<PAGE> PAGE 1
000 A000000 07/31/95
000 C000000 0000771587
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 MITCHELL HUTCHINS/KIDDER PEABODY EQUITY INCOM
001 B000000 811-4332
001 C000000 2127131074
002 A000000 1285 AVENUE OF THE AMERICAS
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10019
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C020100 MITCHELL HUTCHINS/KIDDER PEABODY EQUITY INCOM
007 C030100 N
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
008 A000001 MITCHELL HUTCHINS ASSET MANAGEMENT INC.
008 B000001 A
008 C000001 801-13219
008 D010001 NEW YORK
008 D020001 NY
008 D030001 10019
010 A000001 MITCHELL HUTCHINS ASSET MANAGEMENT INC.
010 B000001 801-13219
010 C010001 NEW YORK
010 C020001 NY
010 C030001 10019
011 A000001 PAINEWEBBER INC
011 B000001 8-16267
011 C010001 NEW YORK
011 C020001 NY
011 C030001 10019
012 A000001 PFPC, INC.
<PAGE> PAGE 2
012 B000001 84-0000000
012 C010001 WILMINGTON
012 C020001 DE
012 C030001 19809
013 A000001 ERNST & YOUNG LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10019
014 A000001 PAINEWEBBER INC
014 B000001 8-16267
014 A000002 MITCHELL HUTCHINS ASSET MANAGEMENT, INC.
014 B000002 8-21901
015 A000001 STATE STREET BANK & TRUST CO.
015 B000001 C
015 C010001 QUINCY
015 C020001 MA
015 C030001 02171
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 87
019 C000000 PAINEWEBBE
020 A000001 SMITH BARNEY INC.
020 B000001 13-1912900
020 C000001 73
020 A000002 MERRILL LYNCH PIERCE FENNER & SMITH, INC.
020 B000002 13-5674085
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 73
022 A000001 MORGAN STANLEY & CO., INC.
022 B000001 13-2655998
022 C000001 29787
022 D000001 6965
022 A000002 STATE STREET BANK & TRUST CO.
022 B000002 04-1867445
022 C000002 21980
022 D000002 0
022 A000003 CITICORP SECURITIES MARKETS INC.
022 B000003 13-2771536
022 C000003 19725
022 D000003 0
022 A000004 SMITH BARNEY INC.
022 B000004 13-1912900
<PAGE> PAGE 3
022 C000004 2998
022 D000004 11007
022 A000005 FIRST CHICAGO CAPITAL MARKETS, INC.
022 B000005 36-3595942
022 C000005 10823
022 D000005 0
022 A000006 MERRILL LYNCH PIERCE FENNER & SMITH, INC.
022 B000006 13-5674085
022 C000006 0
022 D000006 7323
022 A000007 YAMAICHI SECURITIES
022 B000007 13-5659656
022 C000007 4362
022 D000007 0
022 A000008 G. X. CLARKE
022 B000008 13-2929143
022 C000008 0
022 D000008 1792
022 A000009 NOMURA SECURITIES INTERNATIONAL, INC.
022 B000009 13-2642206
022 C000009 908
022 D000009 0
022 A000010 DAIWA
022 B000010 13-5680329
022 C000010 880
022 D000010 0
023 C000000 91661
023 D000000 27479
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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 Y
028 A010000 176
028 A020000 0
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<PAGE> PAGE 4
028 B010000 236
028 B020000 171
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028 F030000 0
028 F040000 1723
028 G010000 958
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028 H000000 437
029 000000 Y
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030 C000000 0.00
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<PAGE> PAGE 5
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054 E000000 N
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054 K000000 N
054 L000000 N
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054 O000000 N
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<PAGE> PAGE 6
059 000000 Y
060 A000000 Y
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062 A000000 N
062 B000000 0.0
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068 A000000 N
068 B000000 N
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070 D010000 Y
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 Y
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<PAGE> PAGE 7
070 I010000 N
070 I020000 N
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070 K020000 N
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<PAGE> PAGE 8
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<PAGE> PAGE 9
077 I000000 N
077 J000000 N
077 K000000 Y
077 L000000 N
077 M000000 N
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077 O000000 N
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SIGNATURE JULIAN SLUYTERS
TITLE TREASURER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000771587
<NAME> MH/KP EQUITY INCOME FUND, INC. - CLASS A
