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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 12
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<PAGE> PAGE 14
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SIGNATURE SUSAN C. COTE'
TITLE TREASURER
For fiscal year ended (a) December 31, 1993
File number (c) 811-3175
SUB-ITEM 77L
Changes in Accounting Principles and Practices
Effective January 1, 1993, the Prudential Utility Fund began
accounting and reporting for distributions to shareholders in
accordance with Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income, Capital
Gain, and Return of Capital Distributions by Investment Companies.
The effect of adopting this statement was to increase paid-in
capital in excess of par by $18,691,112, decrease undistributed net
investment income by $4,507,069 and decrease accumulated net
realized gain on investments by $14,184,043 compared to amounts
previously reported through December 31, 1992. During the fiscal
year ended December 31, 1993, the Fund reclassified $1,704,541 of
net foreign currency losses to undistributed net investment income
from accumulated net realized gain on investments. Net investment
income, net realized gains, and net assets were not affected by
this change.
SUB-ITEM 77E
Utility Fund N-SAR
On October 12, 1993, a lawsuit was instituted
against the Registrant, Prudential Mutual Fund
Management, Inc., The Prudential Investment
Corporation, Prudential Securities
Incorporated and certain current and former
directors of the Registrant. (Merine v.
Prudential-Bache Utility Fund, Inc., et. al
(93 Civ. 7065 (PKL) - S.D.N.Y.) The suit was
brought by plaintiffs both derivatively on
behalf of the Registrant and purportedly on
behalf of the class of shareholders who
purchased their shares prior to 1985. The
plaintiffs seek damages on behalf of the
Registrant in an unspecified amount for
alleged excessive management and distribution
fees. The complaint also challenges the
Alternative Purchase Plan that was implemented
in January 1990 pursuant to a shareholder vote
and that provided for the creation of two
classes of Registrant shares. The plaintiffs,
on behalf of the purported class, seek damages
and equitable relief against the Registrant
and the named directors to change the
classification of the shares of the class and
to compel a further vote on such plan.
Although the outcome of this litigation cannot
be predicted at this time, defendants believe
they have meritorious defenses to the claims
asserted in the complaint and intend to defend
this action vigorously. In any event, because
plaintiffs' claims for damages are brought
derivatively on behalf of the Registrant, the
Registrant is only a nominal defendant with
respect to those claims. Only equitable
relief is sought from the Registrant.
For the fiscal year ended (a) 12/31/93
File number (c) 811-3175
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
CMS Energy Corporation
2. Date of Purchase
09/29/93
3. Number of Securities Purchased
150,000
4. Dollar Amount of Purchase
$3,993,750.00
5. Price Per Unit
$26.625
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Morgan Stanley & Co., Incorporated
7. Other Members of the Underwriting Syndicate
Donaldson, Lufkin & Jenrette Securities Corporation
The First Boston Corporation
Goldman, Sachs & Co
Merrill Lynch, Pierce, Fenner & Smith Incorporated
M.R. Beal & Company
Bear, Stearns & Co.
Dillon, Read & Co., Inc
A.G. Edwards & Sons, Inc.
First of Michigan Corporation
Edward D. Jones & Co.
Kemper Securities, Inc.
Kidder, Peabody & Co., Incorporated
McDonald & Company Securities, Inc.
Monness, Crespi, Hardt & Co., Inc.
Paine Webber Incorporated
Roney & Co.
Salomon Brothers Inc.
Smith Barney Shearson Inc.
UBS Securities Inc.
Dean Witter Reynolds Inc.
For the fiscal year ended (a) 12/31/93
File number (c) 811-3175
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
PacTel Corporation
2. Date of Purchase
12/2/93
3. Number of Securities Purchased
299,500
4. Dollar Amount of Purchase
$6,888,500.00
5. Price Per Unit
$23.00
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Lehman/Salomon Brothers
7. Other Members of the Underwriting Syndicate
Goldman, Sachs & Co.
