subsidiary of The Phoenix Companies, Inc. (&#147;PNX&#148;). Phoenix Investment Partners and its subsidiaries provide investment management services to institutional and private clients and to the life insurance subsidiaries of PNX. </FONT></P>
<P><FONT size=2 face="serif">The Adviser is responsible for the management of
    the Fund&#146;s investment portfolio, subject to the overall control of the board of directors of the
  Fund.</FONT></P>
<P>
<FONT size=2 face="serif">Under the terms of an investment advisory agreement between the Fund and the Adviser (the &#147;Advisory Agreement&#148;), the Adviser receives from the Fund a quarterly fee at an annual rate of 0.60% of the average weekly
net assets of the Fund up to &#36;1.5 billion and 0.50% of average weekly net assets in excess of &#36;1.5 billion. The net assets for each weekly period are determined by averaging the net assets at the end of a week with the net assets at the end
of the prior week. For purposes of the foregoing calculation, &#147;net assets&#148; are defined as the sum of (i) the aggregate net asset value of</FONT></P>
<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">28</FONT></B>
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<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT size=2 face="sans-serif">Management of the Fund</FONT></B>
<hr size="1" noshade>
<BR>
<FONT size=2 face="serif">the Fund&#146;s common stock, (ii) the aggregate liquidation preference of the Fund&#146;s preferred stock and (iii) the aggregate proceeds to the Fund of commercial paper issued by the Fund. The investment advisory fees paid by the Fund under the Advisory Agreement totaled $13,869,531 in 2004, $13,069,523 in 2003 and $13,776,089 in 2002. A discussion regarding the
basis for the directors&#146; approving the Advisory Agreement is available in the Fund&#146;s
Semi-Annual Report to Shareholders for the six months ended June 30, 2005 as
filed with the SEC on Form N-CSR on September 2, 2005 (no. 811-4915).</FONT>
<P>
<FONT size=2 face="serif">Under the terms of a service agreement among the Adviser, Phoenix Investment Partners, and the Fund (the &#147;Service Agreement&#148;), Phoenix Investment Partners makes available to the Adviser the services, on a
part-time basis, of its employees and various facilities to enable the Adviser to perform certain of its obligations to the Fund. However, the obligation of performance under the Advisory Agreement is solely that of the Adviser, for which Phoenix
Investment Partners assumes no responsibility, except as described in the preceding sentence. The Adviser reimburses Phoenix Investment Partners for any costs, direct or indirect, fairly attributable to the services performed and the facilities
provided by Phoenix Investment Partners under the Service Agreement. The Fund does not pay any fees pursuant to the Service Agreement.</FONT></P>
<B><FONT size=2 face="sans-serif">PORTFOLIO MANAGEMENT</FONT></B><BR>
<P>
<FONT size=2 face="serif">A team of investment professionals employed by the Adviser is responsible for the day-to-day management of the Fund&#146;s portfolio. The members of that investment team and their respective areas of responsibility and
expertise are as follows:</FONT></P>
<P><FONT size=2 face="serif"> Nathan I. Partain, CFA, has led the Fund&#146;s portfolio management team since 1998 and has served on the Fund&#146;s portfolio management team since 1996. He has been President, Chief Executive Officer and Chief
  Investment Officer of the Fund since February 2001 (Executive Vice President and Chief Investment Officer from 1998 to 2001). Mr. Partain has been President of the Adviser since April 2005 (Executive Vice President from 1997 to 2005), President and
  Chief Executive Officer of DTF Tax-Free Income Inc. and Duff &amp; Phelps Utility and Corporate Bond Trust Inc., two other closed-end utilities oriented funds, since February 2004, and lead portfolio manager of Phoenix Global Utilities Fund, an
  open-end utilities oriented fund, since October 2004. He joined the Duff &amp; Phelps organization in 1987 and has served since then in positions of increasing responsibility. He is also a director of Otter Tail Corporation (since 1993).</FONT></P>
<P>
<FONT size=2 face="serif">T. Brooks Beittel, CFA, has served on the Fund&#146;s portfolio management team and has been Secretary and a Senior Vice President of the Fund since January 1995 (Treasurer from January 1995 to September 2002). He is also a
member of the portfolio management teams of Duff &amp; Phelps Utility and Corporate Bond Trust Inc. and Phoenix Global Utilities Fund. Mr. Beittel concentrates his research on fixed-income securities. He joined the Duff &amp; Phelps organization in
1987 and has served since then in positions of increasing responsibility.</FONT></P>
<P>
<FONT size=2 face="serif">Michael Schatt has served on the Fund&#146;s portfolio management team since 1996 and has been a Senior Vice President of the Fund since April 1998 (Vice President from January 1997 to April 1998). Mr. Schatt has been a
Senior Vice President of the Adviser since January 1997 and was a Managing Director of Phoenix Investment Partners from 1994 to 1996. Mr. Schatt concentrates his research on REIT securities and is the senior portfolio manager for all REIT products
managed by the Adviser. These products include the Phoenix Real Estate Securities Fund, the Phoenix Real Estate Securities Series sub-account of the Phoenix Edge Series annuity products, and various separate accounts. Before joining the Duff &amp;
Phelps organization in 1994, Mr. Schatt spent four years as a director of the Real Estate Advisory Practice for Coopers &amp; Lybrand, LLC, advising foreign pension funds on the acquisition and disposition of U.S. real estate assets and assisting
clients in evaluating public real estate investments as an alternative to private real estate investments. Prior to joining Coopers &amp; Lybrand, he had 10 years&#146; experience in real estate finance.</FONT></P>
<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">29</FONT></B>
</div>
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<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT size=2 face="sans-serif">Management of the Fund</FONT></B>
<hr size="1" noshade>
<BR>
<FONT size=2 face="serif">Deborah A. Jansen, CFA, has served on the Fund&#146;s
portfolio management team and has been a Senior Vice President of the Adviser
since January 2001. She is also a member of the portfolio management team of
Phoenix Global Utilities Fund. Ms. Jansen concentrates her research on the global
electric and natural gas industries. Prior to joining the Adviser in 2001, Ms.
Jansen was a Senior Vice President, Principal and Equity Portfolio Manager at
Stein Roe and Farnham, Inc. from 1996 to 2000.</FONT>
<P>
<FONT size=2 face="serif">Connie M. Luecke, CFA, has served on the Fund&#146;s portfolio management team since 1996 and has been a Senior Vice President of the Adviser since January 1998 (Managing Director from 1996 to 1998). She is also a member of
the portfolio management team of Phoenix Global Utilities Fund. Ms. Luecke concentrates her research on the global telecommunications industries. She joined the Duff &amp; Phelps organization in 1992 and has served since then in positions of
increasing responsibility.</FONT></P>
<P><FONT size=2 face="serif"> Daniel J. Petrisko, CFA, has served on the Fund&#146;s portfolio management team since 2004 and has been a Senior Vice President of the Adviser since 1997 (Vice President from 1995 to 1997). He has been Chief Investment
  Officer of Duff &amp; Phelps Utility and Corporate Bond Trust Inc., another closed-end utilities oriented fund, since February 2004 (Portfolio Manager from 2002 to 2004, Vice President since 2000). He joined the Duff &amp; Phelps organization in
  1995 and has served since then in positions of increasing responsibility.</FONT></P>
<P>
<FONT size=2 face="serif">Randle L. Smith, CFA, has served on the Fund&#146;s portfolio management team since 1996 and has been a Senior Vice President of the Adviser since January 1998 (Managing Director from 1996 to 1998). He is also a member of
the portfolio management team of Phoenix Global Utilities Fund. Mr. Smith concentrates his research on the global electric and natural gas industries. He joined the Duff &amp; Phelps organization in 1990 and has served since then in positions of
increasing responsibility. </FONT></P>
<P><FONT size=2 face="serif">Please refer to the Statement of Additional Information
    for additional information about the Fund&#146;s portfolio managers, including the structure of and method of computing compensation, other accounts they manage and
  their ownership of securities of the Fund.</FONT></P>
<B><FONT size=2 face="sans-serif">ADMINISTRATOR</FONT></B><BR>
<P>
<FONT size=2 face="serif">The Fund&#146;s administrator is J.J.B. Hilliard, W.L. Lyons, Inc., Hilliard Lyons Center, Louisville, Kentucky 40202. The Administrator is a wholly-owned subsidiary of The PNC Financial Services Group, Inc. Under the terms
of an administration agreement (the &#147;Administration Agreement&#148;), the Administrator provides all management and administrative services required in connection with the operation of the Fund not required to be provided by the Adviser
pursuant to the Advisory Agreement, as well as the necessary office facilities, equipment and personnel to perform such services. For its services, the Administrator receives from the Fund a quarterly fee at an annual rate of 0.25% of the
Fund&#146;s average weekly net assets up to &#36;100 million, 0.20% of the Fund&#146;s average weekly net assets from &#36;100 million to &#36;1.0 billion and 0.10% of average weekly net assets over &#36;1.0 billion. The net assets for each weekly
period are determined by averaging the net assets at the end of a week with the net assets at the end of the prior week. For purposes of the foregoing calculation, &#147;net assets&#148; are defined as the sum of (i) the aggregate net asset value of
the Fund&#146;s common stock, (ii) the aggregate liquidation preference of the Fund&#146;s preferred stock and (iii) the aggregate proceeds to the Fund of commercial paper issued by the Fund.</FONT></P>
<B><FONT size=2 face="sans-serif">EXPENSES</FONT></B><BR>
<P>
<FONT size=2 face="serif">The Fund is responsible for all expenses not paid by the Adviser or the Administrator, including brokerage fees.</FONT></P>
<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">30</FONT></B>
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<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT size=2 face="sans-serif">Management of the Fund</FONT></B>
<hr size="1" noshade>
<BR>
<B><FONT size=2 face="sans-serif">CONTROL PERSONS</FONT></B><BR>
<P>
<FONT size=2 face="serif">The Fund does not consider that any person &#147;controls&#148; the Fund. No person is known by the Fund to own of record or beneficially five percent or more of any class of the Fund&#146;s outstanding equity securities.
For purposes of the preceding, &#147;control&#148; means (1) the beneficial ownership, either directly or through one or more controlled companies, of more than 25 percent of the voting securities of a company; (2) the acknowledgement or assertion
by either the controlled or controlling party of the existence of control; or (3) a final adjudication under Section 2(a)(9) of the Investment Company Act that control exists.</FONT></P>
<FONT size=5 face="sans-serif">Description of APS</FONT><BR>
<P>
<FONT size=2 face="serif">The following is a brief description of the terms of the APS. For the complete terms of the APS, including the meanings of the defined terms used in this Prospectus but not otherwise defined, please refer to the detailed
description of the APS in the Articles Supplementary attached as Appendix A to the Statement of Additional Information.</FONT></P>
<B><FONT size=2 face="sans-serif">GENERAL</FONT></B><BR>
<P>
<FONT size=2 face="serif">The APS will rank on a parity with the shares of any other series of preferred stock of the Fund as to the payment of dividends and the distribution of assets upon liquidation. All shares of APS carry one vote on matters on
which APS can be voted. The shares of APS, when issued, will be fully paid and non-assessable and will have no preemptive, conversion or cumulative voting rights. The shares of APS will not be convertible into common stock, RPS or other capital
stock of the Fund.</FONT></P>
<P>
<FONT size=2 face="serif">A preferred stock credit rating is a rating agency&#146;s assessment of the capacity and willingness of an issuer to pay preferred stock obligations. The ratings on the APS are not recommendations to purchase, hold or sell
APS, inasmuch as the ratings do not comment as to market price or suitability for a particular investor. The rating agency guidelines described below also do not address the likelihood that an owner of APS will be able to sell shares of APS in an
auction or otherwise.</FONT></P>
<P>
<FONT size=2 face="serif">In addition to the APS offered by this prospectus, the Fund currently intends to issue Additional APS, consisting of an aggregate of [ ] additional shares of Series [ ] APS. The sale of the APS offered by this prospectus is
not contingent upon the sale of the Additional APS, and there can be no assurance that the Fund will issue all or any of the Additional APS. With respect to liquidation and distribution rights, any Additional APS that is issued will rank on a parity
with the APS offered by this prospectus and with the RPS.</FONT></P>
<B><FONT size=2 face="sans-serif">DIVIDENDS AND DIVIDEND PERIODS</FONT></B><BR>
<P>
<FONT size=2 face="serif">The following is a general description of dividends
and dividend periods. The Initial Dividend Period</FONT> <FONT size=2 face="serif">for each series of APS is as set forth
below:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><B><FONT size=1 face="sans-serif">Series</FONT></B>&nbsp;
          </div></TD>
        <TD align=center>
      <div align="right"><B><FONT size=1 face="sans-serif">Initial Dividend Period</FONT></B>&nbsp;
          </div></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<p>&nbsp;</p>
<p>
</p>
<P>
<FONT size=2 face="serif">Any subsequent dividend periods will generally be seven days. The Fund, subject to certain conditions, may change the length of subsequent dividend periods by designating them as special dividend periods. See
&#147;Declaration of special dividend periods&#148; below.</FONT></P>
<P>
<B><FONT size=2 face="serif">Dividend payment dates. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends on the APS will be payable when, as and if declared by the board of directors, out of legally available funds in accordance with the charter, the
Articles</FONT></P>
<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">31</FONT></B>
</div>
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<P align="left" style="page-break-before:always"></P><PAGE>



<B><FONT size=2 face="sans-serif">Description of APS</FONT></B>
<hr size="1" noshade>

<P>
<FONT size=2 face="serif">Supplementary and applicable law. Dividends are scheduled to be paid for each series of APS as follows:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=13% align=left>&nbsp;

        </TD>
        <TD width=44% align=left>&nbsp;

        </TD>
        <TD width=43% align=right>
<B><FONT size=1 face="sans-serif">Subsequent Dividend</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><B><FONT size=1 face="sans-serif">Series</FONT></B>&nbsp;
          </div></TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Initial Dividend Payment Date</FONT></B>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Payment Date</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><BR>
</p>
<P>
<FONT size=2 face="serif">If dividends are payable on a day that is not a business day, then dividends will be payable on the next business day. In addition, the Fund may specify different dividend payment dates for any special dividend period of
more than 28 dividend period days.</FONT></P>
<P>
<FONT size=2 face="serif">Dividends will be paid through The Depository Trust Company (the &#147;Securities Depository&#148;) on each Dividend Payment Date. The Securities Depository, in accordance with its current procedures, is expected to
distribute dividends received from the Fund in next-day funds on each Dividend Payment Date to Agent Members. These Agent Members are in turn expected to distribute such dividends to the persons for whom they are acting as agents. However, each of
the current Broker-Dealers has indicated to the Fund that dividend payments will be available in same-day funds on each Dividend Payment Date to customers that use such Broker-Dealer or that Broker-Dealer&#146;s designee as Agent Member.</FONT></P>
<P>
<B><FONT size=2 face="serif">Calculation of dividend payment. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund computes the dividends per share payable on shares of each series of APS by multiplying the applicable rate for shares of such series in
effect by a fraction. The numerator of this fraction will normally be seven (i.e., the number of days in the Dividend Period) and the denominator will normally be 360. In either case, this rate is then multiplied by &#36;25,000 to arrive at
dividends per share.</FONT></P>
<P>
<FONT size=2 face="serif">Dividends on shares of each series of APS will accumulate from the date of their original issue. For each dividend payment period after the initial dividend period, the dividend rate will be the dividend rate determined at
auction once each of the requirements of the Articles Supplementary are satisfied.</FONT></P>
<P><FONT size=2 face="serif"> Prior to each auction, Broker-Dealers will notify
    holders of the term of the next succeeding dividend period as soon as practicable
    after the Broker-Dealers have been so advised by the Fund. After each auction,
    on the auction date, Broker-Dealers will notify holders of the applicable
    rate for the next succeeding dividend period and of the auction date of the
    next succeeding auction.</FONT></P>
<P>
<FONT size=2 face="serif">The dividend rate that results from an auction for each series of APS will not be greater than the maximum applicable rate. The maximum applicable rate for any regular dividend period will be the higher of the applicable
percentage of the reference rate or the applicable spread plus the reference rate. The reference rate will be the applicable LIBOR Rate (as defined below) (for a dividend period of fewer than 365 days) or the applicable Treasury Index Rate (as
defined below) (for a dividend period of 365 days or more). The applicable percentage of the reference rate and the applicable spread plus the reference rate for any regular dividend period will generally be determined based on the credit ratings
assigned to the APS by Moody&#146;s and S&amp;P on the auction date for such period (as set forth in the table below). If Moody&#146;s and S&amp;P do not make such rating available, the rate shall be determined by reference to equivalent ratings
issued by a substitute rating agency. In the case of a special dividend period, (1) the maximum applicable rate will be specified by the Fund in the notice of special dividend period for such dividend period, (2) the applicable percentage of the
reference rate</FONT></P>
<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">32</FONT></B>
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<P align="left" style="page-break-before:always"></P><PAGE>



<B><FONT size=2 face="sans-serif">Description of APS</FONT></B>
<hr size="1" noshade>

<P>
<FONT size=2 face="serif">and the applicable spread plus the reference rate will be determined on the date two business days before the first day of such special dividend period and (3) the reference rate will be the applicable LIBOR Rate (for a
dividend period of fewer than 365 days) or the Treasury Index Rate (for a dividend period of 365 days or more).</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=1 face="sans-serif">Applicable Percentage</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
  </TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=1 face="sans-serif">MOODY&#146;S</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="sans-serif">S&amp;P</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=1 face="sans-serif">of the Reference Rate</FONT></B>
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Applicable Spread</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=2 face="serif">Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">125</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">125 bps</FONT>&nbsp;
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=right>
      <center>
        <FONT size=2 face="serif">Aa3 to Aa1</FONT>&nbsp;
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">AA- to AA+</FONT>&nbsp;
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">150</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">150 bps</FONT>&nbsp;
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=right>
      <center>
        <FONT size=2 face="serif">A3 to A1</FONT>&nbsp;
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">A- to A+</FONT>&nbsp;
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">200</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">200 bps</FONT>&nbsp;
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=right>
      <center>
        <FONT size=2 face="serif">Baa3 to Baa1</FONT>&nbsp;
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">BBB- to BBB+</FONT>&nbsp;
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">250</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">250 bps</FONT>&nbsp;
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
      <center>
        <FONT size=2 face="serif">Ba1 and lower</FONT>&nbsp;
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <center>
        <FONT size=2 face="serif">BB+ and lower</FONT>&nbsp;
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">300</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">300 bps</FONT>&nbsp;
        </TD>
  </TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">Assuming the Fund maintains an AAA/Aaa rating on the APS, the practical effect of the different methods used to calculate the maximum applicable rate is shown in the table below:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=11% align=left>

        </TD>
        <TD width=12% align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
<B><FONT size=1 face="sans-serif">Maximum Applicable</FONT></B>
        </TD>
        <TD width=16% align=left>

        </TD>
        <TD width=12% align=left>&nbsp;

        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD colspan="2" align=right>
      <center>
        <B><FONT size=1 face="sans-serif">Rate Using the</FONT></B>
          </center></TD>
        <TD colspan="2" align=center>
<B><FONT size=1 face="sans-serif">Maximum Applicable Rate</FONT></B>
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Method Used to</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD colspan="2" align=center>
<B><FONT size=1 face="sans-serif">Applicable Percentage</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=1 face="sans-serif">Using the Applicable Spread</FONT></B>
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Determine the</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=center>
<B><FONT size=1 face="sans-serif">Reference Rate</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=1 face="sans-serif">of the Reference Rate</FONT></B>
        </TD>
        <TD colspan="2" align=center>
<B><FONT size=1 face="sans-serif">Over the Reference Rate</FONT></B>
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">Maximum Applicable Rate</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="14%">
<HR noshade size=1>
        </TD>
        <TD width="11%">
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">1.25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">Spread</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2.50</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">Spread</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">3.75</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4.25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">Spread</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.00</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5.25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">Spread</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">6.25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">Either</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.50</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">7.25</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">Percentage</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">Prior to each dividend payment date, the Fund is required to deposit with the auction agent sufficient funds for the payment of declared dividends. The failure to make such deposit will not result in the cancellation of any
auction. The Fund does not intend to establish any reserves for the payment of dividends.</FONT></P>
<P>
<FONT size=2 face="serif">The Fund will take all reasonable action necessary to enable Moody&#146;s and S&amp;P to provide ratings for each series of APS. If such ratings are not made available by Moody&#146;s or S&amp;P, the underwriters or their
affiliates and successors, after consultation with the Fund, will select one or more other rating agencies to act as substitute rating agencies.</FONT></P>
<P>
<FONT size=2 face="serif">The &#147;LIBOR Rate&#148; is the applicable London Inter-Bank Offered Rate for deposits in U.S. dollars for the period most closely approximating the applicable dividend period for a series of APS. For a more detailed
description, please see the Articles Supplementary.</FONT></P>
<P>
<FONT size=2 face="serif">The &#147;Treasury Index Rate&#148; is the average yield to maturity for certain U.S. Treasury securities having substantially the same length to maturity as the applicable dividend period for a series of APS. For a more
detailed description, please see the Articles Supplementary.</FONT></P>
<P>
<B><FONT size=2 face="serif">Effect of failure to pay dividends in a timely manner. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the Fund fails to pay the auction agent the full amount of any dividend for any shares of APS in a timely manner, but the
Fund cures such failure and pays any late charge before 12:00 noon, New York City time, on the third business day following the date the failure occurred, no auction will be held for the APS for the first subsequent dividend period thereafter, and
the dividend rate for the APS for that subsequent dividend period will be the maximum rate. However, if the Fund does not effect a timely cure, no auction will be held for the APS for the first subsequent dividend period thereafter (and for any
dividend period thereafter, up to and including the dividend period during which the failure is cured and the late charge is paid), and</FONT></P>
<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">33</FONT></B>
</div>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT size=2 face="sans-serif">Description of APS</FONT></B>
<hr size="1" noshade>
<BR>
<FONT size=2 face="serif">the dividend rate for the APS for each subsequent dividend period will be the maximum rate with the prevailing rating for the series of APS being deemed Baa1/BBB.</FONT>
<P>
<B><FONT size=2 face="serif">Restrictions on dividends and other distributions. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the Investment Company Act, the Fund may not (i) declare any dividend with respect to the APS if, at the time of such
declaration (and after giving effect thereto), asset coverage with respect to the Fund&#146;s borrowings that are senior securities representing indebtedness (as defined in the Investment Company Act) would be less than 200% (or such other
percentage as may in the future be specified in or under the Investment Company Act as the minimum asset coverage for senior securities representing indebtedness of a closed-end investment company as a condition of declaring dividends on its
preferred stock) or (ii) declare any other distribution on the APS or purchase or redeem shares of APS if at the time of the declaration (and after giving effect thereto), asset coverage with respect to the Fund&#146;s senior securities representing
indebtedness would be less than 300% (or such other percentage as may in the future be specified in or under the Investment Company Act as the minimum asset coverage for senior securities representing indebtedness of a closed-end investment company
as a condition of declaring distributions on or effecting purchases or redemptions of any class of its capital stock). &#147;Senior securities representing indebtedness&#148; generally means any bond, debenture, note or similar obligation or
instrument constituting a security (other than shares of beneficial interest) and evidencing indebtedness and could include the Fund&#146;s obligations under any borrowings. For purposes of determining asset coverage for senior securities
representing indebtedness in connection with the payment of dividends or other distributions on or purchases or redemptions of stock, the term &#147;senior security&#148; does not include any promissory note or other evidence of indebtedness issued
in consideration of any loan, extension or renewal thereof, made by a bank or other person and privately arranged, and not intended to be publicly distributed. The term &#147;senior security&#148; also does not include any such promissory note or
other evidence of indebtedness in any case where such a loan is for temporary purposes only and in an amount not exceeding 5% of the value of the total assets of the Fund at the time the loan is made; a loan is presumed under the Investment Company
Act to be for temporary purposes if it is repaid within 60 days and is not extended or renewed; otherwise it is presumed not to be for temporary purposes. For purposes of determining whether the 200% and 300% asset coverage requirements described
above apply in connection with dividends or distributions on or purchases or redemptions of shares of APS, such asset coverages may be calculated on the basis of values calculated as of a time within 48 hours (not including Sundays or holidays) next
preceding the time of the applicable determination.</FONT></P>
<P>
<FONT size=2 face="serif">In addition, a declaration of a dividend or other distribution on or purchase or redemption of shares of APS may be prohibited (i) at any time when an event of default under any borrowings has occurred and is continuing; or
(ii) after giving effect to such declaration, the Fund would not have eligible portfolio holdings with an aggregated discounted value at least equal to any asset coverage requirements associated with such borrowings; or (iii) the Fund has not
redeemed the full amount of borrowings, if any, required to be redeemed by any provision for mandatory redemption. While any shares of APS are outstanding, the Fund generally may not declare, pay or set apart for payment any dividend or other
distribution in respect of its common stock. In addition, the Fund may not call for redemption or redeem any of its common stock. However, the Fund is not confined by the above restrictions if:</FONT></P>
<UL>
<LI>
<FONT size=2 face="serif">immediately after such transaction, the Discounted Value of the Fund&#146;s portfolio would be</FONT> <FONT size=2 face="serif">equal to or greater than the Preferred Stock Basic Maintenance Amount and the Investment</FONT>
<FONT size=2 face="serif">Company Act Preferred Stock Asset Coverage (see &#147;&#151;Rating Agency Guidelines and Asset</FONT> <FONT size=2 face="serif">Coverage&#148; below);<br>
<br>
</FONT></LI>
<LI>
<FONT size=2 face="serif">full cumulative dividends on each series of APS due on or prior to the date of the transac</FONT><FONT size=2 face="serif">tion have been declared and paid or shall have been declared and sufficient funds for the</FONT>
<FONT size=2 face="serif">payment thereof deposited with the auction agent; and</FONT></LI>
</UL>
<P>&nbsp;</P>

<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">34</FONT></B>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT size=2 face="sans-serif">Description of APS</FONT></B>
<hr size="1" noshade>
<UL>
<LI>
<FONT size=2 face="serif">the Fund has redeemed the full number of shares of APS required to be redeemed by any</FONT> <FONT size=2 face="serif">provision for mandatory redemption contained in the Articles Supplementary.</FONT></LI>
</UL>
<P>
<FONT size=2 face="serif">The Fund generally will not declare, pay or set apart for payment any dividend on any class or series of shares of capital stock of the Fund ranking, as to the payment of dividends, on a parity with the APS unless the Fund
has declared and paid or contemporaneously declares and pays full cumulative dividends on each series of APS through its most recent dividend payment date. However, when the Fund has not paid dividends in full upon the shares of each series of APS
through the most recent dividend payment date or upon any other class or series of shares of the Fund ranking, as to the payment of dividends, on a parity with the APS through their most recent respective dividend payment dates, the amount of
dividends declared per share on the APS and such other class or series of shares will in all cases bear to each other the same ratio that accumulated dividends per share on the APS and such other class or series of shares bear to each
other.</FONT></P>
<P>
<B><FONT size=2 face="serif">Declaration of special dividend periods. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund may, under certain circumstances, declare a special dividend period for a particular series of APS. Upon declaring a special dividend
period, the Fund will give notice to the auction agent and each Broker-Dealer. The notice will request that the next succeeding Dividend Period for the series of APS be a number of days (greater than 7) evenly divisible by seven as specified in such
notice and not more than 1,820 days long; provided, however, that a special dividend period may be a number of days not evenly divisible by seven if all shares of the series of APS are to be redeemed at the end of such special dividend period. The
Fund may not request a special dividend period unless sufficient clearing bids for shares of such series were made in the most recent auction (that is, in general, the number of shares subject to buy orders by potential holders is at least equal to
the number of shares subject to sell orders by existing holders). In addition, full cumulative dividends, any amounts due with respect to mandatory redemptions and any additional dividends payable prior to such date must be paid in full or deposited
with the auction agent. Prior to declaring a special dividend period, the Fund will confirm that, as of the auction date next preceding the first day of such special dividend period, it has eligible assets with an aggregate discounted value at least
equal to the Preferred Stock Basic Maintenance Amount (as defined below). The Fund also intends to consult with the Broker-Dealers and provide notice to each rating agency which is then rating the APS and so requires. A notice of special dividend
period also will specify whether the APS will be subject to optional redemption during such special dividend period and, if so, the redemption premium, if any, required to be paid by the Fund in connection with such optional redemption. If the Fund
proposes to designate any special dividend period, not fewer than 20 (or such lesser number of days as may be agreed from time to time by the auction agent and each Broker-Dealer) nor more than 30 business days prior to the first day of such Special
Dividend Period, notice shall be mailed to Holders of such series of APS. Each such notice shall state (A) that the Fund proposes to exercise its option to designate a succeeding special dividend period, specifying the special dividend period&#146;s
first day and (B) that the Fund will by 11:00 A.M., New York City time, on the second business day next preceding the first day of such special dividend period, notify the auction agent, who will promptly notify the Broker-Dealers, of either (x) its
determination, subject to certain conditions, to proceed with such special dividend period, subject to the terms of any specific redemption provisions, or (y) its determination not to proceed with such special dividend period, in which latter event
the succeeding Dividend Period shall be a minimum dividend period. No later than 11:00 A.M., New York City time, on the second business day next preceding the first day of any proposed special dividend period, the Fund shall deliver to the auction
agent, who will promptly deliver to the Broker-Dealers, either: (i) A notice stating (A) that the Fund has determined to designate the next succeeding Dividend Period as a special dividend period, specifying the first and last days thereof and (B)
the terms of any specific redemption provisions; or (ii) a notice stating that the Fund has determined not to exercise its option to designate a special dividend period. If the Fund fails to deliver either such notice with respect to any designation
of any proposed special dividend period to the auction agent by 11:00 A.M., New York City time, on the second business day next preceding the first</FONT></P>
<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">35</FONT></B>
</div>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT size=2 face="sans-serif">Description of APS</FONT></B>
<hr size="1" noshade>
<p><FONT size=2 face="serif">day of such proposed special dividend period, the
    Fund shall be deemed to have delivered a notice to the auction agent with
    respect to such Dividend Period to the effect set forth in clause (ii) above,
    thereby resulting in a minimum dividend period. The Fund must also have received
    confirmation from Moody&#146;s and S&amp;P or any substitute rating agency that the proposed special dividend period will not adversely affect such rating agency&#146;s
  then-current rating on the APS, and the lead Broker-Dealer designated by the
  Fund, initially [ ], must not have objected to the declaration of a special
dividend period.</FONT></p>
<p><B><FONT size=2 face="sans-serif">REDEMPTION</FONT></B></p>
<P>
<B><FONT size=2 face="serif">Mandatory redemption. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund is required to maintain (a) a Discounted Value of eligible portfolio securities equal to the Preferred Stock Basic Maintenance Amount and (b) the
Investment Company Act Preferred Stock Asset Coverage. Eligible portfolio securities for purposes of (a) above will be determined from time to time by the rating agencies then rating the APS. If the Fund fails to maintain such asset coverage amounts
and does not timely cure such failure in accordance with the requirements of the rating agency that rates the APS, the Fund must redeem all or a portion of the APS. This mandatory redemption will take place on a date that the board of directors
specifies out of legally available funds in accordance with the charter, the Articles Supplementary and applicable law, at the redemption price of &#36;25,000 per share plus accumulated but unpaid dividends (whether or not earned or declared) to the
date fixed for redemption. The number of shares of APS that must be redeemed in order to cure such failure will be allocated pro rata among the outstanding shares of preferred stock of the Fund. The mandatory redemption will be limited to the number
of shares of APS necessary to restore the required Discounted Value or the Investment Company Act Preferred Stock Asset Coverage, as the case may be.</FONT></P>
<P>
<B><FONT size=2 face="serif">Optional redemption. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund, at its option, may redeem the APS, in whole or in part, out of funds legally available therefor. Any optional redemption will occur on any dividend
payment date at the optional redemption price per share of &#36;25,000 per share plus an amount equal to accumulated but unpaid dividends to the date fixed for redemption plus the premium, if any, specified in a special redemption provision. No
shares of APS may be redeemed if the redemption would cause the Fund to violate the Investment Company Act or applicable law. Shares of APS may not be redeemed in part if fewer than [ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] shares of APS would remain outstanding after the redemption.
The Fund has the authority to redeem shares of APS for any reason.</FONT></P>
<P>
<FONT size=2 face="serif">The redemption price for a series of APS may include the payment of redemption premiums to the extent required under any applicable specific redemption provisions. The Fund will not make any optional redemption unless,
after giving effect thereto, (i) the Fund has available certain deposit securities with maturities or tender dates not later than the day preceding the applicable redemption date and having a value not less than the amount (including any applicable
premium) due to holders of the series of APS by reason of the redemption of the series of APS on such date fixed for the redemption and (ii) the Fund has eligible assets with an aggregate discounted value at least equal to the Preferred Stock Basic
Maintenance Amount. Notwithstanding the foregoing, a series of APS may not be redeemed at the option of the Fund unless all dividends in arrears on all outstanding series of APS, and any other outstanding preferred stock of the Fund, have been or
are being contemporaneously paid or set aside for payment. This would not prevent the lawful purchase or exchange offer for a series of APS made on the same terms to holders of all outstanding preferred stock of the Fund.</FONT></P>
<B><FONT size=2 face="sans-serif">LIQUIDATION</FONT></B><BR>
<P>
<FONT size=2 face="serif">In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Fund, the holders of preferred stock will be entitled to receive a preferential liquidating distribution, which is expected to equal
the original purchase price per share of preferred stock plus accrued and unpaid dividends, whether or not declared, before any distribution of assets is made to holders of common stock.</FONT></P>
<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">36</FONT></B>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT size=2 face="sans-serif">Description of APS</FONT></B>
<hr size="1" noshade>
<BR>
<FONT size=2 face="serif">After payment of the full amount of the liquidating distribution to which they are entitled, the holders of preferred stock will not be entitled to any further participation in any distribution of assets by the Fund. For
purpose of the foregoing paragraph, a voluntary or involuntary liquidation of the Fund does not include:</FONT>
<UL>
<LI>
<FONT size=2 face="serif">the sale of all or substantially all the property or business of the Fund;<br>
<br>
</FONT></LI>
<LI>
<FONT size=2 face="serif">the merger or consolidation of the Fund into or with any other business trust or corpora-</FONT> <FONT size=2 face="serif">tion; or<br>
<br>
</FONT></LI>
<LI>
<FONT size=2 face="serif">the merger or consolidation of any other business trust or corporation into or with the</FONT> <FONT size=2 face="serif">Fund.</FONT></LI>
</UL>
<P>
<B><FONT size=2 face="sans-serif">RATING AGENCY GUIDELINES AND ASSET COVERAGE</FONT></B></P>
<P>
<FONT size=2 face="serif">The Fund is required under guidelines of Moody&#146;s and S&amp;P to maintain assets having in the aggregate a Discounted Value at least equal to the Preferred Stock Basic Maintenance Amount. Moody&#146;s and S&amp;P have
each established separate guidelines for calculating Discounted Value. To the extent any particular portfolio holding does not satisfy a rating agency&#146;s guidelines, all or a portion of the holding&#146;s value will not be included in the rating
agency&#146;s calculation of Discounted Value. The Moody&#146;s and S&amp;P guidelines do not impose any limitations on the percentage of the Fund&#146;s assets that may be invested in holdings not eligible for inclusion in the calculation of the
Discounted Value of the Fund&#146;s portfolio. The amount of ineligible assets included in the Fund&#146;s portfolio at any time may vary depending upon the rating, diversification and other characteristics of the eligible assets included in the
portfolio. The Preferred Stock Basic Maintenance Amount includes the sum of (a) the aggregate liquidation preference of the preferred stock then outstanding and (b) certain accrued and projected payment obligations of the Fund.</FONT></P>
<P>
<FONT size=2 face="serif">The Fund is also required under the Investment Company Act to maintain asset coverage of at least 200% with respect to senior securities which are stock, including the APS and RPS (&#147;Investment Company Act Preferred
Stock Asset Coverage&#148;). The Fund&#146;s Investment Company Act Preferred Stock Asset Coverage is tested as of the last business day of each month in which any senior equity securities are outstanding. Based on the composition of the portfolio
of the Fund and market conditions as of November 30, 2005, the Investment Company Act Preferred Stock Asset Coverage with respect to all of the Fund&#146;s preferred stock, assuming (1) the issuance on that date of all shares of APS offered
hereby
giving effect to the deduction of related sales load and related offering costs estimated at &#36;[ ] and (2) that all amounts outstanding under the CP Notes had been repaid in full as of such date, would have been
computed as follows:</FONT></P>
<TABLE width="50%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=45% align=center nowrap>
<FONT size=2 face="serif">Value of Fund assets less liabilities</FONT>&nbsp;
        </TD>
        <TD width=14% align=left nowrap>&nbsp;

        </TD>
        <TD width=17% align=left nowrap>&nbsp;

        </TD>
        <TD width=12% align=left nowrap>&nbsp;

        </TD>
        <TD width=12% align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=2 face="serif">not constituting senior securities</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap><hr size="1" noshade>    </TD>
        <TD align=right nowrap>
      <center>
        <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          </center></TD>
        <TD align=left nowrap><hr size="1" noshade>    </TD>
        <TD align=right nowrap>
      <center>
        <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;
          </center></TD>
        <TD align=right nowrap>
<FONT size=2 face="serif">_______%</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=2 face="serif">Senior securities representing indebtedness</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">&#36;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=2 face="serif">plus liquidation value of preferred stock</FONT>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">In the event the Fund does not timely cure a failure to maintain (a) a Discounted Value of its portfolio equal to the Preferred Stock Basic Maintenance Amount or (b) the Investment Company Act Preferred Stock Asset
Coverage, in accordance with the requirements of the rating agency or agencies then rating the APS or the Investment Company Act, as the case may be, the Fund will be required to redeem shares of APS as described under
&#147;Redemption&#151;Mandatory Redemption&#148; above.</FONT></P>
<P>
<FONT size=2 face="serif">The Fund may, but is not required to, adopt any modifications to the guidelines that may be established by Moody&#146;s or S&amp;P. Failure to adopt any such modifications, however, may result in a change in the ratings
described above or a withdrawal of ratings altogether. In addition, any rating agency providing a rating for the APS may, at any time, change, suspend or withdraw any such rating. The board of</FONT></P>
<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">37</FONT></B>
</div>
<HR noshade  width="100%" size=4>



