<PAGE>
[LETTERHEAD]
REPORT ON EXAMINATION OF SECURITIES PURSUANT TO RULE 17F-2
To the Board of Directors of the RCM Equity Funds, Inc.:
We have examined the securities represented by the investment accounts
included on the books and records of the Global Small Cap Fund ("The Fund")
for the period January 3, 1997 (the first date securities were held) to
January 31, 1997. Our examination was performed without prior notice to the
Fund and in accordance with Rule 17f-2 of the Investment Company Act of 1940,
as amended. It is understood that this report is solely for the use of
management of the Global Small Cap Fund and the Securities and Exchange
Commission and should not be used for any other purpose.
We performed the following procedures with respect to securities owned by The
Fund as of the close of business on January 31, 1997:
All securities owned by the Fund are custodied with State Street Bank
and Trust Company ("State Street"). All Deutschemark denominated securities
held by the Fund will be custodied with Dresdner Bank AG as Sub Custodian
for State Street. All securities custodied with Dresdner Bank AG are
custodied in book entry method. All Deutschemark denominated securities
owned by the International Growth Equity Fund are held in an individual
account.
We reviewed State Street's daily exception reports which compare the
safekeeping report of securities held by the Fund to those held by
Dresdner Bank AG, on individual account basis from January 3, 1997 (the
first date the securities were held) to January 31, 1997 noting that
the exceptions on the reports, if any, for the Fund had been resolved
during the period. On a test basis, we agreed securities shown on the
State Street safekeeping reports to share positions from Dresdner Bank
AG's custody statement as of the count date.
Securities designated as securities of the Funds on State Street's
safekeeping reports were traced to the books and records of the Funds,
noting agreement except for securities purchased/sold but not
received/delivered on that date, as to which we requested confirmation
from the brokers.
<PAGE>
We reviewed the daily reconciliation between Dresdner Bank's records
and the records of the central depository, Deutscher Kassenverein AG,
("the DKV") and noted that the exceptions or unmatched items on the
report, if any, had been resolved in a timely manner during the period.
Because the above procedures do not constitute an audit in accordance with
generally accepted auditing standards, we do not express an opinion on the
specified accounts referred to above. Had we performed additional procedures
or had we audited the financial statements in accordance with generally
accepted auditing standards, other matters might have come to our attention
that would have been reported to you. This report relates only to the
investments specified above and does not extend to any financial statements
of International Growth Equity Fund taken as a whole.
/s/ Coopers & Lybrand L.L.P.
Boston, Massachusetts Coopers & Lybrand L.L.P.
December 17, 1997
<PAGE>
[LETTERHEAD]
REPORT ON EXAMINATION OF SECURITIES PURSUANT TO RULE 17F-2
To the Board of Directors of the RCM Equity Funds, Inc.:
We have examined the securities represented by the investment accounts
included on the books and records of the Global Small Cap Fund ("The Fund")
for the period from the date of our last similar examination on January 31,
1997 to February 28, 1997. Our examination was performed without prior notice
to the Fund in accordance with Rule 17f-2 of the Investment Company Act
of 1940, as amended. It is understood that this report is solely for the use
of management of the Fund and the Securities and Exchange Commission and should
not be used for any other purpose.
We performed the following procedures with respect to securities owned by The
Fund as of the close of business on February 28, 1997:
All securities owned by The Fund are custodied with State Street Bank
and Trust Company ("State Street"). All Deutschemark denominated securities
held by the Fund will be custodied with Dresdner Bank AG as Sub Custodian
for State Street. All securities custodied with Dresdner Bank AG are
custodied in book entry method. All Deutschemark denominated securities
owned by the Fund are held in an individual accounts.
We reviewed State Street's daily exception reports which compare the
safekeeping reports of securities held by The Fund to those held by
Dresdner Bank AG, on individual account basis as above, from January 31,
1997 (the date of our last security count) to February 28, 1997 noting that
the exceptions on the reports, if any, for the Fund had been resolved
during the period. On a test basis, we agreed securities shown on the
State Street safekeeping reports to share positions from Dresdner Bank
AG's custody statement as of the count date.
Securities designated as securities of the Fund on State Street's
safekeeping reports were traced to the books and records of the Fund,
noting agreement except for securities purchased/sold but not
received/delivered on that date, as to which we requested confirmation
from the brokers.
<PAGE>
We reviewed the daily reconciliation between Dresdner Bank's records
and the records of the central depository, Deutscher Kassenverein AG,
("the DKV") and noted that the exceptions or unmatched items on the
report, if any, had been resolved in a timely manner during the period.
Because the above procedures do not constitute an audit in accordance with
generally accepted auditing standards, we do not express an opinion on the
specified accounts referred to above. Had we performed additional procedures
or had we audited the financial statements in accordance with generally
accepted auditing standards, other matters might have come to our attention
that would have been reported to you. This report relates only to the
investments specified above and does not extend to any financial statements
of The Fund taken as a whole.
/s/ Coopers & Lybrand L.L.P.
Boston, Massachusetts Coopers & Lybrand L.L.P.
December 17, 1997
<PAGE>
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<S><C>
UNITED STATES ------------------------------
SECURITIES AND EXCHANGE COMMISSION OMB APPROVAL
WASHINGTON, D.C. 20549 ------------------------------
OMB NUMBER: 3235-0360
FORM N-17f-2 EXPIRES:
ESTIMATED AVERAGE BURDEN
Certificate of Accounting of Securities and Similar HOURS PER RESPONSE ..... 0.05
Investments in the Custody of ------------------------------
Management Investment Companies
Pursuant to Rule 17f-2 [17 CFR 270.17f-2]
- ------------------------------------------------------------------------------------------------
1. Investment Company Act File Number: Date examination completed:
811-9100 February 28, 1997
- ------------------------------------------------------------------------------------------------
2. State identification Number:
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AL AK AZ AR CA CO
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CT DE DC FL GA HI
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ID IL IN IA KS KY
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LA ME MD MA MI MN
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MS MO MT NE NV NH
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NJ NM NY NC ND OH
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OK OR PA RI SC SD
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TN TX UT VT VA WA
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WV WI WY PUERTO RICO
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Other (specify):
- ------------------------------------------------------------------------------------------------
3. Exact name of investment company as specified in registration statement:
RCM Equity Funds, Inc. - Global Small Cap Fund
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
4. Address of principal executive office (number, street, city, state, zip code):
4 Embarcadero Center, San Francisco, CA 94111
- ------------------------------------------------------------------------------------------------
INSTRUCTIONS
THIS FORM MUST BE COMPLETED BY INVESTMENT COMPANIES THAT HAVE CUSTODY OF SECURITIES OR SIMILAR
INVESTMENTS.
INVESTMENT COMPANY
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in compliance with Rule 17f-2 under
the Act and applicable state law, examines securities and similar investments in the custody
of the investment company.
ACCOUNTANT
3. Submit this Form to the securities and Exchange Commission and appropriate state securities
administrators when filing the certificate of accounting required by Rule 17f-2 under the Act
and applicable state law. File the original and one copy with the Securities and Exchange
Commission's principal office in Washington, D.C., one copy with the regional office for the
region in which the investment company's principal business operations are conducted, and one
copy with the appropriate state administrator(s), if applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
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