EX-99.77E LEGAL 3 ghif77e.htm LEGAL

ghif77e.htm

Exhibit 77E

Legal Proceedings

As has been previously reported, the staff of the U.S. Securities and Exchange

Commission (“SEC”) and the Office of the New York Attorney General

(“NYAG”) have been investigating practices in the mutual fund industry identified

as “market timing” and “late trading” of mutual fund shares. Certain other

regulatory authorities have also been conducting investigations into these practices

within the industry and have requested that the Adviser provide information

to them. The Adviser has been cooperating and will continue to cooperate with

all of these authorities. The shares of the Fund are not redeemable by the Fund,

but are traded on an exchange at prices established by the market. Accordingly,

the Fund and its shareholders are not subject to the market timing and late trading

practices that are the subject of the investigations mentioned above or the

lawsuits described below.

Numerous lawsuits have been filed against the Adviser and certain other defendants

in which plaintiffs make claims purportedly based on or related to the same

practices that are the subject of the SEC and NYAG investigations referred to

above. Some of these lawsuits name the Fund as a party. The lawsuits are now

pending in the United States District Court for the District of Maryland pursuant

to a ruling by the Judicial Panel on Multidistrict Litigation transferring and

centralizing all of the mutual funds involving market and late trading in the District

of Maryland.

The Adviser believes that these matters are not likely to have a material adverse

effect on the Fund or the Adviser’s ability to perform advisory services relating to

the Fund.