<P align="left" style="page-break-before:always"></P><PAGE>

<B><FONT size=2 face="sans-serif">Description of APS</FONT></B>
<hr size="1" noshade>
<BR>
<FONT size=2 face="serif">directors may, without shareholder approval, amend,
alter or repeal any or all of the definitions and related provisions which have
been adopted by the Fund pursuant to the rating agency guidelines in the event
the Fund receives written confirmation from Moody&#146;s or S&amp;P, as the case
may be, that any such amendment, alteration or repeal would not impair the rating
then assigned to the APS.</FONT>
<P>
<FONT size=2 face="serif">As described by Moody&#146;s and S&amp;P, a preferred stock rating is an assessment of the capacity and willingness of an issuer to pay preferred stock obligations. The rating on the APS is not a recommendation to purchase,
hold or sell shares of APS, inasmuch as the rating does not comment as to market price or suitability for a particular investor. The rating agency guidelines referred to above also do not address the likelihood that an owner of shares of APS will be
able to sell such shares in an auction or otherwise. The rating is based on current information furnished to Moody&#146;s and S&amp;P by the Fund and the Adviser and information obtained from other sources. The rating may be changed, suspended or
withdrawn as a result of changes in, or the unavailability of, such information.</FONT></P>
<P>
<FONT size=2 face="serif">The rating agency&#146;s guidelines will apply to the APS only so long as the rating agency is rating the APS. The Fund will pay certain fees to Moody&#146;s and S&amp;P for rating the APS.</FONT></P>
<B><FONT size=2 face="sans-serif">VOTING RIGHTS</FONT></B><BR>
<P>
<FONT size=2 face="serif">Except as otherwise provided in this Prospectus and in the Statement of Additional Information or as otherwise required by law, holders of APS will have equal voting rights with holders of common stock and any other series
of preferred stock (one vote per share) and will vote together with holders of common stock and preferred stock as a single class.</FONT></P>
<P>
<FONT size=2 face="serif">Holders of outstanding preferred stock, voting separately as one class, are entitled to elect two of the Fund&#146;s directors. The remaining directors are elected by holders of the Fund&#146;s common stock. In addition, if
at any time dividends (whether or not earned or declared) on outstanding preferred stock are due and unpaid in an amount equal to two full years of dividends, and sufficient cash or specified securities have not been deposited with the auction agent
for the payment of such dividends, then, the sole remedy of holders of outstanding preferred stock is that the number of directors constituting the board of directors will be automatically increased by the smallest number that, when added to the two
directors elected exclusively by the holders of preferred stock as described above, would constitute a majority of the board of directors. The holders of preferred stock will be entitled to elect that smallest number of additional directors at a
special meeting of shareholders held as soon as possible and at all subsequent meetings at which directors are to be elected. The terms of office of the persons who are directors at the time of that election will continue. If the Fund thereafter
shall pay, or declare and set apart for payment, in full, all dividends payable on all outstanding preferred stock, the special voting rights stated above will cease, and the terms of office of the additional directors elected by the holders of
preferred stock will automatically terminate.</FONT></P>
<P>
<FONT size=2 face="serif">As long as any shares of APS are outstanding, the Fund will not, without the affirmative vote or consent of the holders of at least two thirds of the shares of preferred stock outstanding at the time (voting separately as
one class):</FONT></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD>
<FONT size=2 face="serif">authorize, create or issue, or increase the authorized or issued number of, any class or series of shares ranking prior to the APS with respect to the payment of dividends or the distribu- tion of assets on liquidation;
or</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(b)</FONT></TD>
        <TD>
<FONT size=2 face="serif">amend, alter or repeal the provisions of the charter, including the Articles Supplementary, whether by merger, consolidation or otherwise, so as to materially and adversely affect any right, preference, privilege or voting
power of the APS or the holders of APS; provided that any increase in the amount of the authorized preferred stock or the creation and issuance of other series of preferred stock, or any increase in the amount of authorized shares of such series or
of any other series of preferred stock, in each case ranking on a parity with or</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">38</FONT></B>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT size=2 face="sans-serif">Description of APS</FONT></B>
<hr size="1" noshade>
<blockquote>
  <p>
    <FONT size=2 face="serif">junior to the APS, will not be deemed to materially and adversely affect such rights, preferences, privileges or voting powers unless such issuance would cause the Fund not to satisfy the Investment Company Act Preferred
      Stock Asset Coverage requirements or the Preferred Stock Basic Maintenance Amount requirements, in which case the vote or consent of the holders of the preferred stock is not required.</FONT></p>
</blockquote>
<P><FONT size=2 face="serif">Unless a higher percentage is provided for under the charter, the affirmative vote of the holders of a majority of the outstanding shares of preferred stock, including APS, voting together as a single class, will be
  required to approve any plan of reorganization adversely affecting such shares or any action requiring a vote of security holders under Section 13(a) of the 1940 Act. The class vote of holders of shares of preferred stock, including APS, described
  above will in each case be in addition to a separate vote of the requisite percentage of shares of common stock and shares of preferred stock, including APS, necessary to authorize the action in question.</FONT></P>
<P>
<FONT size=2 face="serif">As defined in the 1940 Act, a reorganization includes:</FONT></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD>
<FONT size=2 face="serif">a reorganization under the supervision of a court of competent jurisdiction;</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(b)</FONT></TD>
        <TD>
<FONT size=2 face="serif">a merger or consolidation;</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(c)</FONT></TD>
        <TD>
<FONT size=2 face="serif">a sale of 75% or more in value of the assets of the Fund;</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(d)</FONT></TD>
        <TD>
<FONT size=2 face="serif">a restatement of the capital of the Fund, or an exchange of securities issued by the Fund for any of its own outstanding securities;</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(e)</FONT></TD>
        <TD>
<FONT size=2 face="serif">a voluntary dissolution or liquidation of the Fund;</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(f)</FONT></TD>
        <TD>
<FONT size=2 face="serif">a recapitalization or other procedure or transaction which has for its purpose the alteration, modification, or elimination of any of the rights, preferences, or privileges of any class of securities issued by the Fund, as
provided in its charter or other instrument creating or defining such rights, preferences, and privileges;</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(g)</FONT></TD>
        <TD>
<FONT size=2 face="serif">an exchange of securities issued by the Fund for outstanding securities issued by another company or companies, preliminary to and for the purpose of effecting or consummating any of the foregoing; or</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(h)</FONT></TD>
        <TD>
<FONT size=2 face="serif">any exchange of securities by a company which is not an investment company for securities issued by the Fund.</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">Under Section 13(a) of the 1940 Act, the vote of a majority of the Fund&#146;s outstanding voting securities is required to authorize the Fund to:</FONT></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD>
<FONT size=2 face="serif">convert from a closed-end to an open-end investment company;</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(b)</FONT></TD>
        <TD>
<FONT size=2 face="serif">borrow money, issue senior securities, underwrite securities issued by other persons, pur- chase or sell real estate or commodities or make loans to other persons, except in each case in accordance with the recitals of
policy contained in the Fund&#146;s registration statement with respect thereto;</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(c)</FONT></TD>
        <TD>
<FONT size=2 face="serif">deviate from its policy in respect of concentration of investments in the public utilities industry as recited in its registration statement, deviate from any investment policy which is changeable only if authorized by
shareholder vote, or deviate from any other policy identi- fied as fundamental in its registration statement; or</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(d)</FONT></TD>
        <TD>
<FONT size=2 face="serif">change the nature of its business so as to cease to be an investment company.</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">The foregoing voting provisions will not apply with respect to the APS if, at or prior to the time when a vote is required, all shares of APS have been (i) redeemed or (ii) called for redemption and sufficient funds have
been deposited in trust to effect such redemption.</FONT></P>
<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">39</FONT></B>
</div>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<FONT size=5 face="sans-serif">The Auction</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">GENERAL</FONT></B></P>
<P>
<FONT size=2 face="serif">The Articles Supplementary provide that, except as otherwise described in this Prospectus, the applicable rate for each series of APS for each dividend period after the initial dividend period will be the rate that results
from an auction conducted as set forth in the Articles Supplementary and summarized below. In such an auction, persons determine to hold or offer to sell or, based on dividend rates bid by them, offer to purchase or sell shares of APS. See the
Articles Supplementary included in the Statement of Additional Information for a more complete description of the auction process.</FONT></P>
<P>
<B><FONT size=2 face="serif">Auction agency agreement. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund will enter into an auction agency agreement with the auction agent (currently, [ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]) which provides, among other things, that the auction agent will
follow the auction procedures to determine the applicable rate for each series of APS, so long as the applicable rate for such series of APS is to be based on the results of an auction.</FONT></P>
<P>
<FONT size=2 face="serif">The auction agent may terminate the auction agency agreement upon 45 days&#146; notice to the Fund. If the auction agent should resign, the Fund will use its best efforts to enter into an agreement with a successor auction
agent containing substantially the same terms and conditions as the auction agency agreement. The Fund may remove the auction agent provided that, prior to removal, the Fund has entered into a replacement agreement with a successor auction
agent.</FONT></P>
<P>
<B><FONT size=2 face="serif">Broker-Dealer agreements. </FONT></B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each auction requires the participation of one or more Broker-Dealers. The auction agent will enter into agreements with several Broker-Dealers selected by
the Fund, which provide for the participation of those Broker-Dealers in auctions for APS.</FONT></P>
<P>
<FONT size=2 face="serif">The auction agent will pay to each Broker-Dealer after each auction, from funds provided by the Fund, a service charge at the annual rate of </FONT><FONT size=1 face="serif"><SUP> 1 </SUP>/<SUB> 4  </SUB></FONT><FONT size=2
face="serif">of 1% in the case of any auction before a dividend period of 364 days or less, or a percentage agreed to by the Fund and the Broker-Dealers, in the case of any auction before a dividend period of 365 days or longer, of the purchase
price of APS placed by a Broker-Dealer at the auction.</FONT></P>
<P>
<FONT size=2 face="serif">The Fund may request the auction agent to terminate one or more Broker-Dealer Agreements at any time upon five days&#146; notice, provided that at least one Broker-Dealer Agreement is in effect after termination of the
agreements.</FONT></P>
<P>
<FONT size=2 face="serif">The Broker-Dealer Agreements provide that a Broker-Dealer may submit orders in auctions for its own account, unless the Fund notifies all Broker-Dealers that they no longer may do so; provided that Broker-Dealers may
continue to submit hold orders and sell orders. Any Broker-Dealer submitting an order for its own account in any auction could have an advantage over other potential holders in that it would have knowledge of other orders placed through it in that
auction. A</FONT><FONT size=2 face="serif"> Broker-Dealer would not, however, have knowledge of orders submitted by other Broker-Dealers, if any. As a result of bidding by the Broker-Dealer in an auction, the applicable rate may be higher or lower than the rate that
would have prevailed had the Broker-Dealer not bid. A Broker-Dealer may also bid in an auction in order to prevent what would otherwise be (1) a failed auction, (2) an &#147;all-hold&#148; auction, or (3) the implementation of an applicable rate
that the Broker-Dealer believes, in its sole judgment, does not reflect the market for such securities at the time of the auction. Broker-Dealers may, but are not obligated to, advise owners of APS that the rate that will apply in an
&#147;all-hold&#148; auction is often a lower rate than would apply if owners submit bids, and such advice if given, may facilitate the submission of bids by existing owners that would avoid the occurrence of an &#147;all-hold&#148; auction. In the
Broker-Dealer Agreements, the Broker-Dealers agree to handle customers&#146; orders in accordance with their respective duties under applicable securities laws and rules.</FONT></P>
<P>
<FONT size=2 face="serif">The information in this paragraph has been furnished by the Underwriters for inclusion in this Prospectus. According to published news reports, the SEC has requested information from a number</FONT></P>
<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">40</FONT></B>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT size=2 face="sans-serif">The Auction</FONT></B>
<hr size="1" noshade>
<p><BR>
    <FONT size=2 face="serif">of broker-dealers regarding certain of their practices in connection with auction rate securities, such as the practices described in the preceding paragraph. Such published news reports also indicate that the SEC has
  requested that each broker-dealer receiving the request for information voluntarily conduct an investigation regarding its practices and procedures in auction rate securities markets. The Underwriters have advised the Fund that they and certain
  other participants in the auction rate securities markets, including both taxable and tax-exempt markets, have received the request for information from the SEC described above. The Underwriters are cooperating with the SEC in providing the
requested information. No assurance can be given as to whether the results of this process will affect the market for the APS or the auctions therefor.</FONT></p>
<p><B><FONT size=2 face="sans-serif">AUCTION
PROCEDURES</FONT></B></p>
<P>
<FONT size=2 face="serif">The following is a brief summary of the auction procedures for the APS. They are described in the Statement of Additional Information in more detail.</FONT></P>
<P>
<FONT size=2 face="serif">Prior to the submission deadline on each auction date for shares of APS, each customer of a Broker-Dealer who is listed on the records of that Broker-Dealer (or, if applicable, the auction agent) as a beneficial owner of
APS may submit the following types of orders with respect to shares of APS to that Broker-Dealer.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD nowrap valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD>
<FONT size=2 face="serif">Hold order-indicating its desire to hold shares of APS without regard to the applicable rate for the next dividend period.</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">2.</FONT></TD>
        <TD>
<FONT size=2 face="serif">Bid order-indicating its desire to sell shares of APS at &#36;25,000 per share if the applicable rate for the APS for the next dividend period is less than the rate or spread specified in the bid.</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">3.</FONT></TD>
        <TD>
<FONT size=2 face="serif">Sell order-indicating its desire to sell shares of APS at &#36;25,000 per share without regard to the applicable rate for the APS for the next dividend period.</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">A beneficial owner may submit different types of orders to its Broker-Dealer with respect to the shares of APS then held by the beneficial owner. A beneficial owner of shares of such series that submits its bid with respect
to the APS to its Broker-Dealer having a rate higher than the maximum applicable rate for the APS on the auction date will be treated as having submitted a sell order to its Broker-Dealer. A beneficial owner of APS that fails to submit an order to
its Broker-Dealer with respect to the APS will ordinarily be deemed to have submitted a hold order with respect to the APS to its Broker-Dealer. However, if a beneficial owner of APS fails to submit an order with respect to such shares of such
series to its Broker-Dealer for an auction relating to a dividend period of more than 28 days, such beneficial owner will be deemed to have submitted a sell order to its Broker-Dealer. A sell order constitutes an irrevocable offer to sell the shares
of APS subject to the sell order. A beneficial owner that offers to become the beneficial owner of additional shares of APS is, for purposes of such offer, a potential holder as discussed below.</FONT></P>
<P>
<FONT size=2 face="serif">A potential holder is either a customer of a Broker-Dealer that is not a beneficial owner of a series of APS but that wishes to purchase shares of APS of such series or that is a beneficial owner of shares of APS of such
series that wishes to purchase additional shares of APS of such series. A potential holder may submit bids to its Broker-Dealer in which it offers to purchase shares of such series at &#36;25,000 per share if the applicable rate for shares of such
series for the next dividend period is not less than the specified rate in such bid. A bid placed by a potential holder of shares of such series specifying a rate higher than the maximum applicable rate for shares of such series on the auction date
will not be accepted.</FONT></P>
<P>
<FONT size=2 face="serif">The Broker-Dealers in turn will submit the orders of their respective customers who are beneficial owners and potential holders to the auction agent. They will designate themselves (unless otherwise permitted by the Fund)
as existing holders of shares subject to orders submitted or deemed submitted to them by beneficial owners. They will designate themselves as potential holders of shares subject to</FONT></P>
<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">41</FONT></B>
</div>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>



<B><FONT size=2 face="sans-serif">The Auction</FONT></B>
<hr size="1" noshade>

<P>
<FONT size=2 face="serif">orders submitted to them by potential holders. However, neither the Fund nor the auction agent will be responsible for a Broker-Dealer&#146;s failure to comply with these procedures. Any order placed with the auction agent
by a Broker-Dealer as or on behalf of an existing holder or a potential holder will be treated the same way as an order placed with a Broker-Dealer by a beneficial owner or potential holder. Similarly, any failure by a Broker-Dealer to submit to the
auction agent an order for any shares of APS held by it or customers who are beneficial owners will be treated as a beneficial owner&#146;s failure to submit to its Broker-Dealer an order in respect of shares of APS held by it. A Broker-Dealer may
also submit orders to the auction agent for its own account as an existing holder or potential holder, provided it is not an affiliate of the Fund.</FONT></P>
<P>
<FONT size=2 face="serif">There are sufficient clearing bids for APS in an auction if the number of shares of APS subject to bids submitted or deemed submitted to the auction agent by Broker-Dealers for potential holders with rates or spreads equal
to or lower than the maximum applicable rate for the APS is at least equal to or exceeds the sum of the number of shares of APS subject to sell orders and the number of shares of APS subject to bids specifying rates or spreads higher than the
maximum applicable rate for APS submitted or deemed submitted to the auction agent by Broker-Dealers for existing holders of APS. If there are sufficient clearing bids for APS, the applicable rate for APS for the next succeeding dividend period
thereof will be the lowest rate specified in the submitted bids which, taking into account such rate and all lower rates bid by Broker-Dealers as or on behalf of existing holders and potential holders, would result in existing holders and potential
holders owning the shares of APS available for purchase in the auction.</FONT></P>
<P>
<FONT size=2 face="serif">If there are not sufficient clearing bids for APS, the applicable rate for the next dividend period will be the maximum applicable rate for APS on the auction date. If this happens, beneficial owners of APS that have
submitted or are deemed to have submitted sell orders may not be able to sell in the auction all shares of APS subject to such sell orders. If all of the outstanding shares of APS are the subject of submitted hold orders, the applicable rate for the
next dividend period will then be 80% of the Reference Rate.</FONT></P>
<P>
<FONT size=2 face="serif">The auction procedure includes a pro rata allocation of shares for purchase and sale, which may result in an existing holder continuing to hold or selling, or a potential holder purchasing, a number of shares of APS that is
different than the number of shares specified in its order. To the extent the allocation procedures have that result, Broker-Dealers that have designated themselves as existing holders or potential holders in respect of customer orders will be
required to make appropriate pro rata allocations among their respective customers.</FONT></P>
<P>
<FONT size=2 face="serif">Settlement of purchases and sales will be made on the next business day (which is also a dividend payment date) after the auction date through DTC. Purchasers will make payment through their Agent Members in same-day funds
to DTC against delivery to their respective Agent Members. DTC will make payment to the sellers&#146; Agent Members in accordance with DTC&#146;s normal procedures, which now provide for payment against delivery by their Agent Members in same-day
funds.</FONT></P>
<P><FONT size=2 face="serif"> The auctions for APS, Series [ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] will normally be held every , and each subsequent dividend period will normally begin on the following [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ], the auctions for APS, Series [ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] will normally be held every [ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], and each subsequent dividend period
  will normally begin on the following [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ], and the auctions for APS, Series[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ] will normally be held every [ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], and each subsequent dividend period will normally begin on the following [ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;].</FONT></P>
<P>
<FONT size=2 face="serif">The following is a simplified example of how a typical auction works. Assume that the Fund has 1,000 outstanding shares of APS and three existing holders. The three existing holders and three potential holders submit orders
through Broker-Dealers at the auction:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=20% align=right nowrap>
      <div align="left"><FONT size=2 face="serif">Existing Holder A</FONT>&nbsp;
          </div></TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=29% align=left nowrap>
<FONT size=2 face="serif">Owns 500 shares, wants to sell all</FONT>&nbsp;
        </TD>
        <TD width=7% nowrap>&nbsp;
        </TD>
        <TD width=34% align=left nowrap>
<FONT size=2 face="serif">Places bid order of 2.10% rate for all</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">500 shares if applicable rate is less</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">500 shares</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">than 2.10%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
</TABLE><BR>
<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">42</FONT></B>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>



<B><FONT size=2 face="sans-serif">The Auction</FONT></B>
<hr size="1" noshade>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=21% align=right nowrap>
      <div align="left"><FONT size=2 face="serif">Existing Holder B</FONT>&nbsp;
          </div></TD>
        <TD width=9% nowrap>&nbsp;
        </TD>
        <TD width=30% align=left nowrap>
<FONT size=2 face="serif">Owns 300 shares, wants to hold</FONT>&nbsp;
        </TD>
        <TD width=6% nowrap>&nbsp;
        </TD>
        <TD width=34% align=left nowrap>
<FONT size=2 face="serif">Places hold order &#151; will take the</FONT>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Applicable Rate</FONT>
        </TD>
  </TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD nowrap>&nbsp;</TD>
  <TD align=center nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">Existing Holder C</FONT>&nbsp;
          </div></TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Owns 200 shares, wants to sell all</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
      <div align="left"><FONT size=2 face="serif">Places bid order of 1.90% rate for all</FONT>
          </div></TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">200 shares if applicable rate is less</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">200 shares</FONT>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">than 1.90%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>

        </TD>
  </TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">Potential Holder D</FONT>&nbsp;
          </div></TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Wants to buy 200 shares</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Places order to buy at or above</FONT>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">2.00%</FONT>
          </div></TD>
  </TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">Potential Holder E</FONT>&nbsp;
          </div></TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Wants to buy 300 shares</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="left"><FONT size=2 face="serif">Places order to buy at or above</FONT>
          </div></TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>

          <div align="left"></div></TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">1.90%</FONT>
          </div></TD>
  </TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">Potential Holder F</FONT>&nbsp;
          </div></TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">Wants to buy 200 shares</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
      <div align="left"><FONT size=2 face="serif">Places order to buy at or above</FONT>
          </div></TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">2.10%</FONT>
          </div></TD>
  </TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">The lowest dividend rate that will result in all 1,000 shares of APS continuing to be held is 2.00% (the offer by D). Therefore, the applicable rate will be 2.00% . Existing holders B and C will continue to own their
shares. Existing holder A will sell its shares because A&#146;s dividend rate bid was higher than the applicable rate. Potential holder D will buy 200 shares and potential holder E will buy 300 shares because their bid rates were at or below the
applicable rate. Potential holder F will not buy shares because its bid rate was above the applicable rate.</FONT></P>
<P>
<FONT size=2 face="serif">If an auction date is not a business day because the New York Stock Exchange is closed for business due to an act of God, natural disaster, act of war, civil or military disturbance, act of terrorism, sabotage, riots or a
loss or malfunction of utilities or communications services, or the auction agent is not able to conduct an auction in accordance with the auction procedures for any such reason, then the applicable rate for the next dividend period will be the
applicable rate determined on the previous auction date.</FONT></P>
<P>
<FONT size=2 face="serif">If a Dividend Payment Date is not a business day because the New York Stock Exchange is closed for business due to an act of God, natural disaster, act of war, civil or military disturbance, act of terrorism, sabotage,
riots or a loss or malfunction of utilities or communications services, or the dividend payable on such date can not be paid for any such reason, then:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD nowrap valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(i)</FONT></TD>
        <TD>
<FONT size=2 face="serif">The Dividend Payment Date for the affected Dividend Period will be the next business day on which the Fund and its paying agent, if any, can pay the dividend;</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(ii)</FONT></TD>
        <TD>
<FONT size=2 face="serif">The affected Dividend Period will end on the day it otherwise would have ended; and</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD>
<FONT size=2 face="serif">The next Dividend Period will begin and end on the dates on which it otherwise would have begun and ended.</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
<B><FONT size=2 face="sans-serif">SECONDARY MARKET TRADING AND TRANSFERS OF APS</FONT></B></P>
<P>
<FONT size=2 face="serif">The Broker-Dealers are expected to maintain a secondary trading market in the APS outside of auctions, but are not obligated to do so, and may discontinue such activity at any time. There can be no assurance that any
secondary trading market in the APS will provide owners with liquidity of investment. The shares of APS will not be listed on any stock exchange or traded on the NASDAQ Stock Market. Investors who purchase shares in an auction for a special dividend
period in which the Bid Requirements, if any, do not require a bid to specify a spread should note that because the dividend rate on such shares will be fixed for the length of such dividend period, the value of the shares may fluctuate in response
to changes in interest rates and may be more or less than their original cost if sold on the open market in advance of the next auction. Investors who purchase shares in an auction for a special dividend period in which the Bid Requirements require
a bid to specify a spread should be aware that the value of their shares may also fluctuate and may be more or less than their original cost if sold in the open market in advance of the next auction, particularly if market spreads narrow or widen in
a manner unfavorable to such purchaser&#146;s position.</FONT></P>
<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">43</FONT></B>
</div>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT size=2 face="sans-serif">The Auction</FONT></B>
<hr size="1" noshade>
<BR>
<FONT size=2 face="serif">A beneficial owner or an existing holder may sell, transfer or otherwise dispose of APS only in whole shares and only:</FONT>
<UL>
<LI>
<FONT size=2 face="serif">pursuant to a bid or sell order placed with the auction agent in accordance with the auction</FONT> <FONT size=2 face="serif">procedures;<br>
<br>
</FONT></LI>
<LI>
<FONT size=2 face="serif">to a Broker-Dealer; or<br>
<br>
</FONT></LI>
<LI>
<FONT size=2 face="serif">to such other persons as may be permitted by the Fund;</FONT></LI>
</UL>
<FONT size=2 face="serif">provided, however, that:</FONT><BR>
<UL>
<LI>
<FONT size=2 face="serif">a sale, transfer or other disposition of APS from a customer of a Broker-Dealer who is listed</FONT> <FONT size=2 face="serif">on the records of that Broker-Dealer as the holder of such shares to that Broker-Dealer
or</FONT> <FONT size=2 face="serif">another customer of that Broker- Dealer shall not be deemed to be a sale, transfer or other</FONT> <FONT size=2 face="serif">disposition if such Broker-Dealer remains the existing holder of the shares;
and<br>
<br>
</FONT></LI>
<LI>
<FONT size=2 face="serif">in the case of all transfers other than pursuant to auctions, the Broker-Dealer (or other per-</FONT> <FONT size=2 face="serif">son, if permitted by the Fund) to whom such transfer is made will advise the auction
agent</FONT> <FONT size=2 face="serif">of such transfer.</FONT></LI>
</UL>
<P>
<FONT size=5 face="sans-serif">Description of capital structure</FONT></P>
<P>
<FONT size=2 face="serif">The Fund&#146;s authorized capital stock consists of 250,000,000 shares of common stock, &#36;.001 par value per share, of which 223,181,435 were outstanding at September 30, 2005, and 100,000,000 shares of preferred stock,
&#36;.001 par value per share, of which 5,000 were outstanding at September 30, 2005.</FONT></P>
<B><FONT size=2 face="sans-serif">DESCRIPTION OF COMMON STOCK</FONT></B><BR>
<P>
<FONT size=2 face="serif">Holders of common stock are entitled to dividends when and as declared by the board of directors, to one vote per share in the election of directors (with no right of cumulation), and to equal rights per share in the event
of liquidation. They have no preemptive rights. There are no redemption, conversion or sinking fund provisions. The shares are not liable to further calls or to assessment by the Fund.</FONT></P>
<B><FONT size=2 face="sans-serif">DESCRIPTION OF PREFERRED STOCK</FONT></B><BR>
<P>
<FONT size=2 face="serif">The Fund&#146;s charter expressly grants authority to the board of directors to authorize the issue of one or more series of preferred stock, and to fix by resolution or resolutions providing for the issue of each such
series the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends, qualifications, and terms and conditions of redemptions, of such series. To date, five series of RPS have been issued and [ ] series of APS
have been authorized for issuance.</FONT></P>
<P>
<FONT size=2 face="serif">Holders of preferred stock are entitled to receive dividends before the holders of the common stock and are entitled to receive the liquidation value of their shares (&#36;100,000 per share with respect to the RPS and
&#36;25,000 per share with respect to the APS, in each case plus accumulated but unpaid dividends) before any distributions are made to the holders of the common stock, in the event the Fund is ever liquidated. Each share of preferred stock is
entitled to one vote per share. The holders of the preferred stock have the right to elect two directors of the Fund at all times and to elect a majority of the directors if at any time dividends on the preferred stock are unpaid for two years. In
addition to any approval by the holders of the shares of the Fund that might otherwise be required, the approval of the holders of a majority of the outstanding shares of the preferred stock, voting separately as a class, will be required under the
Investment Company Act to adopt any plan of reorganization that would adversely affect the holders of preferred stock and to approve, among other things,</FONT></P>
<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">44</FONT></B>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT size=2 face="sans-serif">Description of capital structure</FONT></B>
<hr size="1" noshade>
<BR>
<FONT size=2 face="serif">changes in the Fund&#146;s sub-classification as a
closed-end investment company, changes in its investment objectives or changes
in its fundamental investment restrictions.</FONT>
<P>
<FONT size=2 face="serif">Subject to certain restrictions, the Fund may, and under certain circumstances is required to, redeem all or a portion of the RPS at a price of &#36;100,000 per share and all or a portion of the APS at a price of
&#36;25,000 per share, in each case plus accumulated but unpaid dividends. The shares of preferred stock are not liable to further calls or to assessment by the Fund. There are no preemptive rights or sinking fund or conversion
provisions.</FONT></P>
<B><FONT size=2 face="sans-serif">DESCRIPTION OF BORROWINGS</FONT></B><BR>
<P>
<FONT size=2 face="serif">The Fund is authorized to borrow money on a secured or unsecured basis for any purpose of the Fund in an aggregate amount not exceeding 15% of the value of the Fund&#146;s total assets at the time of any such borrowing
(exclusive of all obligations on amounts held as collateral for securities loaned to other persons to the extent that such obligations are secured by assets of at least equivalent value). However, for so long as the Fund&#146;s preferred stock is
rated by S&amp;P, the Fund will limit the aggregate amount of its Borrowings to 10% of the value of its total assets and will not incur any Borrowings, unless advised by S&amp;P that such Borrowings would not adversely affect S&amp;P&#146;s
then-current rating of the preferred stock.</FONT></P>
<P>
<FONT size=2 face="serif">The Fund&#146;s board of directors has authorized the Fund to issue up to &#36;200,000,000 of CP Notes in minimum denominations of &#36;100,000 with maturities up to 270 days. The CP Notes are generally sold on a discount
basis, but may be sold on an interest-bearing basis. During 2004, interest rates on the CP Notes ranged from 1.21% to 2.71% . The CP Notes are not redeemable by the Fund nor are they subject to voluntary prepayment prior to maturity. The aggregate
amount of CP Notes outstanding changes from time to time. At June 30, 2005, &#36;200 million of CP Notes were outstanding with an amortized cost of &#36;197,972,806. The CP Notes are unsecured, general obligations of the Fund. The CP Notes currently
hold the highest short-term debt rating from Moody&#146;s and S&amp;P.</FONT></P>
<P>
<FONT size=2 face="serif">To provide liquidity for the CP Note program, the Fund maintains an unsecured backup credit facility, which expires on December 11, 2006. The Fund is able to request loans under the credit facility of up to &#36;100,000,000
at any one time, subject to certain restrictions. To date, the Fund has not made any borrowings under the credit facility.</FONT></P>
<P>
<FONT size=2 face="serif">The rights of lenders to the Fund to receive interest on and repayment of principal of any such Borrowings are senior to those of the Fund&#146;s shareholders, including the holders of APS In addition, the CP Notes and the
credit facility contain customary restrictive financial covenants. Among other things, the Fund is required to maintain eligible portfolio property having a discounted value of at least 4.05 times the Fund&#146;s liabilities. The Fund is also
required to maintain total assets equal to at least four times its liabilities, and net assets (defined as total assets less liabilities other than senior securities representing indebtedness) equal to at least four times the value of its senior
securities representing indebtedness. In addition, the Fund may not declare, pay or set apart for payment any dividend or other distribution in respect of its common or preferred stock, or call for redemption or redeem any of its common or preferred
stock, when loans are outstanding under the credit facility, or when an event of default exists or would result under the credit facility.</FONT></P>
<P>
<FONT size=2 face="serif">Under the requirements of the Investment Company Act, the Fund, immediately after issuing any Borrowings that are senior securities representing indebtedness (as defined in the Investment Company Act), must have an asset
coverage of at least 300%. With respect to any Borrowings, asset coverage means the ratio which the value of the total assets of the Fund, less all liabilities and indebtedness not represented by senior securities, bears to the aggregate amount of
any such Borrowings that are senior securities representing indebtedness, issued by the Fund. Certain types of Borrowings may also result in the Fund being subject to covenants in credit agreements relating to asset coverages or portfolio
composition or otherwise. In addition, the Fund is subject to certain restrictions imposed</FONT></P>
<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">45</FONT></B>
</div>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<B><FONT size=2 face="sans-serif">Description of capital structure</FONT></B>
<hr size="1" noshade>
<p><BR>
    <FONT size=2 face="serif">by guidelines of one or more rating agencies which may issue ratings for CP Notes issued by the Fund. Such restrictions may be more stringent than those imposed by the Investment Company Act. </FONT></p>
<p><FONT size=2 face="serif">The Investment Company Act does
    (in certain circumstances) grant to the lenders to the Fund certain voting rights in the event of default in the payment of interest on or repayment of principal.</FONT>
</p>
<P>
<FONT size=2 face="serif">The Fund will utilize a portion of the net proceeds of this offering to pay in full all amounts outstanding under the CP Notes, after which the Fund intends to discontinue its CP Note program and terminate the related
backup credit facility.</FONT></P>
<FONT size=5 face="sans-serif">Dividend reinvestment plan</FONT><BR>
<P>
<FONT size=2 face="serif">Under the Fund&#146;s dividend reinvestment plan common shareholders may elect to have all dividends and capital gains distributions paid on their common stock automatically reinvested by The Bank of New York, as agent for
shareholders, in additional shares of common stock of the Fund. See &#147;Dividend Reinvestment Plan&#148; in the Statement of Additional Information for a description of the dividend reinvestment plan of the Fund.</FONT></P>
<P>
<FONT size=5 face="sans-serif">Certain provisions in the charter and bylaws</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">ANTI-TAKEOVER PROVISIONS IN THE CHARTER</FONT></B></P>
<P>
<FONT size=2 face="serif">The Fund&#146;s charter includes provisions that could have the effect of limiting the ability of other entities or persons to acquire control of the Fund or to change the composition of its board of directors and could
have the effect of depriving common stockholders of an opportunity to sell their shares at a premium over prevailing market prices by discouraging a third party from seeking to obtain control of the Fund. The board of directors is divided into three
classes, each having a term of three years. At each annual meeting of shareholders, the term of one class will expire. This provision could delay for up to two years the replacement of a majority of the board of directors. A director may be removed
from office only by vote of the holders of at least 75% of the shares of preferred stock or of common stock, as the case may be, entitled to be voted on the matter.</FONT></P>
<P>
<FONT size=2 face="serif">The Fund&#146;s charter requires the favorable vote of the holders of at least 75% of the shares of preferred stock and common stock of the Fund entitled to be voted on the matter, voting together as a single class, to
approve, adopt or authorize the following:</FONT></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(i)</FONT></TD>
        <TD>
<FONT size=2 face="serif">a merger or consolidation of the Fund with another corporation,</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(ii)</FONT></TD>
        <TD>
<FONT size=2 face="serif">a sale of all or substantially all of the Fund&#146;s assets (other than in the regular course of the Fund&#146;s investment activities), or</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD>
<FONT size=2 face="serif">a liquidation or dissolution of the Fund, unless such action has been approved, adopted or authorized by the affirmative vote of two-thirds of the total number of directors fixed in accordance with the bylaws, in which case
the affirmative vote of the holders of a majority of the outstanding shares of preferred stock and common stock entitled to be voted on the matter, voting together as a single class, is required.</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">In addition, the holders of a majority of the outstanding shares of the preferred stock, voting separately as a class, would be required under the Investment Company Act to adopt any plan of reorganization that would
adversely affect the holders of the preferred stock.</FONT></P>
<P>
<FONT size=2 face="serif">Finally, conversion of the Fund to an open-end investment company would require an amendment to the charter. Such an amendment would require the favorable vote of the holders of a at least 75% of the shares of preferred
stock and common stock of the Fund entitled to be voted on the matter, vot-</FONT></P>
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<B><FONT size=2 face="sans-serif">46</FONT></B>
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<B><FONT size=2 face="sans-serif">Certain provisions in the charter and bylaws</FONT></B>
<hr size="1" noshade>
<BR>
<FONT size=2 face="serif">ing together as a single class, unless such amendment has been approved, adopted or authorized by the affirmative vote of two-thirds of the total number of directors fixed in accordance with the bylaws, in which case the
affirmative vote of the holders of a majority of the outstanding shares of preferred stock and common stock entitled to be voted on the matter, voting together as a single class, would be required. Shareholders of an open-end investment company may
require the company to redeem their shares of common stock at any time (except in certain circumstances as authorized by or under the Investment Company Act) at their net asset value, less such redemption charge, if any, as might be in effect at the
time of a redemption. In addition, conversion to an open-end investment company would require redemption of all outstanding shares of the preferred stock.</FONT>
<P>
<FONT size=2 face="serif">The board of directors has determined that the 75% voting requirements described above, which are greater than the minimum requirements under Maryland law or the Investment Company Act, are in the best interests of
shareholders generally. Reference should be made to the charter on file with the SEC for the full text of these provisions.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">ANTI-TAKEOVER PROVISIONS IN THE BYLAWS</FONT></B></P>
<P>
<FONT size=2 face="serif">The Fund&#146;s bylaws establish advance notice procedures for shareholder proposals to be brought before an annual meeting of shareholders, and for proposed nominations of candidates for election to the board of directors
at an annual or special meeting of shareholders. Generally, such notices must be received by the Secretary of the Fund, in the case of an annual meeting, not less than 90 days nor more than 120 days prior to the first anniversary of the preceding
year&#146;s annual meeting and, in the case of a special meeting, not later than the close of business on the tenth day following the day on which notice of the date of the special meeting was mailed or public announcement of the date of the special
meeting was made, whichever first occurs. Reference should be made to the bylaws on file with the SEC for the detailed requirements of these advance notice procedures.</FONT></P>
<FONT size=5 face="sans-serif">Repurchase of common stock</FONT><BR>
<P>
<FONT size=2 face="serif">Shares of closed-end investment companies often trade at a discount to their net asset values, and the Fund&#146;s common stock may also trade at a discount to its net asset value, although it is possible that it may trade
at a premium above net asset value. The market price of the Fund&#146;s common stock is determined by such factors as relative demand for and supply of such common stock in the market, the Fund&#146;s net asset value, general market and economic
conditions and other factors beyond the control of the Fund. Although the Fund&#146;s common shareholders do not have the right to redeem their common stock, the Fund may take action to repurchase common stock in the open market or make tender
offers for its common stock. This may have the effect of reducing any market discount from net asset value.</FONT></P>
<P>
<FONT size=2 face="serif">There is no assurance that, if action is undertaken to repurchase or tender for shares of common stock, such action will result in the common stock trading at a price which approximates net asset value. Although share
repurchases and tenders could have a favorable effect on the market price of the Fund&#146;s common stock, you should be aware that the acquisition of shares of common stock by the Fund will decrease the total net assets of the Fund and, therefore,
may have the effect of increasing the Fund&#146;s expense ratio and decreasing the asset coverage with respect to any APS outstanding. Any share repurchases or tender offers will be made in accordance with requirements of the Securities Exchange Act
of 1934, the Investment Company Act and the principal stock exchange on which the common stock is traded.</FONT></P>
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<div align="right"><B><FONT size=2 face="sans-serif">47</FONT></B>
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<P><FONT size=5 face="sans-serif">U.S. federal income tax matters</FONT></P>
<P>
<FONT size=2 face="serif">The following is a summary discussion of certain federal income tax consequences that may be relevant to a U.S. shareholder that acquires, holds and/or disposes of shares of APS. It reflects provisions of the Code, existing
Treasury regulations, rulings published by the IRS, and other applicable authority, in each case as of the date of this Prospectus. These authorities are subject to change by legislative or administrative action, possibly with retroactive effect.
The following discussion is only a summary of some of the important tax considerations generally applicable to investments in the Fund and does not constitute tax advice. For more detailed information regarding tax considerations, see the Statement
of Additional Information. There may be other tax considerations applicable to particular investors. In addition, income earned through an investment in the Fund may be subject to state, local and foreign taxes.</FONT></P>
<B><FONT size=2 face="sans-serif">TAXATION OF THE FUND</FONT></B><BR>
<P>
<FONT size=2 face="serif">The Fund has elected to be treated, has qualified and intends to continue to qualify for the special tax treatment afforded regulated investment companies under the provisions of Subchapter M of the Code. As long as the
Fund so qualifies, in any taxable year in which it distributes at least 90% of the sum of its investment company taxable income (consisting generally of taxable net investment income, net short-term capital gain and net realized gains from certain
hedging transactions) and certain other income, the Fund (but not its shareholders) will not be subject to federal income tax to the extent that it distributes its investment company taxable income and net capital gain (the excess of net long-term
capital gain over net short-term capital loss). The Fund intends to distribute substantially all of such income and gain each year.</FONT></P>
<P>
<FONT size=2 face="serif">The Fund intends to take the position that under present law the APS will constitute stock of the Fund, and distributions by the Fund with respect to its APS (other than distributions in redemption of APS that are treated
as exchanges of stock under Section 302(b) of the Code) will constitute dividends to the extent of the Fund&#146;s current and accumulated earnings and profits as calculated for federal income tax purposes. It is possible, however, that the IRS
might take a contrary position, asserting, for example, that the APS constitutes debt of the Fund. If this position were upheld, distributions by the Fund to holders of APS would constitute interest, whether or not they exceeded the earnings and
profits of the Fund, would be included in full in the income of the recipient and would be taxed as ordinary income. The following discussion assumes that shares of APS are treated as stock.</FONT></P>
<B><FONT size=2 face="sans-serif">TAXATION OF SHAREHOLDERS</FONT></B><BR>
<P>
<FONT size=2 face="serif">Distributions of any net investment income and net short-term capital gain will be taxable as ordinary income (except to the extent that a reduced capital gains tax rate applies to qualified dividend income). Distributions
of the Fund&#146;s net capital gain, if any, will be taxable to shareholders as long-term capital gains, regardless of the length of time they held their shares. So long as the Fund has capital loss carryforwards, distributions derived from capital
gains in the Fund&#146;s portfolio may constitute ordinary income, rather than capital gains, to shareholders.</FONT></P>
<P>
<FONT size=2 face="serif">Distributions, if any, in excess of the Fund&#146;s earnings and profits will first reduce the adjusted tax basis of a holder&#146;s shares and, after that basis has been reduced to zero, will constitute capital gains to
the shareholder (assuming the shares are held as capital assets). For purposes of determining whether distributions are out of the Fund&#146;s current or accumulated earnings and profits, the Fund&#146;s earnings and profits will be allocated first
to the Fund&#146;s preferred stock and then to the Fund&#146;s common stock.</FONT></P>
<P>
<FONT size=2 face="serif">Subject to certain conditions and limitations, including certain holding period requirements for the Fund and the shareholders under applicable federal income tax provisions, a corporation receiving</FONT></P>
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<B><FONT size=2 face="sans-serif">U.S. federal income tax matters</FONT></B>
<hr size="1" noshade>
<BR>
<FONT size=2 face="serif">dividends with respect to stock it owns in another
corporation is allowed a deduction against a portion of such dividend income
received (the &#147;Dividends Received Deduction&#148;). The Fund expects to
receive dividends with respect to some or all of the stocks in other corporations
held by the Fund, and the Fund may designate dividends paid by the Fund as eligible
for the Dividends Received Deduction to the extent that the Fund receives dividends
for which the Fund would be entitled to the Dividends Received Deduction if the
Fund were a regular corporation and not a regulated investment company. A corporation
that owns common stock or preferred stock of the Fund generally will be entitled
to a Dividends Received Deduction with respect to a designated portion of the
dividends it receives from the Fund.</FONT>
<P>
<FONT size=2 face="serif">To the extent that the source of dividends or distributions with respect to the APS is dividends received by the Fund that would be eligible for the Dividends Received Deduction, a corporate holder of APS will be allowed a
deduction equal to 70% of the dividends paid to it by the Fund that are designated by the Fund as eligible for the Dividends Received Deduction. The aggregate amount of Dividends Received Deductions that may be taken by a corporation is limited to
70% of its taxable income, computed without regard to any net operating loss deduction. The portion of a dividend on the APS that can be designated as eligible for the Dividends Received Deduction will be limited by the fact that dividend income
received by the Fund is allocated to the RPS first, before being allocated to any other class or series of the Fund&#146;s stock. Dividends on the APS and the Fund&#146;s common stock will be designated as eligible for the Dividends Received
Deduction only to the extent that any qualifying income remains after dividends are paid on the RPS.</FONT></P>
<P>
<FONT size=2 face="serif">Dividends and other distributions declared by the Fund in October, November or December of any year and payable to shareholders of record on a date in any of those months will be deemed to have been paid by the Fund and
received by the shareholders on December 31 of that year if the distributions are paid by the Fund during the following January. Accordingly, those distributions will be taxed to shareholders for the year in which that December 31 falls.</FONT></P>
<P>
<FONT size=2 face="serif">The Fund will inform shareholders of the source and tax status of all distributions promptly after the close of each calendar year. The IRS has taken the position that if a regulated investment company has more than one
class of stock, it may designate distributions made to each class in any year as consisting of no more than that class&#146;s proportionate share of particular types of income for that year, including ordinary income and net capital gain. A
class&#146;s proportionate share of a particular type of income for a year is determined according to the percentage of total dividends paid by the regulated investment company during that year to the class. The IRS, however, will not render such
designations ineffective for federal income tax purposes even if it is a disproportionate designation as long as such designation is made pursuant to a rule described in a registration statement that was filed with the SEC before June 13,
1989.</FONT></P>
<P>
<FONT size=2 face="serif">The Fund has received a private letter ruling from the IRS that states that the IRS will respect the Fund&#146;s proposed method of designating income eligible for the Dividends Received Deduction to the RPS, common stock
and the APS. More specifically, the IRS will respect the Fund&#146;s designation of income eligible for the Dividends Received Deduction to the RPS pro rata between dividend income that is eligible for the Dividends Received Deduction (and that
constitutes qualified dividend income) and dividend income that is eligible for the Dividends Received Deduction (but does not constitute qualified dividend income). To the extent any qualifying income remains after dividends are paid on the RPS,
distributions on the common stock and the APS will be designated as income eligible for the Dividends Received Deduction on a pro rata basis between these classes. Dividend income constitutes qualified dividend income (but is not eligible for the
Dividends Received Deduction) and net capital gain will be designated to the common stock and the APS (and to the RPS to the extent the Fund&#146;s qualified income is less than the distribution to the RPS) on a pro rata basis among these classes.</FONT></P>
<P><FONT size=2 face="serif">If at any time when any shares of APS are outstanding
    the Fund does not meet the asset coverage requirements of the Investment
    Company Act, the Fund will be required to suspend distributions to</FONT></P>
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<B><FONT size=2 face="sans-serif">U.S. federal income tax matters</FONT></B>
<hr size="1" noshade>
<BR>
<FONT size=2 face="serif">holders of common stock until the asset coverage is
restored. See &#147;Description of APS&#151;Dividends and Dividend Periods&#151;Restrictions on Dividends and Other Payments.&#148; Such a suspension may prevent the Fund
from distributing at least 90% of the sum of its investment company taxable income and certain other income and may, therefore, jeopardize the Fund&#146;s qualification for taxation as a regulated investment company. Upon any failure to meet the
asset coverage requirements of the Investment Company Act, the Fund, in its sole discretion, may redeem shares of APS in order to maintain or restore the requisite asset coverage and avoid the adverse consequences to the Fund and its shareholders of
failing to qualify for treatment as a regulated investment company. See &#147;Description of APS&#151;Redemption.&#148; There
can be no assurance, however, that any such action would achieve that objective.</FONT>
<P>
<FONT size=2 face="serif">Under current law, the U.S. federal income tax rate on long-term capital gains recognized by individuals is 15% (or 5% for individuals in the 10% or 15% tax brackets) and by corporations is 35%. &#147;Qualified dividend
income&#148; received by individuals from certain domestic and foreign corporations also is taxed at this reduced capital gains tax rate (not eligible for the Dividends Received Deduction). Qualified dividend income received by corporations is taxed
at ordinary income tax rates. The reduced long-term capital gains tax rate will apply to capital gains realized by shareholders who sell shares of APS that they have held for more than one year. The reduced rates, which do not apply to short-term
capital gains, generally apply to long-term capital gains from sales or exchanges (and to Fund distributions of such gain) for taxable years beginning before January 1, 2009. Fund distributions designated as capital gain dividends should be eligible
for the reduced rate applicable to long-term capital gains for individuals. Ordinary income dividends paid by the Fund will be eligible to be treated by individual Fund shareholders as qualified dividend income taxed at the reduced capital gains
rate to the extent that some portion of the Fund&#146;s dividends are attributable to qualified dividend income received by the Fund and to the extent that the Fund designates such portion as qualified dividend income. The reduced rates apply only
if certain holding period requirements are satisfied by the shareholder. For this purpose, &#147;qualified dividend income&#148; means dividends received by the Fund from U.S. corporations and qualifying foreign corporations, provided that the Fund
satisfies certain holding period and other requirements in respect of the stock of such corporations. As is the case with the Dividends Received Deduction, to the extent the Fund is required to allocate income eligible for the Dividends Received
Deduction to the RPS, the allocation to the RPS generally will reduce the dividends on the common stock and the APS that are eligible for the special qualified dividend rate.</FONT></P>
<P>
<FONT size=2 face="serif">In the case of securities lending transactions, payments in lieu of dividends are not treated as qualified dividend income. Dividends received by the Fund from REITs are treated as qualified dividend income eligible for
this lower tax rate only in limited circumstances.</FONT></P>
<P>
<FONT size=2 face="serif">These special rules relating to the taxation of the Fund&#146;s ordinary income dividends as qualified dividend income generally apply to taxable years beginning before January 1, 2009. Thereafter, the Fund&#146;s
dividends, other than capital gain dividends, will be fully taxable at ordinary income tax rates unless further legislative action is taken.</FONT></P>
<P>
<FONT size=2 face="serif">A dividend paid by the Fund to a shareholder will not be treated as qualified dividend income of the shareholder if (1) the dividend is received with respect to any share held for fewer than 61 days during the 121-day
period beginning on the date which is 60 days before the date on which such share becomes ex-dividend with respect to such dividend (or more than 90 days during the associated 181-day period, in the case of dividends attributable to periods in
excess of 366 days paid with respect to preferred stock), (2) to the extent that the recipient is under an obligation (whether pursuant to a short sale or otherwise) to make related payments with respect to positions in substantially similar or
related property, or (3) if the recipient elects to have the dividend treated as investment income for purposes of the limitation on deductibility of investment interest.</FONT></P>
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<B><FONT size=2 face="sans-serif">U.S. federal income tax matters</FONT></B>
<hr size="1" noshade>
<BR>
<FONT size=2 face="serif">Dividends and interest received, and gains realized,
by the Fund on foreign securities may be subject to income, withholding or other
taxes imposed by foreign countries and U.S. possessions (collectively &#147;foreign
taxes&#148;) that would reduce the return on its securities. Tax conventions between certain countries and the United States, however, may reduce or eliminate foreign taxes, and many foreign countries do not impose taxes on capital gains in respect
of investments by foreign investors. Since less than 50% of the value of the Fund&#146;s
total assets at the close of its taxable year will consist of securities of foreign
corporations, no foreign tax credit with respect to any foreign taxes paid by
the Fund will pass through to its shareholders.</FONT>
<P>
<FONT size=2 face="serif">The Fund will inform shareholders of the source and tax status of all distributions promptly after the close of each calendar year.</FONT></P>
<B><FONT size=2 face="sans-serif">SALES OF APS</FONT></B><BR>
<P>
<FONT size=2 face="serif">The sale of APS (including transfers in connection with a redemption or repurchase of APS treated as a sale or exchange) will be a taxable transaction for federal income tax purposes. A selling shareholder generally will
recognize gain or loss equal to the difference between the amount of cash (plus the fair market value of any property received) and the holder&#146;s adjusted tax basis in the APS. If the shares of APS are held as a capital asset, the gain or loss
will be a capital gain or loss and will be long-term if the shares of APS have been held for more than one year. The maximum tax rate applicable to net capital gains recognized by individuals and other non-corporate taxpayers is (i) the same as the
maximum ordinary income tax rate for gains recognized on the sale of capital assets held for one year or less, or (ii) 15% for gains recognized on the sale of capital assets held for more than one year (as well as certain capital gain dividends) (5%
for individuals in the 10% or 15% tax brackets). The maximum tax rate applicable to net capital gains recognized by a corporate taxpayer is 35%. Any loss realized on a disposition of shares of APS held for six months or less will be treated as a
long-term, rather than a short-term, capital loss to the extent of any capital gain distributions received with respect to those shares of APS. A shareholder&#146;s holding period for APS is suspended for any periods during which the
shareholder&#146;s risk of loss is diminished as a result of holding one or more other positions in substantially similar or related property, or through certain options, sales contracts or short sales. Any loss realized on a sale or exchange of
shares of APS will be disallowed to the extent those shares of APS are replaced by other substantially identical shares within a period of 61 days beginning 30 days before and ending 30 days after the date of disposition of the original shares of
APS. In that event, the basis of the replacement shares of APS will be adjusted to reflect the disallowed loss.</FONT></P>
<P>
<FONT size=2 face="serif">An investor should also be aware that the benefits of the reduced tax rate applicable to long-term capital gains and qualified dividend income may be impacted by the application of the alternative minimum tax to individual
shareholders.</FONT></P>
<B><FONT size=2 face="sans-serif">BACKUP WITHHOLDING</FONT></B><BR>
<P>
<FONT size=2 face="serif">The Fund is required to withhold a percentage of all taxable dividends, capital gain distributions and repurchase proceeds payable to any individuals and certain other non-corporate shareholders who do not provide the Fund
with a correct taxpayer identification number. Such withholding from taxable dividends and capital gain distributions is also required for such shareholders who fail to provide certain certifications or otherwise are subject to backup withholding.
Backup withholding is not an additional tax. Any amounts withheld from payments made to a shareholder may be refunded or credited against the shareholder&#146;s U.S. federal income tax liability, provided that the required information is furnished
to the IRS.</FONT></P>
<P>
<FONT size=2 face="serif">The foregoing briefly summarizes some of the important federal income tax consequences of investing in the APS, reflects the federal tax law as of the date of this Prospectus, and does not address spe-</FONT></P>
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<B><FONT size=2 face="sans-serif">U.S. federal income tax matters</FONT></B>
<hr size="1" noshade>
<p><FONT size=2 face="serif">cial tax rules applicable to certain types of investors, such as foreign investors. Investors should consult their tax advisors regarding other federal, state or local tax considerations that may be applicable in their
  particular circumstances, as well as any proposed tax law changes. A more complete discussion of the tax rules applicable to the Fund and its shareholders can be found in the Statement of Additional Information, which is incorporated by reference
  into this Prospectus.</FONT>
</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<P>&nbsp;</P>

