Factors Given for Choosing the Dollar as Functional

The auditors gave the following reasons for selecting the dollar as the fund’s functional currency:

1. Incorporation inside the United States
2. Funded with U.S. shareholdercapital
3. Dividends determined and paid in U.S. dollars
4. Economic reporting under U.S. GAAP and in U.S. dollars
5. Administration and advisory fees calculated on U.S. net assets and paid in U.S. dollars
6. Most costs incurred and paid in U.S. dollars
7. Accounting records kept in U.S. dollars
8. Topic to U.S. tax, SEC, and 1940

Exchange Act regulations Since the fund was set as much as invest in Spain, it's assumed that U.S. shareholders are thinking about the impact of an exchange rate modify on the fund’s cash flows and equity; that's, the shareholders do not invest in Spanish securities only for the reason that of desirable yields, but additionally are making a currency play that directly affects the measurement of cash flow and equity.