Merrill Lynch, Pierce Fenner & Smith Incorporated
CS First Boston Corporation
Donaldson, Lufkin & Jenrette Securities Corporation
Morgan Stanley & Co., Inc.
Bear, Stearns & Co., Inc.
Alex Brown & Sons Incorporated
Dillon, Read & Co., Inc.
A.G. Edwards & Sons, Inc.
Hambrecht & Quist Incorporated
Kemper Securities, Inc.
Kidder Peabody & Co., Incorporated
Lazard Freres & Co.
WR Lazard, Laidlaw & Mead Inc.
Montgomery Securities
Nomura Securities International, Inc.
Oppenheimer & Co., Inc.
Paine Webber Incorporated
Prudential Securities Incorporated
Pryor, McClendon, Counts & Co., Inc.
Robertson, Stephens & Company, LP
Scotia-McLeod (USA) Inc.
Muriel Seibert & Co., Inc.
Smith Barney Shearson, Inc.
SBCI Swiss Bank Corporation Investment Banking Inc.
UBS Securities Inc.
S.G. Warburg & Co., Inc.
Wertheim Schroder & Co., Incorporated
Dean Witter Reynolds Inc.
Yamaichi International (America), Inc.
Advest, Inc.
Robert W. Baird & Co. Incorporated
Sanford C. Bernstein & Co. Incorporated
Cowen & Company
Crowell, Weedon & Co.
Dain Bosworth Incorporated
Robert Fleming Inc.
Ladenburg, Thalmann & Co., Inc.
C.J. Lawrence/Deutsche Bank Securities Corporation
Legg Mason Wood Walker Incorporated
Moran & Associates, Inc. Securities Brokerage
Needham & Company, Inc.
Neuberger & Berman
Piper Jaffray Inc.
Raymond James & Associates, Inc.
The Robinson-Humphrey Company, Inc.
Stifel, Nicolaus & Company, Incorporated
Sutro & Co., Incorporated
AIBC Investment Services Corporation
Apex Securities, Inc.
M.R. Beal & Co.
Charles A. Bell Securities Corp.
The Buckingham Research Group Incorporated
D.A. Davidson & Co., Incorporated
Doley Securities, Inc.
First Analysis Securities Corporation
Gabelli & Company, Inc.
Gerard Klauer Mattison & Co., Inc.
Grigsby Brandford Powell Inc.
Hanifen, Imhoff Inc.
Janney Montgomery Scott Inc.
Edward D. Jones & Co.
Luther, Smith & Smalls, Inc.
Ragen MacKenzie Incorporated
Samuel A. Ramirez & Co., Inc.
Redwood Securities Group, Inc.
Robert Van Securities, Inc.
The Seidler Companies Incorporated
Sturdivant & Col, Inc.
Utendahl Capital Partners, LP
Wedbush Morgan Securities
For the fiscal year ended (a) 12/31/93
File number (c) 811-3175
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
Niagara Mohawk Power Corporation
2. Date of Purchase
4/28/93
3. Number of Securities Purchased
80,000
4. Dollar Amount of Purchase
$1,780,000.00
5. Price Per Unit
$22.25
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Merrill Lynch
7. Other Members of the Underwriting Syndicate
A.G Edwards & Sons, Inc.
First Albany Corporation
Bear, Stearns & Co., Inc.
Goldman, Sachs & Co.
Kidder, Peabody & Co., Inc.
Oppenheimer & Co., Inc.
Paine Webber Inc.
Prudential Securities Inc.
Shearson Lehman Brothers Inc.
Smith Barney, Harris Upham & Co., Inc.
UBS Securities Inc.
Dean Witter Reynolds Inc.
Edward D. Jones & Co
NatWest Securities Limited
Advest, Inc.
M.R. Beal & Company
Cowen & Company
Dominick & Dominick, Inc.
Gruntal & Co., Inc.
Janney Montgomery Scott Inc.
Kemper Securities, Inc.
CL King & Associates, Inc.
Legg Mason Wood Walker, Inc.
Muriel Seibert & Co., Inc.
Trubee, Collins & Co.