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<FONT size=5 face="sans-serif"><br>
Underwriting</FONT><BR>
<P>
<FONT size=2 face="serif">The underwriters named below (the &#147;Underwriters&#148;), acting through [ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;] as lead manager and [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ] as their representatives (together with the lead manager, the &#147;Representatives&#148;), have severally agreed,
subject to the terms and conditions of the Underwriting Agreement with the Fund and the Adviser, to purchase from the Fund the number of APS set forth below their respective names. The Underwriters are committed to purchase and pay for all of the
Fund&#146;s APS if any are purchased.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><B><FONT size=1 face="sans-serif">Underwriters</FONT></B>&nbsp;
          </div></TD>
        <TD align=center>
      <div align="right"><B><FONT size=1 face="sans-serif">Number of shares of APS</FONT></B>&nbsp;
          </div></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><BR>
</p>
<P>
<FONT size=2 face="serif">The Underwriters have advised the Fund that they propose initially to offer the APS of the Fund to the public at the public offering price set forth on the cover page of this Prospectus, and to certain dealers at such price
less a concession not in excess of &#36;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ] per share. The sales load the Fund will pay of &#36;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ] per share of APS is equal to [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ]% of the initial offering price. The Underwriters may allow, and such dealers may reallow, a discount not in excess
of &#36;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ] per share to other dealers. After the initial public offering, the public offering price, concession and discount may be changed. Investors must pay for any APS purchased on or before [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ], 2006.</FONT></P>
<P><FONT size=2 face="serif"> The Underwriters will act in auctions as
  Broker-Dealers as set forth under &#147;The Auctions &#147; and will be entitled to fees for services as Broker-Dealers as set forth therein. The Underwriters also may provide information to be used in ascertaining the reference rate.</FONT></P>
<P>
<FONT size=2 face="serif">The Fund anticipates that the Representatives and certain other Underwriters may from time to time act as brokers and dealers in connection with the execution of the Fund&#146;s portfolio transactions after they have ceased
to be principal underwriters of the Fund under the Investment Company Act and, subject to certain conditions, may act as such brokers while they are principal underwriters.</FONT></P>
<P>
<FONT size=2 face="serif">In connection with this offering, certain of the Underwriters or selected dealers may distribute prospectuses electronically.</FONT></P>
<P>
<FONT size=2 face="serif">The Fund and the Adviser have agreed to indemnify the Underwriters against certain liabilities including liabilities under the Securities Act of 1933.</FONT></P>
<P>
<FONT size=5 face="sans-serif">Custodian, transfer agent and auction agent</FONT></P>
<P>
<FONT size=2 face="serif">The Fund&#146;s custodian is The Bank of New York, Church Street Station, Post Office Box 11258, New York, New York 10286. The transfer agent and dividend disbursing agent for the Fund&#146;s common and preferred stock is
The Bank of New York, Church Street Station, P.O. Box 11258, New York, New York 10286. The Fund&#146;s auction agent is [ ].</FONT></P>
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<hr size="1" noshade>
<br>
<FONT size=5 face="sans-serif">Legal opinions</FONT><BR>
<P>
<FONT size=2 face="serif">Certain legal matters in connection with the shares of APS offered hereby will be passed upon by Mayer, Brown, Rowe &amp; Maw LLP, Chicago, Illinois, and for the Underwriters by [ ].</FONT></P>
<FONT size=5 face="sans-serif">Available information</FONT><BR>
<P>
<FONT size=2 face="serif">The Fund is subject to the informational requirements of the Securities Exchange Act of 1934 and the Investment Company Act and is required to file reports, proxy statements and other information with the SEC. These
documents can be inspected and copied for a fee at the SEC&#146;s public reference room, 100 F Street, N.E., Washington, D.C. 20549, and at the SEC&#146;s Northeast Regional Office, 233 Broadway, New York, New York 10279. Reports, proxy statements,
and other information about the Fund can be inspected at the offices of the New York Stock Exchange, 20 Broad Street, New York, New York 10005.</FONT></P>
<P>
<FONT size=2 face="serif">This Prospectus does not contain all of the information in the Fund&#146;s registration statement, including amendments, exhibits, and schedules. Statements in this Prospectus about the contents of any contact or other
document are not necessarily complete and in each instance reference is made to the copy of the contact or other document filed as an exhibit to the registration statement, each such statement being qualified in all respects by this
reference.</FONT></P>
<P>
<FONT size=2 face="serif">Additional information about the Fund and the APS can be found in the Fund&#146;s registration statement (including amendments, exhibits, and schedules) on Form N-2 filed with the SEC. The SEC maintains a web site
(http://www.sec.gov) that contains the Fund&#146;s registration statement, other documents incorporated by reference, and other information the Fund has filed electronically with the SEC, including proxy statements and reports filed under the
Securities Exchange Act of 1934.</FONT></P>
<FONT size=5 face="sans-serif">Privacy principles of the Fund</FONT><BR>
<P>
<FONT size=2 face="serif">The Fund is committed to maintaining the privacy of its shareholders and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information the Fund
collects, how the Fund protects that information and why, in certain cases, the Fund may share information with select other parties.</FONT></P>
<P>
<FONT size=2 face="serif">Generally, the Fund does not receive any non-public personal information relating to its shareholders, although certain non-public personal information of its shareholders may become available to the Fund. The Fund does not
disclose any non-public personal information about its shareholders or former shareholders to anyone, except as permitted by law or as is necessary in order to service shareholder accounts (for example, to a transfer agent or third party
administrator).</FONT></P>
<P>
<FONT size=2 face="serif">The Fund restricts access to non-public personal information about its shareholders to employees of the Fund&#146;s investment adviser and its affiliates with a legitimate business need for the information. The Fund
maintains physical, electronic and procedural safeguards designed to protect the non-public personal information of its shareholders.</FONT></P>
<hr size="1" noshade>
<B><FONT size=2 face="sans-serif">54</FONT></B>
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<P align="left" style="page-break-before:always"></P><PAGE>


<hr size="1" noshade>
<br>
<FONT size=5 face="sans-serif">Table of contents for the</FONT><BR>
<FONT size=5 face="sans-serif">Statement of Additional Information</FONT><BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=2 face="serif"><u>Page</u></FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment Objectives, Policies and Techniques</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Management of the Fund</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio Transactions and Brokerage</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Additional Information Concerning the Auctions for APS</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Repurchase of Common Stock</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">U.S. Federal Income Tax Matters</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Experts</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Additional Information</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=2 face="serif">APPENDIX A: Articles Supplementary creating [ ] series of Auction Preferred Stock</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">32</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<hr size="1" noshade>
<div align="right"><B><FONT size=2 face="sans-serif">55</FONT></B>
</div>
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<P align="left" style="page-break-before:always"></P><PAGE>


<P>&nbsp;</P>
<P>&nbsp;</P>
<P align="center"><FONT size=2 face="serif">[Duff &amp; Phelps Logo &#151; TK]</FONT></P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<HR noshade  width="100%" size=4>




<P align="left" style="page-break-before:always"></P><PAGE>

<P>
<FONT color="#FF0000" size=2 face="serif">The information in this Statement of Additional Information is not complete and may be changed. A registration statement relating to these securities has been filed with the Securities and Exchange Commission. We may not
sell these securities until the registration statement is effective. This Statement of Additional Information is not a prospectus.</FONT></P>

<center>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p><FONT color="#FF0000" size=2 face="serif">Subject to Completion, dated ___________ __, 2005</FONT></p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p><BR>
  </p>
</center>
<P align="center">
<B><FONT size=2 face="serif">STATEMENT OF ADDITIONAL INFORMATION<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><B><FONT size=2 face="serif">, 2005</FONT></B></P>
<P align="center">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">DNP Select Income Fund Inc.<br>
55 East Monroe Street, Suite 3600<br>
Chicago, Illinois 60603<br>
(312) 368-5510</FONT></B></P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="left">
<B><FONT size=2 face="serif">This Statement of Additional Information (&#147;SAI&#148;) is not a prospectus and is authorized for distribution to prospective investors only if preceded or accompanied by the prospectus of DNP Select Income Fund Inc.,
subject to completion, dated __, 2005 as supplemented from time to time, which is incorporated herein by reference. This SAI should be read in conjunction with such prospectus, a copy of which may be obtained without charge by contacting your
financial intermediary or calling the Fund at (888) 878-7845.</FONT></B></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>




<P align="center">
<B><FONT size=2 face="serif">TABLE OF CONTENTS</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment Policies, Techniques and Restrictions</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Management of the Fund</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">4</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio Transactions and Brokerage</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Additional Information Concerning the Auctions for APS</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">15</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Repurchase of Common Stock</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividend Reinvestment Plan</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">22</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">U.S. Federal Income Tax Matters</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Experts</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Additional Information</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">APPENDIX A: Articles Supplementary creating [</FONT>&nbsp;
<FONT size=2 face="serif">] series of Auction Preferred Stock</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">32</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<br>
<hr align="center" noshade width="140" size="1">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Capitalized terms used in this SAI and not otherwise defined have the meanings given them in the Fund&#146;s prospectus.</FONT>
<P align="center">
<FONT size=2 face="serif">1</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<P align="center">
<B><FONT size=2 face="serif">INVESTMENT POLICIES, TECHNIQUES AND RESTRICTIONS</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Fund&#146;s primary investment objectives are current income and long-term growth of income. Capital appreciation is a secondary objective. The Fund seeks to achieve its investment
objectives by investing primarily in a diversified portfolio of equity and fixed income securities of companies in the public utilities industry.</FONT></P>
<B><FONT size=2 face="serif">Fundamental Investment Restrictions</FONT></B><BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The following are fundamental investment restrictions of the Fund that may be changed only with approval of the holders of a &#147;majority&#148; (as defined in the Investment Company Act) of
the outstanding shares of the Fund&#146;s common stock and preferred stock voting together as a single class:</FONT></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD width="3%" valign=top nowrap>&nbsp;</TD>
        <TD width="3%" valign=top nowrap>
<FONT size=2 face="serif">1.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">The Fund may not invest more than 25% of its total assets (valued at the time of investment) in securi- ties of companies engaged principally in any one industry other than the public utilities industry, which includes
companies engaged in the production, transmission or distribution of electric energy or gas or in telephone services, except that this restriction does not apply to securities issued or guaranteed by the U.S. government or its agencies or
instrumentalities.</FONT>       </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">2.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">The Fund may not:</FONT>      </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD> <TD width="3%" valign=top nowrap>
<FONT size=2 face="serif">(a)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">invest more than 5% of its total assets (valued at the time of the investment) in the securities of any one issuer, except that this restriction does not apply to U.S. government securities; or</FONT>      </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD> <TD width="3%" valign=top nowrap>
<FONT size=2 face="serif">(b)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">acquire more than 10% of the outstanding voting securities of any one issuer (at the time of acquisition);</FONT>     </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD> <TD colspan=2>
<FONT size=2 face="serif">except that up to 25% of the Fund&#146;s total assets (at the time of investment) may be invested without regard to the limitations set forth in this restriction.</FONT>     </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">3.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">The Fund may borrow money on a secured or unsecured basis for any purpose of the Fund in an aggre- gate amount not exceeding 15% of the value of the Fund&#146;s total assets at the time of any such borrow- ing (exclusive of
all obligations on amounts held as collateral for securities loaned to other persons to the extent that such obligations are secured by assets of at least equivalent value).</FONT>    </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">4.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">The Fund may not pledge, mortgage or hypothecate its assets, except to secure indebtedness permitted by restriction 3 above. (The deposit in escrow of securities in connection with the writing of put and call options,
collateralized loans of securities and collateral arrangements with respect to margin requirements for futures transactions and with respect to segregation of securities in connection with forward contracts are not deemed to be pledges or
hypothecations for this purpose.)</FONT>        </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">5.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">The Fund may make loans of securities to other persons to the extent of not more than 33 1/3% of its total assets (valued at the time of the making of loans), and may invest without limitation in short-term obligations and
publicly distributed obligations.</FONT>        </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">6.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">The Fund may not underwrite the distribution of securities of other issuers, although it may acquire securities that, in the event of a resale, might be required to be registered under the Securities Act of 1933 because the
Fund could be regarded as an underwriter as defined in that act with respect to the resale.</FONT>      </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">7.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">The Fund may not purchase or sell real estate or any interest therein, except that the Fund may invest in securities secured by real estate or interests therein, such as mortgage pass-throughs, pay-throughs, col-
lateralized mortgage obligations, and securities issued by companies (including partnerships and real estate investment trusts) that invest in real estate or interests therein.</FONT> </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">8.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">The Fund may acquire securities of other investment companies to the extent (at the acquisition) of (i) not more than 3% of the outstanding voting stock of any one investment company, (ii) not more than 5% of the assets of
the Fund in any one investment company and (iii) not more than 10% of the assets of the Fund in all investment companies (exclusive in each case of securities received as a dividend or as a result of a merger, consolidation or other plan of
reorganization).</FONT> </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">2</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD width="3%" align=right valign=top>&nbsp;</TD>
        <TD width="3%" align=right valign=top nowrap>
      <div align="right"><FONT size=2 face="serif">9.</FONT>&nbsp; &nbsp; &nbsp;</div></TD>
        <TD>
<FONT size=2 face="serif">The Fund may not invest for the purpose of exercising control over or
management of any company.</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD valign=top align=right>&nbsp;</TD>
        <TD align=right valign=top nowrap>
      <div align="right"><FONT size=2 face="serif">10.</FONT>&nbsp; &nbsp; &nbsp;       </div></TD>
        <TD>
<FONT size=2 face="serif">The Fund may not purchase securities on margin, or make short sales of securities, except the use of short-term credit necessary for the clearance of purchases and sales of portfolio securities, but it may make margin
deposits in connection with transactions in options, futures and options on futures.</FONT>     </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD valign=top align=right>&nbsp;</TD>
        <TD align=right valign=top nowrap>
      <div align="right"><FONT size=2 face="serif">11.</FONT>&nbsp; &nbsp; &nbsp;       </div></TD>
        <TD>
<FONT size=2 face="serif">The Fund may not purchase or sell commodities or commodity contracts, except that it may enter into (i) stock index futures transactions, interest rate futures transactions and options on such future transactions and (ii)
forward contracts on foreign currencies to the extent permitted by applicable law.</FONT>       </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD valign=top align=right>&nbsp;</TD>
        <TD align=right valign=top nowrap>
      <div align="right"><FONT size=2 face="serif">12.</FONT>&nbsp; &nbsp; &nbsp;       </div></TD>
        <TD>
<FONT size=2 face="serif">The Fund may not issue any security senior to its common stock, except that the Fund may borrow money subject to investment restriction 3 and except as permitted by the Fund&#146;s charter.</FONT>  </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P><B><FONT size=2 face="serif">Additional Nonfundamental Restrictions. </FONT></B></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Fund may not (i) invest in securities subject to legal or contractual restrictions on resale, if, as a result of such investment, more than 10% of the Fund&#146;s total assets would be invested in such securities, or (ii) acquire 5% or more of the outstanding voting securities of a public utility company.</FONT></P>
<B><FONT size=2 face="serif">Other Significant Investment Policies</FONT></B><BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The following are other significant investment policies and restrictions of the Fund, which may be changed by the board of directors without the approval of the Fund&#146;s
shareholders.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Fixed Income Securities. </FONT></B><FONT size=2 face="serif">The Fund purchases a fixed income security only if, at the time of purchase, it is (i) rated investment grade by at least two of
the following three nationally recognized statistical rating organizations: Moody&#146;s, S&amp;P and Fitch, Inc. or (ii) determined by the Fund&#146;s investment adviser to be of investment grade and not rated below investment grade by any of the
aforementioned rating services. A fixed income security rated investment grade has a rating of BBB- or better by Fitch, Baa3 or better by Moody&#146;s, or BBB- or better by S&amp;P. In making its determination that a fixed income security is
investment grade, the Fund&#146;s investment adviser will use the standards used by a nationally recognized statistical rating organization.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Rating Agency Guidelines. </FONT></B><FONT size=2 face="serif">The Fund&#146;s preferred stock is currently rated by Moody&#146;s and S&amp;P, nationally recognized statistical rating
organizations, which issue ratings for various securities reflecting the perceived cred-itworthiness of those securities. The Fund intends that, so long as shares of its preferred stock are outstanding, the composition of its portfolio will reflect
guidelines established by the foregoing rating organizations in connection with the Fund&#146;s receipt of the highest rating for its preferred stock from at least two of such rating organizations.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Options and Futures Transactions. </FONT></B><FONT size=2 face="serif">The Fund may seek to increase its current return by writing covered options. In addition, through the writing and
purchase of options and the purchase and sale of futures contracts and related options, the Fund may at times seek to hedge against a decline in the value of securities owned by it or an increase in the price of securities which it plans to
purchase. However, for so long as shares of the Fund&#146;s preferred stock are rated either by Moody&#146;s or S&amp;P, the Fund will not purchase or sell futures contracts or related options or engage in other hedging transactions unless
Moody&#146;s or S&amp;P, as the case may be, advises the Fund that such action or actions will not adversely affect its then-current rating of the Fund&#146;s preferred stock.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Swap and Swaption Transactions. </FONT></B><FONT size=2 face="serif">The Fund may utilize interest rate and credit swaps and swaptions, subject to the following restrictions: (i) swaps and
swaptions must be U.S. dollar denominated and used for hedging purposes only; (ii) no more than 5% of the Fund&#146;s total assets, at the time of purchase, may be invested in time premiums paid for swaptions; (iii) the terms of all swaps and
swaptions must conform to the standards of the ISDA Master Agreement published by the International Swaps and Derivatives Association, Inc.; and (iv) the counterparty must be a bank or broker-dealer firm regulated under the laws of the United States
that is (A) on a list approved by the board of directors, (B) with capital of at least &#36;100 million and (C) rated investment grade by both S&amp;P and Moody&#146;s.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Credit Derivatives. </FONT></B><FONT size=2 face="serif">The market value of the Fund&#146;s investments in credit derivatives and/or premiums paid therefor as a buyer of credit protection
will not exceed 10% of the Fund&#146;s total assets and the notional value of the credit exposure to which the Fund is subject when it sells credit derivatives will not exceed 33 1/3% of the Fund&#146;s total assets.</FONT></P>


<P><FONT size=2 face="serif"><b>Percentage Restrictions</b></font></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"> The Fund's investment policies, techniques and restrictioins that are set forth in the Prospectus or this Statement of Additional Information may contain percentage restrictions with respect to the amount of the Fund's assets that may be invested in a given manner. If any such percentage restriction is adhered to at the time a transaction is effected, later changes in percentages resulting from changes in value or in the number of outstanding securities of an issuer will not be considered a violation.</FONT></P>
<P>&nbsp;</P>
<P align="center">
<FONT size=2 face="serif">3</FONT></P>

<hr noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>
<center>
  <p><br>


      <B><FONT size=2 face="serif">MANAGEMENT OF THE FUND</FONT></B></p>
  <p align="left">  <B><FONT size=2 face="serif">Advisory Agreement</FONT></B>    </p>
</center>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Each year, the board of directors of the Fund, including a majority of the directors who are not interested persons of the Fund or the Adviser voting separately as a class, is required to
approve the renewal of the Advisory Agreement. The contracts committee of the board of directors, which is comprised solely of independent directors, requests and evaluates, and the Adviser furnishes, such information as the committee determines to
be reasonably necessary to evaluate the terms of the Advisory Agreement. The contracts committee also retains an independent consultant on an annual basis to provide detailed comparative data regarding the Adviser&#146;s fees and expense ratios and
the Fund&#146;s investment performance. The contracts committee then presents a recommendation to the board of directors regarding renewal of the Advisory Agreement.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In arriving at their decision to renew the current Advisory Agreement for a term ending on April 30, 2006, the directors reviewed the foregoing information and took into account all factors
that they deemed relevant to the best interests of the shareholders of the Fund. Such factors included the following: (i) the nature, quality and extent of the services furnished to the Fund by the Adviser; (ii) fees paid by other mutual funds for
similar services; (iii) the profitability to the Adviser of its relationship with the Fund; (iv) the continuation of appropriate incentives to assure that the Adviser will be able to continue to furnish high-quality services to the Fund; (v) the
capabilities of the team of investment professionals employed by the Adviser who perform services for the Fund; (vi) the necessity of the Adviser maintaining and enhancing its ability to attract and retain capable personnel to serve the Fund; (vii)
the investment performance over time of the Fund compared to various market indices and other mutual funds; (viii) the extent to which the Fund&#146;s stock trades at a premium or a discount to net asset value; (ix) the benefits of any economies of
scale that may be available to the Adviser; and (x) the direct and indirect benefits the Adviser receives from its relationship with the Fund, including brokerage and soft dollar arrangements.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In comparing the Fund&#146;s expenses and investment performance to those of other mutual funds, the directors took note of the fact that until recently there have been no closed-end
income-oriented funds with a utilities and REIT investment focus, an equity and fixed-income asset mix and an asset level and leverage policy comparable to the Fund. While expressly declining to use investment performance as the sole, or even the
primary, measure of the quality of the Adviser&#146;s services, the directors noted that the Fund&#146;s investment performance during 2004 had enabled the Fund to pay all of its regular monthly dividends in 2004. The directors also viewed the fact
that the Fund&#146;s stock traded at an average premium of 36.3% to net asset value during 2004 as evidence that investors take a favorable view of the extent to which the Fund has been meeting its primary objective of providing current income for
shareholders. With respect to investment personnel, the directors considered the fact that the specific individuals who manage the Fund&#146;s portfolio bring a significant depth of experience to their jobs, have worked together for many years and
are well respected in the industry. With respect to expenses, the directors noted that the management fees paid by the Fund were at or below the median levels paid by other leveraged closed-end domestic equity funds. It should be emphasized that, in
arriving at their decision, the directors did not single out any one factor or group of factors as being more important than other factors. Rather, the directors considered all factors together in light of the totality of circumstances presently
facing the Fund, recognizing that different circumstances might lead them to weigh the various factors differently when considering the best interests of the Fund and its shareholders.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Based on the foregoing considerations, the board of directors of the Fund, including a majority of the directors who are not interested persons of the Fund or the Adviser voting separately as a
class, determined that the fees payable to the Adviser under the Advisory Agreement were fair and reasonable to the Fund and that the renewal of the Advisory Agreement for a one-year period ending on April 30, 2006 was in the best interests of the
Fund and its shareholders.</FONT></P>
<B><FONT size=2 face="serif">Directors and Officers</FONT></B><BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Set forth below are the names and certain biographical information about the directors and officers of the Fund. Except as indicated in the table, directors are elected by the holders of the
Fund&#146;s common stock. The officers are elected at the annual meeting of the board of directors of the Fund.</FONT></P>
<P align="center">
<FONT size=2 face="serif">4</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Position(s) Held</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>      <center>
        <B><FONT size=1 face="serif">Number of</FONT></B>&nbsp;
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">With the Fund,</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>      <center>
        <B><FONT size=1 face="serif">Portfolios in</FONT></B>&nbsp;
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Term of</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>      <center>
        <B><FONT size=1 face="serif">Fund</FONT></B>&nbsp;
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Office and</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>      <center>
        <B><FONT size=1 face="serif">Complex</FONT></B>&nbsp;
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>      <div align="left"><B><FONT size=1 face="serif">Name, Address</FONT></B>
        </div></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Length of</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Principal Occupation(s)</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>      <center>
        <B><FONT size=1 face="serif">Overseen</FONT></B>&nbsp;
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Other Directorships</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>      <div align="left"><B><FONT size=1 face="serif">and Age</FONT></B>
        </div></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Time Served</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">During Past 5 Years</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>      <center>
        <B><FONT size=1 face="serif">by Director</FONT></B>&nbsp;
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>
      <center>
        <B><FONT size=1 face="serif">Held by Director/Officer</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD colspan=9>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><B><I><FONT size=2 face="serif">Independent Directors</FONT></I></B>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Stewart E. Conner</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Director</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Attorney, Wyatt Tarrant &amp;</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">1</FONT>&nbsp;
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">None</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">(3)(4)</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">since</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Combs LLP since 1966</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">c/o Duff &amp; Phelps Investment</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">April 2004.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">(Chairman, Executive</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management Co.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Term</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Committee 2000&#150;2004,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">55 East Monroe Street,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">expires</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Managing Partner 1988-</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Suite 3600</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">in 2007</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">2000</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chicago, Illinois 60603</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Age: 64</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Connie K. Duckworth</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Director</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Partner, Eight Wings</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">1</FONT>&nbsp;
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Director, Smurfit-Stone</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">(2)(4)</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">since</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Enterprises (investor in</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Container Corporation</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">c/o Duff &amp; Phelps Investment</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">April 2002.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">early-stage businesses)</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">(packaging manufacturer);</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management Co.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Term</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">since December 2001;</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Trustee, Northwestern</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">55 East Monroe Street,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">expires</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Advisory Director,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Mutual Life Insurance</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
  <TD align=left><FONT size=2 face="serif">Suite 3600</FONT> </TD>
  <TD>&nbsp;</TD>
  <TD align=right>
    <div align="left"><FONT size=2 face="serif">in 2008</FONT> </div></TD>
  <TD>&nbsp; </TD>
  <TD align=left>
    <div align="left"><FONT size=2 face="serif">Goldman, Sachs &amp;</FONT> </div></TD>
  <TD>&nbsp; </TD>
  <TD align=left>
    <center>
  </center></TD>
  <TD>&nbsp; </TD>
  <TD align=left>
    <div align="left"><FONT size=2 face="serif">Company; Director and</FONT>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chicago, Illinois 60603</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=center>
          <div align="left"><FONT size=2 face="serif">Company, December 2000-</FONT> </div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <center>
        </center></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"><FONT size=2 face="serif">Vice Chairman, Evanston</FONT>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Age: 51</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=center>
          <div align="left"><FONT size=2 face="serif">December 2001 (Managing</FONT> </div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <center>
        </center></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"><FONT size=2 face="serif">Northwestern Health Care</FONT>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=center>
          <div align="left"><FONT size=2 face="serif">Director, December 1996-</FONT> </div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <center>
        </center></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"><FONT size=2 face="serif">Corporation; Member,</FONT>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=center>
          <div align="left"><FONT size=2 face="serif">December 2000, Partner</FONT> </div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <center>
        </center></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"><FONT size=2 face="serif">Board of Overseers,</FONT>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"><FONT size=2 face="serif">1990-1996, Chief</FONT> </div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <center>
        </center></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"><FONT size=2 face="serif">Wharton School of the</FONT>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"><FONT size=2 face="serif">Operating Officer of</FONT> </div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <center>
        </center></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"><FONT size=2 face="serif">University of</FONT>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"><FONT size=2 face="serif">Firmwide Diversity</FONT> </div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <center>
        </center></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"><FONT size=2 face="serif">Pennsylvania</FONT>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=center>
          <div align="left"><FONT size=2 face="serif">Committee 1990-1995);</FONT> </div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <center>
        </center></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"><FONT size=2 face="serif">Founder and President,</FONT> </div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <center>
        </center></TD>
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</TR>
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        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
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          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"><FONT size=2 face="serif">Arzu, Inc. (nonprofit</FONT> </div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <center>
        </center></TD>
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        <TD align=left>
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</TR>
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        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
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          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=center>
          <div align="left"><FONT size=2 face="serif">corporation created to raise</FONT> </div></TD>
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        <TD align=left>
          <center>
        </center></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"></div></TD>
</TR>
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        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
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          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"><FONT size=2 face="serif">awareness of Afghan</FONT> </div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <center>
        </center></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"></div></TD>
</TR>
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        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
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          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"><FONT size=2 face="serif">women through sale of</FONT> </div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <center>
        </center></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align=left> <FONT size=2 face="serif">homemade rugs)</FONT> </TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Robert J. Genetski</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Director</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">President, Robert Genetski</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">1</FONT>&nbsp;
          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Director, Midwest Bank</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">(2)(5)</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">since</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">&amp; Associates, Inc.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">and Trust Company</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">c/o Duff &amp; Phelps Investment</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">April 2001.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">(economic and financial</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management Co.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Term</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">consulting firm) since</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">55 East Monroe Street,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">expires</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">1991; Senior Managing</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
  <TD align=left><FONT size=2 face="serif">Suite 3600</FONT> </TD>
  <TD>&nbsp;</TD>
  <TD align=right>
    <div align="left"><FONT size=2 face="serif">in 2007</FONT> </div></TD>
  <TD>&nbsp; </TD>
  <TD align=center>
    <div align="left"><FONT size=2 face="serif">Director, Chicago Capital,</FONT> </div></TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chicago, Illinois 60603</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"><FONT size=2 face="serif">Inc. (financial services</FONT> </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Age: 62</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=center>
          <div align="left"><FONT size=2 face="serif">firm) 1995-2001; former</FONT> </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
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        <TD align=left>

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        <TD>&nbsp;
        </TD>
        <TD align=left>
          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=center>
          <div align="left"><FONT size=2 face="serif">Senior Vice President and</FONT> </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=center>
          <div align="left"><FONT size=2 face="serif">Chief Economist, Harris</FONT> </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"><FONT size=2 face="serif">Trust &amp; Savings Bank;</FONT> </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

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</TR>
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        <TD align=left>

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        <TD>&nbsp;
        </TD>
        <TD align=left>
          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=center>
          <div align="left"><FONT size=2 face="serif">author of several books;</FONT> </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

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</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=center>
          <div align="left"><FONT size=2 face="serif">regular contributor to the</FONT> </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
          <div align="left"></div></TD>
        <TD>&nbsp; </TD>
        <TD align=left>
          <div align="left"><I><FONT size=2 face="serif">Nikkei Financial Daily</FONT></I> </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">5</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Position(s) Held</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Number of</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">With the Fund,</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Portfolios in</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Term of</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Fund</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Office and</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Complex</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>      <div align="left"><B><FONT size=1 face="serif">Name, Address</FONT></B>&nbsp;
        </div></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Length of</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Principal Occupation(s)</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Overseen</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Other Directorships</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>      <div align="left"><B><FONT size=1 face="serif">and Age</FONT></B>&nbsp;
        </div></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Time Served</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">During Past 5 Years</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">by Director</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>
      <center>
        <B><FONT size=1 face="serif">Held by Director/Officer</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD colspan=9>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Francis E. Jeffries (1)</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Director</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Chairman of the Board,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">28</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">c/o Duff &amp; Phelps Investment</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">since</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">DTF Tax-Free Income Inc.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management Co.</FONT>&nbsp;    </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">January 1987.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">and Duff &amp; Phelps Utility</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">55 East Monroe Street,</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Term</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">and Corporate Bond Trust</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Suite 3600</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">expires</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Inc. (the &#147;DTF and DUC</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chicago, Illinois 60603</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">in 2007</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Funds&#148;) since September</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 <FONT size=2 face="serif">Age: 75</FONT>&nbsp;    </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Chairman</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">1991 and November 1992,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">since</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">respectively (President,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">May 2005</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">January 2000&#150;February</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">(Vice</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">2004), Chairman, Phoenix</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Chairman</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Investment Partners, Ltd.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">April 2004&#150;</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">November 1995&#150;May</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">May 2005).</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">1997; Chairman and Chief</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Executive Officer, Duff &amp;</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Phelps Corporation, June</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left">
      <div align="left"><FONT size=2 face="serif">1993&#150;November 1995</FONT>&nbsp;
        </div></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">(President and Chief</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Executive Officer, January</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left">
    <div align="left"><FONT size=2 face="serif">1992&#150;June 1993);</FONT></div></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Chairman of the Board,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Duff &amp; Phelps Investment</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Management Co. 1988&#150;</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">1993</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Nancy Lampton</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Director</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chairman and Chief</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Director, Constellation</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 <FONT size=2 face="serif">(3)(4)(5)</FONT>&nbsp;    </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">since</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Executive Officer,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Energy Group, Inc.</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">c/o Duff &amp; Phelps Investment</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">October 1994.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Hardscuffle Inc. (insurance</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">(public utility holding</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Management Co.</FONT>&nbsp;    </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Term</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">holding company) since</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">company);Advisory</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">55 East Monroe Street,</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">expires</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">January 2000; Chairman</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Board Member,</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Suite 3600</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">in 2006.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">and Chief Executive</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Thorium Power, Inc.</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chicago, Illinois 60603</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Officer, American Life and</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">(designer of non-</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 <FONT size=2 face="serif">Age: 63</FONT>&nbsp;    </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Accident Insurance</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">proliferative fuel for</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Company of Kentucky</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">nuclear energy needs)</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left> <FONT size=2 face="serif">since 1971</FONT> </TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center colspan=9>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">6</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Position(s) Held</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Number of</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">With the Fund,</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Portfolios in</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Term of</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Fund</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Office and</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Complex</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>      <div align="left"><B><FONT size=1 face="serif">Name, Address</FONT></B>
        </div></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Length of</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Principal Occupation(s)</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Overseen</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Other Directorships</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>      <div align="left"><B><FONT size=1 face="serif">and Age</FONT></B>
        </div></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Time Served</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">During Past 5 Years</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">by Director</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>
      <center>
        <B><FONT size=1 face="serif">Held by Director/Officer</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD colspan=9>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Christian H. Poindexter</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Director</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Retired Chairman and</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Director, Mercantile</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">(2)(3)</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">since</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Chief Executive Officer,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Bankshares Corporation</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">c/o Duff &amp; Phelps Investment</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">May 2003.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Constellation Energy</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">(bank holding company);</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management Co.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Term</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Group, Inc. (public utility</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Director, The Baltimore</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">55 East Monroe Street,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">expires</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">holding company)</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Life Insurance Company;</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Suite 3600</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">in 2006.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">(Executive Committee</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Member, Finance and</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chicago, Illinois 60603</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chairman, July 2002&#150;</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Investment Committee,</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Age: 67</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">March 2003; Chairman of</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">National Executive Board,</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">the Board, April 1999&#150;July</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Boy Scouts of America</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">2002; Chief Executive</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Officer, April 1999&#150;</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">October 2001; President,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">April 1999&#150;October 2000);</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Chairman, Baltimore Gas</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">and Electric Company,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">January 1993&#150;July 2002</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">(Chief Executive Officer,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">January 1993&#150;July 2000;</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">President, March 1998&#150;</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">October 2000; Director,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">1988&#150;2003)</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Carl F. Pollard (1)(2)</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Director</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Owner, Hermitage Farm</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chairman and Director,</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">c/o Duff &amp; Phelps Investment</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">since</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">L.L.C. (thoroughbred</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Churchill Downs</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Management Co.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">April 2002.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">breeding) since January</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Incorporated</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">55 East Monroe Street,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Term</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">1995; Chairman, Columbia</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Suite 3600</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">expires</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Healthcare Corporation</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chicago, Illinois 60603</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">in 2008.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">1993-1994; Chairman and</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Age: 67</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Chief Executive Officer,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Galen Health Care, Inc.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">March-August 1993;</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">President and Chief</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Operating Officer, Humana</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Inc. 1991-1993 (previously</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Senior Executive Vice</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">President, Executive Vice</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">President and Chief</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Financial Officer)</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">7</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>      <center>
          <B><FONT size=1 face="serif">Position(s) Held</FONT></B>
    </center></TD>
        <TD align=left>      <center>
    </center></TD>
        <TD align=left>      <center>
    </center></TD>
        <TD>      <center>
    </center></TD>
        <TD align=center>      <center>
        <B><FONT size=1 face="serif">Number of</FONT></B>&nbsp;
    </center></TD>
        <TD>      <center>
    </center></TD>
        <TD align=left>      <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>      <center>
          <B><FONT size=1 face="serif">With the Fund,</FONT></B>
    </center></TD>
        <TD align=left>      <center>
    </center></TD>
        <TD align=left>      <center>
    </center></TD>
        <TD>      <center>
    </center></TD>
        <TD align=center>      <center>
        <B><FONT size=1 face="serif">Portfolios in</FONT></B>&nbsp;
    </center></TD>
        <TD>      <center>
    </center></TD>
        <TD align=left>      <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>      <center>
          <B><FONT size=1 face="serif">Term of</FONT></B>
    </center></TD>
        <TD align=left>      <center>
    </center></TD>
        <TD align=left>      <center>
    </center></TD>
        <TD>      <center>
    </center></TD>
        <TD align=center>      <center>
        <B><FONT size=1 face="serif">Fund</FONT></B>&nbsp;
    </center></TD>
        <TD>      <center>
    </center></TD>
        <TD align=left>      <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>      <center>
          <B><FONT size=1 face="serif">Office and</FONT></B>
    </center></TD>
        <TD align=left>      <center>
    </center></TD>
        <TD align=left>      <center>
    </center></TD>
        <TD>      <center>
    </center></TD>
        <TD align=center>      <center>
        <B><FONT size=1 face="serif">Complex</FONT></B>&nbsp;
    </center></TD>
        <TD>      <center>
    </center></TD>
        <TD align=left>      <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><B><FONT size=1 face="serif">Name, Address</FONT></B>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>      <center>
          <B><FONT size=1 face="serif">Length of</FONT></B>
    </center></TD>
        <TD align=left>      <center>
    </center></TD>
        <TD align=center>      <center>
          <B><FONT size=1 face="serif">Principal Occupation(s)</FONT></B>
    </center></TD>
        <TD>      <center>
    </center></TD>
        <TD align=center>      <center>
        <B><FONT size=1 face="serif">Overseen</FONT></B>&nbsp;
    </center></TD>
        <TD>      <center>
    </center></TD>
        <TD align=center>      <center>
          <B><FONT size=1 face="serif">Other Directorships</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><B><FONT size=1 face="serif">and Age</FONT></B>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>      <center>
          <B><FONT size=1 face="serif">Time Served</FONT></B>
    </center></TD>
        <TD align=left>      <center>
    </center></TD>
        <TD align=center>      <center>
          <B><FONT size=1 face="serif">During Past 5 Years</FONT></B>
    </center></TD>
        <TD>      <center>
    </center></TD>
        <TD align=center>      <center>
        <B><FONT size=1 face="serif">by Director</FONT></B>&nbsp;
    </center></TD>
        <TD>      <center>
    </center></TD>
        <TD align=left>      <center>
          <B><FONT size=1 face="serif">Held by Director/Officer</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD colspan=9>
<HR align="left" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">David J. Vitale (1)(4)</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Director</FONT>
          </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chief Administrative</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Director, ISO New</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">c/o Duff &amp; Phelps Investment</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">since</FONT>
          </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Officer, Chicago Public</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">England Inc. (not for</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management Co.</FONT>&nbsp;    </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">April 2000.</FONT>
          </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Schools since April 2003;</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">profit independent system</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">55 East Monroe Street,</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Term</FONT>
          </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Private investor November</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">operator of New</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Suite 3600</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">expires</FONT>
          </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left">
    <div align="left"><FONT size=2 face="serif">2002&#150;April 2003; President</FONT>&nbsp;    </div></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">England&#146;s electricity</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chicago, Illinois 60603</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">in 2006.</FONT>
          </div></TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">and Chief Executive</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">supply), Ariel Capital</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Age: 59</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Officer, Board of Trade of</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Management, Inc., Ark</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">the City of Chicago, Inc.,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Investment Management</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">March 2001&#150;November</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">and Wheels, Inc.</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">2002; Retired executive</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">1999&#150;2001; Vice Chairman</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">and Director, Bank One</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Corporation, 1998&#150;1999;</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Vice Chairman and</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Director, First Chicago</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">NBD Corporation, and</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">President, The First</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">National Bank of Chicago,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=center><div align="left"><FONT size=2 face="serif">1995&#150;1998; Vice</FONT> </div></TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Chairman, First Chicago</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Corporation and The First</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">National Bank of Chicago,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">1993&#150;1998 (Director,</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">1992&#150;1998; Executive Vice</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">President, 1986&#150;1993)</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
</TABLE>
<br>
<hr align="left" noshade width="140" size="1">

<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(1)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">Member of the executive committee of the board of directors, which has authority, with certain exceptions, to exercise the powers of the board of directors between board meetings. The executive committee did not meet during
2004.</FONT>    </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(2)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">Member of the audit committee of the board of directors, which makes recommendations regarding the selec- tion of the Fund&#146;s independent public accountants and meets with representatives of the accountants to deter-
mine the scope of and review the results of each audit. The audit committee met twice and acted once by written consent during 2004.</FONT>     </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(3)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">Member of the nominating and governance committee of the board of directors, which selects nominees for election as directors, recommends individuals to be appointed by the board as Fund officers and members of board
committees and makes recommendations regarding other Fund governance and board administration matters. The nominating and governance committee met twice during 2004. The committee will consider nominees recommended by shareholders. Shareholders
wishing to recommend candidates to the committee should submit such recommendations to the Secretary of the Fund, 55 East Monroe Street, Suite 3600, Chicago, Illinois 60603. The Secretary of the Fund will forward the recommendations to the
nominating and governance committee for consideration.</FONT>   </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(4)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">Member of the contracts committee of the board of directors, which makes recommendations regarding the Fund&#146;s contractual arrangements for investment management and administrative services, including the terms and
conditions of such contracts. The contracts committee met twice during 2004.</FONT>     </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(5)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">Director elected by holders of preferred stock.</FONT>        </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">8</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>      <div align="left"><B><FONT size=1 face="serif">Name, Address</FONT></B>&nbsp;
        </div></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Position(s) Held</FONT></B>&nbsp;
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Term of Office and</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Principal Occupation(s)</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>      <div align="left"><B><FONT size=1 face="serif">and Age</FONT></B>&nbsp;
        </div></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">With the Fund</FONT></B>&nbsp;
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Length of Time Served</FONT></B>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">During Past 5 Years</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><B><I><FONT size=2 face="serif">Officers of the Fund</FONT></I></B>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Nathan I. Partain</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">President and Chief</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">President and Chief Executive</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">President and Chief</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">55 East Monroe Street</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Executive Officer</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Officer since February 2001</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Executive Officer, the DTF</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chicago, Illinois 60603</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">(Chief Investment Officer since</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">and DUC Funds since</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 <FONT size=2 face="serif">Age: 49</FONT>&nbsp;    </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">January 1998, Executive Vice</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">February 2004; President,</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">President April 1998-February</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Duff &amp; Phelps Investment</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">2001, Senior Vice President</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Management Co. since</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">January 1997-April 1998, Assistant</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">April 2005 (Executive Vice</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Secretary January 1997-February</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">President January 1997&#150;</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">2001).</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">April 2005); Director of</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Utility Research, Phoenix</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Investment Partners, Ltd.,</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">1989&#150;1996 (Director of</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Equity Research, 1993&#150;</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">1996 and Director of Fixed</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Income Research, 1993)</FONT>&nbsp;
          </div></TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">T. Brooks Beittel</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Secretary and Senior</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Secretary and Senior Vice</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Senior Vice President, Duff</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">55 East Monroe Street</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Vice President</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">President since January 1995</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">&amp; Phelps Investment</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chicago, Illinois 60603</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">(Treasurer January 1995-</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Management Co. since</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 <FONT size=2 face="serif">Age: 55</FONT>&nbsp;    </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">September 2002).</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">1993 (Vice President 1987&#150;</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">1993)</FONT>&nbsp;
          </div></TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Michael Schatt</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Senior Vice</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Senior Vice President since April</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Senior Vice President, Duff</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">55 East Monroe Street</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">President</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">1998 (Vice President January</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">&amp; Phelps Investment</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chicago, Illinois 60603</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">1997-April 1998.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Management Co. since</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 <FONT size=2 face="serif">Age: 58</FONT>&nbsp;    </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">January 1997; Managing</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Director, Phoenix</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Investment Partners, Ltd.,</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">1994&#150;1996</FONT>&nbsp;
          </div></TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Joseph C. Curry, Jr.</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Treasurer and Vice</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Treasurer since September 2002;</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Senior Vice President,</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Hilliard Lyons Center</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">President</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Vice President since April 1988.</FONT>
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">J.J.B. Hilliard, W.L. Lyons,</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Louisville, Kentucky</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Inc. since 1994 (Vice</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">40202</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">President 1982&#150;1994); Vice</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 <FONT size=2 face="serif">Age: 61</FONT>&nbsp;    </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">President, Hilliard Lyons</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Trust Company; President,</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Hilliard-Lyons Government</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Fund, Inc.; Vice President</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">and Assistant Treasurer,</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Senbanc Fund</FONT>&nbsp;
          </div></TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">9</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><B><FONT size=1 face="serif">Name, Address</FONT></B>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Position(s) Held</FONT></B>&nbsp;
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Term of Office and</FONT></B>&nbsp;
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Principal Occupation(s)</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><B><FONT size=1 face="serif">and Age</FONT></B>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">With the Fund</FONT></B>&nbsp;
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Length of Time Served</FONT></B>&nbsp;
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">During Past 5 Years</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Joyce B. Riegel</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chief Compliance</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chief Compliance Officer since</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chief Compliance Officer,</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">55 East Monroe Street</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Officer</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">February 2004.</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">the DTF and DUC Funds</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chicago, Illinois 60603</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">since August 2003;</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 <FONT size=2 face="serif">Age: 51</FONT>&nbsp;    </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chief Compliance Officer,</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Duff &amp; Phelps Investment</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Management Co. since</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">August 2002; Vice</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">President and Chief</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Compliance Officer, Stein</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Roe Investment Counsel</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">LLC January 2001&#150;August</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">2002; Vice President and</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Compliance Officer, Stein</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Roe &amp; Farnham</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Incorporated July 1996&#150;</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">December 2000</FONT>&nbsp;
          </div></TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Dianna P. Wengler</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Assistant Vice</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Assistant Vice President since</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Vice President, J.J.B.</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Hilliard Lyons Center</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">President</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">April 2004; Assistant Secretary</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Hilliard, W.L. Lyons, Inc.</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Louisville, Kentucky</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">and Assistant</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">since April 1988.</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">since 1990; Vice President,</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">40202</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Secretary</FONT>&nbsp;
          </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Hilliard-Lyons Government</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 <FONT size=2 face="serif">Age: 45</FONT>&nbsp;    </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Fund, Inc.</FONT>&nbsp;
          </div></TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">10</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The following table provides certain information relating to the equity securities beneficially owned, as of December 31, 2004, by each director (i) in the Fund and (ii) on an aggregate basis,
in any registered investment companies overseen by the director within the same family of investment companies as the Fund.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=32% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=32% align=left>

