<PAGE> PAGE 1
000 A000000 04/30/99
000 C000000 0000315127
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 ALTERMAN INVESTMENT FUND, INC.
001 B000000 811-02998
001 C000000 4042379891
002 A000000 182 HILDEBRAND DRIVE
002 B000000 ATLANTA
002 C000000 GA
002 D010000 30328
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
013 A000001 BIRNBREY, MINSK & MINSK LLC
013 B010001 ATLANTA
013 B020001 GA
013 B030001 30309
019 B000000 0
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 MORGAN KEEGAN
022 B000001 58-1187378
022 C000001 655
<PAGE> PAGE 2
022 D000001 0
022 A000002 A.G. EDWARDS
022 B000002 43-0895447
022 C000002 602
022 D000002 0
022 A000003 PRUDENTIAL
022 B000003 22-234336
022 C000003 518
022 D000003 0
022 A000004 ROBINSON HUMPHREY
022 B000004 58-1472560
022 C000004 435
022 D000004 0
022 A000005 PAINE WEBBER
022 B000005 13-2638166
022 C000005 199
022 D000005 0
022 C000006 0
022 D000006 0
022 C000007 0
022 D000007 0
022 C000008 0
022 D000008 0
022 C000009 0
022 D000009 0
022 C000010 0
022 D000010 0
023 C000000 2409
023 D000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 22300
048 A020000 0.113
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
<PAGE> PAGE 3
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
062 A000000 Y
062 B000000 3.3
062 C000000 0.0
062 D000000 0.0
062 E000000 11.9
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 2.4
062 M000000 3.0
062 N000000 0.0
062 O000000 79.4
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 3.7
064 A000000 Y
064 B000000 N
071 A000000 2409
071 B000000 2519
071 C000000 22186
071 D000000 11
072 A000000 12
072 B000000 1096
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 25
072 G000000 0
072 H000000 0
072 I000000 9
072 J000000 7
072 K000000 0
072 L000000 0
072 M000000 14
072 N000000 0
072 O000000 10
072 P000000 0
072 Q000000 18
072 R000000 9
072 S000000 35
072 T000000 0
072 U000000 0
<PAGE> PAGE 4
072 V000000 0
072 W000000 23
072 X000000 150
072 Y000000 0
072 Z000000 946
072AA000000 28
072BB000000 1
072CC010000 162
072CC020000 0
072DD010000 961
072DD020000 0
072EE000000 0
073 A010000 1.2200
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 16
074 B000000 0
074 C000000 0
074 D000000 22175
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 343
074 M000000 1
074 N000000 22535
074 O000000 0
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 209
074 S000000 0
074 T000000 22326
074 U010000 788
074 U020000 0
074 V010000 28.34
074 V020000 0.00
074 W000000 0.0000
074 X000000 200
074 Y000000 0
075 A000000 0
075 B000000 22267
076 000000 28.34
077 A000000 Y
077 B000000 Y
<PAGE> PAGE 5
077 Q020000 Y
078 000000 N
080 A000000 THE FIDELITY AND DEPOSIT COMPANY OF MARYLAND
080 C000000 300
081 A000000 N
081 B000000 0
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
088 A000000 N
088 B000000 N
088 C000000 N
088 D000000 N
SIGNATURE C.H. SHEPHERD
TITLE SECRETARY
Exhibit 99.1
INDEPENDENT AUDITORS' REPORT
ON INTERNAL CONTROL
To the Board of Directors
Alterman Investment Fund, Inc.
Atlanta, Georgia
In planning and performing our audit of the financial statements of Alterman
Investment Fund, Inc. for the year ended April 30, 1999, we considered its
internal control, including procedures 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, but
not to provide assurance on internal control.
The management of Alterman Investment Fund, Inc. 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. The objectives of
internal control are to provide management with reasonable, but not absolute,
assurance that assets are safeguarded against loss from unauthorized use or
disposition and that transactions are executed in accordance with management's
authorization and recorded properly to permit the preparation of financial
statements in conformity with generally accepted accounting principles.
Because of inherent limitations in any internal control, errors or
irregularities may occur and not be detected. Also, projection of any
evaluation of internal control to future periods is subject to the risk that
procedures may become inadequate because of changes in conditions or that the
effectiveness of the design and operation of controls 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 errors or irregularities 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 personnel in the normal course of performing
their assigned functions. However, we noted no matters involving internal
control, including procedures for safeguarding securities, that we consider to
be material weaknesses as defined above as of April 30, 1999.
This report is intended solely for the information and use of management and
the Securities and Exchange Commission.
/s/ Birnbrey, Minsk & Minsk LLC
Atlanta, Georgia
June 14, 1999
Exhibit 99.2
ITEM 77Q2
Based upon a review of Forms 3, 4 or 5, or written representations that no
Form 5 was required, furnished to Registrant by its directors, officers subject
to the provisions of Section 16 of the Securities Exchange Act of 1934, as
amended (the "Exchange Act") and persons holding ten percent (10%) or more of
the outstanding Common Stock of Registrant, Registrant believes that all
filing requirements of such persons under Section 16 of the Exchange Act during
the fiscal year ended April 30, 1999 have been satisfied.
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL INFORMATION CONTAINED IN THIS FORM N-SAR AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL INFORMATION.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> APR-30-1999
<PERIOD-END> APR-30-1999
<INVESTMENTS-AT-COST> 21,468
<INVESTMENTS-AT-VALUE> 22,175
<RECEIVABLES> 343
<ASSETS-OTHER> 17
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 22,535
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 209
<TOTAL-LIABILITIES> 209
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,359
<SHARES-COMMON-STOCK> 788
<SHARES-COMMON-PRIOR> 788
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 15
<ACCUMULATED-NET-GAINS> 27
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 707
<NET-ASSETS> 22,326
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,096
<OTHER-INCOME> 0
<EXPENSES-NET> 150
<NET-INVESTMENT-INCOME> 946
<REALIZED-GAINS-CURRENT> 27
<APPREC-INCREASE-CURRENT> 162
<NET-CHANGE-FROM-OPS> 1,135
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 961
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 174
<ACCUMULATED-NII-PRIOR> 611
<ACCUMULATED-GAINS-PRIOR> 679
<OVERDISTRIB-NII-PRIOR> 77
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 25
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 150
<AVERAGE-NET-ASSETS> 22,267
<PER-SHARE-NAV-BEGIN> 28.12
<PER-SHARE-NII> 1.20
<PER-SHARE-GAIN-APPREC> .24
<PER-SHARE-DIVIDEND> 1.22
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 28.34
<EXPENSE-RATIO> .67
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