Tucker Anthony Incorporated
Utendahl Capital Partners, L.P.
For the fiscal year ended (a) 12/31/93
File number (c) 811-3175
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
Pacific Enterprises
2. Date of Purchase
5/19/93
3. Number of Securities Purchased
124,000
4. Dollar Amount of Purchase
$2,681,500
5. Price Per Unit
$21.625
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Merrill Lynch
7. Other Members of the Underwriting Syndicate
Shearson Lehman Brothers Inc.
Dean Witter Reynolds Inc.
Bear, Stearns & Co., Inc.
The First Boston Corporation
Crowell, Weedon & Co.
Donaldson, Lufkin & Jenrette Securities Corporation
A.G. Edwards & Sons, Inc.
Goldman, Sachs & Co.
Kidder, Peabody & Co., Inc.
J.P. Morgan Securities Inc.
Morgan Stanley & Co., Inc.
Paine Webber Incorporated
Prudential Securities, Inc.
Salomon Brothers, Inc.
Smith Barney, Harris Upham & Co., Incorporated
S.G. Warburg & Co., Inc.
Advest, Inc.
Robert W. Baird & Co., Inc.
M. R. Beal & Company
Dain Bosworth Incorporated
Gruntal & Co., Inc.
Howard, Weil, Labouisse, Friedrichs Inc.
Edward D. Jones & Co.
Kemper Securities, Inc.
Ladenburg, Thalmann & Co., Inc.
C.J. Lawrence Inc.
Legg Mason Wood Walker, Inc.
Neuberger & Berman
Piper Jaffrey Inc.
Ragen MacKenzie Incorporated
Rauscher Pierce Refsnes, Inc.
Raymond James & Associates, Inc.
The Robinson-Humphrey Company, Inc.
Rodman & Renshaw, Inc.
Seidler Amdec Securities, Inc.
Sutro & Co., Inc.
Van Kasper & Company
Wedbush Morgan Securities
Wheat, First Securities, Inc.
For the fiscal year ended (a) 12/31/93
File number (c) 811-3175
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
Panhandle Eastern Corporation
2. Date of Purchase
5/25/93
3. Number of Securities Purchased
179,100
4. Dollar Amount of Purchase
$3,805,875
5. Price Per Unit
$21.25
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Merrill Lynch, Pierce, Fenner & Smith Inc.
7. Other Members of the Underwriting Syndicate
Dillon Read & Co. Inc.
Kidder, Peabody & Co., Inc.
The First Boston Corporation
Alex Brown & Sons Inc.
A.G. Edwards & Sons Inc.
Goldman, Sachs & Co.
Howard, Weil, Labouisse, Friedrichs Incorporated
Lazard Freres & Co.
Mabon Securities Corp.
J.P. Morgan Securities Inc.
Oppenheimer & Co., Inc.
Prudential Securities Incorporated
Rauscher Pierce Refsnes, Inc.
Salomon Brothers Inc.
Shearson Lehman Brothers Inc.
Smith Barney, Harris Upham & Co., Inc.
UBS Securities Inc.
Dean Witter Reynolds, Inc.
Advest, Inc.
J.C. Bradford & Co.
Cowen & Company
Dain Bosworth Incorporated
First Albany Corporation
First of Michigan Corporation
Janney Montgomery Scott Inc.
Kemper Securities, Inc.
C.J. Lawrence Inc.
Legg Mason Wood Walker, Incorporated
Piper Jaffray Inc.
The Principal/Eppler, Guerin & Turner, Inc.
Raymond James & Associates, Inc.
Stifel, Nicolaus & Company, Incorporated
Wheat, First Securities, Inc.
Brean Murray, Foster Securities Inc.
The Chicago Corporation
Johnston, Lemon & Co., Incorporated
Parker/Hunter Incorporated
Petrie Parkman & Co., Inc.
Roney & Company
Scott & Stringfellow, Inc.