          <center>
    </center></TD>
        <TD width=2%>
          <center>
    </center></TD>
        <TD width=32% align=center>
      <center>
        <B><FONT size=1 face="serif">Aggregate Dollar Range of Equity</FONT></B>&nbsp;
          </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Securities in All Funds Overseen</FONT></B>&nbsp;
          </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">or to be Overseen by Director or</FONT></B>&nbsp;
          </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Dollar Range of Equity Securities</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Nominee in Family of Investment</FONT></B>&nbsp;
          </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=1 face="serif">Name of Director</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">in the Fund</FONT></B>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Companies</FONT></B>&nbsp;
          </center></TD>
</TR>
<TR>
        <TD colspan=5>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><I><FONT size=2 face="serif">Independent Directors</FONT></I></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Stewart E. Conner</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">$50,001-&#36;100,000</FONT>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">50,001-&#36;100,000</FONT>&nbsp;
          </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Connie K. Duckworth</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
          </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Robert J. Genetski</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
          </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Francis E. Jeffries</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
          </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Nancy Lampton</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
          </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Christian H. Poindexter</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
          </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Carl F. Pollard</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
          </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">David J. Vitale</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">$10,001-&#36;50,000</FONT>&nbsp;
          </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">$10,001-&#36;50,000</FONT>&nbsp;
          </center></TD>
</TR>
</TABLE>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">As of December 31, 2004, none of the foregoing directors, or their immediate family members, owned any securities of the Adviser or any person (other than a registered investment company)
directly or indirectly controlling, controlled by or under common control with the Adviser.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">As of December 31, 2004, the officers and directors of the Fund owned in the aggregate less than 1% of the Fund's outstanding common stock and none of the Fund's outstanding preferred stock</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The following table shows the compensation paid by the Fund to the Fund&#146;s current directors during 2004:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=center colspan=2>
      <center>
        <B><FONT size=2 face="serif">COMPENSATION TABLE </FONT></B><FONT size=2 face="serif">(1)(2)</FONT>
          </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD width=10% align=right>
      <center>
        <B><FONT size=1 face="serif">Aggregate</FONT></B>&nbsp;
          </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD width=10% align=center>
      <center>
        <B><FONT size=1 face="serif">Compensation</FONT></B>&nbsp;
          </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD width=10% align=right>
      <center>
        <B><FONT size=1 face="serif">from the</FONT></B>&nbsp;
          </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=1 face="serif">Name of Director</FONT></B>&nbsp;
        </TD>
        <TD width=10% align=center>
      <center>
        <B><FONT size=1 face="serif">Fund</FONT></B>&nbsp;
          </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="10%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><I><FONT size=2 face="serif">Independent Directors</FONT></I></B>&nbsp;
        </TD>
        <TD width=10% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Stewart E. Conner</FONT>&nbsp;
        </TD>
        <TD width=10% align=right>
<FONT size=2 face="serif">28,250</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Connie K. Duckworth</FONT>&nbsp;
        </TD>
        <TD width=10% align=right>
<FONT size=2 face="serif">45,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Robert J. Genetski</FONT>&nbsp;
        </TD>
        <TD width=10% align=right>
<FONT size=2 face="serif">42,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Francis E. Jeffries (2)</FONT>&nbsp;
        </TD>
        <TD width=10% align=right>
<FONT size=2 face="serif">42,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Nancy Lampton</FONT>&nbsp;
        </TD>
        <TD width=10% align=right>
<FONT size=2 face="serif">47,227</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Christian H. Poindexter</FONT>&nbsp;
        </TD>
        <TD width=10% align=right>
<FONT size=2 face="serif">42,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Carl F. Pollard</FONT>&nbsp;
        </TD>
        <TD width=10% align=right>
<FONT size=2 face="serif">44,227</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">David J. Vitale</FONT>&nbsp;
        </TD>
        <TD width=10% align=right>
<FONT size=2 face="serif">46,977</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<br>
<hr align="left" noshade width="140" size="1">

<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(1)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">Each director not affiliated with the Adviser receives an annual fee of &#36;25,000 (and an additional &#36;5,000 if the director serves as chairman of a committee of the board of directors) plus an attendance fee of
&#36;2,000 for each meeting of the board of directors and &#36;1,500 for each meeting of a committee of the board of directors attended in person or by telephone. Directors and officers affiliated with the Adviser or the Administrator receive no
compensation from the Fund for their services as such. In addition to the amounts shown in the table above, all directors and officers who are not affiliated with the Adviser or the Administrator are reim- bursed for the expenses incurred by them in
connection with their attendance at a meeting of the board of directors or a committee of the board of directors. The Fund does not have a pension or retirement plan applicable to directors or officers of the Fund.</FONT>   </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(2)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">During 2004, Mr. Jeffries received aggregate compensation of &#36;155,750 for service as a director of the Fund and as a director or trustee of 28 other investment companies in the same fund complex as the Fund. No other
director received compensation during 2004 for service as a director of any other investment company in the same fund complex as the Fund.</FONT>       </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">11</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<B><FONT size=2 face="serif">Portfolio Managers</FONT></B><BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">There may be certain inherent conflicts of interest that arise in connection with the portfolio managers&#146; management of the Fund&#146;s investments and the investments of any other
accounts they manage. Such conflicts could include aggregation of orders for all accounts managed by a particular portfolio manager, the allocation of purchases across all such accounts, the allocation of IPOs and any soft dollar arrangements that
the Adviser may have in place that could benefit the Fund and/or such other accounts. The Adviser has adopted policies and procedures designed to address any such conflicts of interest to ensure that all management time, resources and investment
opportunities are allocated equitably. There have been no material compliance issues with respect to any of these policies and procedures during the Fund&#146;s most recent fiscal year.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The following table provides information as of December 31, 2004 regarding the other accounts besides the Fund that are managed by the portfolio managers of the Fund identified in the
Fund&#146;s prospectus. As noted in the table, portfolio managers of the Fund may also manage or be members of management teams for other mutual funds within the Phoenix fund complex or other similar accounts. As of December 31, 2004, the
Fund&#146;s portfolio managers did not manage any accounts with respect to which the advisory fee is based on the performance of the account, nor do they manage any hedge funds.</FONT></P>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr valign="bottom">
    <td width="17%" align=left>&nbsp; </td>
    <td width="2%">&nbsp; </td>
    <td colspan=6 align=right> <center>
      <b><font size=1 face="serif">Registered Investment</font></b>&nbsp;
    </center></td>
    <td width="1%"> <center>
    </center></td>
    <td colspan=3 align=right> <center>
      <b><font size=1 face="serif">Other Pooled Investment</font></b>&nbsp;
    </center></td>
    <td width="5%"> <center>
    </center></td>
    <td width="1%">&nbsp;</td>
    <td width="11%" align=left> <center>
    </center></td>
    <td width="1%"> <center>
    </center></td>
    <td width="4%" align=left> <center>
    </center></td>
    <td width="5%" align=left> <center>
    </center></td>
    <td width="5%" align=left>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align=left>&nbsp; </td>
    <td>&nbsp; </td>
    <td colspan=6 align=left> <b><font size=1 face="serif">Companies (1)</font></b>&nbsp;    </td>
    <td> <center>
    </center></td>
    <td colspan=3 align=center> <center>
      <b><font size=1 face="serif">Vehicles (2)</font></b>&nbsp;
    </center></td>
    <td> <center>
    </center></td>
    <td>&nbsp;</td>
    <td colspan=5 align=right> <center>
      <b><font size=1 face="serif">Other Accounts (3)</font></b>&nbsp;
    </center></td>
  </tr>
  <tr>
    <td> </td>
    <td> </td>
    <td colspan=17>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <b><font size=1 face="serif">Name of</font></b>&nbsp; </td>
    <td>&nbsp; </td>
    <td width="13%" align=center> <center>
      <b><font size=1 face="serif">Number of</font></b>&nbsp;
    </center></td>
    <td width="1%"> <center>
    </center></td>
    <td colspan="4" align=left>   <center>
      <b><font size=1 face="serif">Total Assets</font></b>&nbsp;
    </center></td>
    <td> <center>
    </center></td>
    <td width="13%" align=center> <center>
      <b><font size=1 face="serif">Number of</font></b>&nbsp;
    </center></td>
    <td width="1%"> <center>
    </center></td>
    <td colspan="2" align=center> <center>
      <b><font size=1 face="serif">Total Assets</font></b>&nbsp;
    </center></td>
    <td><center>
    </center></td>
    <td align=center> <center>
      <b><font size=1 face="serif">Number of</font></b>&nbsp;
    </center></td>
    <td> <center>
    </center></td>
    <td colspan="3" align=left>  <center>
      <b><font size=1 face="serif">Total Assets</font></b>&nbsp;
    </center></td>
  </tr>
  <tr valign="bottom">
    <td align=left> <b><font size=1 face="serif">Portfolio Manager</font></b>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=center> <center>
      <b><font size=1 face="serif">Accounts</font></b>&nbsp;
    </center></td>
    <td> <center>
    </center></td>
    <td colspan="4" align=left>   <center>
      <b><font size=1 face="serif">(in millions)</font></b>&nbsp;
    </center></td>
    <td> <center>
    </center></td>
    <td align=center> <center>
      <b><font size=1 face="serif">Accounts</font></b>&nbsp;
    </center></td>
    <td> <center>
    </center></td>
    <td colspan="2" align=center> <center>
      <b><font size=1 face="serif">(in millions)</font></b>&nbsp;
    </center></td>
    <td><center>
    </center></td>
    <td align=center> <center>
      <b><font size=1 face="serif">Accounts</font></b>&nbsp;
    </center></td>
    <td> <center>
    </center></td>
    <td colspan="3" align=left>  <center>
      <b><font size=1 face="serif">(in millions)</font></b>&nbsp;
    </center></td>
  </tr>
  <tr>
    <td colspan=19>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=1 face="serif">Nathan I. Partain</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left>
      <center>
        <font size=1 face="serif">2</font>&nbsp;
    </center></td>
    <td>&nbsp; </td>
    <td width="4%" align=left>&nbsp;
    <div align="right"><font size=1 face="serif">&#36;</font> </div></td>
    <td colspan="2">  <div align="right"><font size=1 face="serif">6.3</font>&nbsp; </div></td>
    <td width="4%">&nbsp;</td>
    <td>&nbsp; </td>
    <td align=right> <center>
      <font size=1 face="serif">0</font>&nbsp;
    </center></td>
    <td>&nbsp; </td>
    <td width="8%" align=right> <font size=1 face="serif">&#151;</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td>&nbsp;</td>
    <td align=center> <font size=1 face="serif">0</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=1 face="serif">&#151;</font>&nbsp; </td>
    <td align=right>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=1 face="serif">T. Brooks Beittel</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left> <center>
      <font size=1 face="serif">3</font>&nbsp;
    </center></td>
    <td></td>
    <td align=right> <font size=1 face="serif">&#36;</font> </td>
    <td colspan=2 align=center> <div align="right"><font size=1 face="serif">500.2</font>&nbsp; </div></td>
    <td align=center>&nbsp;</td>
    <td>&nbsp; </td>
    <td align=right> <center>
      <font size=1 face="serif">0</font>&nbsp;
    </center></td>
    <td>&nbsp; </td>
    <td align=right> <font size=1 face="serif">&#151;</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td>&nbsp;</td>
    <td align=center> <font size=1 face="serif">0</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=1 face="serif">&#151;</font>&nbsp; </td>
    <td align=right>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=1 face="serif">Michael Schatt</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left> <center>
      <font size=1 face="serif">2</font>&nbsp;
    </center></td>
    <td>&nbsp; </td>
    <td align=right> <font size=1 face="serif">&#36;</font> </td>
    <td colspan=2 align=center> <div align="right"><font size=1 face="serif">770.3</font>&nbsp; </div></td>
    <td align=center>&nbsp;</td>
    <td>&nbsp; </td>
    <td align=right> <center>
      <font size=1 face="serif">1</font>&nbsp;
    </center></td>
    <td>&nbsp; </td>
    <td align=right> <font size=1 face="serif">$34.3</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td>&nbsp;</td>
    <td align=center> <font size=1 face="serif">10</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=right> <font size=1 face="serif">&#36;</font> </td>
    <td align=right> <font size=1 face="serif">156.0</font>&nbsp; </td>
    <td align=right>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=1 face="serif">Deborah A. Jansen</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left> <center>
      <font size=1 face="serif">2</font>&nbsp;
    </center></td>
    <td>&nbsp; </td>
    <td align=left> <div align="right"><font size=1 face="serif">&#36;</font> </div></td>
    <td colspan="2">  <div align="right"><font size=1 face="serif">6.3</font>&nbsp; </div></td>
    <td>&nbsp;</td>
    <td>&nbsp; </td>
    <td align=right> <center>
      <font size=1 face="serif">0</font>&nbsp;
    </center></td>
    <td>&nbsp; </td>
    <td align=right> <font size=1 face="serif">&#151;</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td>&nbsp;</td>
    <td align=center> <font size=1 face="serif">0</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=1 face="serif">&#151;</font>&nbsp; </td>
    <td align=right>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=1 face="serif">Connie M. Luecke</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left> <center>
      <font size=1 face="serif">2</font>&nbsp;
    </center></td>
    <td>&nbsp; </td>
    <td align=left> <div align="right"><font size=1 face="serif">&#36;</font> </div></td>
    <td colspan="2">  <div align="right"><font size=1 face="serif">6.3</font>&nbsp; </div></td>
    <td>&nbsp;</td>
    <td>&nbsp; </td>
    <td align=right> <center>
      <font size=1 face="serif">0</font>&nbsp;
    </center></td>
    <td>&nbsp; </td>
    <td align=right> <font size=1 face="serif">&#151;</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td>&nbsp;</td>
    <td align=center> <font size=1 face="serif">0</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=1 face="serif">&#151;</font>&nbsp; </td>
    <td align=right>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=1 face="serif">Daniel J. Petrisko</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left> <center>
      <font size=1 face="serif">2</font>&nbsp;
    </center></td>
    <td>&nbsp; </td>
    <td align=right> <font size=1 face="serif">&#36;</font> </td>
    <td colspan=2 align=center> <div align="right"><font size=1 face="serif">500.2</font>&nbsp; </div></td>
    <td align=center>&nbsp;</td>
    <td>&nbsp; </td>
    <td align=right> <center>
      <font size=1 face="serif">0</font>&nbsp;
    </center></td>
    <td>&nbsp; </td>
    <td align=right> <font size=1 face="serif">&#151;</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td>&nbsp;</td>
    <td align=center> <font size=1 face="serif">8</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=right> <font size=1 face="serif">&#36;</font> </td>
    <td align=right> <font size=1 face="serif">1,224.9</font>&nbsp; </td>
    <td align=right>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align=left> <font size=1 face="serif">Randle L. Smith</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left> <center>
      <font size=1 face="serif">2</font>&nbsp;
    </center></td>
    <td>&nbsp; </td>
    <td align=left><div align="right"><font size=1 face="serif">&#36;</font> </div></td>
    <td colspan="2">  <div align="right"><font size=1 face="serif">6.3</font>&nbsp; </div></td>
    <td>&nbsp;</td>
    <td>&nbsp; </td>
    <td align=right> <center>
      <font size=1 face="serif">0</font>&nbsp;
    </center></td>
    <td>&nbsp; </td>
    <td align=right> <font size=1 face="serif">&#151;</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td>&nbsp;</td>
    <td align=center> <font size=1 face="serif">0</font>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left> </td>
    <td align=right> <font size=1 face="serif">&#151;</font>&nbsp; </td>
    <td align=right>&nbsp;</td>
  </tr>
</table>
<br>
<hr align="left" noshade width="140" size="1">

<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(1)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">Registered Investment Companies include all open and closed-end mutual funds. For Registered Investment Companies, assets represent net assets of all open-end investment companies and gross assets of all closed- end
investment companies.</FONT>    </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(2)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">Other Pooled Investment Vehicles include, but are not limited to, securities of issuers exempt from registra- tion under Section 3(c) of the 1940 Act, such as private placements and hedge funds.</FONT>     </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(3)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">Other Accounts include, but are not limited to, individual managed accounts, separate accounts, institutional accounts, pension funds and collateralized bond obligations.</FONT>     </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR>
</TABLE>
<P>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The following is a description of the compensation structure, as of March 31, 2005, of the Fund&#146;s portfolio        managers identified in the Fund&#146;s prospectus. The Fund&#146;s portfolio managers receive a competitive base salary, an incentive bonus opportunity and a benefits package.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Each portfolio manager is paid a fixed base salary, which is determined by Phoenix Investment Partners and is designed to be competitive in light of the individual&#146;s experience and
responsibilities. The management of Phoenix Investment Partners uses compensation survey results of investment industry compensation conducted by an independent third party in evaluating competitive market compensation for its investment management
professionals.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The incentive bonus package for portfolio managers is based upon how well the individual manager meets or exceeds assigned goals and a subjective assessment of contribution to the team effort.
Their incentive bonus also reflects a performance component for achieving and/or exceeding performance competitive with peers managing similar strategies. The performance component is further adjusted to reward investment personnel for managing
within the stated framework and for not taking unnecessary risks. This ensures that investment personnel will remain focused on managing and acquiring securities that correspond to the Fund&#146;s mandate and risk profile. It also avoids the
temptation for portfolio managers to take on more risk and unnecessary exposure to chase performance for personal gain.</FONT></P>
<P align="center">
<FONT size=2 face="serif">12</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Incentive bonus compensation of the Fund&#146;s portfolio managers is currently comprised of two components: 75% of the incentive bonus is based on the pre-tax performance of the Fund, as
measured by earnings per share and total return over a one-year period, and 25% of the incentive bonus is based in the overall pre-tax profitability and investment return of PNX, the Adviser&#146;s parent company, over a one-year period. For the
year 2005, the Fund&#146;s portfolio managers have been guaranteed that they will receive no less than 80% of the incentive bonus available under the above formula. The portfolio managers&#146; incentive bonus compensation is not based on the value
of assets held in the Fund&#146;s portfolio, except to the extent that the level of assets in the Fund&#146;s portfolio affects the advisory fee received by the Adviser, and thus indirectly the profitability of PNX.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Finally, portfolio managers may also receive PNX stock options and/or be granted PNX restricted stock at the direction of the PNX board of directors. To date no portfolio manager of the Fund
has received awards under the PNX restricted stock units long-term incentive plan.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Highly compensated individuals are eligible to participate in a long-term incentive plan to defer their compensation and realize tax benefits. Compensation under the long-term incentive plan is
payable in restricted stock units of PNX, which vest over three years.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Portfolio managers are also eligible to participate in broad-based plans offered generally to the firm&#146;s employees, including broad-based retirement, 401(k), health and other employee
benefit plans.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The following table sets forth the dollar range of equity securities in the Fund beneficially owned, as of December 31, 2004, by each of the portfolio managers identified the Fund&#146;s
prospectus.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=15% align=left>&nbsp;</TD>
        <TD width=33% align=left>&nbsp;

        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=33% align=center>
<B><FONT size=1 face="serif">Dollar Range of</FONT></B>&nbsp;
        </TD>
    <TD width=15% align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<B><FONT size=1 face="serif">Name of Portfolio Manager</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Equity Securities in the Fund</FONT></B>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=5>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">T. Brooks Beittel</FONT>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">None</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">Deborah A. Jansen</FONT>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">None</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">Connie M. Luecke</FONT>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">$1-&#36;10,000</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">Nathan I. Partain</FONT>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">$100,000-&#36;500,000</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">Daniel J. Petrisko</FONT>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">None</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">Michael Schatt</FONT>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">$10,001-&#36;50,000</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">Randle L. Smith</FONT>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">None</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P>
<B><FONT size=2 face="serif">Proxy Voting Policies</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Fund has adopted proxy voting policies and procedures. The following is a summary description of those policies and procedures, the full text of which is available at the Fund&#146;s
website at http://www.dnpselectincome.com.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Subject to the right of the board of directors to give the Adviser written instructions as to the voting or non-voting of proxies on any matter presenting an actual or perceived conflict of
interest as described below, the Fund has delegated the voting of proxies with respect to securities owned by it to the Adviser. The Adviser may delegate its proxy voting responsibilities to a proxy committee established from time to time by the
Adviser and may engage one or more qualified, independent organizations to vote proxies on behalf of the Fund, subject in each case to compliance with these policies and procedures.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">It is the intention of the Fund to exercise stock ownership rights in portfolio holdings in a manner that is reasonably anticipated to further the best economic interests of shareholders of the
Fund. Accordingly, the Fund or its delegate(s) endeavors to analyze and vote all proxies that are considered likely to have financial implications, and, where appropriate, to participate in corporate governance, shareholder proposals, management
communications and legal proceedings.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Adviser will generally vote in favor of management recommendations on routine matters. The Adviser will analyze and vote on non-routine matters, including the adoption of anti-takeover
measures, proxy contests for control, contested elections of directors, corporate governance matters and executive compensation matters, on a case-by-case basis, taking into account factors appropriate to each such matter. The Adviser will generally
vote against shareholder proposals on social issues, except where the Adviser determines that a different position would be in the clear economic interests of the Fund and its shareholders. The Adviser may abstain from voting</FONT></P>
<P align="center">
<FONT size=2 face="serif">13</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<P>
<FONT size=2 face="serif">when it concludes that the effect on shareholders&#146; economic interests or the value of the portfolio holding is indeterminable or insignificant.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In exercising its voting discretion, the Adviser will seek to avoid any actual or perceived conflicts of interest between the interests of Fund shareholders, on the one hand, and those of the
Adviser or any affiliated person of the Fund or the Adviser, on the other hand. The Adviser will notify the board of directors of the Fund promptly after becoming aware that any actual or potential conflict of interest exists, indicating how the
Adviser proposes to vote on the matter and its reasons for doing so. The board of directors may decide to (i) vote pursuant to the recommendation of the delegate, (ii) abstain from voting or (iii) rely on the recommendations of an established,
independent third party with qualifications to vote proxies, such as Institutional Shareholder Services. The Adviser may not waive any conflict of interest or vote any conflicted proxies without the prior written approval of the board of directors
or its duly authorized representative.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Information on how proxies relating to the Fund&#146;s voting securities were voted (if any) by the Adviser during the most recent 12-month period ended June 30th is available, without charge,
upon request, by calling (800) 699-1236 and on the website of the SEC at http://www.sec.gov.</FONT></P>
<B><FONT size=2 face="serif">Code of Ethics</FONT></B><BR>
<P>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the Fund and the Adviser has adopted a Code of Ethics under Rule 17j-1 of the Investment </FONT><FONT size=2 face="serif">Company Act. The codes impose significant restrictions on the ability of personnel subject to the codes to engage in personal securities transactions. Among other things, the codes generally prohibit covered personnel from
knowingly buying or selling securities (except for mutual funds, U.S. government securities and money market instruments) that are being purchased, sold or considered for purchase or sale by the Fund unless the proposed purchases are approved in
advance by the Adviser&#146;s compliance officer. The codes also contain certain reporting requirements and compliance procedures. The codes can be reviewed and copied at the Public Reference Room of the SEC in Washington, D.C. Information on the
operation of the Public Reference Room may be obtained by calling the SEC at (202) 551-8090. The codes are also available at the EDGAR Database on the SEC&#146;s Internet site at http://www.sec.gov and on the Fund&#146;s Internet site at
http://www.dnpselectincome.com. Copies of the codes may also be obtained, after paying a duplicating fee, by electronic request at the following email address: publicinfo@sec.gov, or by writing the SEC&#146;s Public Reference Section, Washington,
D.C. 20549-0102. The SEC file number for documents filed by the Fund under the Investment Company Act is 811-4915.</FONT></P>
<P align="center">
<B><FONT size=2 face="serif">PORTFOLIO TRANSACTIONS AND BROKERAGE</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Decisions concerning the execution of portfolio security transactions, including the selection of the market and the executing firm, are made by the Adviser. The Adviser is also responsible for
the execution of transactions for all other accounts managed by it. The Adviser places the portfolio security transactions of the Fund and of all other accounts managed by it for execution with many firms. The Adviser uses its best efforts to obtain
execution of portfolio security transactions at prices which are advantageous to the Fund and at reasonably competitive spreads or (when a disclosed commission is being charged) at reasonably competitive commission rates. In seeking such execution,
the Adviser will use its best judgment in evaluating the terms of a transaction, and will give consideration to various relevant factors, including without limitation the full range and quality of the executing firm&#146;s services, the value of the
brokerage and research services provided, the responsiveness of the firm to the Adviser, the size and type of the transaction, the nature and character of the market for the security, the confidentiality, speed and certainty of effective execution
required for the transaction, the general execution and operational capabilities of the executing firm, the reputation, reliability, experience and financial condition of the firm, the value and quality of the services rendered by the firm in this
and other transactions, and the reasonableness of the spread or commission, if any.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Transactions on stock exchanges and other agency transactions involve the payment of negotiated brokerage commissions. Such commissions vary among different broker-dealer firms, and a
particular broker-dealer may charge different commissions according to such factors as the difficulty and size of the transaction and the volume of business done with such broker-dealer. Transactions in foreign securities often involve the payment
of brokerage commissions, which may be higher than those in the United States. There is generally no stated com-</FONT></P>
<P align="center">
<FONT size=2 face="serif">14</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<P>
<FONT size=2 face="serif">mission in the case of securities traded in the over-the-counter markets, but the price paid or received usually includes an undisclosed dealer markup or markdown. In an underwritten offering the price paid often includes a
disclosed fixed commission or discount retained by the underwriter or dealer.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Fixed-income obligations which may be purchased and sold by the Fund are generally traded in the over-the-counter market on a net basis (</FONT><I><FONT size=2 face="serif">i.e.</FONT></I><FONT
size=2 face="serif">, without commission) through broker-dealers or banks acting for their own account rather than as brokers, or otherwise involve transactions directly with the issuers of such obligations. The Fund may also purchase fixed-income
and other securities from underwriters, the cost of which may include undisclosed fees and concessions to the underwriters.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Although spreads or commissions paid on portfolio security transactions will, in the judgment of the Adviser, be reasonable in relation to the value of the services provided, commissions
exceeding those which another firm might charge may be paid to broker-dealers who were selected to execute transactions on behalf of the Adviser&#146;s clients in part for providing brokerage and research services to the
Adviser.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In selecting brokers or dealers to execute portfolio transactions and in evaluating the best net price and execution available, the Adviser is authorized to consider &#147;brokerage and
research services&#148; (as those terms are defined in Section 28(e) of the Securities Exchange Act of 1934), statistical quotations, specifically the quotations necessary to determine the Fund&#146;s net asset value, and other information provided
to the Fund and/or to the Adviser (or their affiliates). The Adviser is also authorized to cause the Fund to pay to a broker or dealer who provides such brokerage and research services a commission for executing a portfolio transaction which is in
excess of the amount of commission another broker or dealer would have charged for effecting that transaction. The Adviser must determine in good faith, however, that such commission was reasonable in relation to the value of the brokerage and
research services provided, viewed in terms of that particular transaction or in terms of all the accounts over which the Adviser exercises investment discretion. It is possible that certain of the services received by the Adviser attributable to a
particular transaction will benefit one or more other accounts for which investment discretion is exercised by the
Adviser.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Neither the Fund nor the Adviser, during the last fiscal year, pursuant to an agreement or understanding with a broker or otherwise through an internal allocation procedure, directed the Fund's brokerage transactions to a broker or brokers because of research services.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Securities considered as investments for the Fund may also be appropriate for other investment accounts managed by the Adviser or its affiliates. Whenever decisions are made to buy or sell
securities by the Fund and one or more of such other accounts simultaneously, the Adviser will allocate the security transactions (including &#147;hot&#148; issues) in a manner which it believes to be equitable under the circumstances. As a result
of such allocations, there may be instances where the Fund will not participate in a transaction that is allocated among other accounts. Additionally, trades executed by different firms, including the Adviser, will not be aggregated and allocated as
to price; thus, there may be instances where the Fund does not pay or receive the same price as other investment accounts managed by the Adviser. While these aggregation and allocation policies could have a detrimental effect on the price or amount
of the securities available to the Fund from time to time, it is the opinion of the directors of the Fund that the benefits received from the Adviser&#146;s organization outweigh any disadvantage that may arise from exposure to simultaneous
transactions.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Fund paid brokerage commissions in the aggregate amount of $1,667,497, $8,550,524 and $8,486,229 during 2004, 2003 and 2002, respectively, not including the gross underwriting spread on securities purchased in underwritten public offerings.</FONT><FONT size=2 face="serif"> The Fund did not pay any brokerage commissions during 2004, 2003 or 2002 to any broker that (1) is an
affiliated person of the Fund, (2) is an affiliated person of an affiliated person of the Fund or (3) has an affiliated person that is an affiliated person of the Fund or the
Adviser. The Fund did not pay brokerage commissions to the Administrator during 2004, 2003 or 2002, but has done so in the past and may do so again in the future.</FONT></P>
<P align="center">
<B><FONT size=2 face="serif">ADDITIONAL INFORMATION CONCERNING THE AUCTIONS FOR APS</FONT></B></P>
<B><FONT size=2 face="serif">General Securities Depository</FONT></B><BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Depository Trust Company (&#147;DTC&#148;) will act as the Securities Depository with respect to each series of APS. One certificate for all of the shares of each series will be registered
in the name of [ ], as nominee of the Securities Depository. Such certificate will bear a legend to the effect that such certificate is issued subject to the provisions restricting transfers of shares of APS contained in the Articles Supplementary.
The Fund will also issue stop transfer instructions to the transfer agent for APS. Prior to the commencement of the right of holders of APS to elect a majority of the Fund&#146;s directors, as described under &#147;Description of APS-Voting
Rights&#148; in the Prospectus, [ ] will be the holder of record of each series of APS and owners of such shares will not be entitled to receive certificates representing their ownership interest in such shares.</FONT></P>
<P align="center">
<FONT size=2 face="serif">15</FONT></P>

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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">DTC, a New York chartered limited purpose trust company, performs services for its participants, some of whom (and/or their representatives) own DTC. DTC maintains lists of its participants and
will maintain the positions (ownership interests) held by each such participant in shares of APS, whether for its own account or as a nominee for another person.</FONT></P>
<B><FONT size=2 face="serif">Concerning the Auction Agent</FONT></B><BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The auction agent will act as agent for the Fund in connection with Auctions. In the absence of bad faith or negligence on its part, the auction agent will not be liable for any action taken,
suffered, or omitted or for any error of judgment made by it in the performance of its duties under the auction agency agreement between the Fund and the auction agent and will not be liable for any error of judgment made in good faith unless the
auction agent was negligent in ascertaining the pertinent facts.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The auction agent may rely upon, as evidence of the identities of the holders of shares of APS, the auction agent&#146;s registry of holders, the results of auctions and notices from any
Broker-Dealer (or other person, if permitted by the Fund) with respect to transfers described under &#147;The Auction-Secondary Market Trading and Transfers of APS&#148; in the Prospectus and notices from the Fund. The auction agent is not required
to accept any such notice for an auction unless it is received by the auction agent by 3:00 p.m., New York City time, on the business day preceding such auction.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The auction agent may terminate its auction agency agreement with the Fund upon notice to the Fund on a date no earlier than 45 days after such notice. If the auction agent should resign, the
Fund will use its best efforts to enter into an agreement with a successor auction agent containing substantially the same terms and conditions as the auction agency agreement. The Fund may remove the auction agent provided that prior to such
removal the Fund shall have entered into such an agreement with a successor auction agent.</FONT></P>
<B><FONT size=2 face="serif">Broker-Dealers</FONT></B><BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The auction agent after each auction for the shares of APS will pay to each Broker-Dealer, from funds provided by the Fund, a service charge at the annual rate of [ ]% in the case of any
auction immediately preceding a dividend period of less than one year, or a percentage agreed to by the Fund and the Broker-Dealers in the case of any auction immediately preceding a dividend period of one year or longer, of the purchase price of
the shares of APS placed by such Broker-Dealer at such auction. For the purposes of the preceding sentence, shares of APS will be placed by a Broker-Dealer if such shares were (a) the subject of hold orders deemed to have been submitted to the
auction agent by the Broker-Dealer and were acquired by such Broker-Dealer for its own account or were acquired by such Broker-Dealer for its customers who are beneficial owners or (b) the subject of an order submitted by such Broker-Dealer that is
(i) a submitted bid of an existing holder that resulted in the existing holder continuing to hold such shares as a result of the auction or (ii) a submitted bid of a potential holder that resulted in the potential holder purchasing such shares as a
result of the auction or (iii) a valid hold order.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Fund may request the auction agent to terminate one or more Broker-Dealer agreements at any time, provided that at least one Broker-Dealer agreement is in effect after such
termination.</FONT></P>
<B><FONT size=2 face="serif">Orders by Existing Holders and Potential Holders</FONT></B><BR>
<P>
<FONT size=2 face="serif">On or prior to the submission deadline on each auction date for shares of a series of APS:</FONT></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(a)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD colspan=2>
<FONT size=2 face="serif">each beneficial owner of shares of such series may submit to its Broker-Dealer by telephone or other- wise a:</FONT>  </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
<TD width="4%">&nbsp;</TD>
<TD width="4%" valign=top nowrap>
<FONT size=2 face="serif">(i)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">&#147;Hold Order&#148;-indicating the number of outstanding shares, if any, of such series that such benefi- cial owner desires to continue to hold without regard to the Applicable Rate for such shares of such series for
the next succeeding Dividend Period of such shares;</FONT>      </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
<TD>&nbsp;</TD> <TD nowrap valign=top>
<FONT size=2 face="serif">(ii)</FONT>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=2 face="serif">&#147;Bid&#148;-indicating the number of outstanding shares, if any, of such series that such beneficial owner offers to sell if the Applicable Rate for such shares of such series for the next succeeding Dividend Period
shall be less than the rate per annum specified by such beneficial owner in such Bid; and/or</FONT>     </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">16</FONT></P>

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<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
<TD width="4%">&nbsp;</TD>
<TD width="4%" valign=top nowrap>
<FONT size=2 face="serif">(iii)</FONT>&nbsp; &nbsp; &nbsp;      </TD>
        <TD>
<FONT size=2 face="serif">&#147;Sell Order&#148;-indicating the number of outstanding shares, if any, of such that such beneficial owner offers to sell without regard to the Applicable Rate for such shares of such series for the next succeeding
Dividend Period; and</FONT>     </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(b)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD colspan=2>
<FONT size=2 face="serif">Broker-Dealers shall contact customers who are Potential Beneficial Owners by telephone or otherwise to determine whether such customers desire to submit Bids, in which they will indicate the number of shares, if any, of
such series that they offer to purchase if the Applicable Rate for shares of such series for the next succeeding Dividend Period is not less than the rate per annum specified in such Bids.</FONT>     </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The communication to a Broker-Dealer of the foregoing information is herein referred to as an &#147;Order&#148; and collectively as &#147;Orders.&#148; A Beneficial Owner or a Potential
Beneficial Owner placing an Order with its Broker-Dealer is herein referred to as a &#147;Bidder&#148; and collectively as &#147;Bidders.&#148; The submission by a Broker-Dealer of an Order to the Auction Agent shall likewise be referred to herein
as an &#147;Order&#148; and collectively as &#147;Orders,&#148; and an Existing Holder or Potential Holder who places an Order with the Auction Agent or on whose behalf an Order is placed with the Auction Agent shall likewise be referred to herein
as a &#147;Bidder&#148; and collectively as &#147;Bidders.&#148;</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">A Beneficial Owner may submit different types of Orders to its Broker-Dealer with respect to shares of a series of APS then held by such Beneficial Owner. A Bid placed by a Beneficial Owner
specifying a rate higher than the Applicable Rate determined in the Auction shall constitute an irrevocable offer to sell the shares subject thereto. A Beneficial Owner that submits a Bid to its Broker-Dealer having a rate higher than the Maximum
Applicable Rate on the Auction Date thereof will be treated as having submitted a Sell Order to its Broker-Dealer. A Beneficial Owner that fails to submit to its Broker-Dealer prior to the Submission Deadline for shares of such series an Order or
Orders covering all the Outstanding shares of such series held by such Beneficial Owner will be deemed to have submitted a Hold Order to its Broker-Dealer covering the number of Outstanding shares of such series held by such Beneficial Owner and not
subject to Orders submitted to its Broker-Dealer; provided, however, that if a Beneficial Owner fails to submit to its Broker-Dealer prior to the Submission Deadline for shares of a series of APS an Order or Orders covering all of the Outstanding
shares of such series held by such Beneficial Owner for an Auction relating to a Special Dividend Period consisting of more than seven Days, such Beneficial Owner will be deemed to have submitted a Sell Order to its Broker-Dealer covering the number
of Outstanding shares of such series held by such Beneficial Owner and not subject to Orders submitted to its Broker-Dealer. A Sell Order shall constitute an irrevocable offer to sell the shares of such series of APS subject thereto at a price per
share equal to &#36;25,000. A Beneficial Owner of shares of a series of APS that offers to become the Beneficial Owner of additional shares of such series of APS is, for purposes of such offer, a Potential Beneficial Owner.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">A Potential Beneficial Owner of shares of a series of APS may submit to its Broker-Dealer Bids in which it offers to purchase shares of a series if the Applicable Rate for the next Dividend
Period is not less than the rate specified in such Bid. A Bid placed by a Potential Beneficial Owner specifying a rate not higher than the Maximum Applicable Rate shall constitute an irrevocable offer to purchase the number of shares of a series of
APS specified in such Bid if the rate determined in the Auction is equal to or greater than the rate specified in such Bid.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">As described more fully below under &#147;-Submission of Orders by Broker-Dealers to Auction Agent,&#148; the Broker-Dealers will submit the Orders of their respective customers who are
Beneficial Owners and Potential Beneficial Owners to the Auction Agent, designating themselves (unless otherwise permitted by the Fund) as Existing Holders in respect of shares of such series of APS subject to Orders submitted or deemed submitted to
them by Beneficial Owners and as Potential Holders in respect of shares of such series subject to Orders submitted to them by Potential Beneficial Owners. However, neither the Fund nor the Auction Agent will be responsible for a Broker-Dealer&#146;s
failure to comply with the foregoing. Any Order placed with the Auction Agent by a Broker-Dealer as or on behalf of an Existing Holder or a Potential Holder will be treated in the same manner as an Order placed with a Broker-Dealer by a Beneficial
Owner or a Potential Beneficial Owner, as described in the preceding paragraph. Similarly, any failure by a Broker-Dealer to submit to the Auction Agent an Order in respect of any shares of a series of APS held by it or its customers who are
Beneficial Owners will be treated in the same manner as a Beneficial Owner&#146;s failure to submit to its Broker-Dealer an Order in respect of shares of a series of APS held by it, as described in the second preceding paragraph. For information
concerning the priority given to</FONT></P>
<P align="center">
<FONT size=2 face="serif">17</FONT></P>

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<P>
<FONT size=2 face="serif">different types of Orders placed by Existing Holders, see &#147;-Submission of Orders by Broker-Dealers to Auction Agent&#148; below.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Neither the Fund nor an affiliate may submit an Order in any Auction, except that any Broker-Dealer that is an affiliate of the Fund may submit Orders in an Auction, but only if such Orders are
not for its own account.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Auction Procedures include a pro rata allocation of shares for purchase and sale, which may result in an Existing Holder continuing to hold or selling, or a Potential Holder purchasing, a
number of shares of a series of APS that is fewer than the number of shares of such series specified in its Order. See &#147;-Acceptance and Rejection of Submitted Bids and Submitted Sell Orders and Allocation of Shares&#148; below. To the extent
the allocation procedures have that result, Broker-Dealers that have designated themselves as Existing Holders or Potential Holders in respect of customer Orders will be required to make appropriate pro rata allocations among their respective
customers. Each purchase or sale shall be made for settlement on the Business Day next succeeding the Auction Date at a price per share equal to &#36;25,000. See &#147;-Notification of Results; Settlement&#148; below.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">As described above, any Bid specifying a rate higher than the Maximum Applicable Rate will (i) be treated as a Sell Order if submitted by a Beneficial Owner or an Existing Holder and (ii) not
be accepted if submitted by a Potential Beneficial Owner or a Potential Holder. Accordingly, the Auction Procedures establish the Maximum Applicable Rate as a maximum rate per annum that can result from an Auction. See &#147;-Determination of
Sufficient Clearing Bids, Winning Bid Rate and Applicable Rate&#148; and &#147;-Acceptance and Rejection of Submitted Bids and Submitted Sell Orders and Allocation of Shares&#148; below.</FONT></P>
<P>
<B><FONT size=2 face="serif">Submission of Orders by Broker-Dealers to Auction Agent</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Prior to 1:30 P.M., New York City time, on each Auction Date, or such other time on the Auction Date specified by the Auction Agent (</FONT><I><FONT size=2 face="serif">i.e.</FONT></I><FONT
size=2 face="serif">, the Submission Deadline), each Broker-Dealer will submit to the Auction Agent in writing all Orders obtained by it for the Auction to be conducted on such Auction Date, designating itself (unless otherwise permitted by the
Fund) as the Existing Holder or Potential Holder, as the case may be, in respect of the shares of a series of APS subject to such Orders. Any Order submitted by a Beneficial Owner or a Potential Beneficial Owner to its Broker-Dealer, or by a
Broker-Dealer to the Auction Agent, prior to the Submission Deadline on any Auction Date, shall be irrevocable.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If any rate specified in any Bid contains more than three figures to the right of the decimal point, the Auction Agent will round such rate to the next highest one-thousandth (0.001) of
1%.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If one or more Orders of an Existing Holder is submitted to the Auction Agent covering in the aggregate more than the number of Outstanding APS of a series subject to an Auction held by such
Existing Holder, such Orders will be considered valid in the following order of priority:</FONT></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(a)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD colspan=2>
<FONT size=2 face="serif">all Hold Orders for shares of such series will be considered valid, but only up to and including in the aggregate the number of Outstanding shares of such series held by such Existing Holder, and, if the number of shares of
such series subject to such Hold Orders exceeds the number of Outstanding shares of such series held by such Existing Holder, the number of shares subject to each such Hold Order shall be reduced pro rata to cover the number of Outstanding shares
held by such Existing Holder;</FONT>    </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(b)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD colspan=2>
<FONT size=2 face="serif">(i) any Bid for shares of such series will be considered valid up to and including the excess of the number of shares of Outstanding shares of such series held by such Existing Holder over the number of shares of such
series subject to any Hold Orders referred to in clause (a) above;</FONT>       </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
<TD width="4%">&nbsp;</TD>
<TD width="4%" valign=top nowrap>
<FONT size=2 face="serif">(ii)</FONT>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=2 face="serif">subject to subclause (i), if more than one Bid of an Existing Holder for shares of such series is submitted to the Auction Agent with the same rate and the number of Outstanding shares of such series subject to such Bids is
greater than such excess, such Bids will be considered valid up to and including the amount of such excess, and the number of shares of such series subject to each Bid with the same rate will be reduced pro rata to cover the number of shares of such
series equal to such excess;</FONT>     </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
<TD>&nbsp;</TD> <TD nowrap valign=top>
<FONT size=2 face="serif">(iii)</FONT>&nbsp; &nbsp; &nbsp;      </TD>
        <TD>
<FONT size=2 face="serif">subject to subclauses (i) and (ii), if more than one Bid of an Existing Holder for shares of such series is submitted to the Auction Agent with different rates, such Bids shall be considered valid in the ascending order of
their respective rates up to and including the amount of such excess; and</FONT>        </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">18</FONT></P>

