<PAGE> PAGE 1
000 B000000 12/31/98
000 C000000 0000730476
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 Z-SEVEN FUND, INC.
001 B000000 811-3877
001 C000000 6028976214
002 A000000 1819 S. DOBSON RD., SUITE 109
002 B000000 MESA
002 C000000 AZ
002 D010000 85202
002 D020000 5656
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
007 C011100 11
007 C011200 12
007 C011300 13
007 C011400 14
007 C011500 15
007 C011600 16
007 C011700 17
007 C011800 18
007 C011900 19
007 C012000 20
008 A000001 TOP FUND MANAGEMENT, INC.
008 B000001 A
008 C000001 801-20139
008 D010001 MESA
008 D020001 AZ
008 D030001 85202
008 D040001 5656
012 A000001 NORWEST BANK SHAREOWNER SERVICES
<PAGE> PAGE 2
012 B000001 85-10221
012 C010001 SOUTH ST. PAUL
012 C020001 MN
012 C030001 55075
012 C040001 1139
013 A000001 KPMG PEAT MARWICK LLP
013 B010001 PHOENIX
013 B020001 AZ
013 B030001 85004
013 B040001 4596
015 A000001 THE CHASE MANHATTAN BANK
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10005
015 C040001 1402
015 E010001 X
015 A000002 CANADIAN IMPERIAL BANK OF COMMERCE
015 B000002 S
015 C010002 TORONTO
015 D010002 CANADA
015 E040002 X
015 A000003 PARIBAS, PARIS
015 B000003 S
015 C010003 PARIS
015 D010003 FRANCE
015 E040003 X
015 A000004 ABN-AMRO BANK N.V., AMSTERDAM
015 B000004 S
015 C010004 AMSTERDAM
015 D010004 NETHERLANDS
015 E040004 X
015 A000005 THE CHASE MANHATTAN BANK, C.M.B.,S.A.
015 B000005 S
015 C010005 MADRID
015 D010005 SPAIN
015 E040005 X
015 A000006 SKANDINAVISKA ENSKILDA BANKEN, STOCKHOLM
015 B000006 S
015 C010006 STOCKHOLM
015 D010006 SWEDEN
015 E040006 X
015 A000007 U.B.S. A.G.
015 B000007 S
015 C010007 ZURICH
015 D010007 SWITZERLAND
015 E040007 X
015 A000008 THE CHASE MANHATTAN BANK, LONDON
015 B000008 S
015 C010008 NEW YORK
015 C020008 NY
<PAGE> PAGE 3
015 C030008 10017
015 E040008 X
015 A000009 DEN DANSKE BANK, COPENHAGEN
015 B000009 S
015 C010009 COPENHAGEN
015 D010009 DENMARK
015 E040009 X
015 A000010 BANQUE PARIBAS, MILAN
015 B000010 S
015 C010010 MILAN
015 D010010 ITALY
015 E040010 X
018 000000 Y
019 A000000 N
019 B000000 0
020 A000001 ARNHOLD & S. BLEICHROEDER
020 B000001 13-4959915
020 C000001 45
020 A000002 STANDARD & POOR'S SECURITIES
020 B000002 13-2671951
020 C000002 28
020 A000003 GRUNTAL & COMPANY
020 B000003 13-5616116
020 C000003 2
020 A000004 TILNEY & COMPANY
020 B000004 61-8708522
020 C000004 1
020 A000005 CRUTTENDEN ROTH
020 B000005 33-0036532
020 C000005 1
020 A000006 DBA PANMURE GORDON
020 B000006 65-0375337
020 C000006 1
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 77
022 A000001 THE CHASE MANHATTAN BANK
022 B000001 13-2624428
022 C000001 25054
022 D000001 20497
022 A000002 HERZOG, HEINE, GEDULD
022 B000002 13-1955436
022 C000002 7354
022 D000002 5624
022 A000003 ROBERT W. BAIRD & CO.
022 B000003 39-6037917
022 C000003 1274
022 D000003 73
022 A000004 COWEN & CO.
<PAGE> PAGE 4
022 B000004 13-5616116
022 C000004 1095
022 D000004 149
022 A000005 TROSTER SINGER
022 B000005 13-5515160
022 C000005 731
022 D000005 833
022 A000006 CRUTTENDEN ROTH
022 B000006 33-0036532
022 C000006 1053
022 D000006 605
022 A000007 JESUP & LAMONT
022 B000007 13-3338466
022 C000007 370
022 D000007 553
022 A000008 ARNHOLD & S. BLEICHROEDER
022 B000008 13-4959915
022 C000008 402
022 D000008 71
022 C000009 0
022 D000009 0
022 C000010 0
022 D000010 0
023 C000000 37333
023 D000000 28405
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 N
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 N
028 A010000 0
028 A020000 0
028 A030000 0
028 A040000 0
028 B010000 0
028 B020000 0
028 B030000 0
<PAGE> PAGE 5
028 B040000 0
028 C010000 0
028 C020000 0
028 C030000 0
028 C040000 0
028 D010000 0
028 D020000 0
028 D030000 0
028 D040000 0
028 E010000 0
028 E020000 0
028 E030000 0
028 E040000 0
028 F010000 0
028 F020000 0
028 F030000 0
028 F040000 0
028 G010000 0
028 G020000 0
028 G030000 0
028 G040000 0
028 H000000 0
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