February 8, 1994
To the Board of Directors of
Prudential Utility Fund
In planning and performing our audit of the financial statements of Prudential
Utility Fund (the "Fund") for the year ended December 31, 1993, we considered
its internal control structure, including procedures for safeguarding
securities, in order to determine our auditing procedures for the purposes of
expressing our opinion on the financial statements and to comply with the
requirements of Form N-SAR, and not to provide assurance on the internal
control structure.
The management of the Fund is responsible for establishing and maintaining an
internal control structure. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and
related costs of internal control structure policies and procedures. Two of
the objectives of an internal control structure are to provide management with
reasonable, but not absolute, assurance that assets are appropriately
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any
evaluation of the structure 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 the internal control structure would not necessarily
disclose all matters in the internal control structure 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 the specific internal control structure elements 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 employees in the
normal course of performing their assigned functions. However, we noted no
matters involving the internal control structure, including procedures for
safeguarding securities, that we consider to be material weaknesses as defined
above as of December 31, 1993.
This report is intended solely for the information and use of management and
the Securities and Exchange Commission.
PRICE WATERHOUSE
1177 Avenue of the Americas
New York, New York 10036
Board of Directors or Trustees of:
Prudential Adjustable Rate Securities Fund
The BlackRock Government Income Trust
Prudential California Municipal Fund
Prudential Equity Fund
Prudential Equity Income Fund
Prudential FlexiFund (2 Portfolios)
Prudential GNMA Fund
Prudential Global Fund
Prudential Global Genesis Fund
Prudential Global Natural Resources Fund
Prudential Government Plus Fund
Prudential Growth Fund
Prudential Growth Opportunity
Prudential High Yield Fund
Prudential IncomeVertible Fund
Prudential Intermediate Global Income Fund
Prudential Multi-Sector Fund
Prudential Municipal Bond Fund (3 Portfolios)
Prudential Municipal Series Fund (11 Portfolios)
Prudential National Municipals Fund
Prudential Pacific Growth Fund
Prudential Short-Term Global Income Fund (2 Portfolios)
Prudential Strategic Income Fund
Prudential Structured Maturity Fund
Prudential U.S. Government Fund
Prudential Utility Fund
Global Utility Fund, Inc.
Nicholas-Appelgate Fund, Inc.
We have examined the accompanying description of the Prudential Dual Pricing
Worksheet (the "Worksheet") application of State Street Bank and Trust Company
("State Street"), custodian and recordkeeper for the Prudential Mutual Funds
(the "Funds"). Our examination included procedures to obtain reasonable
assurance about whether (1) the accompanying description presents fairly, in
all material respects, the aspects of State Street's policies and procedures
that may be relevant to a Fund's internal control structure relating to the
Worksheet, (2) the control structure policies and procedures included in the
description were suitably designed to achieve the control objectives specified
in the description, if those policies and procedures were complied with
satisfactorily, and (3) such policies and procedures had been placed in
operation as of June 30, 1993. The control objectives were specified by
Prudential Mutual Fund Management. Our examination was performed in accordance
with standards established by the American Institute of Certified Public
Accountants and included those procedures we considered necessary in the
circumstances to obtain a reasonable basis for rendering our opinion.
In our opinion, the accompanying description of the aforementioned application
presents fairly, in all material respects, the relevant aspects of State
Street's policies and procedures that had been placed in operation as of June
30, 1993. Also, in our opinion, the policies and procedures, as described, are
suitably designed to provide reasonable assurance that the specified control
objectives would be achieved if the described policies and procedures were
complied with satisfactorily.
In addition to the procedures we considered necessary to render our opinion as
expressed in the previous paragraph, we applied tests to specific policies and
procedures, listed in Section I, to obtain evidence about their effectiveness
in meeting the control objectives, described in Section I during the period
from July 1, 1992 to June 30, 1993. The nature, timing, extent, and results of
the tests are listed in Section II. In our opinion the policies and procedures
that were tested, as described in Section II, were operating with sufficient
effectiveness to provide reasonable, but not absolute, assurance that the
control objectives specified in Section I were achieved during the period from
July 1, 1992 to June 30, 1993.