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<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
<TD>&nbsp;</TD> <TD width="4%" valign=top nowrap>
<FONT size=2 face="serif">(iv)</FONT>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=2 face="serif">in any such event, the number, if any, of such Outstanding shares of such series subject to any portion of Bids considered not valid in whole or in part under this clause (b) will be treated as the subject of a Bid for
shares of such series by or on behalf of a Potential Holder at the rate specified therein; and</FONT>   </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
        <TD width="4%" valign=top nowrap>
<FONT size=2 face="serif">(c)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD colspan=2>
<FONT size=2 face="serif">all Sell Orders for shares of such series will be considered valid up to and including the excess of the number of Outstanding shares of such series held by such Existing Holder over the sum of shares of such series subject
to valid Hold Orders referred to in clause (a) above and valid Bids referred to in clause (b) above.</FONT>     </TD>
</TR>
</TABLE>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If more than one Bid of a Potential Holder for shares of a series of APS is submitted to the Auction Agent by or on behalf of any Potential Holder, each such Bid submitted will be a separate
Bid with the rate and number of shares of such series therein specified.</FONT></P>
<P>
<B><FONT size=2 face="serif">Determination of Sufficient Clearing Bids, Winning Bid Rate and Applicable Rate</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Not earlier than the Submission Deadline on each Auction Date for shares of a series of APS, the Auction Agent will assemble all valid Orders submitted or deemed submitted to it by the
Broker-Dealers (each such Hold Order, Bid or Sell Order as submitted or deemed submitted by a Broker-Dealer being herein referred to as a &#147;Submitted Hold Order,&#148; a &#147;Submitted Bid&#148; or a &#147;Submitted Sell Order,&#148; as the
case may be, or as a &#147;Submitted Order&#148; and collectively as &#147;Submitted Hold Orders,&#148; &#147;Submitted Bids&#148; or &#147;Submitted Sell Orders,&#148; as the case may be, or as &#147;Submitted Orders&#148;) and will determine the
excess of the number of Outstanding shares of such series over the number of Outstanding shares of such series subject to Submitted Hold Orders (such excess being herein referred to as the &#147;Available APS&#148;) and whether Sufficient Clearing
Bids have been made in the Auction. &#147;Sufficient Clearing Bids&#148; will have been made if the number of Outstanding shares of such series that are the subject of Submitted Bids of Potential Holders specifying rates not higher than the Maximum
Applicable Rate for all Dividend Periods equals or exceeds the number of outstanding shares of such series that are the subject of Submitted Sell Orders (including the number of shares of such series subject to Bids of Existing Holders specifying
rates higher than the Maximum Applicable Rate).</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If Sufficient Clearing Bids for shares of a series of APS have been made, the Auction Agent will determine the lowest rate specified in such Submitted Bids (the &#147;Winning Bid Rate&#148;)
for shares of such series which, taking into account the rates in the Submitted Bids of Existing Holders, would result in Existing Holders continuing to hold an aggregate number of Outstanding shares of such series which, when added to the number of
outstanding shares of such series to be purchased by Potential Holders, based on the rates in their Submitted Bids, would equal not less than the Available APS. In such event, the Winning Bid Rate will be the Applicable Rate for the next Dividend
Period for all shares of such series.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If Sufficient Clearing Bids have not been made (other than because all of the outstanding shares of a series of APS are subject to Submitted Hold Orders), the Applicable Rate for the next
Dividend Period for all shares of such series will be equal to the Maximum Applicable Rate. If Sufficient Clearing Bids have not been made, Beneficial Owners that have submitted or that are deemed to have submitted Sell Orders may not be able to
sell in the Auction all shares of such series subject to such Sell Orders but will continue to own shares of such series for the next Dividend Period. See &#147;-Acceptance and Rejection of Submitted Bids and Submitted Sell Orders and Allocation of
Shares&#148; below.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If all of the outstanding shares of a series of APS are subject to Submitted Hold Orders, the Applicable Rate for all shares of such series for the next succeeding Dividend Period shall be the
All Hold Rate.</FONT></P>
<P>
<B><FONT size=2 face="serif">Acceptance and Rejection of Submitted Bids and Submitted Sell Orders and Allocation of Shares</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Based on the determinations made under &#147;-Determination of Sufficient Clearing Bids, Winning Bid Rate and Applicable Rate&#148; above and, subject to the discretion of the Auction Agent to
round and allocate certain shares as described below, Submitted Bids and Submitted Sell Orders will be accepted or rejected in the order of priority set forth in the Auction Procedures, with the result that Existing Holders and Potential Holders of
shares of a series of APS will sell, continue to hold and/or purchase such shares as set forth below. Existing Holders that sub-</FONT></P>
<P align="center">
<FONT size=2 face="serif">19</FONT></P>

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<P>
<FONT size=2 face="serif">mitted or were deemed to have submitted Hold Orders (or on whose behalf Hold Orders were submitted or deemed to have been submitted) will continue to hold the shares of such series subject to such Hold Orders.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If Sufficient Clearing Bids for shares of a series of APS have been made:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD width="4%" valign=top nowrap>&nbsp;</TD>
        <TD width="4%" valign=top nowrap>
<FONT size=2 face="serif">(a)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">Each Existing Holder that placed or on whose behalf was placed a Submitted Sell Order or Submitted Bid specifying any rate higher than the Winning Bid Rate will sell the outstanding shares of such series subject to such
Submitted Sell Order or Submitted Bid;</FONT>   </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(b)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">Each Existing Holder that placed or on whose behalf was placed a Submitted Bid specifying a rate lower than the Winning Bid Rate will continue to hold the Outstanding shares of such series subject to such Submitted
Bid;</FONT>     </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(c)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">Each Potential Holder that placed or on whose behalf was placed a Submitted Bid specifying a rate lower than the Winning Bid Rate will purchase the number of outstanding shares of such series subject to such Submitted
Bid;</FONT>     </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(d)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">Each Existing Holder that placed or on whose behalf was placed a Submitted Bid specifying a rate equal to the Winning Bid Rate will continue to hold the shares of such series subject to such Submitted Bid, unless the number
of Outstanding APS of such series subject to all such Submitted Bids is greater than the number of shares of APS (&#147;remaining shares&#148;) in excess of the Available APS over the number of shares of APS accounted for in clauses (b) and (c)
above, in which event each Existing Holder with such a Submitted Bid will continue to hold shares of APS of such series subject to such Submitted Bid determined on a pro rata basis based on the number of Outstanding APS subject to all such Submitted
Bids of such Existing Holders; and</FONT>       </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(e)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">Each Potential Holder that placed or on whose behalf was placed a Submitted Bid specifying a rate equal to the Winning Bid Rate for shares of such series will purchase any shares of Available APS not accounted for in
clauses (b) through (d) above on a pro rata basis based on the Outstanding APS sub- ject to all such Submitted Bids.</FONT>     </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If Sufficient Clearing Bids for shares of a series of APS have not been made (unless this results because all Outstanding shares of such series are subject to Submitted Hold Orders):</FONT></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(a)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD colspan=2>
<FONT size=2 face="serif">Each Existing Holder that placed or on whose behalf was placed a Submitted Bid specifying a rate equal to or lower than the Maximum Applicable Rate for shares of such series will continue to hold the shares of APS subject
to such Submitted Bid;</FONT>   </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(b)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD colspan=2>
<FONT size=2 face="serif">Each Potential Holder that placed or on whose behalf was placed a Submitted Bid specifying a rate equal to or lower than the Maximum Applicable Rate for shares of such series will purchase the num- ber of shares of APS
subject to such Submitted Bid; and</FONT>       </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(c)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD colspan=2>
<FONT size=2 face="serif">Each Existing Holder that placed or on whose behalf was placed a Submitted Bid specifying a rate higher than the Maximum Applicable Rate for shares of such series or a Submitted Sell Order will sell</FONT> </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD width="4%">&nbsp;</TD>
<TD width="4%">&nbsp;</TD>
<TD width="4%" valign=top nowrap>
<FONT size=2 face="serif">a</FONT>&nbsp; &nbsp; &nbsp;  </TD>
        <TD>
<FONT size=2 face="serif">number of shares of such series subject to such Submitted Bid or Submitted Sell Order determined on</FONT>    </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD> <TD nowrap valign=top>
<FONT size=2 face="serif">a</FONT>&nbsp; &nbsp; &nbsp;  </TD>
        <TD>
<FONT size=2 face="serif">pro rata basis based on the number of Outstanding shares of such series subject to all such Submitted</FONT>  </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD> <TD colspan=2>
<FONT size=2 face="serif">Bids and Submitted Sell Orders.</FONT>        </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR></TABLE>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If, as a result of the pro rata allocation described in clauses (d) or (e) of the second preceding paragraph or clause (c) of the next preceding paragraph, any Existing Holder would be entitled
or required to sell, or any Potential Holder would be entitled or required to purchase, a fraction of a share of APS of a series, the Auction Agent will, in such manner as, in its sole discretion, it will determine, round up or down to the nearest
whole share the number of shares of APS of such series being sold or purchased on such Auction Date so that the number of shares of such series sold or purchased by each Existing Holder or Potential Holder will be whole shares of such series. If as
a result of the pro rata allocation described in clause (e) of the second preceding paragraph, any Potential Holder would be entitled or required to purchase less than a whole share of a series of APS, the Auction Agent will, in such manner as, in
its sole discretion, it will determine, allocate shares of such series for purchase among Potential Holders so that only whole shares of such series are purchased by any such Potential Holder, even if such allocation results in one or more of such
Potential Holders not purchasing shares of such series.</FONT></P>
<P align="center">
<FONT size=2 face="serif">20</FONT></P>

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<B><FONT size=2 face="serif">Notification of Results; Settlement</FONT></B><BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Auction Agent will be required to advise each Broker-Dealer that submitted an Order of the Applicable Rate for the next Dividend Period and, if the Order was a Bid or Sell Order, whether
such Bid or Sell Order was accepted or rejected, in whole or in part, by telephone by approximately 3:00 P.M., New York City time, on each Auction Date. Each Broker-Dealer that submitted an Order for the account of a customer will then be required
to advise such customer of the Applicable Rate for the next Dividend Period and, if such Order was a Bid or a Sell Order, whether such Bid or Sell Order was accepted or rejected, in whole or in part, will be required to confirm purchases and sales
with each customer purchasing or selling shares of such series as a result of the Auction and will be required to advise each customer purchasing or selling APS as a result of the Auction to give instructions to its Agent Member of the
Securities.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Securities Depository will pay the purchase price against delivery of such shares or will deliver such shares against payment therefor, as appropriate. The Auction Agent will be required to
record each transfer of shares of a series of APS on the registry of Existing Holders to be maintained by the Auction Agent.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In accordance with the Securities Depository&#146;s normal procedures, on the Business Day after the Auction Date, the transactions described above will be executed through the Securities
Depository and the accounts of the respective Agent Members at the Securities Depository will be debited and credited and shares delivered as necessary to effect the purchases and sales of shares of a series of APS as determined in the Auction.
Purchasers will make payment through their Agent Members in same-day funds to the Securities Depository against delivery through their Agent Members; the Securities Depository will make payment in accordance with its normal procedures, which provide
for payment against delivery by their Agent Members in same-day funds.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If any Existing Holder selling shares of a series of APS in an Auction fails to deliver such shares, the Broker-Dealer of any person that was to have purchased such shares in such Auction may
deliver to such person a number of whole shares of such series that is less than the number of shares of such series that otherwise was to be purchased by such person. In such event, the number of shares of such series to be so delivered shall be
determined by such Broker-Dealer. Delivery of such lesser number of shares of such series shall constitute good delivery.</FONT></P>
<center>
  <B><FONT size=2 face="serif">REPURCHASE OF COMMON STOCK</FONT></B><BR>
</center>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Fund is a closed-end management investment company and as such its shareholders will not have the right to cause the Fund to redeem their shares of common stock. Instead, the Fund&#146;s
common stock will trade in the open market at a price that will be a function of several factors, including dividend levels (which are in turn affected by expenses), net asset value, call protection, dividend stability, relative demand for and
supply of such shares in the market, general market and economic conditions and other factors. Because shares of a closed-end investment company may frequently trade at prices lower than net asset value, the Fund&#146;s board of directors may
consider action that might be taken to reduce or eliminate any material discount from net asset value in respect of common stock, which may include the repurchase of such shares in the open market or in private transactions, the making of a tender
offer for such shares, or the conversion of the Fund to an open-end investment company. The board of directors may decide not to take any of these actions. In addition, there can be no assurance that share repurchases or tender offers, if
undertaken, will reduce market discount.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Notwithstanding the foregoing, at any time when the Fund&#146;s preferred stock is outstanding, the Fund may not purchase, redeem or otherwise acquire any of its common stock unless (1) all
accrued preferred stock dividends have been paid and (2) at the time of such purchase, redemption or acquisition, the net asset value of the Fund&#146;s portfolio (determined after deducting the acquisition price of the common stock) is at least
200% of the liquidation value of the outstanding preferred stock (expected to equal the original purchase price per share plus any accrued and unpaid dividends thereon). Any service fees incurred in connection with any tender offer made by the Fund
will be borne by the Fund and will not reduce the stated consideration to be paid to tendering shareholders.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Subject to its investment restrictions, the Fund may borrow to finance the repurchase of shares or to make a tender offer. Interest on any borrowings to finance share repurchase transactions or
the accumulation of cash by the Fund in anticipation of share repurchases or tenders will reduce the Fund&#146;s net income. Any share repurchase,</FONT></P>
<P align="center">
<FONT size=2 face="serif">21</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE><br>


<P>
<FONT size=2 face="serif">tender offer or borrowing that might be approved by the Fund&#146;s board of directors would have to comply with the Securities Exchange Act of 1934, the Investment Company Act and the rules and regulations
thereunder.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Although the decision to take action in response to a discount from net asset value will be made by the board of directors at the time it considers such issue, it is the board&#146;s present
policy, which may be changed by the board of directors, not to authorize repurchases of common stock or a tender offer for such shares if: (1) such transactions, if consummated, would (a) result in the de-listing of the common stock from the New
York Stock Exchange, or (b) impair the Fund&#146;s status as a regulated investment company under the Code (which would make the Fund a taxable entity, causing the Fund&#146;s income to be taxed at the corporate level in addition to the taxation of
shareholders who receive dividends from the Fund), or as a registered closed-end investment company under the Investment Company Act; (2) the Fund would not be able to liquidate portfolio securities in an orderly manner and consistent with the
Fund&#146;s investment objectives and policies in order to repurchase shares; or (3) there is, in the board&#146;s judgment, any (a) material legal action or proceeding instituted or threatened challenging such transactions or otherwise materially
adversely affecting the Fund, (b) general suspension of or limitation on prices for trading securities on the New York Stock Exchange, (c) declaration of a banking moratorium by Federal or state authorities or any suspension of payment by United
States or New York banks, (d) material limitation affecting the Fund or the issuers of its portfolio securities by Federal or state authorities on the extension of credit by lending institutions or on the exchange of foreign currency, (e)
commencement of war, armed hostilities or other international or national calamity directly or indirectly involving the United States or (f) other event or condition which would have a material adverse effect (including any adverse tax effect) on
the Fund or its shareholders if shares were repurchased. The board of directors may in the future modify these conditions in light of experience.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The repurchase by the Fund of its shares at prices below net asset value will result in an increase in the net asset value of those shares that remain outstanding. However, there can be no
assurance that share repurchases or tender offers at or below net asset value will result in the Fund&#146;s shares trading at a price equal to their net asset value. Nevertheless, the fact that the Fund&#146;s shares may be the subject of
repurchase or tender offers from time to time, or that the Fund may be converted to an open-end investment company, may reduce any spread between market price and net asset value that might otherwise exist.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In addition, a purchase by the Fund of its common stock will decrease the Fund&#146;s total assets which would likely have the effect of increasing the Fund&#146;s expense ratio. Any purchase
by the Fund of its common stock at a time when preferred stock is outstanding will increase the leverage applicable to the outstanding common stock then remaining.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Before deciding whether to take any action if the shares of common stock trade below net asset value, the Fund&#146;s board of directors would likely consider all relevant factors, including
the extent and duration of the discount, the liquidity of the Fund&#146;s portfolio, the impact of any action that might be taken on the Fund or its shareholders and market considerations. Based on these considerations, even if the Fund&#146;s
shares should trade at a discount, the board of directors may determine that, in the interest of the Fund and its shareholders, no action should be taken.</FONT></P>
<center>
  <B><FONT size=2 face="serif">DIVIDEND REINVESTMENT PLAN</FONT></B></center>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Under the Fund&#146;s dividend reinvestment plan shareholders may elect to have all dividends and capital gains distributions paid on their common stock automatically reinvested by The Bank of
New York, as agent for shareholders, in additional shares of common stock of the Fund. Registered shareholders may participate in the plan. The plan permits a nominee, other than a depository, to participate on behalf of those beneficial owners for
whom it is holding shares who elect to participate. However, some nominees may not permit a beneficial owner to participate without transferring the shares into the owner&#146;s name. Shareholders who do not elect to participate in the plan will
receive all distributions in cash paid by check mailed directly to the shareholder (or, if the shareholder&#146;s shares are held in street or other nominee name, then to such shareholder&#146;s nominee) by The Bank of New York as dividend
disbursing agent. Registered shareholders may also elect to have cash dividends deposited directly into their bank accounts.</FONT></P>
<P align="center">
<FONT size=2 face="serif">22</FONT></P>

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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">When a dividend or distribution is reinvested under the plan, the number of shares of common stock equivalent to the cash dividend or distribution is determined as follows:</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(i) If shares of the common stock are trading at net asset value or at a premium above net asset value at the valuation date, the Fund issues new shares of common stock at the greater of net
asset value or 95% of the then current market price.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(ii) If shares of the common stock are trading at a discount from net asset value at the valuation date, The Bank of New York receives the dividend or distribution in cash and uses it to
purchase shares of common stock in the open market, on the New York Stock Exchange or elsewhere, for the participants&#146; accounts. Shares are allocated to participants&#146; accounts at the average price per share, plus commissions, paid by The
Bank of New York for all shares purchased by it. If, before The Bank of New York has completed its purchases, the market price exceeds the net asset value of a share, the average purchase price per share paid by The Bank of New York may exceed the
net asset value of the Fund&#146;s shares, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The valuation date is the business day immediately preceding the date of payment of the dividend or distribution. On that date, the Administrator compares that day&#146;s net asset value per
share and the closing price per share on the New York Stock Exchange and determines which of the two alternative procedures described above will be followed.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The reinvestment shares are credited to the participant&#146;s plan account in the Fund&#146;s stock records maintained by The Bank of New York, including a fractional share to four decimal
places. The Bank of New York will send participants written confirmation of all transactions in the participant&#146;s plan account, including information participants will need for tax records. Shares held in the participant&#146;s plan account
have full dividend and voting rights. Dividends and distributions paid on shares held in the participant&#146;s plan account will also be reinvested.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The cost of administering the plan is borne by the Fund. There is no brokerage commission on shares issued directly by the Fund. However, participants do pay a pro rata share of brokerage
commissions incurred on any open market purchases of shares by The Bank of New York.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The automatic reinvestment of dividends and distributions does not relieve participants of any income taxes that may be payable (or required to be withheld) on dividends or
distributions.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If the closing market price of shares of the Fund&#146;s common stock should be equal to or greater than their net asset value on the valuation date, the participants in the plan would receive
shares priced at the higher of net asset value or 95% of the market price. Consequently they would receive more shares at a lower per share price than if they had used the cash distribution to purchase Fund shares on the payment date in the market
at the market price plus commission.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If the market price should be less than net asset value on the valuation date, the cash distribution for the plan participants would be used by The Bank of New York to purchase the shares to be
received by the participants, which would be at a discount from net asset value unless the market price should rise during the purchase period so that the average price and commission exceeded net asset value as of the payment date. Also, since the
Fund does not redeem its common stock, the price on resale may be less or more than the net asset value.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Plan participants may purchase additional shares of common stock through the plan by delivering to The Bank of New York a check for at least &#36;100, but not more than &#36;5,000, in any
month. The Bank of New York will use such funds to purchase shares in the open market or in private transactions. The purchase price of such shares may be more than or less than net asset value per share. The Fund will not issue new shares or supply
treasury shares for such voluntary additional share investment. Purchases will be made commencing with the time of the first distribution payment following the second business day after receipt of the funds for additional purchases, and may be
aggregated with purchases of shares for reinvestment of the distribution. Shares will be allocated to the accounts of participants purchasing additional shares at the average price per share, plus a service charge of &#36;2.50 imposed by The Bank of
New York and a pro rata share of any brokerage commission (or equivalent purchase costs) paid by The Bank of New York in connection with such purchases. Funds sent to the bank for voluntary additional share reinvestment may be recalled by the
participant by written notice received by The Bank of New York not later than two business days before the next dividend payment date. If for any reason a regular</FONT></P>
<P align="center">
<FONT size=2 face="serif">23</FONT></P>

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<P>
<FONT size=2 face="serif">monthly dividend is not paid by the Fund, funds for voluntary additional share investment will be returned to the participant, unless the participant specifically directs that such funds continue to be held by The Bank of
New York for subsequent investment. Participants will not receive interest on voluntary additional funds held by The Bank of New York pending investment.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">A shareholder may leave the plan at any time by written notice to The Bank of New York. To be effective for any given distribution, notice must be received by the Bank at least seven business
days before the record date for that distribution. When a shareholder leaves the plan: (i) such shareholder may request that The Bank of New York sell such shareholder&#146;s shares held in such shareholder&#146;s plan account and send such
shareholder a check for the net proceeds (including payment of the value of a fractional share, valued at the closing price of the Fund&#146;s common stock on the New York Stock Exchange on the date discontinuance is effective) after deducting The
Bank of New York&#146;s &#36;5.00 charge and any brokerage commission (or equivalent sale cost) or (ii) if no request is made, such shareholder will receive a certificate for the number of full shares held in such shareholder&#146;s plan account,
along with a check for any fractional share interest, valued at the closing price of the Fund&#146;s common stock on the New York Stock Exchange on the date discontinuance is effective. If and when it is determined that the only balance remaining in
a shareholder&#146;s plan account is a fraction of a single share, such shareholder&#146;s participation will be deemed to have terminated, and The Bank of New York will send to such shareholder a check for the value of such fractional share, valued
at the closing price of the Fund&#146;s common stock on the New York Stock Exchange on the date discontinuance is effective.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Fund may change, suspend or terminate the plan at any time upon mailing a notice to participants.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">For more information regarding, and an authorization form for, the dividend reinvestment plan, please contact The Bank of New York at 1-877-381-2537 or on the World Wide Web at
http://stock.bankofny.com.</FONT></P>
<center>
  <B><FONT size=2 face="serif">U.S. FEDERAL INCOME TAX MATTERS</FONT></B></center>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The following discussion is a brief summary of certain U.S. federal income tax considerations affecting the Fund and its U.S. shareholders. No attempt is made to present a detailed explanation
of all U.S. federal, state, local and foreign tax concerns affecting the Fund and its shareholders (including shareholders owning a large position in the Fund), and the discussions set forth here and in the Prospectus do not constitute tax advice.
Investors are urged to consult their tax advisors with any specific questions relating to federal, state, local and foreign taxes. The discussion reflects applicable tax laws of the United States as of the date of this Statement of Additional
Information, which tax laws may be changed or subject to new interpretations by the courts or the IRS retroactively or prospectively.</FONT></P>
<B><FONT size=2 face="serif">Taxation of the Fund</FONT></B><BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Fund has elected to be treated, has qualified and intends to continue to qualify each year as a regulated investment company (a &#147;RIC&#148;) under subchapter M of the Code. Accordingly,
the Fund must, among other things, (i) derive in each taxable year at least 90% of its gross income (including tax-exempt interest) from dividends, interest, payments with respect to certain securities loans, and gains from the sale or other
disposition of stock, securities or foreign currencies, other income (including but not limited to gains from options, futures and forward contracts) derived with respect to its business of investing in such stock, securities, or currencies and
income from interest in qualified publicly traded partnerships; (ii) diversify its holdings so that, at the end of each quarter of each taxable year (a) at least 50% of the market value of the Fund&#146;s total assets is represented by cash and cash
items, U.S. government securities, the securities of other RICs and other securities, with such other securities limited, in respect of any one issuer, to an amount not greater than 5% of the value of the Fund&#146;s total assets and not more than
10% of the outstanding voting securities of such issuer, and (b) not more than 25% of the market value of the Fund&#146;s total assets is invested in the securities (other than U.S. government securities and the securities of other RICs) of (I) any
one issuer, (II) any two or more issuers that the Fund controls and that are determined to be engaged in the same business or similar or related trades or businesses or (III) one or more qualified publicly traded partnerships; and (iii) distribute
substantially all of its net income and net short-term and long-term capital gains (after reduction by any available capital loss carryforwards) in accordance with the timing requirements imposed by the Code, so as to maintain its RIC status and to
avoid paying any federal income or</FONT></P>
<P align="center">
<FONT size=2 face="serif">24</FONT></P>

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<P>
<FONT size=2 face="serif">excise tax. To the extent it qualifies for treatment as a RIC and satisfies the above-mentioned distribution requirements, the Fund will not be subject to federal income tax on income paid to its shareholders in the form of
dividends or capital gain distributions.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Amounts not distributed on a timely basis in accordance with a calendar year distribution requirement are subject to a nondeductible 4% excise tax at the Fund level. To avoid the tax, the Fund
must distribute (or be deemed to have distributed) by December 31 of each calendar year an amount at least equal to the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year, (ii) 98% of its
capital gain net income (which is the excess of its realized net long-term capital gain over its realized net short-term capital loss), generally computed on the basis of the one-year period ending on October 31 of such year, after reduction by any
available capital loss carryforwards, plus (iii) 100% of any ordinary income and capital gain net income from the prior year (as previously computed) that were not paid during such year and on which the Fund paid no federal income tax. While the
Fund intends to distribute any income and capital gain in the manner necessary to minimize imposition of the 4% excise tax, there can be no assurance that sufficient amounts of the Fund&#146;s taxable income and capital gain will be distributed to
avoid entirely the imposition of the tax. In that event, the Fund will be liable for the tax only on the amount by which it does not meet the foregoing distribution requirement.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">A distribution will be treated as paid during a calendar year if it is paid during that calendar year or declared by the Fund in October, November or December of that year, payable to
shareholders of record on a date during such a month and paid by the Fund during January of the following year. Any such distributions paid during January of the following year will be deemed to be received on December 31 of the year the
distributions are declared, rather than when the distributions are received.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If the Fund does not qualify as a RIC for any taxable year, the Fund&#146;s taxable income will be subject to corporate income taxes, and all distributions from earnings and profits, including
distributions of net capital gain (if any), will be taxable to the shareholders as ordinary income. Such distributions generally will be eligible (i) for the dividends received deduction in the case of corporate shareholders and (ii) for treatment
as &#147;qualified dividends&#148; in the case of individual shareholders. In addition, in order to requalify for taxation as a RIC, the Fund may be required to recognize unrealized gains, pay substantial taxes and interest and make certain
distributions.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If the Fund utilizes leverage through borrowings, it may be restricted by loan covenants with respect to the declaration and payment of dividends in certain circumstances. Additionally, if at
any time when the shares of APS are outstanding the Fund does not meet the asset coverage requirements of the Investment Company Act, the Fund will be required to suspend distributions to holders of common stock until the asset coverage is restored.
See &#147;Description of APS-Dividends and Dividend Periods-Restrictions on Dividends and Other Payments.&#148; Such a suspension may prevent the Fund from distributing at least 90% of the sum of its investment company taxable income and certain
other income and may, therefore, jeopardize the Fund&#146;s qualification for taxation as a regulated investment company. Upon any failure to meet the asset coverage requirements of the Investment Company Act, the Fund, in its sole discretion, may
redeem shares of APS in order to maintain or restore the requisite asset coverage and avoid the adverse consequences to the Fund and its shareholders of failing to qualify for treatment as a regulated investment company. See &#147;Description of
APS&#151;Redemption.&#148; There can be no assurance, however, that any such action would achieve that objective.</FONT></P>
<B><FONT size=2 face="serif">The Fund&#146;s Investments</FONT></B><BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Fund&#146;s investments in options, futures contracts, hedging transactions, forward contracts (to the extent permitted) and certain other transactions will be subject to special tax rules
(including mark-to-market, constructive sale, straddle, wash sale, short sale and other rules), the effect of which may be to accelerate income to the Fund, defer Fund losses, cause adjustments in the holding periods of securities held by the Fund,
convert capital gain into ordinary income and convert short-term capital losses into long-term capital losses. These rules could therefore affect the amount, timing and character of distributions to shareholders. The Fund may be required to limit
its activities in options and futures contracts in order to enable it to maintain its RIC status.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Some of the debt obligations acquired by the Fund may be treated as debt obligations that are issued with original issue discount (&#147;OID&#148;). Such OID generally will be included in
income in the taxable year of accrual and before the Fund receives any corresponding cash payments. Since, in certain circumstances, the Fund may recognize income before receiving cash representing such income, it may have difficulty making
distributions in the</FONT></P>
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<FONT size=2 face="serif">amounts necessary to satisfy the requirements for maintaining RIC status and for avoiding income and excise taxes. Accordingly, the Fund may be required to borrow money or dispose of securities under disadvantageous
circumstances in order to generate cash to satisfy the Fund&#146;s distribution requirements.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Any recognized gain or income attributable to market discount on long-term debt obligations (</FONT><I><FONT size=2 face="serif">i.e.</FONT></I><FONT size=2 face="serif">, obligations with a
term of more than one year except to the extent of a portion of the discount attributable to OID) purchased by the Fund is taxable as ordinary income. A long-term debt obligation generally is treated as acquired at a market discount if purchased
after its original issue at a price less than (i) the stated principal amount payable at maturity, in the case of any obligation that does not have OID or (ii) the sum of the issue price and any OID that accrued before the obligation was purchased,
subject to a de minimis exclusion, in the case of an obligation that does have OID.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If the Fund invests (directly or indirectly through a REIT) in residual interests in REMICs, a portion of the Fund&#146;s income will be subject to a U.S. federal income tax in all events.
&#147;Excess inclusion income&#148; of the Fund generated by a residual interest in a REMIC will be allocated to shareholders of the Fund in proportion to the dividends received by the shareholders of the Fund. Excess inclusion income generally (i)
cannot be offset by net operating losses, (ii) will constitute unrelated business taxable income to certain tax exempt investors and (iii) in the case of a foreign shareholder, will not qualify for any reduction in U.S. federal withholding taxes. In
addition, if the shareholders of the Fund include a &#147;disqualified organization&#148; (such as certain governments or governmental agencies) the Fund may be liable for a tax on the excess inclusion income allocable to the disqualified
organization.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Fund&#146;s transactions in foreign currencies, foreign currency-denominated debt obligations and certain foreign currency options, futures contracts and forward contracts (and similar
instruments) may give rise to ordinary income or loss to the extent such income or loss results from fluctuations in the value of the foreign currency concerned.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Income received by the Fund with respect to foreign securities may be subject to withholding and other taxes imposed by foreign countries. Tax conventions may reduce or eliminate such taxes.
Generally, shareholders will not be entitled to claim a credit or deductions with respect to foreign taxes.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If the Fund acquires any equity interest in certain foreign corporations that receive at least 75% of their annual gross income from passive sources (such as interest, dividends, certain rents
and royalties, or capital gains) or that hold at least 50% of their assets in investments producing such income (&#147;Passive Foreign Investment Companies&#148; or &#147;PFICs&#148;), the Fund could be subject to U.S. federal income tax and
additional interest charges on &#147;excess distributions&#148; received from such companies or on gain from the sale of stock in such companies, even if all income or gain actually received by the Fund is timely distributed to its shareholders. The
Fund would not be able to pass through to its shareholders any credit or deduction for such a tax. An election generally may be available that would ameliorate these adverse tax consequences, but any such election could require the Fund to recognize
taxable income or gain (subject to tax distribution requirements) without the concurrent receipt of cash. These investments could also result in the treatment of associated capital gains as ordinary income. The Fund may limit and/or manage its
holdings in PFICs to limit its tax liability or maximize its return from these investments.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The American Jobs Creation Act of 2004 (the &#147;Jobs Act&#148;), among other things, modified the 90% gross income test with respect to income of a RIC to include net income derived from an
interest in certain qualified &#147;publicly traded partnerships&#148; (&#147;PTPs&#148;) and modified the asset diversification test of a RIC to include a new limitation on the investment by a RIC in certain qualified PTP interests. Under the Jobs
Act, a RIC may now invest in a qualified PTP regardless of the types of business the PTP operates. The Jobs Act further provides that passive losses from an investment in a qualified PTP may not be used by a RIC to offset any income other than
income from the same PTP and any deductions passed through by the PTP may not be used by a RIC to offset income from other sources.</FONT></P>
<B><FONT size=2 face="serif">Taxation of Shareholders</FONT></B><BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Fund intends to take the position that under present law, the APS will constitute stock of the Fund, and distributions by the Fund with respect to its APS (other than distributions in
redemption of APS that are treated as exchanges of stock under Section 302(b) of the Code) will constitute dividends to the extent of that Fund&#146;s current and accumulated earnings and profits as calculated for federal income tax purposes. It is
possible, however,</FONT></P>
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<FONT size=2 face="serif">that the IRS might take a contrary position, asserting, for example, that the APS constitutes debt of the Fund. If this position were upheld, distributions by the Fund to holders of APS would constitute interest, whether or
not they exceeded the earnings and profits of the Fund, would be included in full in the income of the recipient and would be taxed as ordinary income. The following discussion assumes that shares of APS are treated as stock.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Distributions of any taxable net investment income and net short-term capital gain will be taxable as ordinary income (except to the extent that a reduced capital gains tax rate applies to
qualified dividend income). Distributions of the Fund&#146;s net capital gain, if any, will be taxable to shareholders as long-term capital gains, regardless of the length of time they held their shares. So long as the Fund has capital loss
carryforwards, distributions derived from capital gains in the Fund&#146;s portfolio may constitute ordinary income, rather than capital gains, to shareholders. Distributions, if any, in excess of the Fund&#146;s earnings and profits will first
reduce the adjusted tax basis of a holder&#146;s shares and, after that basis has been reduced to zero, will constitute capital gains to the shareholder (assuming the shares are held as a capital asset). For purposes of determining whether
distributions are out of the Fund&#146;s current or accumulated earnings and profits, the Fund&#146;s earnings and profits will be allocated first to the Fund&#146;s preferred stock and then to the Fund&#146;s common stock.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Subject to certain conditions and limitations, under applicable federal income tax provisions, a corporation receiving dividends with respect to stock it owns in another corporation is allowed
a deduction against a portion of such dividend income received (the &#147;Dividends Received Deduction&#148;). The Fund expects to receive dividends with respect to some or all of the stocks in other corporations held by the Fund, and the Fund may
designate such dividends as eligible for the Dividends Received Deduction only to the extent that the Fund receives dividends for which the Fund would be entitled to the Dividends Received Deduction if the Fund were a regular corporation and not a
RIC. A corporation that owns common stock or preferred stock generally will be entitled to a Dividends Received Deduction with respect to a designated portion of the dividends it receives from the Fund.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">For dividends received by the Fund to be eligible for designation for the Dividends Received Deduction, the dividends must be paid by a domestic corporation that is subject to U.S. income tax
and the Fund must hold the stock of such corporation for at least 46 days during the 90-day period beginning 45 days before the ex-dividend date for the stock (91 days during the 180-day period for certain preferred stock). The Fund&#146;s holding
period for stock will in general not include any period for which the Fund holds an option to sell or is the writer of an option to buy substantially identical stock, although there exists an exception for certain options written by the Fund, the
exercise prices of which are not substantially below the market prices of the underlying securities at the times the options are written. The Dividends Received Deduction is reduced for dividends received from debt-financed portfolio stock by a
percentage related to the amount of debt incurred to purchase such stock.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">To the extent that the source of dividends or distributions with respect to the APS is dividends received by the Fund that would be eligible for the Dividends Received Deduction, a corporate
holder of common stock or preferred stock in the Fund will be allowed a deduction equal to 70% of the dividends paid to it by the Fund and designated by the Fund as eligible for the Dividends Received Deduction. The aggregate amount of Dividends
Received Deductions that may be taken by a corporation is limited to 70% of its taxable income, computed without regard to any net operating loss deduction. The portion of a dividend on the APS that can be designated as eligible for the Dividends
Received Deduction will be limited by the fact that dividend income received by the Fund is allocated to the RPS first, before being allocated to any other class or series of the Fund&#146;s stock. Dividends on the APS and the Fund&#146;s common
stock will be designated as eligible for the Dividends Received Deduction only to the extent that any qualifying income remains after dividends are paid on the RPS.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In order for dividends effectively designated by the Fund as eligible for the Dividends Received Deduction to qualify for the Dividends Received Deduction when received by a particular
shareholder, the shareholder must, among other things, be a corporation meeting the 46-day (or 91-day) holding period requirement described above with respect to its Fund shares. The Dividends Received Deduction will be reduced in the case of a
shareholder who has incurred indebtedness, or is treated as having incurred indebtedness, that is &#147;directly attributable&#148; to the acquisition or carrying of the shares. The basis of a shareholder&#146;s shares may be reduced in the case of
certain &#147;extraordinary dividends&#148; eligible for the Dividends Received Deduction by an amount equal to the non-taxed portion of such dividends, although it is expected that such extraordinary dividends will be paid only in unusual
circumstances.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Under current law, certain income distributions properly designated and paid by the Fund to individual taxpayers are taxed at rates equal to those applicable to net long-term capital gains
(15%, or 5% for individuals in the 10% or 15% tax brackets). This tax treatment applies only if certain holding period requirements and other requirements are satisfied by the shareholder and the dividends are attributable to qualified dividends
received by the Fund itself. Corporate taxpayers are taxed at ordinary income tax rates on dividends not eligible for the Dividends Received Deduction. For this purpose, &#147;qualified dividends&#148; means dividends received by the Fund from U.S.
corporations and qualifying foreign corporations, provided that the Fund satisfies certain holding period and other requirements in respect of the stock of such corporations. As is the case with the Dividends Received Deduction, to the extent the
Fund is required to allocate income eligible for the Dividends Received Deduction to the RPS, the allocation to the RPS generally will reduce the dividends on the common stock and the APS that are eligible for the special qualified dividend
rate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">In the case of securities lending transactions, payments in lieu of dividends are not qualified dividends. Dividends received by the Fund from REITs are qualified dividends eligible for this
lower tax rate only in limited circumstances. These special rules relating to the taxation of ordinary income dividends from RICs generally apply to taxable years beginning before January 1, 2009. Thereafter, the Fund&#146;s dividends, other than
capital gain dividends, will be fully taxable at ordinary income rates unless further legislative action is taken.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">A dividend will not be treated as qualified dividend income (whether received by the Fund or paid by the Fund to a shareholder) if (1) the dividend is received with respect to any share held
for fewer than 61 days during the 121-day period beginning on the date which is 60 days before the date on which such share becomes ex-dividend with respect to such dividend (or more than 90 days during the associated 181-day period, in the case of
dividends attributable to periods in excess of 266 days paid with respect to preferred stock), (2) to the extent that the recipient is under an obligation (whether pursuant to a short sale or otherwise) to make related payments with respect to
positions in substantially similar or related property or (3) if the recipient elects to have the dividend treated as investment income for purposes of the limitation on deductibility of investment interest. Distributions of income by the Fund other
than qualified dividend income and distributions of net realized short-term capital gains (on stocks held for one year or less) are taxed as ordinary income, at rates currently up to 35%.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The benefits of the reduced tax rates applicable to long-term capital gains and qualified dividend income may be impacted by the application of the alternative minimum tax to individual
shareholders.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">We cannot assure you as to what percentage of the dividends paid on the APS, if any, will consist of qualified dividend income or long-term capital gains, both of which are taxed at lower rates
for individuals than are ordinary income and short-term capital gains.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Distributions in excess of the Fund&#146;s earnings and profits will first reduce the adjusted tax basis of a holder&#146;s shares and, after such adjusted tax basis is reduced to zero, will
constitute capital gain to such holder (assuming the shares are held as a capital asset). For non-corporate taxpayers, under current law, investment company taxable income (other than qualified dividend income) currently will be taxed at a maximum
rate of 35%, while net capital gain generally will be taxed at a maximum rate of 15%. For corporate taxpayers, both investment company taxable income and net capital gain are taxed at a maximum rate of 35%. For purposes of determining whether
distributions are out of the Fund&#146;s current or accumulated earnings and profits, the Fund&#146;s earnings and profits will be allocated first to the Fund&#146;s preferred stock and then to the Fund&#146;s common stock.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Fund may retain for reinvestment all or part of its net capital gain. If any such gain is retained, the Fund will be subject to a tax at a rate of 35% of such amount. In that event, the
Fund expects to designate the retained amount as undistributed capital gain in a notice to its shareholders, each of whom (i) will be required to include in income for tax purposes as long-term capital gain its share of such undistributed amounts,
(ii) will be entitled to credit its proportionate share of the tax paid by the Fund against its U.S. federal income tax liability and to claim refunds to the extent that the credit exceeds such liability and (iii) will increase its basis in its
shares of the Fund by an amount equal to 65% of the amount of undistributed capital gain included in such shareholder&#146;s gross income.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The price of shares purchased at any time may reflect the amount of a forthcoming distribution. Those purchasing shares just prior to a distribution will receive a distribution which will be
taxable to them even though it represents in part a return of invested capital.</FONT></P>
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<FONT size=2 face="serif">28</FONT></P>

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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The sale, exchange or redemption of Fund shares may give rise to a gain or loss. In generally, any gain or loss realized upon a taxable disposition of shares will be treated as long-term
capital gain or loss if the shares have been held for more than 12 months. Otherwise, the gain or loss on the taxable disposition of Fund shares will be treated as short-term capital gain or loss. Long-term capital gain rates applicable to
individuals have been reduced, in general, to 15% (or 5% for individuals in the 10% or 15% rate brackets); however, such reduced rates are set to expire with respect to taxable years beginning after December 31, 2008 absent further legislative
action. The maximum tax rate applicable to net capital gains recognized by a corporate taxpayer is 35%. Any loss realized upon the sale or exchange of Fund shares with a holding period of 6 months or less will be treated as a long-term capital loss
to the extent of any capital gain distributions received with respect to such shares. In addition, all or a portion of a loss realized on a redemption or other disposition of Fund shares may be disallowed under &#147;wash sale&#148; rules to the
extent the shareholder acquires other substantially identical shares (whether through the reinvestment of distributions or otherwise) within the period beginning 30 days before the redemption of the loss shares and ending 30 days after such date.
Any disallowed loss will result in an adjustment to the shareholder&#146;s tax basis in some or all of the other shares acquired.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Sales charges paid upon a purchase of shares cannot be taken into account for purposes of determining gain or loss on a sale of shares before the 91st day after their purchase to the extent a
sales charge is reduced or eliminated in a subsequent acquisition of shares of the Fund (or of another fund) pursuant to the reinvestment or exchange privilege. Any disregarded amounts will result in an adjustment to the shareholder&#146;s tax basis
in some or all of any other shares acquired.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Shareholders may be entitled to offset their capital gain dividends with capital loss. There are a number of statutory provisions affecting when capital loss may be offset against capital gain,
and limiting the use of loss from certain investments and activities. Accordingly, shareholders with capital loss are urged to consult their tax advisors.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Dividends and distributions on the Fund&#146;s shares generally are subject to federal income tax as described herein to the extent they do not exceed the Fund&#146;s realized income and gains,
even though such dividends and distributions may economically represent a return of a particular shareholder&#146;s investment. Such distributions are likely to occur in respect of shares purchased at a time when the Fund&#146;s net asset value
reflects gains that are either unrealized, or realized by not distributed. Such realized gains may be required to be distributed even when the Fund&#146;s net asset value also reflects unrealized losses. Certain distributions declared in October,
November or December and paid in the following January will be taxed to shareholders as if received on December 31 of the year in which they were declared. In addition, certain other distributions made after the close of a taxable years of the Fund
may be &#147;spilled back&#148; and treated as paid by the Fund (except for purposes of the 4% excise tax) during such prior taxable year. In such case, however, shareholders will be treated as having received such dividends in the taxable year in
which the distributions were actually made.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Amounts paid by the Fund to individuals and certain other shareholders who have not provided the Fund with their correct taxpayer identification number (&#147;TIN&#148;) and certain
certifications required by the IRS as well as shareholders with respect to whom the Fund has received certain information from the IRS or a broker may be subject to &#147;backup withholding&#148; of federal income tax arising from the Fund&#146;s
taxable dividends and other distributions as well as the gross proceeds of sales of shares, at a rate equal to the fourth highest rate of tax applicable to a single individual (currently 28%). An individual&#146;s TIN generally is his or her social
security number. Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules from payments made to a shareholder may be refunded or credited against such shareholder&#146;s U.S. federal income tax liability,
if any, provided that the required information is furnished to the IRS.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Under Treasury regulations, if a shareholder recognizes a loss on a disposition of the Fund&#146;s shares of &#36;2 million or more for an individual shareholder or &#36;10 million or more for
a corporate shareholder, the shareholder must file with the IRS a disclosure statement on Form 8886. Direct shareholders of portfolio securities are in many cases excepted from this reporting requirement, but under current guidance, shareholders of
a RIC are not excepted. Future guidance may extend the current exception from this reporting requirement to shareholders of most or all RICs. The fact that a loss is reportable under these regulations does not affect the legal determination of
whether the taxpayer&#146;s treatment of the loss is proper. Shareholders should consult their tax advisors to determine the applicability of these regulations in light of their particular circumstances.</FONT></P>
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<FONT size=2 face="serif">29</FONT></P>

