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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 9
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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SIGNATURE MARK B. MANDICH
TITLE CFO & TREASURER
<TABLE> <S> <C>
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<NUMBER> 2
<NAME> PPM AMERICA SMALL CAP VALUE EQUITY FUND
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PRICEWATERHOUSECOOPERS [LOGO]
To the Shareholder and Board of Trustees
of PPM America Funds
In planning and performing our audit of the financial statements of the PPM
Value Equity Fund and PPM America Small Cap Value Equity which are two
portfolios comprising the PPM America Funds (the "Trust") for the period from
December 23, 1998 (inception) to December 31, 1998, we considered its internal
control, including control activities for safeguarding securities, in order to
determine our auditing procedures for the purpose of expressing our opinion on
the financial statements and to comply with the requirements of Form N-SAR, not
to provide assurance on internal control.
The management of the Trust is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit pertain to the
entity's objective of preparing financial statements for external purposes that
are fairly presented in conformity with generally accepted accounting
principles. Those controls include the safeguarding of assets against
unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, error or fraud may occur
and not be detected. Also, projection of any evaluation of internal control to
future periods is subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and operation may
deteriorate.
Our consideration of internal control would not necessarily disclose all matters
in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of one or more
of the internal control components does not reduce to a relatively low level the
risk that misstatements caused by error or fraud in amounts that would be
material in relation to the financial statements being audited may occur and not
be detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters involving
internal control and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above as of
December 31, 1998.
This report is intended solely for the information and use of management, the
Board of Trustees, and the Securities and Exchange Commission.
January 22, 1999
This report is signed on behalf of the registrant (or depositor or trustee).
City of: CHICAGO State of: ILLINOIS Date: February 26, 1999
Name of Registrant, Depositor, or Trustee: PPM AMERICA FUNDS
By (Name and Title): Witness (Name and Title):
/s/ Mark B. Mandich /s/ Mark D. Nerud
- ------------------- -----------------
MARK B. MANDICH MARK D. NERUD
CHIEF FINANCIAL OFFICER & SECRETARY & ASSISTANT
TREASURER TREASURER
