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SIGNATURE ARTHUR S. FILEAN
TITLE V.P. & SECRETARY
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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</TABLE>
Report of Independent Auditors on Internal Control
The Board of Directors and Shareholders
Princor World Fund, Inc.
In planning and performing our audit of the financial statements of Princor
World Fund, Inc. for the year ended October 31, 1997, 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 Princor World 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. 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.
These controls include the safeguarding of assets against unauthorized
acquisition, use or disposition.
Because of inherent limitations in 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 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 specific
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 employees in the normal course of performing their assigned
functions. However, we noted no matters involving internal control, including
control for activities safeguarding securities, that we consider to be material
weaknesses as defined above as of October 31, 1997.
This report is intended solely for the information and use of management and the
Board of Directors of Princor World Fund, Inc. and the Securities and Exchange
Commission.
/s/ ERNST & YOUNG LLP
Des Moines, Iowa
November 26, 1997
SPECIAL MEETING OF SHAREHOLDERS PRINCOR WORLD FUND, INC.
HELD SEPTEMBER 16, 1997
1.Election of the Board of Directors.
For Withheld
Davis 19,340,274 281,606
Ehrle 19,338,923 282,957
Ferguson 19,347,163 274,717
Gilbert 19,345,556 276,324
Griswell 19,303,259 318,622
Jones 19,339,920 281,960
Keller 19,337,876 284,004
Lukavsky 19,331,887 289,993
Peebler 19,315,053 306,828
2.Ratification of selection of Ernst & Young LLP as independent public auditors.
In Favor Opposed Abstain
19,282,350 77,378 262,152
3.Approval of name change to Principal International Fund, Inc.
In Favor Opposed Abstain
18,903,073 404,722 314,085
4.Approval of modification of management agreement.
In Favor Opposed Abstain
18,212,966 830,315 578,600