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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Fund will inform shareholders of the source and tax status of all distributions promptly after the close of each calendar year. The IRS has taken the position that if a RIC has more than
one class of shares, it may designate distributions made to each class in any year as consisting of no more than that class&#146;s proportionate share of a particular type of income for that year, including ordinary income and net capital gain. A
class&#146;s proportionate share of a particular type of income for a year is determined according to the percentage of total dividends paid by the RIC during that year to the class. The IRS, however, will not render such designations ineffective
for federal income tax purposes even if it is a disproportionate designation as long as such designation is made pursuant to a rule described in a registration statement that was filed with the SEC before June 13, 1989.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Fund has received a private letter ruling from the IRS that states that the IRS will respect the Fund&#146;s proposed method of designating income eligible for the Dividends Received
Deduction to the RPS, common stock and the APS. More specifically, the IRS will respect the Fund&#146;s designation of income eligible for the Dividends Received Deduction to the RPS pro rata between dividend income that is eligible for the
Dividends Received Deduction (and that constitutes qualified dividend income) and dividend income that is eligible for the Dividends Received Deduction (but does not constitute qualified dividend income). To the extent any qualifying income remains
after dividends are paid on the RPS, distributions on the common stock and the APS will be designated as income eligible for the Dividends Received Deduction on a pro rata basis between these classes. Dividend income that constitutes qualified
dividend income (but is not eligible for the Dividends Received Deduction) and net capital gain will be designated to the common stock and the APS (and to the RPS to the extent the Fund&#146;s qualified income is less than the distribution to the
RPS) on a pro rata basis among these classes.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The foregoing discussion does not address the special tax rules applicable to certain classes of investors, such as tax-exempt entities, foreign investors, insurance companies and financial
institutions. Shareholders should consult their own tax advisors with respect to special tax rules that may apply in their particular situations, as well as the state, local and, where applicable, foreign tax consequences of investing in the
Fund.</FONT></P>
<center>
  <B><FONT size=2 face="serif">EXPERTS</FONT></B></center>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The statement of assets and liabilities of the Fund as of December 31, 2004 including the schedule of investments as of December 31, 2004 and the related statements of operations and cash flows
for the year then ended and the statement of changes in net assets and the financial highlights for each of the two years in the period then ended, incorporated by reference in this Statement of Additional Information, have been audited by Ernst
&amp; Young LLP, independent registered public accounting firm, as set forth in their report thereon appearing elsewhere herein, and is incorporated by reference in reliance upon such report given upon the authority of such firm as experts in
accounting and auditing. Ernst &amp; Young LLP, located at 233 South Wacker Drive, Chicago, Illinois 60606, provides accounting and auditing services to the Fund.</FONT></P>
<center>
  <B><FONT size=2 face="serif">ADDITIONAL INFORMATION</FONT></B></center>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">A Registration Statement on Form N-2, including amendments thereto, relating to the shares offered hereby, has been filed by the Fund with the SEC in Washington, D.C. The prospectus and this
Statement of Additional Information do not contain all of the information set forth in the Registration Statement, including any exhibits and schedules thereto. For further information with respect to the Fund and the shares offered hereby,
reference is made to the Registration Statement. Statements contained in the prospectus and this Statement of Additional Information as to the contents of any contract or other document referred to are not necessarily complete and in each instance
reference is made to the copy of such contract or other document filed as an exhibit to the Registration Statement, each such statement being qualified in all respects by such reference. A copy of the Registration Statement may be inspected without
charge at the SEC&#146;s principal office in Washington, D.C., and copies of all or any part thereof may be obtained from the SEC upon the payment of certain fees prescribed by the SEC. The Fund files its complete schedule of portfolio holdings for
the first and third quarter of its fiscal year with the SEC on Form N-Q. The Fund&#146;s Form N-Q will be available on the SEC&#146;s website at http://www.sec.gov. The Fund&#146;s Form N-Q, when available, may be reviewed and copied at the
SEC&#146;s Public Reference Room in Washington, D.C.. Information regarding the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund&#146;s Form N-Q, when available, may also be obtained, upon request, by
calling (800) 699-1236.</FONT></P>
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<FONT size=2 face="serif">30</FONT></P>

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<center>
  <br>


  <B><FONT size=2 face="serif">FINANCIAL STATEMENTS</FONT></B></center>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The audited financial statements listed below are incorporated herein by reference from the Fund&#146;s Annual Report to Shareholders for the year ended December 31, 2004 as filed with the SEC
on Form N-CSR on March 2, 2005 (no. 811-4915). All other portions of the Annual Report to Shareholders on Form N-CSR are not incorporated herein by reference and are not part of this SAI.</FONT></p><blockquote>

 &#151; &nbsp;<FONT size=2 face="serif">Report of independent registered public accountants</FONT>
  <br>&#151; &nbsp;<FONT size=2 face="serif">Schedule of Investments at December 31, 2004</FONT>
  <br>&#151; &nbsp;<FONT size=2 face="serif">Statement of Assets and Liabilities at December 31, 2004</FONT>
  <br>&#151; &nbsp;<FONT size=2 face="serif">Statement of Operations for the year ended December 31, 2004</FONT>
  <br>&#151; &nbsp;<FONT size=2 face="serif">Statement of Changes in Net Assets for the years ended December 31, 2004 and 2003</FONT>
  <br>&#151; &nbsp;<FONT size=2 face="serif">Statement of Cash Flows for the year ended December 31, 2004</FONT>
  <br>&#151; &nbsp;<FONT size=2 face="serif">Notes to Financial Statements</FONT>
  <br>&#151; &nbsp;<FONT size=2 face="serif">Financial Highlights - Selected Per Share Data and Ratios</FONT>
</blockquote>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The unaudited financial statements listed below are incorporated herein by reference from the Fund&#146;s Semi-Annual Report to Shareholders for the six months ended June 30, 2005 as filed with
the SEC on Form N-CSR on September 2, 2005 (no. 811-4915). All other portions of the Semi-Annual Report to Shareholders on Form N-CSR are not incorporated herein by reference and are not part of this SAI.</FONT></P>
<blockquote>
&#151; &nbsp;
<FONT size=2 face="serif">Schedule of Investments at June 30, 2005</FONT>
<br>&#151; &nbsp;
<FONT size=2 face="serif">Statement of Assets and Liabilities at June 30, 2005</FONT>
<br>&#151; &nbsp;
<FONT size=2 face="serif">Statement of Operations for the six months ended June 30, 2005</FONT>
<br>&#151; &nbsp;
<FONT size=2 face="serif">Statement of Changes in Net Assets for the six months ended June 30, 2005</FONT>
<br>&#151; &nbsp;
<FONT size=2 face="serif">Statement of Cash Flows for the six months ended June 30, 2005</FONT>
<br>&#151; &nbsp;
<FONT size=2 face="serif">Notes to Financial Statements</FONT>
<br>&#151; &nbsp;
<FONT size=2 face="serif">Financial Highlights - Selected Per Share Data and Ratios</FONT>
</blockquote>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Copies of the Fund&#146;s Annual and Semi-Annual Reports to Shareholders may be obtained without charge by writing to the Fund at its address at 55 East Monroe Street, Suite 3600, Chicago,
Illinois 60603 or by calling (800) 699-1236. The Fund&#146;s Annual Report and Semi-Annual Report to Shareholders are also available on the Fund&#146;s website at http://www.dnpselectincome.com.</FONT></P>
<P align="center">
<FONT size=2 face="serif">31</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE><br>


<P align="center">
<B><FONT size=2 face="serif">APPENDIX A</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Form of Articles Supplementary creating [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ] series of Auction Preferred Stock</FONT></P>
<P align="center">
<FONT size=2 face="serif">[To be filed by amendment]</FONT></P>
<P align="center">
<FONT size=2 face="serif">32</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<FONT size=2 face="serif">PART C: OTHER INFORMATION </FONT></P>
<P>
<U><FONT size=2 face="serif">Item 25</FONT></U><FONT size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Financial Statements and Exhibits</FONT></U><FONT size=2 face="serif"> </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=4% align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
        <TD width=4% align=right>
      <div align="left"><FONT size=2 face="serif">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></div></TD>
        <TD colspan=2 align=left>
<FONT size=2 face="serif">Financial Statements</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD colspan=2 align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD colspan=2 align=left>
<B><FONT size=2 face="serif">In Part A:</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD width=2% align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
        <TD width=90% align=left>
<FONT size=2 face="serif">Financial Highlights - Selected Per Share Data and Ratios</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Financial Highlights - Information Regarding Senior Securities</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD colspan=2 align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD colspan=2 align=left>
<B><FONT size=2 face="serif">In Part B:</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Report of independent registered public accountants</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Schedule of Investments at December 31, 2004</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Statement of Assets and Liabilities at December 31, 2004</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Statement of Operations for the year ended December 31, 2004</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Statement of Changes in Net Assets for the years ended December 31, 2004 and 2003</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Statement of Cash Flows for the year ended December 31, 2004</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Notes to Financial Statements</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Financial Highlights - Selected Per Share Data and Ratios</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Schedule of Investments at June 30, 2005</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Statement of Assets and Liabilities at June 30, 2005</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Statement of Operations for the six months ended June 30, 2005</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Statement of Changes in Net Assets for the six months ended June 30, 2005</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Statement of Cash Flows for the six months ended June 30, 2005</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Notes to Financial Statements</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Financial Highlights - Selected Per Share Data and Ratios</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD colspan="2" align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">2.</FONT>
          </div></TD>
        <TD colspan="2" align=left>
<FONT size=2 face="serif">Exhibits</FONT></TD>
  </TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>
<FONT size=2 face="serif">a.1</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Articles of Incorporation (Incorporated by reference from post-effective amendment no.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">46 to Registrant&#146;s registration statement under the Investment Company Act of 1940 on</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=left></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>
<FONT size=2 face="serif">a.2</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Amendment to Articles of Incorporation (Incorporated by reference from post-effective</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">amendment no. 46 to Registrant&#146;s registration statement under the Investment Company</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">33</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=4% align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  <TD width=3% align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
        <TD width=4% align=left>
<FONT size=2 face="serif">a.3</FONT>&nbsp;
        </TD>
        <TD width=89% align=left>
<FONT size=2 face="serif">Second Amendment to Articles of Incorporation (Incorporated by reference from post-</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">effective amendment no. 46 to Registrant&#146;s registration statement under the Investment</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Company Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">a.4</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Form of Articles Supplementary creating Remarketed Preferred Stock, Series A, B, C, D</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">and E (Incorporated by reference from post-effective amendment no. 46 to Registrant&#146;s</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">registration statement under the Investment Company Act of 1940 on Form N-2, no. 811-</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">4915)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">a.5</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Form of Articles Supplementary creating Remarketed Preferred Stock, Series I</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">(Incorporated by reference from post-effective amendment no. 46 to Registrant&#146;s</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">registration statement under the Investment Company Act of 1940 on Form N-2, no. 811-</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">4915)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">a.6</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Third Amendment to Articles of Incorporation (Incorporated by reference from post-</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">effective amendment no. 46 to Registrant&#146;s registration statement under the Investment</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Company Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">a.7</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Fourth Amendment to Articles of Incorporation (Incorporated by reference from post-</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">effective amendment no. 46 to Registrant&#146;s registration statement under the Investment</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Company Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">a.8</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Fifth Amendment to Articles of Incorporation (Incorporated by reference from post-</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">effective amendment no. 46 to Registrant&#146;s registration statement under the Investment</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Company Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">a.9</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Sixth Amendment to Articles of Incorporation (Incorporated by reference from post-</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">effective amendment no. 46 to Registrant&#146;s registration statement under the Investment</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Company Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">a.10</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Seventh Amendment to Articles of Incorporation (Incorporated by reference from post-</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">effective amendment no. 46 to Registrant&#146;s registration statement under the Investment</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Company Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left nowrap><FONT size=2 face="serif">a.11*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
  <TD align=left><FONT size=2 face="serif">Form of Articles Supplementary creating
      [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]
      series of Auction Preferred Stock </FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT size=2 face="serif">is incorporated by reference to Appendix
    A to the Statement of Additional Information. </FONT></TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">b.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Bylaws (Incorporated by reference from post-effective amendment no. 46 to Registrant&#146;s</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">registration statement under the Investment Company Act of 1940 on Form N-2, no. 811-</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">4915)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">c.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">None</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">d.1</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Specimen common stock certificate (Incorporated by reference from Registrant&#146;s</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">registration statement on Form N-2, no. 33-10421)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">d.2</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Form of certificate of Remarketed Preferred Stock, Series A (Incorporated by reference</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">from pre-effective amendment no. 2 to Registrant&#146;s registration statement on Form N-2,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">no. 33-22933)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">d.3</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Form of certificate of Remarketed Preferred Stock, Series B (Incorporated by reference</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">from pre-effective amendment no. 1 to Registrant&#146;s registration statement on Form N-2,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">no. 33-24101)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">d.4</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Form of certificate of Remarketed Preferred Stock, Series C (Incorporated by reference</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">from pre-effective amendment no. 1 to Registrant&#146;s registration statement on Form N-2,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">no. 33-24100)</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">34</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width="4%" align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  <TD width="3%" align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
        <TD width="4%" align=left>
<FONT size=2 face="serif">d.5</FONT>&nbsp;
        </TD>
        <TD width="89%" align=left>
<FONT size=2 face="serif">Form of certificate of Remarketed Preferred Stock, Series D (Incorporated by reference</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">from pre-effective amendment no. 1 to Registrant&#146;s registration statement on Form N-2,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">no. 33-24102)</FONT>&nbsp;
        </TD>
  </TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">d.6</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Form of certificate of Remarketed Preferred Stock, Series E (Incorporated by reference</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">from pre-effective amendment no. 1 to Registrant&#146;s registration statement on Form N-2,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">no. 33-24099)</FONT>&nbsp;
        </TD>
  </TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">d.7</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Form of certificate of Remarketed Preferred Stock, Series I (Incorporated by reference</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">from pre-effective amendment no. 2 to Registrant&#146;s registration statement on Form N-2,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">no. 33-22933)</FONT>&nbsp;
        </TD>
  </TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR>
  <TD colspan=4></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">d.8*</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Form of certificate of Auction Preferred Stock,
Series [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]</FONT>&nbsp;
        </TD>
  </TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">d.9*</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Form of certificate of Auction Preferred Stock,
Series [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]</FONT>&nbsp;
        </TD>
  </TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">d.10*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Form of certificate of Auction Preferred Stock,
Series [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;]</FONT>&nbsp;
        </TD>
  </TR>
<TR>
  <TD colspan=4>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">e.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Document setting forth the terms of Registrant&#146;s
dividend reinvestment plan (Incorporated </FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT size=2 face="serif">by reference from post-effective amendment
    no. 46 to Registrant's registration statement </FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT size=2 face="serif">under the Investment Company Act of
    1940 on Form N-2, no. 811-4915) </FONT>&nbsp; </TD>
</TR>
<TR>
        <TD colspan=4>

        </TD>
</TR>
<TR>
  <TD colspan=4>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">f.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">None</FONT>&nbsp;
        </TD>
  </TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">g.1</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Investment Advisory Agreement (Incorporated by reference from post-effective</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">amendment no. 39 to Registrant&#146;s registration statement under the Investment Company</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">g.2</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Service Agreement (Incorporated by reference from post-effective amendment no. 39 to</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Registrant&#146;s registration statement under the Investment Company Act of 1940 on Form</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">g.3</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Administration Agreement (Incorporated by reference from post-effective amendment</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">no. 39 to Registrant&#146;s registration statement under the Investment Company Act of 1940</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
<TR>
  <TD colspan=4>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=4>

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">h.*</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Form of Underwriting Agreement</FONT>&nbsp;
        </TD>
  </TR>
<TR>
        <TD colspan=4>

        </TD>
</TR>
<TR>
  <TD colspan=4>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">i.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Not applicable</FONT>&nbsp;
        </TD>
  </TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">j.1</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Custody Agreement (Incorporated by reference from post-effective amendment no. 45 to</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Registrant&#146;s registration statement under the Investment Company Act of 1940 on Form</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">j.2</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Foreign Custody Manager Agreement (Incorporated by reference from post-effective</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">amendment no. 45 to Registrant&#146;s registration statement under the Investment Company</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">k.1</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Fund Accounting Agreement (Incorporated by reference from post-effective amendment</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">no. 45 to Registrant&#146;s registration statement under the Investment Company Act of 1940</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">k.2</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Form of Remarketing Agreement (Incorporated by reference from exhibit k.3 to</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">pre-effective amendment no. 3 to Registrant&#146;s registration statement on Form N-2, no.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">33-22933)</FONT>&nbsp;
        </TD>
  </TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD colspan="4" align=left></TD>
  </TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD colspan="2" align=left><FONT size=2 face="serif">* To be filed by
    amendment</FONT></TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">35</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=4% align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
  <TD width=3% align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
        <TD width=4% align=left>
<FONT size=2 face="serif">k.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;
        </TD>
        <TD width=89% align=left>
<FONT size=2 face="serif">Form of Paying Agent Agreement (Incorporated by reference from exhibit k.4 to</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">pre-effective amendment no. 3 to Registrant&#146;s registration statement on Form N-2, no.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">33-22933)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">k.4</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Credit Agreement (Incorporated by reference from post-effective amendment no. 46 to</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Registrant&#146;s registration statement under the Investment Company Act of 1940 on Form</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">k.5</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Depositary Agreement (Incorporated by reference from post-effective amendment no. 46</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">to Registrant&#146;s registration statement under the Investment Company Act of 1940 on</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">k.6</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Letter Amendment to Depositary Agreement (Incorporated by reference from post-</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">effective amendment no. 46 to Registrant&#146;s registration statement under the Investment</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Company Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">k.7</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Second Letter Amendment to Depositary Agreement (Incorporated by reference from</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">post-effective amendment no. 46 to Registrant&#146;s registration statement under the</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Investment Company Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">k.8</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Placement Agency Agreement (Incorporated by reference from post-effective amendment</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">no. 46 to Registrant&#146;s registration statement under the Investment Company Act of 1940</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">k.9</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Letter Amendment to Placement Agency Agreement (Incorporated by reference from</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">post-effective amendment no. 46 to Registrant&#146;s registration statement under the</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Investment Company Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR>
  <TD colspan=4></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">k.10*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Form of Auction Agency Agreement</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">l.*</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Opinion and Consent of Counsel</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>

        </TD>
</TR>
<TR>
  <TD colspan=4>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">m.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Not applicable</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">n.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Consent of Independent Registered Public Accounting Firm</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">o.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Not applicable</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">p.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Subscription Agreement for initial capital (Incorporated by reference from Registrant&#146;s</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">registration statement on Form N-2, no. 33-10421)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">q.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Not applicable</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">r.1</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Amended and Restated Code of Ethics of Registrant</FONT></TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">r.2</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Amended and Restated Code of Ethics of Duff &amp; Phelps Investment Management Co.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">(investment adviser to Registrant)</FONT></TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT size=2 face="serif">s.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Powers of Attorney</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD colspan="4" align=left></TD>
  </TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD colspan="2" align=left><FONT size=2 face="serif">* To be filed by amendment</FONT></TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">36</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<U><FONT size=2 face="serif">Item 26</FONT></U><FONT size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Marketing Arrangements</FONT></U><FONT size=2 face="serif"> </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference
is made to the Form of Underwriting Agreement to be filed by amendment. </FONT></P>
<P>
<U><FONT size=2 face="serif">Item 27</FONT></U><FONT size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Other Expenses of Issuance and Distribution</FONT></U><FONT size=2 face="serif"> </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the estimated expenses to be incurred in connection with the offering described in this registration statement: </FONT></P>
<TABLE width="60%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="2" align=left><hr size="1" noshade>    </TD>
  </TR>
<TR valign="bottom">
        <TD width=74% align=left>
      <div align="left"><FONT size=2 face="serif">Registration and filing fees</FONT>&nbsp;
          </div></TD>
        <TD width=26% align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=2>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Rating fees</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=2>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Printing</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=2>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Accounting fees and expenses</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=2>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Legal fees and expenses</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=2>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Miscellaneous</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=2>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD colspan="2" align=left><hr size="1" noshade>    </TD>
  </TR>
</TABLE>
<BR>
<P>
<U><FONT size=2 face="serif">Item 28</FONT></U><FONT size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Persons Controlled by or Under Common Control</FONT></U><FONT size=2 face="serif"> </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund does not consider that it is controlled, directly or indirectly, by any person.</FONT></P>
<P>
<U><FONT size=2 face="serif">Item 29</FONT></U><FONT size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Number of Holders of Securities</FONT></U><FONT size=2 face="serif"> </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=24% align=left>

          <div align="left"></div></TD>
        <TD width=76% align=center>
<FONT size=2 face="serif">Number of</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
<FONT size=2 face="serif">Record Holders</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <center>
        <U><FONT size=2 face="serif">Title of Class</FONT></U>&nbsp;
    </center></TD>
        <TD align=center>
<U><FONT size=2 face="serif">September 30, 2005</FONT></U>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">Common Stock, &#36;.001 par
          value</FONT>&nbsp;
          </div></TD>
        <TD align=center>
<FONT size=2 face="serif">23,732</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=right nowrap>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>
      <div align="left"><FONT size=2 face="serif">Preferred Stock, &#36;.001
          par value</FONT>&nbsp;
          </div></TD>
        <TD align=center>
<FONT size=2 face="serif">1</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P>
<U><FONT size=2 face="serif">Item 30</FONT></U><FONT size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Indemnification</FONT></U><FONT size=2 face="serif"> </FONT></P>
<P> <FONT face="serif"> <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maryland
      law permits a corporation to include in its charter a provision limiting
      the liability of its directors and officers to the corporation and its
      stockholders for money damages, except for liability resulting from (a)
      actual receipt of an improper benefit or profit in money, property or services
      or (b) active and deliberate dishonesty established by a final judgment
      and which is material to the cause of action. The Registrant&#146;s charter
      contains a provision which eliminates directors' and officers' liability
to the maximum extent permitted by Maryland law. </font></FONT></P>
<P> <FONT size="2" face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maryland law requires
    a corporation (unless its charter provides otherwise, which the Registrant&#146;s
    charter does not) to indemnify a director or officer who has been successful
    in the defense of any proceeding to which he is made a party by reason of
    his service in that capacity. Maryland law permits a corporation to indemnify
    its present and former directors and officers, among others, against judgments,
    penalties, fines, settlements and reasonable expenses actually incurred by
    them in connection with any proceeding unless it is established that: </FONT></P>
<blockquote>
  <p><FONT size="2" face="serif">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the act or omission was material to the matter
            giving rise to the proceeding and (i) was committed in bad faith or (ii)
            was the result of active and deliberate dishonesty, <br>
        <br>
  </FONT></p>
  <p><FONT size="2" face="serif">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the director or officer actually received
            an improper personal benefit in money, property or services or <br>
        <br>
  </FONT></p>
  <p><FONT size="2" face="serif">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in the case of any criminal proceeding, the
            director or officer had reasonable cause to believe that the act or omission
            was unlawful. </FONT></p>
</blockquote>
<P> <FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A court may order
    indemnification if it determines that the director or officer is fairly and
    reasonably entitled to indemnification, even though the prescribed standard
    of conduct is not met. However, indemnification for an adverse judgment in
    a suit by or in the right of the corporation, or for a judgment of liability
    on the basis that personal benefit was improperly received, is limited to
    expenses. </FONT></P>
<P> <FONT size="2" face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, Maryland
    law permits a corporation to advance reasonable expenses to a director or
    officer upon receipt of (a) a written affirmation by the director or officer
    of his good faith belief that he has met the standard of conduct necessary
    for indemnification and (b) a written undertaking by him or on his behalf
    to repay the amount paid or reimbursed if it is ultimately determined that
    the standard of conduct was not met. </FONT></P>
<P> <FONT size="2" face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant&#146;s
    charter obligates it, to the maximum extent permitted by Maryland law but
    subject to the exclusion required by Section 17(h) of the Investment Company
    Act of 1940, to indemnify (a) any present or former director or officer or
    (b) any director or officer who, at the Registrant&#146;s request, serves
    another enterprise as a director or officer. The Bylaws of the Registrant
    obligate it to provide advance of expenses to the fullest extent permitted
    by Maryland law, except as limited by the Investment Company Act of 1940.
    Additionally, the Registrant&#146;s Bylaws permit it to indemnify any other
    employees or agents of the Registrant to the extent authorized by the Registrant&#146;s
    Board of Directors.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the &#147;1933 Act&#148;)
may be permitted to directors, officers and controlling persons of the Registrant
pursuant to the foregoing provisions, or otherwise, the Registrant has been advised
that in the opinion of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the 1933 Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities (other
than the payment by the Registrant of expenses incurred or paid by a director,
officer or controlling person in connection with the securities being registered),
the </FONT></P>
<P align="center"><FONT size=2 face="serif">37</FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<FONT size=2 face="serif">Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public
policy as expressed in the 1933 Act and will be governed by the final adjudication of such issue. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Registrant, its directors and officers, the Adviser and persons affiliated with them are insured under a policy of insurance maintained by the Registrant and the Adviser, within the limits
and subject to the limitations of the policy, against certain expenses in connection with the defense of actions, suits or proceedings and certain liabilities that might be imposed as a result of such actions, suits or proceedings, to which they are
parties by reason of being or having been such directors or officers. The policy expressly excludes coverage for any director or officer whose personal dishonesty, fraudulent breach of trust, lack of good faith, or intention to deceive or defraud
has been finally adjudicated or may be established or who willfully fails to act prudently. </FONT></P>
<P>
<U><FONT size=2 face="serif">Item 31</FONT></U><FONT size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Business and Other Connections of Investment Adviser</FONT></U><FONT size=2 face="serif"> </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Neither Duff &amp; Phelps Investment Management Co., nor any of its directors or executive officers, has at any time during the past two years been engaged in any other business, profession,
vocation or employment of a substantial nature either for its or his own account or in the capacity of director, officer, employee, partner or trustee, except as indicated in this Registration Statement. </FONT></P>
<P>
<U><FONT size=2 face="serif">Item 32</FONT></U><FONT size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Location of Accounts and Records</FONT></U><FONT size=2 face="serif"> </FONT></P>
<P></P>
<p> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2 face="serif">All
    accounts, books and other documents required to be maintained by Section
    31 (a) of the Investment Company Act of 1940 and the Rules promulgated thereunder
    are maintained at the offices of the Fund (55 East Monroe Street, Suite 3600,
    Chicago, Illinois 60603), the Adviser, the Administrator and the Fund&#146;s
    custodian and transfer agents. See &#147;Management of the Fund-Investment
    Adviser,&#148; &#147;Management of the Fund-Administrator&#148; and &#147;Underwriting-Custodian
    agent, transfer agent and auction agent&#148; for the addresses of the Adviser,
    the Administrator and the Fund&#146;s custodian and transfer agents. </font></p>
<p></p>
<P>
<U><FONT size=2 face="serif">Item 33</FONT></U><FONT size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Management Services</FONT></U></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"> Not applicable.</FONT></P>
<P><U><FONT size=2 face="serif">Item 34</FONT></U><FONT
size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Undertakings</FONT></U><FONT size=2 face="serif"> </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"> 1. The Registrant hereby undertakes to suspend the offering of its units until it amends its Prospectus if (a) subsequent to the effective date of its registration statement, the net asset value declines more than 10
percent from its net asset value as of the effective date of the Registration Statement or (b) the net asset value increases to an amount greater than its net proceeds as stated in the Prospectus.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">2.
Not applicable.  </FONT></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">3. Not applicable.</FONT></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">4.
    Not applicable.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">5.
The Registrant hereby undertakes: </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(a) for the purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of Prospectus filed as part of a registration statement in reliance upon Rule 430A and contained in
the form of Prospectus filed by the Registrant under Rule 497(h) under the Securities Act of 1933 shall be deemed to be part of the Registration Statement as of the time it was declared effective; and </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(b) for the purpose of determining any liability under
the Securities Act of 1933, each post-effective amendment that contains a form
of Prospectus shall be deemed to be a new registration  statement relating to
the </FONT></P>
<P align="center">
<FONT size=2 face="serif"> 38</FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<FONT size=2 face="serif">securities offered therein, and the offering of the securities at that time shall be deemed to be the initial bona fide offering thereof.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">6. The Registrant undertakes to send by first class mail or other means designed to ensure equally prompt delivery within two business days of receipt of a written or oral request, its Statement of Additional Information.
</FONT></P>
<P align="center">
<FONT size=2 face="serif">39</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<FONT size=2 face="serif">EXHIBIT INDEX </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="24%" align=left>&nbsp;

        </TD>
        <TD width="61%" align=left>&nbsp;

        </TD>
        <TD width="15%" align=right>
      <div align="left"><FONT size=2 face="serif">Sequential</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<U><FONT size=2 face="serif">Exhibit No.</FONT></U>&nbsp;
        </TD>
        <TD align=left>
<U><FONT size=2 face="serif">Description</FONT></U>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><U><FONT size=2 face="serif">Page No.</FONT></U>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">n</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Consent of Independent Registered Public Accounting Firm</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left> <FONT size=2 face="serif">r.1</FONT>&nbsp; </TD>
  <TD align=left> <FONT size=2 face="serif">Amended and Restated Code of Ethics
      of the Registrant </FONT>&nbsp; </TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left><FONT size=2 face="serif">r.2</FONT></TD>
  <TD align=left><FONT size=2 face="serif">Amended and Restated Code of Ethics
    of </FONT></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left><FONT size=2 face="serif">Duff &amp; Phelps Investment Management
    Co. </FONT></TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">s</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Powers of Attorney</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">40</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT size=2 face="serif">SIGNATURES </FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Pursuant to requirements
of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant
has duly caused this registration statement to be signed on its behalf by the
undersigned, thereunto duly authorized in the city of Chicago, and the state
of Illinois, on the 21st day of December, 2005. </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=50% align=left>&nbsp;</TD>
        <TD width=50% align=left>
<FONT size=2 face="serif">DNP SELECT INCOME FUND INC.</FONT>&nbsp;
        </TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
        <TD>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
        <TD align=left nowrap>
<FONT size=2 face="serif">By:</FONT> <font size="2"><u>&nbsp;&nbsp;/s/
Nathan I. Partain&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>&nbsp;</font> </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;&nbsp;<FONT size=2 face="serif">Name: Nathan I. Partain </FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;  <FONT size=2 face="serif">Title: President and Chief Executive
 Officer </FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Pursuant to the requirements of the Securities Act of 1933, registration statement has been signed by the following persons in the capacities and on the dates indicated. </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=24% align=center nowrap>
<B><U><FONT size=2 face="serif">Signature</FONT></U></B>&nbsp;
        </TD>
        <TD width=20%>&nbsp;
        </TD>
        <TD width=22% align=center>
<B><U><FONT size=2 face="serif">Title</FONT></U></B>&nbsp;
        </TD>
        <TD width=13%>&nbsp;
        </TD>
        <TD width=21% align=right>
      <center>
        <B><U><FONT size=2 face="serif">Date</FONT></U></B>&nbsp;
          </center></TD>
</TR>
<TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>          <center>
          <p align="left"><font size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Nathan I. Partain &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>
	    </font></p>      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Nathan I. Partain</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><center>
          <u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/21/05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          </font>
          </u>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">President and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Chief Executive Officer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">(Principal Executive Officer)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
    <TD align=left nowrap>
	 <font size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Joseph C. Curry, Jr.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Joseph C. Curry, Jr.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/21/05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font> </u>
        </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Senior Vice President</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">and Treasurer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">(Principal Financial and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Accounting Officer)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>
      <center>
        <FONT size=2 face="serif">*<br>
        ________________________________</FONT>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Stewart E. Conner</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/21/05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font> </u>
        </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Director</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap>
      <center>
        <FONT size=2 face="serif">*<br>
  ________________________________</FONT>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Connie K. Duckworth</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/21/05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font> </u>
        </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Director</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap> <center>
          <FONT size=2 face="serif">*<br>
  ________________________________</FONT>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Robert J. Genetski</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/21/05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font> </u>
        </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Director</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
    <TD align=right nowrap> <p align=center><FONT size=2 face="serif">*<br>________________________________</FONT></p></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Francis E. Jeffries</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/21/05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font> </u>
        </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Director</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">and Chairman of the Board</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=right nowrap> <center>
          <FONT size=2 face="serif">*<br>
  ________________________________</FONT>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Nancy Lampton</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/21/05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font> </u>
        </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Director</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">41</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=22% align=right nowrap> <center>
          <FONT size=2 face="serif">*<br>
  ________________________________</FONT>
        </center></TD>
        <TD width=21% align=right nowrap>&nbsp;</TD>
        <TD width=22% align=center>
<FONT size=2 face="serif">Christian H. Poindexter</FONT>&nbsp;
        </TD>
    <TD width=14% align=center>&nbsp;</TD>
    <TD width=21% align=center> <u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/21/05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font> </u> </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=center>
<FONT size=2 face="serif">Director</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=5>

          <center>
    </center></TD>
</TR>
<TR>
        <TD colspan=5>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=right>
          <center>
            <FONT size=2 face="serif">*<br>
  ________________________________</FONT>
          </center></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=center>
<FONT size=2 face="serif">Carl F. Pollard</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center> <u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/21/05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font> </u> </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=center>
<FONT size=2 face="serif">Director</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=5>

          <center>
    </center></TD>
</TR>
<TR>
        <TD colspan=5>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=right> <center>
          <FONT size=2 face="serif">*<br>
  ________________________________</FONT>
        </center></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=center>
<FONT size=2 face="serif">David J. Vitale</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center> <u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12/21/05&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font> </u> </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=center>
<FONT size=2 face="serif">Director</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
</TR>
<TR>
        <TD colspan=5>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=5>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=5>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap> <FONT size=2 face="serif">*By:</FONT>&nbsp;<font size="2"><u>/s/
        Nathan I. Partain&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=2 face="serif">Nathan I. Partain</FONT>&nbsp;
        </TD>
        <TD align=center>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=2 face="serif">Attorney-in-Fact</FONT>&nbsp;
        </TD>
        <TD align=center>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">42</FONT></P>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2N
<SEQUENCE>2
<FILENAME>c40133_ex-n.htm
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<P align="right">
<FONT face="serif">Exhibit n </FONT></P>
<P align="center">
<FONT face="serif">CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM </FONT></P>
<P align="justify">
<FONT face="serif">We consent to the reference to our firm under the captions &#147;Financial Highlights &#150; Selected Per Share Data and Ratios&#148;, &#147;Financial Highlights &#150; Information Regarding Senior Securities&#148; and
&#147;Experts&#148; and to the use of our report dated February 11, 2005 incorporated by reference in the Registration Statement (Form N-2) and related Prospectus and Statement of Additional Information of the DNP Select Income Fund Inc. filed with
the Securities and Exchange Commission in this Registration Statement under the Securities Act of 1933 and in this Amendment No. 48 to the Registration Statement under the Investment Company Act of 1940 (Registration No. 811-04915). </FONT></P>
<P align="right">
<FONT face="serif">/s/ ERNST &amp; YOUNG LLP </FONT></P>
<FONT face="serif">Chicago, Illinois </FONT><BR>
<FONT face="serif">December 20, 2005</FONT><B><FONT face="serif"> </FONT></B><BR>

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<DOCUMENT>
<TYPE>EX-99.2R.1
<SEQUENCE>3
<FILENAME>c40133_ex99-2r1.htm
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<center>
  <B><U><FONT face="sans-serif">DNP SELECT INCOME FUND INC.</FONT></U></B></center>
<P align="center">
<B><U><FONT face="sans-serif">AMENDED AND RESTATED CODE OF ETHICS</FONT></U></B></P>
<p><FONT face="sans-serif">I. </FONT><U><FONT face="sans-serif">Applicability</FONT></U></p>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">This Amended
        and Restated Code of Ethics (the &#147;</FONT><U><FONT face="sans-serif">Code</FONT></U><FONT face="sans-serif">&#148;),
        adopted by the Board of Directors of DNP Select Income Fund Inc. (the &#147;</FONT><U><FONT face="sans-serif">Fund</FONT></U><FONT face="sans-serif">&#148;)
        pursuant to Rule 17j-1 under the Investment Company Act of 1940, as amended
        (the &#147;</FONT><U><FONT face="sans-serif">Act</FONT></U><FONT
face="sans-serif">&#148;), establishes rules of conduct for &#147;Covered Persons&#148; or &#147;Access
        Persons&#148; (each as defined in this Code) of the Fund. For purposes
        of this Code, &#147;Covered Person&#148; or &#147;Access Person&#148; shall
        mean any director, officer or &#147;Advisory Person&#148; of the Fund
        or its investment adviser and &#147;Advisory Person&#148; of the Fund
    or its investment adviser means: </FONT></td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(A)
        any director, officer, general partner or employee of the Fund or its
        investment adviser (or any company in a control relationship to the Fund
        or its investment adviser) who, in connection with his or her regular
        functions or duties, makes,participates, in or obtains information regarding,
        the purchase or sale of securities by the Fund, or whose functions relate
        to the making of any recommendations with respect to the purchases or
    sales; and </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(B)
        any natural person in a control relationship to the Fund or its investment
        adviser who obtains information concerning recommendations made to the
    Fund with regard to the purchase or sale of securities by the Fund. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">For
        purposes of this </FONT><U><FONT face="sans-serif">Article I</FONT></U><FONT face="sans-serif">,
        a person does not become a Covered Person solely by reason of (i) normally
        assisting in the preparation of public reports or receiving public reports,
        but not receiving information about </FONT><U><FONT face="sans-serif">current</FONT></U><FONT face="sans-serif"> recommendations
        or trading; or (ii) a single instance of obtaining knowledge of </FONT><U><FONT face="sans-serif">current</FONT></U><FONT face="sans-serif"> recommendations
        or trading activity, or infrequently and inadvertently obtaining such
    knowledge. </FONT></td>
  </tr>
  <tr>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="sans-serif">II. </FONT><U><FONT face="sans-serif"></FONT></U></td>
    <td colspan="2"><U><FONT face="sans-serif">Statement of General Principles</FONT></U><BR></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">The
        general fiduciary principles that govern the personal trading activities
    of a Covered Person are as follows: </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(A) the duty at
    all times to place the interests of the shareholders of the Fund first; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(B) the requirement
        that all personal securities transactions be conducted in a manner which
        does not interfere with the Fund&#146;s portfolio transactions so as
        to avoid any actual or potential conflict of interest or any abuse of
    an individual&#146;s position of trust and responsibility; and </FONT></td>
  </tr>
</table>
<P>&nbsp;</P>
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<table width="100%"  border="0" cellpadding="0" cellspacing="0">
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    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(C) the fundamental
        standard that Covered Persons should not take inappropriate or unfair
    advantage of their relationship with the Fund. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="4">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">Covered
        Persons must adhere to these general principles as well as comply with
    the Code&#146;s specific provisions. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="4"><FONT face="sans-serif">III.&nbsp;&nbsp;</FONT><U><FONT face="sans-serif">Prohibitions</FONT></U><FONT face="sans-serif">&nbsp; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(A) No Covered Person shall purchase or sell,
    directly or indirectly, any security in which he has, or by reason of such transaction acquires, any direct or indirect beneficial ownership (as defined in </FONT><U><FONT face="sans-serif">Attachment A</FONT></U><FONT face="sans-serif"> hereto) and
which he knows at the time of such purchase or sale: </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"><FONT face="sans-serif">(1) is being considered for purchase or sale
    by the Fund; or</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"><FONT face="sans-serif">(2) is being purchased or sold by the Fund. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">No
        Advisory Person shall purchase or sell a security when the Fund has a
        pending purchase or sale of the same security until the Fund&#146;s order
        has been completed or withdrawn. If the proposed personal trade is on
        the same side as the completed Fund transaction, the personal trade cannot
        occur within two days of the Fund transaction (i.e., neither at T or
        T + 1 calendar day). If the proposed trade is on the opposite side of
        the completed Fund transaction in that security, the personal trade cannot
        occur within three days after the Fund transaction (i.e., T + 2 calendar
    days or later). </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">No
        Advisory Person who is entrusted with the day-to-day management of the
        Fund&#146;s portfolio may directly or indirectly acquire or dispose of
        beneficial ownership of a security within seven calendar days before
    or after the Fund trades in that security. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">No
        Advisory Person shall profit in the purchase and sale or sale and purchase,
        of the same (or equivalent) securities of an issuer within 60 calendar
        days if the Fund purchases or sells the same (or equivalent) securities
        of such issuer during such 60-day period. Any profit realized on such
    short-term trades shall be disgorged. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">For
        purposes of </FONT><U><FONT face="sans-serif">Article III(A)(1)</FONT></U><FONT face="sans-serif">,
        a security is &#147;being considered for purchase or sale&#148; when
        a recommendation to purchase or sell a security has been made and communicated
        and, with respect to the person making the recommendation, when such
        person receives information that would lead such person in his or her
    normal course of business to consider making such a recommendation. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(B)
        No Covered Person shall recommend any securities transaction by the Fund
        without having disclosed his interest, if any, in such securities or
    the issuer of the securities, including without limitation: </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
</table>


<P align="center"><FONT size=2 face="sans-serif">-</FONT><FONT size=2 face="serif">2</FONT><FONT size=2 face="sans-serif">-</FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(1)
        such person&#146;s direct or indirect beneficial ownership of any securities
    of such issuer; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(2)
    any contemplated transaction by such person in such securities; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(3) any position with such issuer
    or its affiliates; and </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(4) any present or proposed business
    relationship between such issuer or its affiliates and such person or any party in which
such person has a significant interest. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(C)
        No Covered Person shall, directly or indirectly in connection with the
    purchase or sale of any securities held or to be acquired by the Fund: </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(1) employ any device, scheme or
    artifice to defraud the Fund; or</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(2) make to the Fund any untrue statement
    of a material fact or omit to state to the Fund a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(3)
        engage in any act, practice or course of business which operates or would
    operate as a fraud or deceit upon the Fund; or </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(4) engage in any manipulative practice
    with respect to the Fund.</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(D) No Advisory Person shall purchase,
        directly or indirectly, or by reason of such transaction acquire, any
        direct or indirect beneficial ownership (as defined in </FONT><U><FONT face="sans-serif">Attachment
        A</FONT></U><FONT face="sans-serif"> hereto) of any securities in an
        initial public offering or a private placement transaction, without prior
    approval in accordance with this Code. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(E) No Covered Person shall accept
        any gift or other thing of more than </FONT><U><FONT face="sans-serif">de
        minimis</FONT></U><FONT face="sans-serif"> value from any person or entity
    that does business with or on behalf of the Fund. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(F) No Advisory Person shall engage
        in excessive trading or market timing activities with respect to any
        mutual fund whether or not such mutual fund is managed by the employer
        of such Advisory Person or by any affiliated adviser/sub-adviser. For
        the purposes of the foregoing, "market timing" shall be defined as a
        purchase and redemption, regardless of size, in and out of the same mutual
        fund within any sixty (60) day period. The foregoing restrictions shall
        not apply to Advisory Persons investing in mutual funds through asset
        allocation programs, automatic reinvestment programs, 401(k) and similar
    retirement accounts and any other non-volitional investment </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<center>
  <br>
  <FONT size=2 face="sans-serif">-</FONT><FONT size=2 face="serif">3</FONT><FONT size=2 face="sans-serif">-</FONT>
</center>
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<P align="left" style="page-break-before:always"></P><PAGE>
<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td colspan="3"><FONT face="sans-serif">vehicles. Advisory Persons shall
        provide annual and quarterly certifications as to their compliance with
    this restriction.</FONT> </td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(G)</FONT><FONT face="sans-serif">No
        Covered Person shall (i) purchase or sell the security of any issuer
        on the basis of material nonpublic information about that security or
        issuer, or (ii) divulge such information in breach of a duty of trust
        or confidence that is owed directly, indirectly or derivatively, to the
        issuer of that security, the shareholders of that issuer or any other
    person who is the source of such information.</FONT> </td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="4">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">For
        purposes of this Code, the term &#147;security&#148; shall have the meaning
        set forth in Section 2(a)(36) of the Act, provided that the term &#147;security&#148; shall
        not include direct obligations of the Government of the United States,
        bankers&#146; acceptances, bank certificates of deposit, commercial paper
        and high quality short-term debt instruments, including repurchase agreements,
        and shares of registered open-end investment companies, other than investment
        companies to which the Fund&#146;s investment adviser or any company
        in a control relationship to the Fund&#146;s investment adviser acts
    as the investment adviser or principal underwriter. </FONT></td>
  </tr>
  <tr>
    <td colspan="4">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="4"><FONT face="sans-serif">IV.&nbsp;&nbsp; </FONT><U><FONT face="sans-serif">Exempt
    Transactions</FONT></U></td>
  </tr>
  <tr>
    <td colspan="4">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="4">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">The
        prohibitions described in </FONT><U><FONT face="sans-serif">paragraph
        (A)</FONT></U><FONT face="sans-serif"> of </FONT><U><FONT face="sans-serif">Article
        III</FONT></U><FONT
face="sans-serif"> and the prior approval requirements described in </FONT><U><FONT face="sans-serif">Article
    V</FONT></U><FONT face="sans-serif"> shall not apply to: </FONT></td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(A)
        purchases or sales effected in any account over which the Covered Person
        has (i) no direct or indirect influence or control or (ii) given discretionary
    investment authority to an independent third party; </FONT></td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(B)
        purchases or sales of securities of an issuer of the type in which the
    Fund does not typically invest; </FONT></td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(C)
        purchases or sales that are non-volitional on the part of the Covered
    Person; </FONT></td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(D)
        transactions effected pursuant to a program (including a dividend reinvestment
        plan) in which regular periodic purchases (or withdrawals) are made automatically
        in (or from) investment accounts in accordance with a predetermined schedule
    and allocation (an &#147;Automatic Investment Plan&#148;); </FONT></td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(E)
        purchases effected upon the exercise of rights issued by an issuer </FONT><U><FONT face="sans-serif">pro
        rata</FONT></U><FONT face="sans-serif"> to all holders of a class of
        its securities, to the extent such rights were acquired from the issuer,
    and sales of such rights so acquired; </FONT></td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(F)
        purchases or sales for which the Covered Person has received prior approval
        from the Chief Compliance Officer of the Fund&#146;s investment adviser
        or such individual&#146;s designee (the &#147;</FONT><U><FONT face="sans-serif">Compliance
        Officer</FONT></U><FONT face="sans-serif">&#148;) in accordance with
    this Code; or </FONT></td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<center>
  <br>
  <FONT size=2 face="sans-serif">-</FONT><FONT size=2 face="serif">4</FONT><FONT size=2 face="sans-serif">-</FONT>
</center>
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<table width="100%"  border="0" cellpadding="0" cellspacing="0">
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    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(G)
        purchase or sales of securities issued under an employee stock purchase
        or incentive program of the Fund&#146;s investment adviser, unless such
    purchases or sales are otherwise restricted. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="4"><FONT face="sans-serif">V.</FONT>&nbsp; &nbsp; &nbsp; <U><FONT face="sans-serif">Prior
    Approval for Non-Exempt Transactions</FONT></U> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3"><FONT face="sans-serif">(A) Only the following categories
        of Covered Persons are subject to the prior approval requirements of
    this </FONT><U><FONT face="sans-serif">Article&nbsp;V</FONT></U><FONT face="sans-serif">:</FONT> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(1) Any Advisory Person,</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(2)
        Any director of the Fund who is an &#147;interested person&#148; (as
    defined in the Act) with respect to the Fund, and </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(3)
        Any director of the Fund, whether or not an &#147;interested person,&#148; who
        at the time of the purchase or sale of a security either knows, or in
        the ordinary course of fulfilling his or her official duties as a director
        of the Fund should know, that such security is being purchased or sold
    by the Fund or is being considered for purchase or sale by the Fund. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(B)
        No Covered Person who is otherwise subject to the prior approval requirements
        of this </FONT><U><FONT face="sans-serif">Article V</FONT></U><FONT face="sans-serif"> shall
        be required to obtain prior approval for any personal securities transaction
        that is exempt under </FONT><U><FONT face="sans-serif">Article IV</FONT></U><FONT face="sans-serif"> above
        or for any purchase or sale of up to 500 shares of stock of an issuer
        that is included in the calculation of the Standard &amp; Poor&#146;s
    500 Composite Stock Index at the time of such purchase or sale.</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(C)
        Before engaging in a personal securities transaction (other than a transaction
        exempted under </FONT><U><FONT face="sans-serif">paragraph (B)</FONT></U><FONT face="sans-serif"> of
        this </FONT><U><FONT face="sans-serif">Article V</FONT></U><FONT face="sans-serif">),
        a Covered Person who fits within any of the categories specified in </FONT><U><FONT face="sans-serif">paragraph
        (A)</FONT></U><FONT face="sans-serif"> of this </FONT><U><FONT face="sans-serif">Article
        V</FONT></U><FONT face="sans-serif"> must submit to the Compliance Officer
        in writing a completed and executed Personal Trading Request for Pre-Clearance
        (the form of which is appended hereto as </FONT><U><FONT face="sans-serif">Attachment
        B</FONT></U><FONT face="sans-serif">), which shall set forth the details
        of the proposed transaction. Approval of the transaction as described
        on such form shall be evidenced by the signature of the Compliance Officer
        thereon. A copy of all prior approval forms, with all required signatures,
    shall be retained by the Compliance Officer. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(D)
        Upon receipt of a Personal Trading Request for Pre-Clearance, the Compliance
        Officer shall have the sole discretion to pre-approve a personal securities
        transaction, and thereby exempt such transaction from the restrictions
        of this Code. The Compliance Officer shall make such determination in
    accordance with the following: </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(1)
        Prior approval shall be granted only if a purchase or sale of securities
        is consistent with the purposes of this Code and Section 17(j) of the
        Act. To illustrate, a purchase or sale shall be considered consistent
    with those purposes if such purchase or sale is only remotely potentially </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>


