Fund fees and expenses are presented as a percentage of both common shareholder capital and total fund investment capital. Total investment capital includes common assets as well as assets attributable to the fund's issuance of senior securities (e.g. preferred shares and debt). The table's first column portrays the costs directly and indirectly borne by common shareholders on an investment in the fund's common shares. The table's second column portrays the costs borne by the fund on its total investment capital, which enables a common shareholder to better understand how fund expenses impact portfolio investment returns. Interest expenses from leverage are shown separately, because they represent costs associated with the fund's financing activities which are distinct from the costs associated with the fund's underlying core operations.
Other Expenses and Total Expenses do not include interest expenses arising from the application of SFAS No. 140 to certain inverse floating rate securities (if any) held by the Fund. Interest expense arises because accounting rules require the fund to treat interest paid by trusts issuing certain inverse floating rate instruments held by the fund as having been paid (indirectly) by the fund. Because the fund also recognizes a corresponding amount of additional income earned (also indirectly), the fund's net asset value per share, net investment income and total return have not been affected by this accounting treatment. See the fund's Annual Report for information on the fund's inverse floating rate investments and recognized interest expense.
Expense ratios are calculated using the prior 12 months of expense data as of the previous month-end.