FIXED DISTRIBUITON POLICY

The Fund has implemented a fixed distribution policy upon receiving approval of an exemptive order application by the Securities and Exchange Commission. The policy will permit the Fund to make quarterly distributions at a rate of 2% of the Fund's net assets to shareholders of record. The Fund intends to use net realized capital gains when making quarterly distributions. Implementation of this policy could result in a return of capital to shareholders if the amount of the distribution exceeds the Fund's net investment income and realized capital gains. It is anticipated that net realized capital gains in excess of the total distributed under this policy would be included in the December distribution. It is anticipated that the quarterly distribution will also be declared in stock. The Fund's distribution policy has been established by the Board of Trustees. The distribution policy may be changed by the Board of Trustees without Shareholder approval.

DISTRIBUITONS

Record Date	Payable Date	$ Amount per Share	Type	Share Issue Price
12/28/87	1/14/88	$0.02	Income	$6.5393
12/28/90	1/29/91	$0.055	Income	$11.57
12/28/90	1/29/91	$0.78	Capital Gains	$11.57
12/26/91	1/29/92	$0.04	Income	$24.4125
12/26/91	1/29/92	$0.92	Capital Gains	$24.4125
9/30/92	NA	$3.17	Capital Gains	NA
9/90/93	NA	$1.48	Capital Gains	NA
9/30/94	NA	$1.62	Capital Gains	NA
11/24/95	12/15/95	$1.22	Capital Gains	$18.25
11/18/96	12/26/96	$4.49	Capital Gains	$17.75
11/21/97	12/29/97	$1.07	Capital Gains	$15.25
11/24/98	12/30/98	$0.36	Capital Gains	$14.4375
11/18/99	12/30/99	$1.16	Capital Gains	$21.125
11/18/99	12/30/99	$0.17	ST Capital Gains	$21.125
2/22/00	3/27/00	$0.55	Capital Gains	$31.125
5/23/00	6/27/00	$0.74	Capital Gains	$30.375
8/23/00	9/27/00	$0.85	Capital Gains	$35.375
11/22/00	12/27/00	$2.95	Capital Gains	$24.625
2/19/01	3/23/01	$0.64	Capital Gains	$20.23
5/10/01	6/20/01	$0.53	Capital Gains	$26.92
8/9/01	9/20/01	$0.66	Capital Gains	$23.38
11/20/01	12/21/01	$1.65	Capital Gains	$25.90
2/20/02	3/26/02	$0.61	Capital Gains	$23.00
5/23/02	6/27/02	$0.51	Capital Gains	$18.65
8/9/02	9/20/02	$0.41	Capital Gains	$14.90
11/22/02	12/27/02	$1.10	Capital Gains	$14.68
2/20/03	3/26/03	$0.35	Capital Gains	$14.18
5/19/03	6/27/03	$0.33	Capital Gains	$18.30
8/11/03	9/25/03	$0.39	Capital Gains	$17.96
11/26/03	12/31/03	$0.61	Capital Gains	$18.04
2/20/04	3/30/04	$0.39	Capital Gains	$20.14
5/25/04	6/29/04	$0.42	Capital Gains	$17.76
8/20/04	9/28/04	$0.3809	Capital Gains	$17.82
11/22/04	12/30/04	$0.36	Capital Gains	$17.99
2/22/05	3/30/05	$0.37	Capital Gains	$16.40
5/26/05	6/30/05	$0.35	Capital Gains	$17.75
8/22/05	9/30/05	$0.36	Capital Gains	$18.91
11/21/05	12/30/05	$0.51	Capital Gains	$17.65
2/21/06	3/30/06/05	$0.37	Capital Gains	$18.91
6/9/06	6/30/06	$0.39	Capital Gains	$16.61
9/8/2006	9/29/2006	$0.34	Capital Gains	$16.44
11/21/06	12/29/2006	$0.36	Capital Gains	$16.34
2/22/07	3/30/07	$0.35	Capital Gains	$17.34
5/25/07	6/29/07	$0.36	Capital Gains	$17.32
8/22/07	9/28/07	$0.37	Capital Gains	$17.34
11/21/07	12/31/07	$0.38	Capital Gains	$15.97
2/22/08	3/31/08	$0.38	Capital Gains	$14.61

Please Note: The Fund distributes annually all income and capital gains if earned. The current policy is to declare distributions in stock. The Fund has also implemented a fixed distribution policy of quarterly distributions of realized capital gains at a rate of 2% of net assets. See Distribution Policy in the most recent filings or at top of page for more details.

Please Note: This information is derived from our financial statements and press releases. These documents can be viewed on this website and/or can be obtained directly from Hambrecht & Quist Capital Management LLC.