035 000000 0
036 B000000 0
038 000000 0
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 0
044 000000 0
045 000000 Y
046 000000 N
047 000000 N
048 000000 0.000
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
<PAGE> PAGE 6
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
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 Y
052 000000 N
053 A000000 Y
053 B000000 Y
053 C000000 N
054 A000000 N
054 B000000 N
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 N
054 I000000 N
054 J000000 N
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 Y
055 B000000 Y
056 000000 N
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 N
060 B000000 N
061 000000 0
062 A000000 N
062 B000000 0.0
062 C000000 0.0
<PAGE> PAGE 7
062 D000000 0.0
062 E000000 0.0
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 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 Y
066 D000000 N
066 E000000 N
066 F000000 N
066 G000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 N
070 A020000 N
070 B010000 Y
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 Y
070 D020000 Y
070 E010000 N
070 E020000 N
070 F010000 Y
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 Y
070 H020000 N
070 I010000 Y
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 Y
<PAGE> PAGE 8
070 L020000 Y
070 M010000 Y
070 M020000 Y
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 Y
070 P010000 N
070 P020000 N
070 Q010000 Y
070 Q020000 N
070 R010000 Y
070 R020000 N
071 A000000 14320
071 B000000 18451
071 C000000 19578
071 D000000 73
072 A000000 12
072 B000000 34
072 C000000 228
072 D000000 0
072 E000000 476
072 F000000 258
072 G000000 0
072 H000000 138
072 I000000 18
072 J000000 37
072 K000000 5
072 L000000 21
072 M000000 19
072 N000000 16
072 O000000 0
072 P000000 5
072 Q000000 0
072 R000000 25
072 S000000 69
072 T000000 0
072 U000000 0
072 V000000 0
072 W000000 163
072 X000000 774
072 Y000000 0
072 Z000000 -36
072AA000000 4490
072BB000000 3495
072CC010000 146
072CC020000 0
072DD010000 147
072DD020000 0
072EE000000 300
073 A010000 0.0576
<PAGE> PAGE 9
073 A020000 0.0000
073 B000000 0.1180
073 C000000 0.1234
074 A000000 588
074 B000000 0
074 C000000 0
074 D000000 0
074 E000000 0
074 F000000 17194
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 2444
074 K000000 71
074 L000000 103
074 M000000 28
074 N000000 20428
074 O000000 200
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 373
074 S000000 0
074 T000000 19855
074 U010000 2545
074 U020000 0
074 V010000 7.80
074 V020000 0.00
074 W000000 0.0000
074 X000000 1091
074 Y000000 0
075 A000000 0
075 B000000 23026
076 000000 8.00
077 A000000 Y
077 B000000 Y
078 000000 N
080 A000000 NATIONAL UNION FIRE INSURANCE COMPANY
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
<PAGE> PAGE 10
086 A020000 0
086 B010000 128
086 B020000 980
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
087 A010000 Z-SEVEN FUND, INC. COMMON STOCK
087 A020000 988789103
087 A030000 ZSEV
088 A000000 N
088 B000000 N
088 C000000 N
088 D000000 N
SIGNATURE BARBARA PERLEBERG
TITLE SECRETARY
SUB-ITEM 77B - ACCOUNTANT'S REPORT ON INTERNAL CONTROL
KPMG Peat Marwick LLP
One Arizona Center
400 E. Van Buren Street
Suite 1100
Phoenix, AZ 85004
The Board of Directors
The Z-Seven Fund:
In planning and performing our audit of the financial statements of the Z-Seven
Fund, (the "Fund") as of December 31, 1998 and for the year then ended, we
considered the Fund's internal control structure, 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, 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 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 risks 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, 1998.
This report is intended solely for the information and use of management and
the Securities and Exchange Commission and is not intended to be and should not
be used by anyone other than these specified parties.
KPMG Peat Marwick LLP
February 5, 1999