<P align="center"><FONT size=2 face="sans-serif">-</FONT><FONT size=2 face="serif">5</FONT><FONT size=2 face="sans-serif">-</FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"><FONT face="sans-serif">harmful to the Fund because such
        purchase or sale would be unlikely to affect a highly institutional market,
        or because such purchase or sale is clearly not related economically
    to the securities held, purchased or sold by the Fund. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(2)</FONT>&nbsp; <FONT face="sans-serif">Prior
    approval shall take into account, among other factors:</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(a) whether the investment opportunity should
        be reserved for the Fund and its shareholders and whether the opportunity
        is being offered to the Covered Person by virtue of the Covered Person&#146;s
    position with the Fund;</FONT> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(b) whether the
        amount or nature of the transaction or person making it is likely to
    affect the price or market for the security; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(c) whether the
        Covered Person making the proposed purchase or sale is likely to benefit
    from purchases or sales being made or being considered by the Fund; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(d) whether the
        security proposed to be purchased or sold is one that would qualify for
    purchase or sale by the Fund; and </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(e) whether the
        transaction is non-volitional on the part of the individual, such as
    receipt of a stock dividend or a sinking fund call. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(E)
        In any case where the Compliance Officer determines to grant prior approval
        for the acquisition by a Covered Person of securities in an initial public
        offering or a private placement transaction, he or she shall maintain
        a record of the reasons supporting such determination and retain such
        record with the prior approval form in accordance with the provisions
        of </FONT><U><FONT face="sans-serif">Article VII(I)(6)</FONT></U><FONT
face="sans-serif"> below. In all other cases where prior approval is granted
        in accordance with this Code, the Compliance Officer is not required
    to specify any reason for such determination. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(F)
        If approval is given to the Covered Person in accordance with this Code
        to engage in a securities transaction, the Covered Person is under an
        affirmative obligation to disclose that position if such Covered Person
        plays a material role in the Fund&#146;s subsequent investment decision
        regarding the same issuer. In such circumstances, a review of the Fund&#146;s
        investment decision to purchase securities of the issuer by investment
    personnel with no personal interest in the issuer shall be conducted. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(G)
        Approval granted to the Covered Person in accordance with this Code is
        only valid through the business day next following the day such approval
    is given. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>


<P align="center"><FONT size=2 face="sans-serif">-</FONT><FONT size=2 face="serif">6</FONT><FONT size=2 face="sans-serif">-</FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="4"><FONT face="sans-serif">VI.</FONT>&nbsp;&nbsp;<U><FONT face="sans-serif">Reporting</FONT></U> </td>
  </tr>
  <tr>
    <td colspan="4">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(A) </FONT><U><FONT face="sans-serif">Initial
          Holdings Reports</FONT></U><FONT face="sans-serif">. Every Covered
          Person must submit a report (a form of which is appended as </FONT><U><FONT face="sans-serif">Attachment
          C</FONT></U><FONT face="sans-serif">) to the Compliance Officer not
          later than 10 days after the person becomes a Covered Person. The report
          must contain the following information (current as of a date not more
    than 45 days prior to the date the person becomes a Covered Person):</FONT> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(1)
        the title, number of shares and principal amount of each security in
        which the Covered Person had any direct or indirect beneficial ownership
    when the person became a Covered Person; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(2)
        the name of any broker, dealer or bank with whom the Covered Person maintained
        an account in which any securities were held for the direct or indirect
        benefit of the Covered Person as of the date the person became a Covered
    Person; and </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(3) the date that the report is submitted
    by the Covered Person. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(B) </FONT><U><FONT face="sans-serif">Quarterly
          Transaction Reports</FONT></U><FONT face="sans-serif">. Every Covered
          Person must submit a report (a form of which is appended as </FONT><U><FONT
face="sans-serif">Attachment D</FONT></U><FONT face="sans-serif">) to the Compliance
    Officer not later than 15 days after each calendar quarter containing: </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(1)
        the following information about </FONT><U><FONT face="sans-serif">any</FONT></U><FONT face="sans-serif"> transaction
        (other than a transaction effected pursuant to an Automatic Investment
        Plan) during the quarter in which the Covered Person had </FONT><U><FONT face="sans-serif">any</FONT></U><FONT face="sans-serif"> direct
    or indirect beneficial ownership: </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(a) the date of
        the transaction, the title, the interest rate and maturity date (if applicable),
    the number of shares and the principal amount of each security involved; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(b) the nature
        of the transaction (</FONT><U><FONT face="sans-serif">i.e.</FONT></U><FONT face="sans-serif">,
    purchase, sale or any other type of acquisition or disposition); </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(c)</FONT> <FONT face="sans-serif">the
    price at which the transaction was effected;</FONT> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(d)</FONT> <FONT face="sans-serif">the
    name of the broker, dealer or bank with or through whom the transaction was effected;</FONT> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(e) the date that
    the report is submitted by the Covered Person; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(2)
        the following information about </FONT><U><FONT face="sans-serif">any</FONT></U><FONT face="sans-serif"> account
        established by the Covered Person in which </FONT><U><FONT
face="sans-serif">any</FONT></U><FONT face="sans-serif"> securities were held
        during the quarter for the direct or indirect benefit of the Covered
    Person: </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
</table>
<P align="center"><FONT size=2 face="sans-serif">-</FONT><FONT size=2 face="serif">7</FONT><FONT size=2 face="sans-serif">-</FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(a) the name of
        the broker, dealer or bank with whom the Covered Person established the
    account; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(b) the date the account was established; and </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(c) the date that
    the report is submitted by the Covered Person. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(C) </FONT><U><FONT face="sans-serif">Annual
          Holdings Reports</FONT></U><FONT face="sans-serif">. Every Covered
          Person must submit a report (a form of which is appended as </FONT><U><FONT
face="sans-serif">Attachment E</FONT></U><FONT face="sans-serif">) to the Compliance
          Officer not later than January 31 of each year containing the following
    information: </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(1)
        the title, number of shares and principal amount of each security in
        which the Covered Person had any direct or indirect beneficial ownership
    as of December 31 of the preceding year; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(2)
        the name of any broker, dealer or bank with whom the Covered Person maintains
        an account in which any securities are held for the direct or indirect
    benefit of the Covered Person as of December 31 of the preceding year;</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(3) the date that the report is submitted
    by the Covered Person; and</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(4) a certification by the Covered
    Person that he or she has read and understood the Code and has complied with the
Code&#146;s requirements.</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3"><FONT face="sans-serif">(D) </FONT><U><FONT face="sans-serif">Exceptions
    from Reporting Requirements</FONT></U><FONT face="sans-serif">. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(1)
        A Covered Person shall not be required to include in any report made
        under this </FONT><U><FONT face="sans-serif">Article VI</FONT></U><FONT face="sans-serif"> any
        transactions effected for, and securities held in, any account over which
        such person (i) does not have any direct or indirect influence or control
    or (ii) has given discretionary authority to an independent third party. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(2)
        Any person who is a Covered Person by virtue of being a director of the
        Fund, but who is not an &#147;interested person&#148; (as defined in
    the Act) with respect to the Fund: </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(a) need not make
    an initial holdings report under <U>Article</U></FONT> <U><FONT face="sans-serif">VI(A)</FONT></U><FONT
face="sans-serif"> above or an annual report under <u>Article VI(C)</u> above; and </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(b) need not make
        a quarterly transaction report under </FONT><U><FONT face="sans-serif">Article
        VI(B)</FONT></U><FONT face="sans-serif"> above unless such person, at
        the time of any transaction during the quarter, knew, or in the ordinary
        course of fulfilling his or her official duties as a director of the
        Fund should have known, that the security such person purchased or sold
        is or was purchased or sold by the Fund or was being considered for purchase
    or sale by the Fund. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<P align="center"><FONT size=2 face="sans-serif">-</FONT><FONT size=2 face="serif">8</FONT><FONT size=2 face="sans-serif">-</FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(E)
        Any report submitted to comply with the requirements of this </FONT><U><FONT face="sans-serif">Article
        VI</FONT></U><FONT face="sans-serif"> may contain a statement that the
        report shall not be construed as an admission that the person making
        such report has any direct or indirect beneficial ownership in the security
    to which the report relates. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(F)
        A Covered Person will be deemed to have complied with the requirements
        of </FONT><U><FONT face="sans-serif">Article VI(B)</FONT></U><FONT face="sans-serif"> above
        by (i) causing to be sent to the Compliance Officer duplicate monthly
        brokerage statements on all transactions required to be reported thereunder,
        or (ii) providing to the Compliance Officer the requisite information
        on all transactions required to be reported hereunder through a transaction
        monitoring system, which may or may not be automated, each within the
        requisite time period and in a manner acceptable to the Compliance Officer.
        All Advisory Persons shall have duplicate monthly brokerage statements
    sent directly to the Compliance Officer. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(G)
        A Covered Person shall immediately report any violations or potential
        violations of the Code of which he or she becomes aware to the Compliance
        Officer. No Covered Person will be terminated from employment or otherwise
    retaliated against for making such a report. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="4"><FONT face="sans-serif">VII. &nbsp;&nbsp;</FONT><U><FONT face="sans-serif">Administration
    and Procedural Matters</FONT></U><FONT face="sans-serif">&nbsp; </FONT></td>
  </tr>
  <tr>
    <td colspan="4">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="4">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">The Compliance Officer shall: </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(A)
    furnish a copy of this Code to each Covered Person; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(B)
        notify each Covered Person of his or her obligation to file reports as
    provided by this Code; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(C)
        report to the Board of Directors the facts contained in any reports filed
        with the Compliance Officer pursuant to this Code when any such report
        indicates that a Covered Person purchased or sold a security held or
    to be acquired by the Fund; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(D)
        supervise the implementation of this Code by the Adviser and the enforcement
    of the terms hereof by the Adviser; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(E)
        determine whether any particular securities transaction should be exempted
    pursuant to the provisions of this Code; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(F)
        issue either personally or with the assistance of counsel as may be appropriate,
        any interpretation of this Code which may appear consistent with the
    objectives of Rule 17j-1 and this Code; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(G)
        conduct such inspections or investigations as shall reasonably be required
        to detect and report any apparent violations of this Code to the Board
        of Directors of the Fund or any Committee appointed by them to deal with
    such information; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<center>
  <br>
  <FONT size=2 face="sans-serif">-</FONT><FONT size=2 face="serif">9</FONT><FONT size=2 face="sans-serif">-</FONT>
</center>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(H)
        furnish to the Board of Directors, no later than April 30 of each year,
    a written report that: </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(1)
        describes any issues arising under this Code or related procedures since
        the last report to the Board of Directors, including, but not limited
    to: </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(a) information
    about material violations of this Code or related procedures, </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(b) sanctions imposed
    in response to such material violations, </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(c) the number
        of reports filed with the Compliance Officer pursuant to this Code during
    the preceding calendar year, </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(d) the failure
        during the preceding calendar year by any Covered Person to file a report
    pursuant to this Code when such a report should have been filed, </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(e) the number
        of such reports filed during the preceding calendar year that indicated
        that a Covered Person purchased or sold a security held or to be acquired
    by the Fund and </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(f) such other
    matters as the Board of Directors may request; and </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(2)
        certifies that the Fund has adopted procedures reasonably necessary to
    prevent Covered Persons from violating this Code; and </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(I)
        maintain and cause to be maintained in an easily accessible place, the
    following records: </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(1)
        a copy of any Code adopted pursuant to Rule 17j-1 which has been in effect
    during the past five (5) years; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(2)
        a record of any violation of any such Code that occurred during the current
        year and the past five (5) calendar years and of any action taken as
    a result of such violation; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(3)
        a copy of each report made by a Covered Person during the current year
        and the past five (5) calendar years as required by Rule 17j-1 and </FONT><U><FONT face="sans-serif">Article
        VI</FONT></U><FONT face="sans-serif"> of this Code, including any information
        provided in lieu of the reports under </FONT><U><FONT face="sans-serif">Article
    VI(F)</FONT></U><FONT face="sans-serif"> above; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(4)
        a list of all persons, currently or within the past five (5) years, who
        are or were required to make reports pursuant to Rule 17j-1 under </FONT><U><FONT face="sans-serif">Article
        VI</FONT></U><FONT face="sans-serif"> above, or who are or were responsible
    for reviewing those </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<P align="center"><FONT size=2 face="sans-serif">-</FONT><FONT size=2 face="serif">10</FONT><FONT size=2 face="sans-serif">-</FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"><FONT face="sans-serif">reports, together with an appropriate
    description of their title or employment; </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(5)
        a copy of each report made by the Compliance Officer pursuant to </FONT><U><FONT face="sans-serif">Article
        VII(H)</FONT></U><FONT face="sans-serif"> above during the current year
    and the past five (5) calendar years; and </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">(6)
        a record of any decision made during the current year and the past five
        (5) calendar years by the Compliance Officer, and the reasons supporting
        each such decision, to grant prior approval pursuant to </FONT><U><FONT face="sans-serif">Article</FONT></U><FONT face="sans-serif">&nbsp; </FONT><U><FONT face="sans-serif">V</FONT></U><FONT face="sans-serif"> of
        this Code for the acquisition by a Covered Person of securities in an
    initial public offering or a private placement transaction. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="4"><FONT face="sans-serif">VIII.&nbsp;&nbsp; </FONT><U><FONT face="sans-serif">Sanctions</FONT></U></td>
  </tr>
  <tr>
    <td colspan="4">&nbsp;</td>
  </tr>
</table>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">Upon discovering that
    a Covered Person has not complied with the requirements of this Code, the
    Board of Directors of the Fund or the Fund&#146;s investment adviser may
    impose on such Covered  Person whatever sanctions the Board deems appropriate,
    including, among other things, fines, a letter of censure, suspension or
    termination of such Covered Person&#146;s position with the Fund and/or restitution
    of an amount equal to the difference  between the price paid or received
    by the Fund and the more advantageous price paid or received by such Covered
    Person. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">The Board of Directors, in its discretion, may impose any of the sanctions set forth in this </FONT><U><FONT face="sans-serif">Article VIII</FONT></U><FONT face="sans-serif"> for any violations
of the requirements of this Code, including but not limited to, the filing by any Covered Person of any false, incomplete or untimely reports contemplated by </FONT><U><FONT face="sans-serif">Article VI</FONT></U><FONT face="sans-serif"> of the
Code. </FONT></P>
<FONT face="sans-serif">IX. </FONT><U><FONT face="sans-serif">Confidentiality</FONT></U><BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">All information obtained from any Covered Person hereunder shall be kept in strict confidence, except that reports of securities transactions hereunder will be made available to the Securities
and Exchange Commission or any other regulatory or self-regulatory organization only to the extent required by law or regulation. </FONT></P>
<P>
<FONT face="sans-serif">X. </FONT><U><FONT face="sans-serif">Other Laws, Rules and Statements of Policy</FONT></U><FONT face="sans-serif"> </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">Nothing contained in this Code shall be interpreted as relieving any Covered Person from acting in accordance with the provision of any applicable law, rule or regulation or any other statement
of policy or procedure governing the conduct of such person adopted by the Fund. </FONT></P>
<FONT face="sans-serif">XI. </FONT><U><FONT face="sans-serif">Further Information</FONT></U><BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">If any person has any question with regard to the applicability of the provisions of this Code generally or with regard to any securities transaction or transactions, he or she should consult the
Compliance Officer. </FONT></P>
<P align="center">
<FONT size=2 face="sans-serif">-</FONT><FONT size=2 face="serif">11</FONT><FONT size=2 face="sans-serif">-</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE><br>


<FONT face="sans-serif">XII. </FONT><U><FONT face="sans-serif">Certification By Advisory Persons</FONT></U><BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">All Advisory Persons of the Fund must submit a certificate (the form of which is included as Section III of </FONT><U><FONT face="sans-serif">Attachment C</FONT></U><FONT face="sans-serif">) that
they have read and understand this Code and recognize that as a Covered Person they are subject to the terms of this Code. All Advisory Persons of the Fund shall agree to certify on an annual basis that they have complied with the requirements of
this Code and that they have disclosed or reported all personal securities transactions required to be disclosed or reported pursuant to the requirements of this Code. </FONT></P>
<FONT face="sans-serif">Dated: August 25, 2005.</FONT><BR>
<P align="center">
<FONT size=2 face="sans-serif">-</FONT><FONT size=2 face="serif">12</FONT><FONT size=2 face="sans-serif">-</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<div align="right">
  <p><br>


  <U><FONT face="sans-serif">Attachment A</FONT></U></p>
  <p align="left"><B><FONT size=2 face="serif">Certain Definitions</FONT></B></p>
</div>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">The term &#147;beneficial ownership&#148; as used in the attached Code of Ethics (the &#147;</FONT><U><FONT face="sans-serif">Code</FONT></U><FONT face="sans-serif">&#148;) is to be interpreted
by reference to Rule 16a-1 under the Securities Exchange Act of 1934, as amended (the &#147;</FONT><U><FONT face="sans-serif">Rule</FONT></U><FONT face="sans-serif">&#148;), except that the determination of direct or indirect beneficial ownership
for purposes of the Code must be made with respect to all securities that a Covered Person has or acquires. Under the Rule, a person is generally deemed to have beneficial ownership of securities if: (1) the person, directly or indirectly, through
any contract, arrangement, understanding, relationship or otherwise, has or shares (a) voting power, which includes the power to vote, or to direct the voting of, the securities and/or (b) investment power, which includes the power to dispose of, or
to direct the disposition of, the securities; </FONT><U><FONT face="sans-serif">and</FONT></U><FONT face="sans-serif"> (2) the person, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares
a direct or indirect pecuniary interest in the securities. A person is deemed to have voting and/or investment power with respect to securities within the meaning of the Rule if the person has the right to acquire beneficial ownership of the
security within 60 days, including any right to acquire the security; through the exercise of any option, warrant or right; through the conversion of a security; pursuant to the power to revoke a trust, discretionary account or similar arrangement;
or pursuant to the automatic termination of a trust, discretionary account or similar arrangement. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="sans-serif">The term &#147;pecuniary interest&#148; in particular securities is generally defined in the Rule to mean the opportunity, directly or indirectly, to profit or share in any profit derived from a
transaction in the securities. A person is deemed to have an &#147;indirect pecuniary interest&#148; within the meaning of the Rule in any securities held by members of the person&#146;s immediate family sharing the same household, the term
&#147;immediate family&#148; including any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, as well as adoptive relationships.
Under the Rule, an indirect pecuniary interest also includes, among other things: a general partner&#146;s proportionate interest in the portfolio securities held by a general or limited partnership; a person&#146;s right to dividends that is
separated or separable from the underlying securities; a person&#146;s interest in certain trusts; and a person&#146;s right to acquire equity securities through the exercise or conversion of any derivative security, whether or not presently
exercisable, the term &#147;derivative security&#148; being generally defined as any option, warrant, convertible security, stock appreciation right or similar right with an exercise or conversion privilege at a price related to an equity security,
or similar securities with, or value derived from, the value of an equity security. For purposes of the Rule, a person who is a shareholder of a corporation or similar entity is </FONT><U><FONT face="sans-serif">not</FONT></U><FONT
face="sans-serif"> deemed to have a pecuniary interest in portfolio securities held by the corporation or entity, so long as the shareholder is not a controlling shareholder of the corporation or the entity and does not have or share investment
control over the corporation&#146;s or the entity&#146;s portfolio. </FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<P align="right">
<U><FONT face="sans-serif">Attachment B</FONT></U></P>
<P>
<B><U><FONT face="sans-serif">PERSONAL TRADING - REQUEST FOR PRE-CLEARANCE</FONT></U></B><B><FONT face="sans-serif"> </FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan="2" align=left>
<B><U><FONT size=2 face="sans-serif">PERSONAL &amp; CONFIDENTIAL</FONT></U></B>&nbsp;
	</TD>
	<TD width=1%>&nbsp;
	</TD>
	<TD width=38% align=right>
<B><U><FONT size=2 face="sans-serif">Fax: </FONT></U></B><B><FONT size=2 face="sans-serif">Attn: Maureen/Joyce 312-630-2460</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=12% align=left>
<B><U><FONT size=2 face="sans-serif">Questions: </FONT></U></B></TD>
	<TD width=49% align=left><B><FONT size=2 face="sans-serif">Maureen Carney (312) 630-4605</FONT></B>&nbsp; </TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left><B><FONT size=2 face="sans-serif">Joyce Riegel (312) 630-4641</FONT></B>&nbsp; </TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR>
	<TD colspan=4>&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=4>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="2" align=left>
<B><FONT size=2 face="sans-serif">From:</FONT></B>&nbsp;
_________________________________________	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<B><FONT size=2 face="sans-serif">Tel</FONT></B><FONT size=2 face="sans-serif">:
___________________________ </FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="2" align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">(print
name)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=4>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="2" align=left>
<B><FONT size=2 face="sans-serif">Office Code: CHI</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<B><FONT size=2 face="sans-serif">Return Fax</FONT></B><FONT size=2 face="sans-serif">:</FONT>&nbsp;___________________________
	</TD>
</TR>
<TR>
	<TD colspan=4>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan="2" align=left>
<FONT size=2 face="sans-serif">In accordance with the Code of Ethics for the Fund, I hereby:</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
</TABLE>
<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <div align="left"><FONT size=2 face="sans-serif">Number of</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="sans-serif">____ Request trade pre- clearance for</FONT>&nbsp;
_____________________________________	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <div align="left"><FONT size=2 face="sans-serif">Shares:</FONT> ________________
    </div></TD>
</TR>
<TR valign="bottom">
	<TD colspan="3" align=right>
      <center>
        <FONT size=2 face="sans-serif">stocks (common or preferred); bonds</FONT>&nbsp;
        <FONT size=2 face="sans-serif">(coupon/maturity); options (strike/expiration)</FONT>&nbsp;
      </center></TD>
  </TR>
</TABLE>
<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=left>
</TD>
	<TD width=20%>___&nbsp;<FONT size=2 face="sans-serif">Purchase</FONT>
	</TD>
	<TD width=20% align=right>
      <div align="left"><FONT size=2 face="sans-serif">___ Sale</FONT>&nbsp;
      </div></TD>
	<TD width=20%><FONT size=2 face="sans-serif">___ Short Sale</FONT>&nbsp;
	</TD>
	<TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD colspan="4">___
    <FONT size=2 face="sans-serif">check here if proposed Purchase is in an Initial
    Public Offering.</FONT>&nbsp; </TD>
  </TR>
<TR valign="bottom">
	<TD colspan=5 align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD colspan="3" align=left>
<FONT size=2 face="sans-serif">This trade to be placed to</FONT>&nbsp; _______________________________________
	</TD>
	<TD><div align="right"><FONT size=2 face="sans-serif">account #:</FONT>&nbsp;	  </div></TD>
	<TD align=right><div align="left">_____________</div></TD>
</TR>
<TR>
	<TD colspan="3"><center>
    <FONT size=2 face="sans-serif">Name of Broker &#150; Dealer</FONT>	  </center></TD>
	<TD>
	</TD>
	<TD>_____________
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center colspan=5>&nbsp;</TD>
</TR>
<TR>
	<TD colspan=5>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan=5 align=left>
<FONT size=2 face="sans-serif">___ request trade clearance for private placement
of</FONT>&nbsp; ______________________________________________________
	</TD>
  </TR>
<TR>
	<TD colspan=3>
	</TD>
	<TD>
	</TD>
	<TD>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD colspan=5 align=left>
 <FONT size=2 face="sans-serif">___ request authorization to serve on Board of
 public company:</FONT>&nbsp;
______________________________________________	</TD>
</TR>
<TR valign="bottom">
  <TD colspan=5 align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD colspan="3" align=left>
<FONT size=2 face="sans-serif">___ notify of brokerage account</FONT><B><FONT size=2 face="sans-serif">* </FONT></B><U><FONT size=2 face="sans-serif">#</FONT></U>&nbsp; _________________________________
	</TD>
	<TD colspan="2">
<FONT size=2 face="sans-serif">Name of broker/dealer:</FONT> ______________________	</TD>
  </TR>
</TABLE>
<p>&nbsp;</p>
<p> <B><FONT size=2 face="sans-serif">* </FONT></B><FONT size=2 face="sans-serif">If
    this is checked, please sign if you have requested the broker to provide
duplicate confirmations and statements to Duff &amp; Phelps Investment Management&#146;s
Compliance Officer.</FONT>&nbsp; </p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan="4" align=left>
<FONT size=2 face="sans-serif"></FONT>&nbsp;
<FONT size=2 face="sans-serif"></FONT>&nbsp;
	</TD>
	<TD align=right>
<FONT size=2 face="sans-serif">Signature:</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
  <TD colspan="4" align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD colspan="2"><HR noshade size=1></TD>
  </TR>
<TR>
	<TD colspan=3>
	</TD>
	<TD>
	</TD>
	<TD colspan=3>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=7>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="sans-serif">I am a:</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <div align="left"><FONT size=2 face="sans-serif">___ Portfolio Manager</FONT>&nbsp;
      </div></TD>
	<TD>
	  <div align="left"></div></TD>
	<TD align=right>
      <div align="left"><FONT size=2 face="sans-serif">___ Advisory Person</FONT>&nbsp;
      </div></TD>
	<TD>
	  <div align="left"></div></TD>
	<TD align=right>
      <div align="left"><FONT size=2 face="sans-serif">___ Access Person</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="sans-serif">I certify that:</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
</TABLE>
<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="5%" valign="top"><FONT size=2 face="sans-serif">1.</FONT></td>
    <td><FONT size=2 face="sans-serif"> I have received and read the Code within
        the past year and believe that the consummation of this transaction is
        consistent with the Code's policy of requiring disclosure, detection
    and avoidance of conflicts of interest in personal trading activities. </FONT></td>
  </tr>
  <tr>
    <td width="5%" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="5%" valign="top"><FONT size=2 face="sans-serif">2.</FONT></td>
    <td><FONT size=2 face="sans-serif"> If approved, I will execute the trade
        within 1 business day of approval and have my broker-deliver confirmation
    of execution within 3 business days.</FONT></td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD width=65% align=left>
<FONT size=2 face="sans-serif">Signature:</FONT>&nbsp;
____________________________________________	</TD>
	<TD align=right>
      <div align="right"><FONT size=2 face="sans-serif">Date:</FONT>&nbsp;_________________ </div></TD>
</TR>
<TR valign="bottom">
  <TD width=65% align=left>&nbsp;</TD>
  <TD align=right><div align="right"></div></TD>
</TR>
<TR valign="bottom">
	<TD width=65% align=left>
<FONT size=2 face="sans-serif">APPROVED:</FONT>&nbsp;
__________________________________________	</TD>
	<TD align=right>
      <div align="right"><FONT size=2 face="sans-serif">Date:</FONT>&nbsp;_________________ </div></TD>
</TR>
</TABLE>
<BR>
<B><FONT size=2 face="sans-serif">NOT APPROVED/REASON:</FONT></B><BR>
<P>
<FONT size=2 face="sans-serif">_______________________________________________________________________________________________<BR> <BR>_______________________________________________________________________________________________<BR>
<BR>_______________________________________________________________________________________________<BR> <BR>_______________________________________________________________________________________________</FONT></P>
<P>
<FONT size=1 face="sans-serif">QST\Pre-Clear.Form (12/01)</FONT></P>
<P>&nbsp;</P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<div align="right"><br>


    <U><FONT face="sans-serif">Attachment C</FONT></U><BR>
</div>
<P align="center">
<B><FONT size=2 face="sans-serif">INITIAL REPORT OF PERSONAL SECURITIES HOLDINGS<br>
and
CODE OF ETHICS CERTIFICATION </FONT></B></P>
<P>
<FONT size=2 face="sans-serif">FROM: <BR>
___________________________________________________<BR>
 Print Your Name </FONT></P>
<P>
<B><U><FONT face="sans-serif">Please provide the information requested under each section:</FONT></U></B></P>
<hr noshade>

<p><B><U><FONT size=2 face="sans-serif">Section I.</FONT></U></B></p>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">1.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="sans-serif">The following securities are owned by me or members of my immediate family.</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">2.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="sans-serif">Please include securities such as private placements. You do not need to include open-end mutual funds unless you own the Phoenix funds.</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">3.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="sans-serif">In lieu of completing the table, you may check the box at the bottom of the table.</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">4.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="sans-serif">If you hold </FONT><B><U><FONT size=2 face="sans-serif">NO </FONT></U></B><FONT size=2 face="sans-serif">securities, please write </FONT><B><FONT size=2 face="sans-serif">&#147;NONE&#148; </FONT></B><FONT size=2
face="sans-serif">in the table.</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="20%">&nbsp;</td>
    <td>&nbsp;</td>
    <td width="30%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="3"><hr size="2" noshade>    </td>
  </tr>
  <tr>
    <td width="20%"><center>
      <B><FONT size=2 face="sans-serif">NO. OF SHARES</FONT></B>
    </center></td>
    <td><center>
      <B><FONT size=2 face="sans-serif">NAME OF SECURITY</FONT></B>
    </center></td>
    <td width="30%"><center>
      <B><FONT size=2 face="sans-serif">BROKER(S)</FONT></B>
    </center></td>
  </tr>
</table>
<br>
<hr size="2" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%">[_]</td>
    <td colspan="2"><FONT size=2 face="sans-serif">I certify that I have instructed
        my broker to provide duplicate confirmations and periodic brokerage statements
        directly to you and that, except as listed above, there are no other
    holdings to report. </FONT></td>
  </tr>
  <tr>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>

<p>&nbsp;</p>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<p><br>


    <B><U><FONT size=2 face="sans-serif">Section II.</FONT></U></B></p>
<p align="center"><B><U><FONT size=2 face="sans-serif">BROKERAGE ACCOUNT LISTING</FONT></U></B></p>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">1.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="sans-serif">The following is a list of all my securities brokerage accounts. Be advised that the securities firms identified below have been instructed to provide duplicate confirmations and statements to the Compliance Officer,
Duff &amp; Phelps Investment Management. If you need more space, please make and attach an additional copy of this form. Please print or type.</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">2.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="sans-serif">If you do not have a securities brokerage account, please write </FONT><B><U><FONT size=2 face="sans-serif">&#147;NONE&#148; </FONT></U></B><FONT size=2 face="sans-serif">in the table.</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<hr noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="sans-serif">NAME , ADDRESS, AND TELEPHONE NUMBER</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=2 face="sans-serif">ACCOUNT</FONT>&nbsp;
      </center></TD>
	<TD>
	  <center>
    </center></TD>
	<TD align=center>
      <center>
        <FONT size=2 face="sans-serif">MANAGED</FONT>&nbsp;
      </center></TD>
	<TD>
	  <center>
    </center></TD>
	<TD align=center>
      <center>
        <FONT size=2 face="sans-serif">ACCOUNT NAMES</FONT>&nbsp;
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="sans-serif">OF FIRM WHERE ACCOUNT IS HELD </FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <FONT size=2 face="sans-serif">NUMBER</FONT>&nbsp;
      </center></TD>
	<TD>
	  <center>
    </center></TD>
	<TD align=center>
      <center>
        <FONT size=2 face="sans-serif">ACCOUNT?</FONT>&nbsp;
      </center></TD>
	<TD>
	  <center>
    </center></TD>
	<TD align=center>
      <center>
        <FONT size=2 face="sans-serif">(e.g. John Smith, IRA)</FONT>&nbsp;
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT size=2 face="sans-serif">(e.g. PaineWebber)</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>
	  <center>
    </center></TD>
	<TD align=center>
      <center>
        <FONT size=2 face="sans-serif">Y/N</FONT>&nbsp;
      </center></TD>
	<TD>
	  <center>
    </center></TD>
	<TD align=left>

	  <center>
    </center></TD>
</TR>
<TR>
	<TD colspan=7>
<HR noshade size=2>
	</TD>
</TR>
</TABLE>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<BR>
<hr noshade size=3>
<B><U><FONT size=2 face="sans-serif">Section III.</FONT></U></B><BR>
<P>
<FONT size=2 face="sans-serif">I certify that I have read and understood the </FONT><B><FONT size=2 face="sans-serif">Code of Ethics</FONT></B><FONT size=2 face="sans-serif"> </FONT><B><FONT size=2 face="sans-serif">and Insider Trading
Policy</FONT></B><FONT size=2 face="sans-serif"> and have complied, and shall continue to comply, with its terms. </FONT></P>
<div align="left">
  <TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
    <TR valign="bottom">
      <TD align=center>
        <div align="left"><FONT size=2 face="sans-serif">Signature:</FONT>&nbsp;
__________________________________________        </div></TD>
      <TD>&nbsp;
      </TD>
      <TD align=center nowrap>
        <div align="right"><FONT size=2 face="sans-serif">Date:</FONT>&nbsp; ____________________________ </div></TD>
    </TR>
  </TABLE>
  <BR>
  <B><FONT size=2 face="sans-serif">After you sign and date this form, please return this form to:<br>
</FONT></B></div>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">Maureen Carney </FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">Compliance Administrator </FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">Duff &amp; Phelps Investment Management Co.</FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">55 E. Monroe Street, 36</FONT><SUP><FONT size=2 face="sans-serif">th</FONT></SUP><FONT size=2 face="sans-serif"> Floor </FONT><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="sans-serif">Chicago, IL 60603 </FONT><BR>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<div align="right"><br>


    <U><FONT face="sans-serif">Attachment D</FONT></U><BR>
</div>
<P align="center">
<B><FONT size=2 face="sans-serif">PLEASE BE ADVISED,<br>
</FONT></B><B><FONT size=2 face="sans-serif">ONLY
EMAIL RESPONSES FOR QUARTERLY REPORTING WILL BE ACCEPTED.</FONT></B></P>
<P align="center">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="sans-serif">QUARTERLY SECURITIES TRANSACTIONS REPORT</FONT></B></P>
<P align="left"><B><FONT size=2 face="sans-serif">For Period Ending:
  _______
  , 2005 </FONT></B></P>
<P align="left">&nbsp;</P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="4"><FONT size=2 face="sans-serif">Please complete and return
        via email by _________</FONT><B><FONT size=5 face="sans-serif"> , 2005</FONT></B><FONT size=2 face="sans-serif"> to </FONT><B><FONT size=2 face="sans-serif">Code
        Reports in the PXP Email Address Box</FONT></B><FONT size=2 face="sans-serif">. </FONT><U><FONT size=2 face="sans-serif">E-Sign
    and date at the bottom</FONT></U><FONT size=2 face="sans-serif">. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="4">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="4"><B><FONT size=2 face="sans-serif">Please check all items
    below that apply:</FONT></B><BR></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top">____</td>
    <td colspan="3" valign="top"><FONT size=2 face="sans-serif">From </FONT><B><FONT size=2 face="sans-serif">______
          to _______, </FONT></B><FONT size=2 face="sans-serif">neither I nor
    my immediate family members made reportable securities transactions. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top">&nbsp;</td>
    <td colspan="3" valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top">____</td>
    <td colspan="3" valign="top"><FONT size=2 face="sans-serif">From </FONT><B><FONT size=2 face="sans-serif">______
          to ______</FONT></B><FONT size=2 face="sans-serif">, I and/or my immediate
          family members made reportable securities transactions </FONT><B><FONT size=2
face="sans-serif">through a broker</FONT></B><FONT size=2 face="sans-serif">,
    and: </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>____</td>
    <td colspan="2"><FONT size=2 face="sans-serif">A. I </FONT><B><FONT size=2 face="sans-serif">have
          advised</FONT></B><FONT size=2 face="sans-serif"> Compliance of my
          brokerage account(s) and any brokerage account(s) of my immediate family
          members, and</FONT><B><FONT size=2 face="sans-serif"> I have instructed</FONT></B><FONT size=2 face="sans-serif"> the
          broker(s) to send duplicate confirms and statements to the Compliance
    Dept. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>____</td>
    <td colspan="2"><FONT size=2 face="sans-serif">B. I </FONT><B><FONT size=2 face="sans-serif">have
          not yet advised </FONT></B><FONT size=2 face="sans-serif">Compliance
          of my brokerage account(s) or any brokerage account(s) of my immediate
          family members, and</FONT><B><FONT size=2 face="sans-serif"> I have
          not yet instructed </FONT></B><FONT size=2 face="sans-serif">the broker(s)
          to send duplicate confirms and statements to the Compliance Dept. (see
    below for additional instructions) </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td><FONT size=2 face="sans-serif">If you selected &#147;B&#148; above, please
        complete the</FONT><B><FONT size=2 face="sans-serif"> Quarterly Securities
        Transactions Reporting Form </FONT></B><FONT size=2 face="sans-serif">and
        email your reply to </FONT><B><FONT size=2 face="sans-serif">Code Reports
    in the PXP Email Address Box. </FONT></B></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td valign="top">____</td>
    <td colspan="3" valign="top"><FONT size=2 face="sans-serif">From</FONT><B><FONT size=2 face="sans-serif">_______
          to ______</FONT></B><FONT size=2 face="sans-serif"> I and/or my immediate
          family members made reportable securities transactions that </FONT><B><I><FONT size=2
face="sans-serif">would not be included on a brokerage statement that compliance
          would receive </FONT></I></B><FONT size=2 face="sans-serif">(for example,
          affiliated broker mutual fund transactions ONLY including your Phoenix-Fidelity
          401K for which we do not receive broker confirms or statements, a direct
          purchase from an issuer or a private placement or limited partnership
    transaction). (see below for additional instructions) </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="3"><FONT size=2 face="sans-serif">If you selected this last
        item, please complete the</FONT><B><FONT size=2 face="sans-serif"> Quarterly
        Securities Transactions Reporting Form</FONT></B><FONT size=2 face="sans-serif"> and
    Email to </FONT><B><FONT
size=2 face="sans-serif">Code Reports in the PXP Email Address Box</FONT></B><FONT size=2 face="sans-serif">. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
</table>
<P align="left">&nbsp;</P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><B><FONT size=2 face="sans-serif">Signature:</FONT></B> ____________________________________________ </td>
    <td nowrap><div align="right"><B><FONT size=2 face="sans-serif">Date: </FONT></B>_______________________</div></td>
  </tr>
</table>
<P align="left">&nbsp;</P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<center>
  <FONT face="sans-serif">Attachment E</FONT><BR>
</center>
<hr size="1" noshade>
<center>
  <B><FONT face="sans-serif">THIS FORM MUST BE RETURNED
  WITH A MANUAL EXECUTION,<br>
  </FONT></B><B><FONT face="sans-serif">FAXES AND EMAILS
  WILL NOT BE ACCEPTED.
  </FONT></B><B><FONT size=2 face="sans-serif">
  </FONT></B>
</center>
<hr size="1" noshade>
<center>
  <B><FONT size=2 face="sans-serif">
  ANNUAL REPORT OF PERSONAL SECURITIES
  HOLDINGS<br>
  and CODE OF ETHICS CERTIFICATION <br>
  </FONT></B><FONT face="sans-serif">January___,
  2005 </FONT>
</center>
<P>
<B><FONT size=2 face="sans-serif">FROM: </FONT></B><FONT size=2 face="sans-serif">________________________________________<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Print Your Name </FONT></P>
<P>
<B><U><FONT size=2 face="sans-serif">Please provide the information requested under each section.</FONT></U></B><B><FONT size=2 face="sans-serif"> </FONT></B></P>
<P>
<B><U><FONT size=2 face="sans-serif">SECTION I - Brokerage Account Listing:</FONT></U></B><FONT size=2 face="sans-serif"> </FONT></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">1.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="sans-serif">The following is a list of all my securities brokerage accounts. Be advised that the securities firms identified below have been instructed to provide duplicate confirmations and statements to DPIM Compliance. (If you
need more space, please make and attach an additional copy of this form) Please print or type.</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">2.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="sans-serif">If you do not have a securities brokerage account, please write &#147;NONE&#148; in the table.</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<hr noshade><TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="sans-serif">NAME , ADDRESS, AND TELEPHONE NUMBER</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>      <div align="left"><B><FONT size=2 face="sans-serif">ACCOUNT</FONT></B>&nbsp;
      </div></TD>
	<TD>      <div align="left"></div></TD>
	<TD align=left>      <div align="left"><B><FONT size=2 face="sans-serif">MANAGED</FONT></B>&nbsp;
      </div></TD>
	<TD>      <div align="left"></div></TD>
	<TD align=left>      <div align="left"><B><FONT size=2 face="sans-serif">ACCOUNT NAMES</FONT></B>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="sans-serif">OF FIRM WHERE ACCOUNT IS HELD (e.g.</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>      <div align="left"><B><FONT size=2 face="sans-serif">NUMBER</FONT></B>&nbsp;
      </div></TD>
	<TD>      <div align="left"></div></TD>
	<TD align=left>      <div align="left"><B><FONT size=2 face="sans-serif">ACCOUNT?</FONT></B>&nbsp;
      </div></TD>
	<TD>      <div align="left"></div></TD>
	<TD align=left>      <div align="left"><B><FONT size=2 face="sans-serif">(e.g. John Smith,</FONT></B>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="sans-serif">PaineWebber)</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>      <div align="left"></div></TD>
	<TD>      <div align="left"></div></TD>
	<TD align=left>      <div align="left"><B><FONT size=2 face="sans-serif">Y/N</FONT></B>&nbsp;
      </div></TD>
	<TD>      <div align="left"></div></TD>
	<TD align=left>      <div align="left"><B><FONT size=2 face="sans-serif">IRA)</FONT></B>&nbsp;
      </div></TD>
</TR>
<TR>
	<TD colspan=7>
<HR noshade size=2>
	</TD>
</TR>
</TABLE>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<BR>
<B><U><FONT size=2 face="sans-serif">SECTION II &#150; Holdings:</FONT></U></B><br>
<BR>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
	<TD nowrap valign=top>
<B><FONT size=2 face="sans-serif">1.</FONT></B>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="sans-serif">The following securities are owned by me or members of my immediate family as of 12/31/2004. Please include securities such as private placements. </FONT><B><U><FONT size=2 face="sans-serif">You now must include
Phoenix advised open-end mutual funds, including Phoenix funds held in your 401k plan.</FONT></U></B>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">2.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="sans-serif">In lieu of completing the table, you may check the box at the bottom of the table.</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>
<FONT size=2 face="sans-serif">3.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT size=2 face="sans-serif">If you hold NO securities, please write &#147;NONE&#148; in the table.</FONT>	</TD>
</TR>
</TABLE>
<br>
<hr size="2" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="sans-serif">NUMBER</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <B><FONT size=2 face="sans-serif">NAME OF SECURITY</FONT></B>&nbsp;
      </center></TD>
	<TD>
	  <center>
    </center></TD>
	<TD align=left>
      <center>
        <B><FONT size=2 face="sans-serif">PRINCIPAL</FONT></B>&nbsp;
      </center></TD>
	<TD>
	  <center>
    </center></TD>
	<TD align=right>
      <center>
        <B><FONT size=2 face="sans-serif">BROKER(S)</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="sans-serif">OF SHARES</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>
	  <center>
    </center></TD>
	<TD align=left>
      <center>
        <B><FONT size=2 face="sans-serif">AMOUNT</FONT></B>&nbsp;
      </center></TD>
	<TD>
	  <center>
    </center></TD>
	<TD align=left>