The relative effectiveness and significance of specific policies and procedures
at State Street, and their effect on assessments of control risk on the Funds
are dependent on their interaction with the policies, procedures, and other
factors present at individual Funds. We have performed no procedures to
evaluate the effectiveness of policies and procedures at individual Funds in
connection with this report.
The description of policies and procedures at State Street is as of June 30,
1993, and information about tests of the operating effectiveness of specified
policies and procedures covers the period from July 1, 1992 to June 30, 1993.
Any projection of such information to the future is subject to the risk that,
because of change, the description may no longer portray the system in
existence. The potential effectiveness of specified policies and procedures at
State Street is subject to inherent limitations and, accordingly, errors or
irregularities may occur and not be detected. Furthermore, the projection of
any conclusions, based on our findings, to future periods is subject to the
risk that changes may alter the validity of such conclusions.
This report is intended solely for use by the management and Boards of
Directors/Trustees of the Funds, the independent auditors of the Funds and the
Securities and Exchange Commission.
DELOITTE & TOUCHE
August 13, 1993
SECTION I
Policies and Procedures Placed in Operation
Prudential Dual Pricing Worksheet
Effective January 22, 1990, the Funds, offered by Prudential Securities
Incorporated (formerly Prudential-Bache Securities, Inc.) and Prudential Mutual
Fund Distributors, Inc., adopted a dual pricing system. The dual pricing
system consists of two classes of shares (Class A and Class B) for the Funds.
The Class A shares are subject to a front-end sales load and the Class B shares
are subject to a contingent deferred sales charge. The two classes of shares
represent interests in the same portfolio of investments of the respective Fund
and are identical in all respects, except that each class is subject to
different distribution expenses and has exclusive voting rights with respect to
the Rule 12b-1 distribution plan pursuant to which such distribution expenses
are paid.
In order to allocate income and expenses between the two classes of shares,
State Street Bank and Trust Company (the Funds' custodian and recordkeeper)
utilizes the Prudential Dual Pricing Worksheet (the "Worksheet") (see Exhibit
I). The Worksheet is a manual supplementary application that extracts relevant
data from the Funds' primary accounting system, allocates income and expenses
between the two classes of shares and computes the daily net asset value and,
if applicable, the dividend/distribution for each class of shares. Internal
accounting controls that are relevant to the Fund can be divided into two
components - controls related to the mutual fund accounting system resident at
State Street Bank and Trust Company (the "primary accounting system") and
controls related to the Worksheet.
The specific control objectives and policies and procedures relating to the
Worksheet are described on pages 4 and 5. A description of the tests of the
policies and procedures designed to obtain evidence about the operating
effectiveness of those policies and procedures in achieving the specific
control objectives is included in Section II.
Control Objectives and Policies and Procedures
Prudential Dual Pricing Worksheet
The Worksheet is a supplementary manual application to the Funds' primary
accounting system. Certain data is extracted from the primary accounting
system to allocate income and expenses and to calculate the daily net asset
value and, if applicable, dividends/distributions for each class of shares.
The primary accounting system includes the details of transactions in
accordance with the Investment Company Act of 1940, as amended.
The following represents the internal accounting control objectives and
policies and procedures for the allocation of income and expenses and the
computation of the net asset value and, if applicable, the
dividend/distribution for each class of shares utilizing the Worksheet. It
does not cover the internal accounting control policies and procedures
surrounding the processing of information into the Funds' primary accounting
system.
CONTROL OBJECTIVES CONTROL POLICIES AND PROCEDURES
A. Capital share activity 1. Daily, the transfer agent forwards
as reported by the Fund's reports of capital share capital share
transfer agent is recorded activity for each class which includes
for each class in an accurate a summary of subscriptions,
and timely manner by the fund. redemptions, exchanges and other
information (the "Supersheet"). The
opening day's balance for shares
outstanding and for shares eligible for
dividends are recorded on the
Worksheet. shares eligible for
dividends are recorded on
2. Estimated interim share activity
for the current day not recorded in the
Supersheet is received via telefax from
the transfer agent and is recorded for
each class on the Worksheet.
B. Net Asset Value ("NAV") 1. The prior days ending NAV per
and, if applicable, the share (unrounded) for each class is
dividend/distribution for agreed to the prior day's Worksheet.
each class are accurately
computed on a daily basis. 2. The daily net capital stock
activity for each class for the current
day is agreed to the Supersheet as
described in Control Procedures A.1 and
2., above.
3. Percentage Assets by Class and
Percentage Dividend Assets by Class are
calculated for each class based upon
information from the prior day
Worksheet and information recorded on
the Supersheet.
CONTROL OBJECTIVES CONTROL POLICIES AND PROCEDURES
4. Allocate investment income between
classes based on the appropriate asset
allocation percentage for each class.
5. Agree composite dividend income,
interest income, income amortization,
income equalization, management fees,
other expenses, realized gains and
losses, and unrealized
appreciation/depreciation to the
primary accounting system of the Fund.
6. Allocate expenses between classes
as follows:
a. Expenses directly
attributable to each class (12b-1
distribution expenses) are calculated
and recorded to that class.
b. Expenses attributable to both
classes are allocated in accordance
with the appropriate asset allocation
percentage for each class.
7. Allocate realized and
unrealized gains and losses between the
classes in accordance with the
appropriate asset allocation percentage
of each class.
8. Record dividends/distributions to
shareholders of each class in the
primary accounting system.
9. Aggregate the net assets for each
class and agree to the total net assets
per the primary accounting system.
10. For each class, reconcile the
current day's NAV and, if applicable,
the dividend/distribution to the
previous day's NAV and
dividend/distribution for each class.
11. The above procedures are reviewed
by the Fund supervisor or manager.
SECTION II
Tests of Operating Effectiveness
Prudential Dual Pricing Worksheet
July 1, 1992 to June 30, 1993
We reviewed the methodology and procedures for calculating the daily net asset
value and, if applicable, the dividends/distributions of the two classes of
shares and the allocation of income and expenses between the two classes of
shares.
The following are the detailed procedures which we performed with respect to
the Worksheet. These procedures were performed for selected days encompassing
all Funds subject to dual pricing during the year ended June 30, 1993, which we
believe is a representative sample, to test compliance with the control
policies and procedures as described in Section I.
Prudential Mutual Fund Management, Inc. is the manager of the Funds and has
represented to us that adequate facilities are in place to ensure
implementation of the methodology and procedures for calculating the net asset
value and dividends/distributions of the two classes of shares and the
allocation of income and expenses between the two classes of shares. Based on
our review of the description of the policies and procedures of the Worksheet,
as described in Section I, and performance of tests of operating effectiveness
as described in Section II, we concur with such representation.
Agreed "Prior Day NAV Per Share" to the previous day's Worksheet and
to the rounded NAV included on the Supersheet for each class.
Agreed "Shares Outstanding Beginning of the Day" to the Supersheet
for each class.
Agreed "Activity/Estimate" to the estimated interim share activity
reported via fax from the transfer agent for each class.
Recalculated "Current Shares Outstanding" by adding "Shares
Outstanding Beginning of the Day" and "Activity/Estimate" for each
class.
Recalculated for each class "Adjusted Total Assets" by multiplying
"Prior Day NAV Per Share" by "Current Shares Outstanding."
Recalculated "Percentage Assets-Class A/Front End" by dividing
"Adjusted Total Assets-Class A/Front End" by "Adjusted Total Assets
Composite."
Recalculated "Percentage Assets-Class B/Back End" by dividing
"Adjusted Total Assets-Class B/Back End" by "Adjusted Total Assets
Composite."
Agreed "Dividend Shares Beginning of Day" to the Supersheet for each
class.
Agreed "Activity/Estimate" to the estimated interim share activity
reported via fax from the transfer agent for each class.
Recalculated "Current Dividend Shares" by adding "Dividend Shares
Beginning of Day" and "Activity/Estimate" for each class.