	  <center>
    </center></TD>
</TR>
<TR>
	<TD colspan=7>
<HR noshade size=2>
	</TD>
</TR>
</TABLE>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<BR>
<br>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td valign="top" nowrap>[_]&nbsp;&nbsp;&nbsp;</td>
    <td><FONT size=2 face="sans-serif">I certify that I have instructed my broker
        to provide duplicate confirmations and periodic brokerage statements
        directly to you and that, except as listed above, there are no other
    transactions to report.</FONT></td>
  </tr>
</table>
<P>
<B><U><FONT size=2 face="sans-serif">SECTION III &#150; Execution:</FONT></U></B><B><FONT size=2 face="sans-serif"> </FONT></B></P>
<P>
<FONT size=2 face="sans-serif">I certify that I have read and understood the </FONT><B><FONT size=2 face="sans-serif">Code
of Ethics and Insider Trading Policy</FONT></B><FONT size=2 face="sans-serif"> and
have complied, and shall continue to  comply, with its terms.</FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><FONT size=2 face="sans-serif">Signature:</FONT> <B>____________________________________________ </B></td>
    <td nowrap><div align="right"><FONT size=2 face="sans-serif">Date:</FONT> _______________________</div></td>
  </tr>
</table>
<B><FONT face="sans-serif"><br>
After you sign and date this form, please return this form by January 31, 2005 to:</FONT></B>>
<center>
  <p><FONT size=2 face="sans-serif">Compliance Department &#150; Maureen Carney</FONT><BR>
      <FONT size=2 face="sans-serif">Duff &amp; Phelps Investment Management
      Co.</FONT><BR>
      <FONT size=2 face="sans-serif">55 East Monroe Street, 36th Floor </FONT></p>
  <p align="right">  <FONT size=2 face="serif">1</FONT><BR>

</p>
</center>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<P align="center">
<FONT face="sans-serif">Attachment E<br>
</FONT><FONT size=2 face="sans-serif">Chicago,
IL 60603</FONT></P>
<div align="right"><FONT size=2 face="serif">2</FONT><BR>

</div>
  <HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<P align="center">
<FONT face="sans-serif">Attachment E </FONT></P>
<P align="center">
<B><FONT size=2 face="sans-serif">ANNUAL REPORT OF PERSONAL SECURITIES HOLDINGS<br>
and
CODE OF ETHICS CERTIFICATION<br>
</FONT></B><FONT face="sans-serif">January ___, 2005 </FONT></P>
<P align="center">
<B><U><FONT size=2 face="sans-serif">SECTION I - Brokerage Account Listing: </FONT></U></B><B><U><FONT face="sans-serif"> </FONT></U></B><B><U><FONT size=2 face="sans-serif">Additional Form</FONT></U></B><B><FONT size=2 face="sans-serif">
</FONT></B></P>
<hr size="2" noshade>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="sans-serif">NAME , ADDRESS, AND TELEPHONE</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="sans-serif">ACCOUNT</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="sans-serif">MANAGED</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="sans-serif">ACCOUNT NAMES</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="sans-serif">NUMBER OF FIRM WHERE ACCOUNT IS</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="sans-serif">NUMBER</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="sans-serif">ACCOUNT?</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="sans-serif">(e.g. John Smith,</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="sans-serif">HELD (e.g. PaineWebber)</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="sans-serif">Yes / No</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<B><FONT size=2 face="sans-serif">IRA)</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=7>
<HR noshade size=2>
	</TD>
</TR>
</TABLE>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<div align="right"><BR>
    <FONT size=2 face="serif">3</FONT><BR>

</div>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<center>
  <FONT face="sans-serif">Attachment
  E<br>
  </FONT><B><FONT size=2 face="sans-serif">ANNUAL
            REPORT OF PERSONAL SECURITIES HOLDINGS</FONT></B><br>
            <B><FONT size=2 face="sans-serif">and
            CODE OF ETHICS CERTIFICATION<br>
            </FONT></B><FONT face="sans-serif">January ___, 2005</FONT>
</center>
<p align="center"><B><U><FONT size=2 face="sans-serif">SECTION
                II &#150; Holdings: Additional Form</FONT></U></B><br>
  <br></p>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
	<TD colspan=7><hr noshade>

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="sans-serif">NUMBER</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
      <center>
        <B><FONT size=2 face="sans-serif">NAME OF SECURITY</FONT></B>&nbsp;
      </center></TD>
	<TD>
	  <center>
    </center></TD>
	<TD align=center>
      <center>
        <B><FONT size=2 face="sans-serif">PRINCIPAL</FONT></B>&nbsp;
      </center></TD>
	<TD>
	  <center>
    </center></TD>
	<TD align=right>
      <center>
        <B><FONT size=2 face="sans-serif">BROKER(S)</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<B><FONT size=2 face="sans-serif">OF SHARES</FONT></B>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>

	  <center>
    </center></TD>
	<TD>
	  <center>
    </center></TD>
	<TD align=center>
      <center>
        <B><FONT size=2 face="sans-serif">AMOUNT</FONT></B>&nbsp;
      </center></TD>
	<TD>
	  <center>
    </center></TD>
	<TD align=left>

	  <center>
    </center></TD>
</TR>
<TR>
	<TD colspan=7>
<HR noshade size=2>
	</TD>
</TR>
</TABLE>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<br>
<hr size="1" noshade>
<div align="right"><BR>
    <FONT size=2 face="serif">4</FONT><BR>

</div>
<HR noshade  width="100%" size=4>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2R2
<SEQUENCE>4
<FILENAME>c40133_ex99-2r2.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">


<P align="center">
<B><U><FONT face="serif">DUFF &amp; PHELPS INVESTMENT MANAGEMENT CO.</FONT></U></B></P>
<center>
  <B><U><FONT face="serif">AMENDED AND RESTATED</FONT></U></B><BR>
  <B><U><FONT face="serif">CODE OF ETHICS ( June 1, 2005)</FONT></U></B><BR>
</center>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
	<TD width="5%" valign=top nowrap>
<FONT face="serif">1.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD colspan="2">
<U><FONT face="serif">Standard of Business Conduct</FONT></U>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
<TD width="5%"><div align="right"><FONT face="serif">A.</FONT>&nbsp;</div></TD>	<TD colspan="2">
<FONT face="serif"> Statement of Ethical Principles</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
<TD width="5%">&nbsp;</TD>
<TD colspan="2">
<FONT face="serif">The Adviser holds its employees to a high standard of integrity and business practices. In serving their respective shareholders and clients, the Adviser strives to avoid conflicts of interest or the appearance of conflicts of
interest in connection with the personal trading activities of its employees and the securities transactions in any managed account.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
<TD width="5%">&nbsp;</TD>
<TD colspan="2">
<FONT face="serif">While affirming their confidence in the integrity and good faith of all of their employees, officers, trustees, and directors, the Adviser recognizes that the knowledge of present or future portfolio transactions or the power to
influence portfolio transactions, if held by such individuals, could place them in a position where their personal interests might conflict with the interests of the managed account, if they were to trade in securities eligible for investment by the
managed account.</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
<TD width="5%">&nbsp;</TD>
<TD colspan="2">
<FONT face="serif">In view of the foregoing and of the provisions of Section 204-2 under the Investment Advisers Act of 1940, as amended, the Adviser has determined to adopt this Code of Ethics to specify and prohibit certain types of transactions
deemed to create conflicts of interest (or at least the potential for or the appearance of such a conflict) and to establish reporting requirements and enforcement procedures. When Supervised Persons covered by the terms of this Code of Ethics
engage in personal securities transactions, they must adhere to the following general principles as well as to the Code&#146;s specific provisions:</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
<TD width="5%">&nbsp;</TD>
<TD colspan="2">
<FONT face="serif">Supervised Persons covered by the terms of this Code of Ethics must adhere to the following general principles as well as to the Code's specific provisions:</FONT>	</TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR>
<TR>
  <TD>&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD><FONT face="serif">a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At all times, the interests of Adviser Clients must
    be paramount; </FONT></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD><FONT face="serif">b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Personal transactions must be conducted consistent
      with this Code of Ethics in a manner that avoids any actual or potential
    conflict of interest; and </FONT></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD><FONT face="serif">c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No inappropriate advantage should be taken of any
    position of trust and responsibility and; </FONT></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD><FONT face="serif">d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information concerning the identity of security holdings
    and financial circumstances of clients is confidential. </FONT></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
</TABLE>
<P>&nbsp;</P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD width="5%" valign=top nowrap>&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD colspan="2">&nbsp;</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="2"><FONT face="serif">e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ensure that the investment management and overall
      business of the firm complies with the policies of Duff &amp; Phelps, Phoenix
    Companies and applicable U.S. federal and state securities laws and regulations. </FONT></TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="2">&nbsp;</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="2"><FONT face="serif">f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Supervised Persons are required to adhere to the
    standards of business conduct in The Phoenix Companies Code of Conduct. </FONT></TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="2">&nbsp;</TD>
</TR>
<TR>
	<TD nowrap valign=top>
      <div align="right"><FONT face="serif">B.</FONT> &nbsp; 	</div></TD>
	<TD colspan=3>
<FONT face="serif">Unlawful Actions</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
<TD>&nbsp;</TD>	<TD nowrap valign=top>&nbsp;</TD>
	<TD colspan="2">
<FONT face="serif"> <FONT face="serif">a)</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to employ any device, scheme or artifice to defraud any client;</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
<TD>&nbsp;</TD>	<TD nowrap valign=top>&nbsp;</TD>
	<TD colspan="2">
<FONT face="serif">b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to make any untrue statement of a material fact to any client or omit to
materialstate a  fact necessary in order to make the statements made to any client, in light of the
circumstances under which they are made, not misleading; </FONT><p></P>
</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD colspan="2">&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD colspan="2"><FONT face="serif">c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to engage in any act, practice or course of business
      that operates or would operate as a fraud or deceit on any client; or to
    engage in any manipulative practice with respect to any client; </FONT></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD colspan="2">&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD colspan="2"><FONT face="serif">d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to divulge or act upon any material, non-public
    information, as such term is defined under relevant securities laws. </FONT></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD colspan="2">&nbsp;</TD>
</TR>
<TR>
  <TD><FONT face="serif">2. </FONT></TD>
  <TD colspan="3" valign=top nowrap><U><FONT face="serif">Definitions</font></U></TD>
  </TR>
<TR>
  <TD>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD colspan="2">&nbsp;</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD width="5%" valign=top nowrap>
<FONT face="serif">A.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">&#147;Supervised Persons include directors, officers, and partners of the adviser (or other persons occupying a similar status or performing similar functions); Employees of the adviser; and Any other person who provides advice on
behalf of the adviser and is subject to the adviser&#146;s supervision and control.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD width="5%" valign=top nowrap>
<FONT face="serif">B.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">"Access Person" means any director, officer, general partners and partners of the adviser (or other persons occupying a similar status or performing similar functions), has access to nonpublic information regarding any
clients&#146; purchase or sale of securities, or nonpublic information regarding the portfolio holdings of any fund the adviser or its control affiliates manage or is involved in making securities recommendations to clients, or has access to such
recommendations that are non-public, or Advisory Person of the Adviser. The Compliance Department shall maintain a list of the Adviser's Access Persons.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD width="5%" valign=top nowrap>
<FONT face="serif">C.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">&#147;Adviser&#148; means Duff &amp; Phelps Investment Management Co.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">2</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE><br>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD width="5%" valign=top nowrap>&nbsp;</TD>
  <TD width="5%" valign=top nowrap>&nbsp;</TD>
	<TD width="5%" valign=top nowrap>
<FONT face="serif">D.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">"Advisory Person" means (i) any employee of the Adviser or of any company in a control relationship to the Adviser, who, in connection with his regular functions or duties, makes, participates in or obtains information regarding
the purchase or sale of a security by the Adviser for the Client, or whose functions relate to the making of any recommendations with respect to such purchases or sales; and (ii) any natural person in a control relationship to the Adviser who
obtains information concerning recommendations made to the Client with regard to the purchase or sale of a security. This grouping customarily includes the Portfolio Manager and other investment personnel comprising an investment team, such as an
analyst or trader, who provide information and advice that enter into the investment decision to buy or sell a security for a Client.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD width="5%" valign=top nowrap>
<FONT face="serif">E.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">A security is "being considered for purchase or sale" when a recommendation to purchase or sell a security has been made and communicated and, with respect to the Advisory Person making the recommendation, when such person
seriously considers making such a recommendation.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD width="5%" valign=top nowrap>
<FONT face="serif">F.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">"Beneficial ownership" shall be interpreted in the same manner as it would be under Rule 16a-1(a)(2) under the Securities Exchange Act of 1934 in determining whether a person is the beneficial owner of a security for purposes of
Section 16 of the Securities Exchange Act of 1934 and the rules and regulations thereunder. An Access person is presumed to be a beneficial owner of securities that are held by his or her immediate family members sharing the access person&#146;s
household.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD width="5%" valign=top nowrap>
<FONT face="serif">G.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">Client means each and every investment company, or series thereof, or other account managed by the Adviser, individually and collectively.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD width="5%" valign=top nowrap>
<FONT face="serif">H.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">"Control" shall have the same meaning as that set forth in Section 2(a)(9) of the Investment Company Act, as amended.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD width="5%" valign=top nowrap>
<FONT face="serif">I.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">"Initial Public Offering" means a public sale of an issue not previously offered to the public.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD width="5%" valign=top nowrap>
<FONT face="serif">J.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">&#147;Managed Fund or Portfolio&#148; shall mean those Clients, individually and collectively, for whom the Portfolio Manager makes buy and sell decisions.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD width="5%" valign=top nowrap>
<FONT face="serif">K.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">"Portfolio Manager" means the person (or one of the persons) entrusted with the day-to-day management of the Client&#146;s portfolio.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD width="5%" valign=top nowrap>
<FONT face="serif">L.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">"Private Placement" shall have the same meaning as that set forth in Section 4(2) of the Securities Exchange Act.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">3</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
<TD width="5%">&nbsp;</TD>
<TD width="5%" valign=top nowrap>&nbsp;</TD>
<TD width="5%" valign=top nowrap>
<FONT face="serif">M.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">"Purchase or sale of a security" includes inter alia, the writing of an option or the purchase or sale of a security that is exchangeable for or convertible into, a security that is held or to be acquired for a Client.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
<TD>&nbsp;</TD>
<TD nowrap valign=top>&nbsp;</TD>
<TD nowrap valign=top>
<FONT face="serif">N.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">"Security" shall have the meaning set forth in Section 2(a)(36) of the Investment Company Act, as amended, and Rule 204A-1 as amended, except that it shall not include transactions and holdings in direct obligations of Government
of the United States; money market instruments; bankers&#146; acceptances, bank certificates of deposit, commercial paper, repurchase agreements and other high quality short-term debt instruments; shares of money market funds; transactions and
holdings in shares of other types of mutual funds, unless the adviser or a control affiliate acts as the investment adviser or principal underwriter for the fund; and transactions in units of unit investment trust if the unit investment trust is
invested exclusively in unaffiliated mutual funds.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>
<FONT face="serif">3.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD colspan=3>
<U><FONT face="serif">Exempted Transactions</FONT></U>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
<TD>&nbsp;</TD>	<TD colspan=3>
<FONT face="serif">The prohibitions of Section 4 of this Code shall not apply to:</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan=2><FONT face="serif">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases or sales effected in any account
      over which the Access Person has no direct or indirect influence or control
    in the reasonable estimation of the Compliance Officer. </FONT></TD>
  </TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan=2>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan=2><FONT face="serif">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases or sales of securities (1) not
      eligible for purchase or sale by the Client; or (2) specified from time
      to time by the Directors, subject to such rules, if any, as the Directors
    shall specify. </FONT></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan=2>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan=2><FONT face="serif">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases or sales which are non-volitional
    on the part of either the Access Person or the Client. </FONT></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan=2>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan=2><FONT face="serif">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of shares necessary to establish
      an automatic dividend reinvestment plan or pursuant to an automatic dividend
    reinvestment plan, and subsequent sales of such securities. </FONT></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan=2>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan=2><FONT face="serif">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases effected upon the exercise of
      rights issued by an issuer pro rata to all holders of a class of its securities,
      to the extent such rights were acquired from such issuer, and sales of
    such rights so acquired. </FONT></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan=2>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan=2><FONT face="serif">F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase or sale of securities issued under
    an employee stock purchase or incentive program unless otherwise restricted. </FONT></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan=2>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan=2><FONT face="serif">G.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transactions effected pursuant to an automatic
    investment plan. </FONT></TD>
</TR>
</TABLE>
<P>&nbsp;</P>
<P align="center">
<FONT size=2 face="serif">4</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE><br>


<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><FONT face="serif">4.</FONT></td>
    <td colspan="4"><U><FONT face="serif">Prohibited Activities</FONT></U> </td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td colspan="4">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="3"><FONT face="serif">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IPO Rule: No Access Person may purchase
        securities in an Initial Public Offering, except with the prior approval
        of the Compliance Department. This rule also applies to IPO&#146;s offered
    through the Internet. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="3"><FONT face="serif">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Private Placement Rule: No Access Person
        may purchase securities in a Private Placement unless such purchase has
        been approved by the Compliance Department. Any such approved purchase
        should be disclosed to the Client if that issuer's securities are being
    considered for purchase or sale by the Client.</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="3"><FONT face="serif">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-Clearance Rule: No Access Person
        may purchase or sell a security unless such purchase or sale has been
        pre-cleared by the Compliance Department. Pre-clearance is required prior
        to executing a trade through a personal Internet brokerage account. Pre-clearance
        is required for transactions in puts, calls and well-known stock indices
        (e.g. the S&amp;P 500). Pre-clearance is valid through the business day
    next following the day pre-clearance is given.</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="3"><FONT face="serif">Exceptions: The following securities transactions
    do not require pre-clearance: </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign="top"><FONT face="serif">1.</FONT>&nbsp;</td>
    <td><FONT face="serif">Purchases or sales of up to 500 shares of securities
        of issuers ranked in the Standard &amp; Poor's 500 Composite Stock Index
        (S&amp;P 500) at the time of purchase or sale. The Compliance Department
        maintains this list on the Intranet web site and updates it after the
    end of each quarter.</FONT> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign="top"><FONT face="serif">2.</FONT>&nbsp;</td>
    <td><FONT face="serif">Purchase orders sent directly to the issuer via mail
        (other than in connection with a Private Placement) or sales of such
    securities which are redeemed directly by the issuer via mail.</FONT> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign="top"><FONT face="serif">3.</FONT>&nbsp;</td>
    <td><FONT face="serif">Transactions effected pursuant to an automatic investment
    plan.</FONT> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign="top">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD colspan="3" valign=top><B><FONT face="serif">Note: The Compliance Department may deny approval of
    any transaction requiring preclearance under this Preclearance Rule, even
    if nominally permitted under this Code of Ethics, if it is believed that
    denying preclearance is necessary for the protection of the Adviser. Any
    such denial may be appealed to the Adviser&#146;s Counsel. The decision of
    Counsel shall be final.</FONT></B><FONT face="serif">&nbsp; </FONT>	</TD>
  </TR>
<TR><TD colspan=5>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD colspan="3" valign=top><FONT face="serif">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Open Order Rule: No Access Person may purchase or sell,
    directly or indirectly, any security in which he has, or by reason of such
    transaction acquires, any direct or indirect beneficial ownership, when the
    Client has a pending "buy" or "sell" order for that security of</FONT><U><FONT face="serif"> </FONT></U><FONT face="serif">the
    same type (i.e. buy or sell) as the proposed personal trade, until the Client's
    order is executed or withdrawn. </FONT>	</TD>
	</TR>
<TR><TD colspan=5>&nbsp;</TD></TR></TABLE>
<P align="center"><FONT size=2 face="serif">5</FONT></P>
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<P align="left" style="page-break-before:always"></P><PAGE>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD valign=top nowrap>&nbsp;</TD>
  <TD valign=top nowrap>&nbsp;</TD>
  <TD valign=top nowrap>&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD valign=top nowrap>&nbsp;</TD>
  <TD colspan="4" valign=top nowrap><FONT face="serif">Exceptions: The following
    securities transactions are exempt from the Open Order Rule: </FONT></TD>
  </TR>
<TR>
  <TD valign=top nowrap>&nbsp;</TD>
  <TD valign=top nowrap>&nbsp;</TD>
  <TD valign=top nowrap>&nbsp;</TD>
  <TD colspan="2">&nbsp;</TD>
</TR>
<TR>
  <TD width="5%" valign=top nowrap>&nbsp;</TD>
  <TD width="5%" valign=top nowrap>&nbsp;</TD>
	<TD width="5%" valign=top nowrap>
<FONT face="serif">1.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD colspan="2">
<FONT face="serif">Purchases or sales of securities of issuers in the S&amp;P 500 at the time of the transaction.</FONT>	</TD>
</TR>
<TR><TD colspan=5>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT face="serif">2.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD colspan="2">
<FONT face="serif">Purchases or sales approved by the Compliance Department in his/her discretion.</FONT>	</TD>
</TR>
<TR><TD colspan=5>&nbsp;</TD></TR>
<TR>
  <TD>&nbsp;</TD>
  <TD colspan=4><B><FONT face="serif">Any profits realized on a personal trade
    in violation of this Section 4D must be disgorged.</FONT></B><FONT face="serif">&nbsp; </FONT></TD>
  </TR>
<TR>
  <TD>&nbsp;</TD>
  <TD colspan=4>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD colspan=4><FONT face="serif">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Blackout Rule: If a Portfolio Manager&#146;s
      portfolio holds a security that is the subject of a proposed personal trade
      by that Portfolio Manager, such personal trade may be permitted only as
    follows: </FONT></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD colspan=4>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT face="serif">1.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">If the proposed personal trade is on the same side as the last portfolio transaction in that security, the personal trade cannot occur within two days of such portfolio transaction (i.e. neither at T nor T + 1 calendar
day).</FONT>	</TD>
</TR>
<TR><TD colspan=5>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT face="serif">2.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">If the proposed personal trade is on the opposite side of the last portfolio transaction in that security, the personal trade cannot occur unless (a) it is more than two days after the portfolio transaction (i.e. T + 2 calendar
days or later) </FONT><B><I><FONT face="serif">and </FONT></I></B><FONT face="serif">(b) the Preclearance Request, if required for such personal transaction (i.e. it is not eligible for the exception of securities listed in the S&amp;P 500 to the
Preclearance Rule) sets forth, to the reasonable satisfaction of the Compliance Department, an explanation of the reasons the portfolio is not effecting a similar transaction.</FONT>	</TD>
</TR>
<TR><TD colspan=5>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT face="serif">3.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">Portfolio Managers of Mutual Funds may not directly or indirectly acquire or dispose of beneficial ownership in a covered security within seven calendar days before and after a Fund portfolio trades in that security.</FONT>	</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD colspan="4" valign=top nowrap><B><FONT face="serif">Any profits realized
        by a Portfolio Manager on a personal trade in violation of this Section
    4E must be disgorged.</FONT></B><FONT face="serif">&nbsp; </FONT></TD>
  </TR>
<TR>
  <TD colspan=5>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD valign="top"><FONT face="serif">F.</FONT>&nbsp; &nbsp; &nbsp; </TD>
  <TD colspan=3><FONT face="serif">Holding Period Rule: Access Persons must hold
      each Security, for a period of not less than sixty (60) days, whether or
      not the purchase of such Security was an exempt transaction under any other
    provision of Section 4.</FONT> </TD>
  </TR>
<TR>
  <TD colspan=5>&nbsp;</TD>
</TR>
</TABLE>
<P align="center"><FONT size=2 face="serif">6</FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD width="5%" valign=top>&nbsp;</TD>
  <TD width="5%" valign=top>&nbsp;</TD>
	<TD width="5%" valign=top>
<FONT face="serif">G.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">No Access Person shall accept any gift or other item of more than &#36;100 in value from any person or entity that does business with or on behalf of the Client or the Adviser.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT face="serif">H.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">No Advisory Person shall serve on the board of directors of a publicly traded company without prior authorization from Counsel or the Compliance Department. If board service is authorized, such Advisory Person shall have no role
in making investment decisions with respect to the publicly traded company.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT face="serif">I.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">No Portfolio Manager shall engage in excessive trading or
market timing activities with respect to any mutual fund whether or not such
mutual fund is managed by such Adviser/Sub-advisor or any affiliated adviser/sub-advisor.
For  the purposes of the foregoing, "market timing" shall be defined as a purchase
and redemption, regardless of size, in and out of the same mutual fund within
any sixty (60) day period. The foregoing restrictions shall not apply to Portfolio
Managers  investing in mutual funds through asset allocation programs, automatic
reinvestment programs, 401(k) and similar retirement accounts and any other non-
volitional investment vehicles. Portfolio Managers shall provide quarterly certifications
as to  their compliance with this restriction.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT face="serif">J.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">No Supervised Person shall divulge or act upon any material, non-public information, as such term is defined under relevant securities laws</FONT><I><FONT face="serif">.</FONT></I>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR>
<TR>
  <TD valign="top"><FONT face="serif">5. </FONT></TD>
  <TD colspan="3"><U><FONT face="serif">Compliance Procedures</FONT></U></TD>
  </TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="2"><FONT face="serif">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All Access Persons shall direct their
      brokers to supply, at the same time that they are sent to the Access Person,
      a copy of the confirmation for each personal securities trade and a copy
    of each periodic account statement to the Compliance Department.</FONT></TD>
  </TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="2">&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="2"><FONT face="serif">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Every Access Person shall report to the
      Adviser the information described in Section 5C of this Code with respect
      to transactions in any security in which such Access Person has, or by
      reason of such transaction acquires, any direct or indirect beneficial
      ownership in the security; provided, however, that an Access Person shall
      not be required to make a report with respect to transactions effected
      for any account over which such person does not have any direct or indirect
    influence. </FONT></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="2">&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="2"><FONT face="serif">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Every transaction report required pursuant
      to Section 5B above shall be made not later than 15days after the end of
      the calendar quarter in which the transaction to which the report relates
    was effected, and shall contain the following information: </FONT></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD><FONT face="serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The date of the transaction,
      the title and the number of shares,</FONT></TD>
</TR>
</TABLE>
<P align="center"><font size="2">7</font></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD width="5%">&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD>
<FONT face="serif">and the principal amount of each security involved;</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>
<FONT face="serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The nature of the transaction (i.e., purchase, sale, or
any other type of acquisition or disposition);</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>
<FONT face="serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The price at which the transaction was effected;</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>
<FONT face="serif">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The name of the broker, dealer or bank with or through
whom the transaction was effected; and</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>
<FONT face="serif">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The date of approval of the transaction and the person
who approved it as required by Section 4B or C above.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT face="serif">D.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">Each Access Person shall submit a report listing all personal securities holdings to the Compliance Department upon the commencement of service and annually thereafter (the &#147;Initial Holdings Report&#148; and the &#147;Annual
Holdings Report&#148;, respectively). The information on the Initial Holdings Report must be current as of a date not more than 45 days prior to the date the individual becomes an Access Person. An Initial Holdings Report must be submitted to
Compliance no later than 10 days after becoming an Access Person. The Annual Holdings Report holdings information shall be as of December 31 and include a certification by the Access Person that he or she has read and understood the Code of Ethics
and has complied with the Code's requirements. The annual report and certification will be submitted to the Compliance Department by January 31. Annually, any Phoenix mutual fund, open or closed must be disclosed including those held in your 401K
plan. If you do not own </FONT><U><FONT face="serif">Phoenix funds </FONT></U><FONT face="serif">in your 401K plan you do not need to disclose your mutual fund holdings</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT face="serif">E.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">Any report made under this Section 5 may contain a statement that the report shall not be construed as an admission by the person making such report that he or she has any direct or indirect beneficial ownership in the security to
which the report relates.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT face="serif">F.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">The Compliance Officer shall submit an annual report to the Adviser's Fund Board of Directors that summarizes the current Code of Ethics procedures, identifies any violations requiring significant remedial action, and recommends
appropriate changes to the Code, if any.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT face="serif">G.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">Any Access Person shall immediately report any potential violation of this
Code of which he or she becomes aware to the Compliance Department. No employee will be terminated or otherwise retaliated against for submitting
any potential violations of this Code.</FONT>	</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD>	<TD>
<FONT face="serif"></FONT>	</TD>
</TR>
</TABLE>
<P align="center">
<FONT size=2 face="serif">8</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE><br>


<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD width="5%" valign=top nowrap>&nbsp;</TD>
  <TD width="5%" valign=top nowrap>&nbsp;</TD>
	<TD width="5%" valign=top nowrap>
<FONT face="serif">H.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">The Adviser&#146;s Compliance Personnel will review all reports and other information submitted under Section 5. This review will include such comparisons with trading records of client accounts as are necessary or appropriate to
determine whether there have been any violations of the Code.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD nowrap valign=top>&nbsp;</TD>
	<TD nowrap valign=top>
<FONT face="serif">I.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<FONT face="serif">The Adviser&#146;s Compliance Personnel will maintain a list of all Access Persons who are required to make reports under the Code, and shall inform those Access Persons of their reporting obligations.</FONT>	</TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR></TABLE>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
	<TD nowrap valign=top>
<FONT face="serif">6.</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD>
<U><FONT face="serif">Sanctions</FONT></U>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
<TD>&nbsp;</TD>	<TD>
<FONT face="serif">Upon discovering a violation of this Code, the Parent of the Adviser or if applicable the Funds Board of Directors, in addition to any remedial action already taken by the respective adviser or related entity, may impose such
sanctions as it deems appropriate (see under separate cover current imposed sanctions), including </FONT><U><FONT face="serif">inter alia</FONT></U><FONT face="serif">, a letter of censure or suspension or termination of employment, or suspension of
personal trading privileges for such period as it may deem appropriate.</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">9</FONT></P>

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</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2S
<SEQUENCE>5
<FILENAME>c40133_ex99-2s.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">


<P align="right">
<B><FONT size=2 face="serif">E</FONT></B><B><FONT size=2 face="serif">XHIBIT</FONT></B><B><FONT size=2 face="serif"> s</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">LIMITED POWER OF ATTORNEY</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT size=2 face="serif">,
that </FONT><B><FONT size=2 face="serif">STEWART E. CONNER </FONT></B><FONT size=2 face="serif">(&#147;</FONT><U><FONT size=2 face="serif">Principal</FONT></U><FONT size=2 face="serif">&#148;)
does hereby nominate, constitute and appoint each of Nathan I. Partain and T.
Brooks Beittel, with full power to act alone, as Principal&#146;s
true and lawful agent and attorney-in-fact, for him and in his name, place and
stead, to execute and deliver on behalf of Principal, any registration statements
on Form N-2 filed by DNP Select Income Fund Inc. in connection with a public
offering of  its preferred shares, including any and all pre-effective and post-effective
amendments to such registration statements and supplements or other instruments
in connection therewith (the &#147;Documents&#148;), and generally to do all
such things in  Principal&#146;s name and behalf in connection therewith as said
attorney-in-fact shall approve, as evidenced by said attorney-in-fact&#146;s
execution and delivery of the Documents.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Limited Power of Attorney shall be irrevocable until June 30, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">IN WITNESS WHEREOF</FONT></B><FONT size=2 face="serif">, Principal has executed this Limited Power of Attorney as of this 12</FONT><SUP><FONT size=2 face="serif">th</FONT></SUP><FONT size=2 face="serif"> day of
December, 2005.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=54% align=right>&nbsp;</TD>
	<TD width=46% align=left>
<FONT size=2 face="serif">/s/ S</FONT><FONT size=2 face="serif">TEWART </FONT><FONT size=2 face="serif">E. C</FONT><FONT size=2 face="serif">ONNER</FONT>&nbsp;
	</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
	<TD align="left">
<HR align="left" width="60%" size=1 noshade>
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="serif">Name: Stewart E. Conner</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<BR>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT size=2 face="serif">LIMITED POWER OF ATTORNEY</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT size=2 face="serif">,
that </FONT><B><FONT size=2 face="serif">CONNIE K. DUCKWORTH </FONT></B><FONT size=2 face="serif">(&#147;</FONT><U><FONT size=2 face="serif">Principal</FONT></U><FONT size=2 face="serif">&#148;)
does hereby nominate, constitute and appoint each of Nathan I. Partain and T.
Brooks Beittel, with full power to act alone, as Principal&#146;s
true and lawful agent and attorney-in-fact, for her and in her name, place and
stead, to execute and deliver on behalf of Principal, any registration statements
on Form N-2 filed by DNP Select Income Fund Inc. in connection with a public
offering of  its preferred shares, including any and all pre-effective and post-effective
amendments to such registration statements and supplements or other instruments
in connection therewith (the &#147;Documents&#148;), and generally to do all
such things in  Principal&#146;s name and behalf in connection therewith as said
attorney-in-fact shall approve, as evidenced by said attorney-in-fact&#146;s
execution and delivery of the Documents.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Limited Power of Attorney shall be irrevocable until June 30, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">IN WITNESS WHEREOF</FONT></B><FONT size=2 face="serif">, Principal has executed this Limited Power of Attorney as of this 12</FONT><SUP><FONT size=2 face="serif">th</FONT></SUP><FONT size=2 face="serif"> day of
December, 2005.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=54% align=right>&nbsp;</TD>
    <TD width=46% align=left><FONT size=2 face="serif">/s/ C</FONT><font size=2 face="serif">ONNIE </font><font size=2 face="serif">K.
        D</font><font size=2 face="serif">UCKWORTH</font>&nbsp; </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="left"><HR align="left" width="60%" size=1 noshade>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">Name: </FONT><font size=2 face="serif">Connie
    K. Duckworth</font> </TD>
  </TR>
</TABLE>
<P>&nbsp;</P>
<P align="center">
<FONT size=2 face="serif">2 </FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT size=2 face="serif">LIMITED POWER OF ATTORNEY</FONT></B></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size=2 face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT size=2 face="serif">,
that <B>ROBERT J. GENETSKI </B>(&#147;<U>Principal</U>&#148;)
does hereby nominate, constitute and appoint each of Nathan I. Partain and T.
Brooks Beittel, with full power to act alone, as Principal&#146;s
true and lawful agent and attorney-in-fact, for him and in his name, place and
stead, to execute and deliver on behalf of Principal, any registration statements
on Form N-2 filed by DNP Select Income Fund Inc. in connection with a public
offering of  its preferred shares, including any and all pre-effective and post-effective
amendments to such registration statements and supplements or other instruments
in connection therewith (the &#147;Documents&#148;), and generally to do all
such things in  Principal&#146;s name and behalf in connection therewith as said
attorney-in-fact shall approve, as evidenced by said attorney-in-fact&#146;s
execution and delivery of the Documents.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Limited Power of Attorney shall be irrevocable until June 30, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">IN WITNESS WHEREOF</FONT></B><FONT size=2 face="serif">, Principal has executed this Limited Power of Attorney as of this 14</FONT><SUP><FONT size=2 face="serif">th</FONT></SUP><FONT size=2 face="serif"> day of
December, 2005.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=54% align=right>&nbsp;</TD>
    <TD width=46% align=left><FONT size=2 face="serif">/s/ </FONT><FONT size=2 face="serif">R</FONT><FONT size=2 face="serif">OBERT </FONT><FONT size=2 face="serif">J.
    G</FONT><FONT size=2 face="serif">ENETSKI</FONT> </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="left"><HR align="left" width="60%" size=1 noshade>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">Name: </FONT><FONT size=2 face="serif">Robert
    J. Genetski</FONT>&nbsp;</TD>
  </TR>
</TABLE>
<P align="center">&nbsp;</P>
<P align="center"><BR>
  <FONT size=2 face="serif">3</FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT size=2 face="serif">LIMITED POWER OF ATTORNEY</FONT></B></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size=2 face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT size=2 face="serif">,
that <B>FRANCIS E. JEFFRIES </B>(&#147;<U>Principal</U>&#148;)
does hereby nominate, constitute and appoint each of Nathan I. Partain and T.
Brooks Beittel, with full power to act alone, as Principal&#146;s
true and lawful agent and attorney-in-fact, for him and in his name, place and
stead, to execute and deliver on behalf of Principal, any registration statements
on Form N-2 filed by DNP Select Income Fund Inc. in connection with a public
offering of  its preferred shares, including any and all pre-effective and post-effective
amendments to such registration statements and supplements or other instruments
in connection therewith (the &#147;Documents&#148;), and generally to do all
such things in  Principal&#146;s name and behalf in connection therewith as said
attorney-in-fact shall approve, as evidenced by said attorney-in-fact&#146;s
execution and delivery of the Documents.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Limited Power of Attorney shall be irrevocable until June 30, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">IN WITNESS WHEREOF</FONT></B><FONT size=2 face="serif">, Principal has executed this Limited Power of Attorney as of this 12</FONT><SUP><FONT size=2 face="serif">th</FONT></SUP><FONT size=2 face="serif"> day of
December, 2005.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=54% align=right>&nbsp;</TD>
    <TD width=46% align=left><FONT size=2 face="serif">/s/ </FONT><FONT size=2 face="serif">F</FONT><FONT size=2 face="serif">RANCIS </FONT><FONT size=2 face="serif">E.
    J</FONT><FONT size=2 face="serif">EFFRIES</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="left"><HR align="left" width="60%" size=1 noshade>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">Name: </FONT><FONT size=2 face="serif">Francis
    E. Jeffries</FONT></TD>
  </TR>
</TABLE>
<P><BR>
</P>
<P align="center"><FONT size=2 face="serif">4</FONT> </P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT size=2 face="serif">LIMITED POWER OF ATTORNEY</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT size=2 face="serif">, that </FONT><B><FONT size=2 face="serif">NANCY LAMPTON </FONT></B><FONT size=2 face="serif">(&#147;</FONT><U><FONT size=2 face="serif">Principal</FONT></U><FONT size=2 face="serif">&#148;) does hereby nominate, constitute and appoint each of Nathan I. Partain and T. Brooks Beittel, with full power to act alone, as Principal&#146;s true and lawful agent and attorney-in-fact,
for her and in her name, place and stead, to execute and deliver on behalf of Principal, any registration statements on Form N-2 filed by DNP Select Income Fund Inc. in connection with a public offering of its preferred shares, including any and all
pre-effective and post-effective amendments to such registration statements and supplements or other instruments in connection therewith (the &#147;Documents&#148;), and generally to do all such things in Principal&#146;s name and behalf in
connection therewith as said attorney-in-fact shall approve, as evidenced by said attorney-in-fact&#146;s execution and delivery of the Documents.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Limited Power of Attorney shall be irrevocable until June 30, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">IN WITNESS WHEREOF</FONT></B><FONT size=2 face="serif">, Principal has executed this Limited Power of Attorney as of this 12</FONT><SUP><FONT size=2 face="serif">th</FONT></SUP><FONT size=2 face="serif"> day of
December, 2005.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=54% align=right>&nbsp;</TD>
    <TD width=46% align=left><FONT size=2 face="serif">/s/ </FONT><FONT size=2 face="serif">N</FONT><FONT size=2 face="serif">ANCY </FONT><FONT size=2 face="serif">L</FONT><FONT size=2 face="serif">AMPTON</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="left"><HR align="left" width="60%" size=1 noshade>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">Name: </FONT><FONT size=2 face="serif">Nancy
    Lampton</FONT></TD>
  </TR>
</TABLE>
<P>&nbsp;</P>
<center>
  <FONT size=2 face="serif">5</FONT><BR>
</center>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT size=2 face="serif">LIMITED POWER OF ATTORNEY</FONT></B></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size=2 face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT size=2 face="serif">,
that <B>CHRISTIAN H. POINDEXTER </B>(&#147;<U>Principal</U>&#148;)
does hereby nominate, constitute and appoint each of Nathan I. Partain and T.
Brooks Beittel, with full power to act alone, as Principal&#146;s
true and lawful agent and attorney-in-fact, for him and in his name, place and
stead, to execute and deliver on behalf of Principal, any registration statements
on Form N-2 filed by DNP Select Income Fund Inc. in connection with a public
offering of  its preferred shares, including any and all pre-effective and post-effective
amendments to such registration statements and supplements or other instruments
in connection therewith (the &#147;Documents&#148;), and generally to do all
such things in  Principal&#146;s name and behalf in connection therewith as said
attorney-in-fact shall approve, as evidenced by said attorney-in-fact&#146;s
execution and delivery of the Documents.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Limited Power of Attorney shall be irrevocable until June 30, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">IN WITNESS WHEREOF</FONT></B><FONT size=2 face="serif">, Principal has executed this Limited Power of Attorney as of this 14</FONT><SUP><FONT size=2 face="serif">th</FONT></SUP><FONT size=2 face="serif"> day of
December, 2005.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=54% align=right>&nbsp;</TD>
    <TD width=46% align=left><FONT size=2 face="serif">/s/ </FONT><FONT size=2 face="serif">C</FONT><FONT size=2 face="serif">HRISTIAN </FONT><FONT size=2 face="serif">H.
    P</FONT><FONT size=2 face="serif">OINDEXTER</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="left"><HR align="left" width="60%" size=1 noshade>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">Name: </FONT><FONT size=2 face="serif">Christian
    H. Poindexter</FONT></TD>
  </TR>
</TABLE>
<P>&nbsp;</P>
<center>
  <FONT size=2 face="serif">6</FONT><BR>
</center>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT size=2 face="serif">LIMITED POWER OF ATTORNEY</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT size=2 face="serif">, that </FONT><B><FONT size=2 face="serif">CARL F. POLLARD </FONT></B><FONT size=2 face="serif">(&#147;</FONT><U><FONT size=2 face="serif">Principal</FONT></U><FONT size=2 face="serif">&#148;) does hereby nominate, constitute and appoint each of Nathan I. Partain and T. Brooks Beittel, with full power to act alone, as Principal&#146;s true and lawful agent and attorney-in-fact,
for him and in his name, place and stead, to execute and deliver on behalf of Principal, any registration statements on Form N-2 filed by DNP Select Income Fund Inc. in connection with a public offering of its preferred shares, including any and all
pre-effective and post-effective amendments to such registration statements and supplements or other instruments in connection therewith (the &#147;Documents&#148;), and generally to do all such things in Principal&#146;s name and behalf in
connection therewith as said attorney-in-fact shall approve, as evidenced by said attorney-in-fact&#146;s execution and delivery of the Documents.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Limited Power of Attorney shall be irrevocable until June 30, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">IN WITNESS WHEREOF</FONT></B><FONT size=2 face="serif">, Principal has executed this Limited Power of Attorney as of this 12</FONT><SUP><FONT size=2 face="serif">th</FONT></SUP><FONT size=2 face="serif"> day of
December, 2005.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=54% align=right>&nbsp;</TD>
    <TD width=46% align=left><FONT size=2 face="serif">/s/ </FONT><FONT size=2 face="serif"> C</FONT><FONT size=2 face="serif">ARL </FONT><FONT size=2 face="serif">F.
    P</FONT><FONT size=2 face="serif">OLLARD</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="left"><HR align="left" width="60%" size=1 noshade>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">Name: </FONT><FONT size=2 face="serif">Carl
    F. Pollard</FONT></TD>
  </TR>
</TABLE>
<P>&nbsp;</P>
<center>
  <FONT size=2 face="serif">7</FONT><BR>
</center>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT size=2 face="serif">LIMITED POWER OF ATTORNEY</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT size=2 face="serif">, that </FONT><B><FONT size=2 face="serif">DAVID J. VITALE </FONT></B><FONT size=2 face="serif">(&#147;</FONT><U><FONT size=2 face="serif">Principal</FONT></U><FONT size=2 face="serif">&#148;) does hereby nominate, constitute and appoint each of Nathan I. Partain and T. Brooks Beittel, with full power to act alone, as Principal&#146;s true and lawful agent and attorney-in-fact,
for him and in his name, place and stead, to execute and deliver on behalf of Principal, any registration statements on Form N-2 filed by DNP Select Income Fund Inc. in connection with a public offering of its preferred shares, including any and all
pre-effective and post-effective amendments to such registration statements and supplements or other instruments in connection therewith (the &#147;Documents&#148;), and generally to do all such things in Principal&#146;s name and behalf in
connection therewith as said attorney-in-fact shall approve, as evidenced by said attorney-in-fact&#146;s execution and delivery of the Documents.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Limited Power of Attorney shall be irrevocable until June 30, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">IN WITNESS WHEREOF</FONT></B><FONT size=2 face="serif">, Principal has executed this Limited Power of Attorney as of this 12</FONT><SUP><FONT size=2 face="serif">th</FONT></SUP><FONT size=2 face="serif"> day of
December, 2005.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=54% align=right>&nbsp;</TD>
    <TD width=46% align=left><FONT size=2 face="serif">/s/ </FONT><FONT size=2 face="serif">D</FONT><FONT size=2 face="serif">AVID </FONT><FONT size=2 face="serif">J.
    V</FONT><FONT size=2 face="serif">ITALE</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="left"><HR align="left" width="60%" size=1 noshade>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">Name: </FONT><FONT size=2 face="serif">David
    J. Vitale</FONT></TD>
  </TR>
</TABLE>
<P>&nbsp;</P>
<center>
  <FONT size=2 face="serif">8</FONT><BR>
</center>
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