Recalculated for each class "Adjusted Dividend Assets" by multiplying
"Prior Day NAV Per Share" by "Current Dividend Shares."
Recalculated "Percentage Dividend Assets-Class A/Front End" by
dividing "Adjusted Dividend Assets-Class A/Front End" by "Adjusted
Dividend Assets Composite."
Recalculated "Percentage Dividend Assets-Class B/Back End" by
dividing "Adjusted Dividend Assets-Class B/Back End" by "Adjusted
Dividend Assets Composite."
Agreed composite total "Dividend Income", "Interest Income",
"Amortization" and "Income Equalization" to the primary accounting
system.
Recalculated the allocation for each class of "Dividend Income",
"Interest Income" and "Amortization" for daily dividend funds by
multiplying the composite total by "Percentage Dividend Assets-Class
A/Front End" and "Percentage Dividend Assets-Class B/Back End," and
for non-daily dividend funds by multiplying the composite total by
"Percentage Assets-Class A/Front End" and "Percentage Assets-Class
B/Back End."
Recalculated "Daily Income", composite and for each class, by
totaling "Dividend Income", "Interest Income", "Amortization" and
"Income Equalization."
Agreed composite total "Management Fee" and "Other Fixed Expenses" to
the primary accounting system.
Recalculated the allocation for each class of "Management Fee" and
"Other Fixed Expenses" for daily dividend funds by multiplying the
composite total by "Percentage Dividend Assets-Class A/Front End" and
"Percentage Dividend Assets-Class B/Back End," and non-daily dividend
funds by multiplying the composite total by "Percentage Assets-Class
A/Front End" and "Percentage Assets-Class B/Back End."
Agreed the "12b-1 Fee-Class A/Front End" and "12b-1 Fee-Class B/Back
End" to the respective "PC Expense Worksheet."
Recalculated "Daily Expense", composite and for each class, by
totaling "Management Fee", "12b-1 Fee" and "Other Fixed Expenses."
Recalculated "Daily Net Income" for each class by subtracting "Daily
Expense" from "Daily Income."
Recalculated "Dividend Rate" for each class for daily dividend funds
by dividing "Daily Net Income" by "Dividend Shares Beginning of
Day-Class A/Front End" and "Dividend Shares Beginning of Day-Class
B/Back End."
Agreed "Daily Income" and "Income Distribution" for each class to the
primary accounting system.
Recalculated "Undistributed Net Income" for each Class by subtracting
"Income Distribution" from "Income Available for Distribution."
Agreed "Capital Stock Activity" for each Class to the Supersheet.
Agreed the "Capital Gain Distribution" to the amount recorded in the
primary accounting system.
Agreed composite total "Realized Gain/Loss", "Unrealized
Appreciation/Depreciation", "Unrealized Appreciation/Depreciation -
Options" and "Unrealized Appreciation/Depreciation - Futures" to the
primary accounting system.
Recalculated the allocation for each class of "Realized Gain/Loss",
"Unrealized Appreciation/Depreciation", "Unrealized
Appreciation/Depreciation - Options" and "Unrealized
Appreciation/Depreciation - Futures" by multiplying the composite
amount by the "Percentage Assets-Class A/Front End" and "Percentage
Assets-Class B/Back End."
Agreed "Prior Days Net Assets" to the previous day's Worksheet.
Recalculated "Net Assets", composite and for each class, by totaling
"Undistributed Net Income", "Capital Stock Activity", "Capital Gain
Distribution", "Realized Gain/Loss", "Unrealized
Appreciation/Depreciation", "Unrealized Appreciation/Depreciation -
Options", "Unrealized Appreciation/Depreciation - Futures", and
"Prior Days Net Assets."
Recalculated "NAV Per Share" dividing the "Net Assets-Class A/Front
End" and "Net Assets - Class B/Back End" by "Current Shares
Outstanding - Class A/Front End" and 'Current Shares Outstanding -
Class B/Back End", respectively.
Recalculated "Offering Price" for Class A shares by applying the
"Load" percentage as stated in the fund's prospectus.