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-31-1996
<PERIOD-END> JUL-31-1995
<INVESTMENTS-AT-COST> 50,252
<INVESTMENTS-AT-VALUE> 56,765
<RECEIVABLES> 215
<ASSETS-OTHER> 66
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 57,046
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 448
<TOTAL-LIABILITIES> 448
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 45,577
<SHARES-COMMON-STOCK> 2,535
<SHARES-COMMON-PRIOR> 3,096
<ACCUMULATED-NII-CURRENT> 116
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4,393
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6,512
<NET-ASSETS> 56,598
<DIVIDEND-INCOME> 911
<INTEREST-INCOME> 72
<OTHER-INCOME> 0
<EXPENSES-NET> 463
<NET-INVESTMENT-INCOME> 520
<REALIZED-GAINS-CURRENT> 5,021
<APPREC-INCREASE-CURRENT> 5,110
<NET-CHANGE-FROM-OPS> 10,651
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (484)
<DISTRIBUTIONS-OF-GAINS> (37)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 885
<NUMBER-OF-SHARES-REDEEMED> (13,147)
<SHARES-REINVESTED> 513
<NET-CHANGE-IN-ASSETS> (1,619)
<ACCUMULATED-NII-PRIOR> 81
<ACCUMULATED-GAINS-PRIOR> (588)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 199
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 463
<AVERAGE-NET-ASSETS> 57,088
<PER-SHARE-NAV-BEGIN> 18.72
<PER-SHARE-NII> 0.20
<PER-SHARE-GAIN-APPREC> 3.60
<PER-SHARE-DIVIDEND> (0.18)
<PER-SHARE-DISTRIBUTIONS> (0.01)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 22.33
<EXPENSE-RATIO> 1.65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000771587
<NAME> MH/KP EQUITY INCOME FUND, INC - CLASS B
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-31-1996
<PERIOD-END> JUL-31-1995
<INVESTMENTS-AT-COST> 1,451
<INVESTMENTS-AT-VALUE> 1,639
<RECEIVABLES> 6
<ASSETS-OTHER> 2
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,647
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 13
<TOTAL-LIABILITIES> 13
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,316
<SHARES-COMMON-STOCK> 74
<SHARES-COMMON-PRIOR> 87
<ACCUMULATED-NII-CURRENT> 3
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 127
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 188
<NET-ASSETS> 1,634
<DIVIDEND-INCOME> 26
<INTEREST-INCOME> 2
<OTHER-INCOME> 0
<EXPENSES-NET> 17
<NET-INVESTMENT-INCOME> 11
<REALIZED-GAINS-CURRENT> 145
<APPREC-INCREASE-CURRENT> 147
<NET-CHANGE-FROM-OPS> 303
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (10)
<DISTRIBUTIONS-OF-GAINS> (1)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 26
<NUMBER-OF-SHARES-REDEEMED> (379)
<SHARES-REINVESTED> 15
<NET-CHANGE-IN-ASSETS> (46)
<ACCUMULATED-NII-PRIOR> 2
<ACCUMULATED-GAINS-PRIOR> (17)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 6
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 17
<AVERAGE-NET-ASSETS> 1,580
<PER-SHARE-NAV-BEGIN> 18.61
<PER-SHARE-NII> 0.13
<PER-SHARE-GAIN-APPREC> 3.60
<PER-SHARE-DIVIDEND> (0.14)
<PER-SHARE-DISTRIBUTIONS> (0.01)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 22.19
<EXPENSE-RATIO> 2.15
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000771587
<NAME> MH\KP EQUITY INCOME FUND, INC. - CLASS C
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-31-1996
<PERIOD-END> JUL-31-1995
<INVESTMENTS-AT-COST> 2,699
<INVESTMENTS-AT-VALUE> 3,049
<RECEIVABLES> 12
<ASSETS-OTHER> 4
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 3,065
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 24
<TOTAL-LIABILITIES> 24
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,448
<SHARES-COMMON-STOCK> 136
<SHARES-COMMON-PRIOR> 185
<ACCUMULATED-NII-CURRENT> 7
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 236
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 350
<NET-ASSETS> 3,041
<DIVIDEND-INCOME> 49
<INTEREST-INCOME> 4
<OTHER-INCOME> 0
<EXPENSES-NET> 17
<NET-INVESTMENT-INCOME> 36
<REALIZED-GAINS-CURRENT> 270
<APPREC-INCREASE-CURRENT> 274
<NET-CHANGE-FROM-OPS> 580
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (35)
<DISTRIBUTIONS-OF-GAINS> (2)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 47
<NUMBER-OF-SHARES-REDEEMED> (706)
<SHARES-REINVESTED> 28
<NET-CHANGE-IN-ASSETS> (88)
<ACCUMULATED-NII-PRIOR> 5
<ACCUMULATED-GAINS-PRIOR> (35)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 10
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 17
<AVERAGE-NET-ASSETS> 3,407
<PER-SHARE-NAV-BEGIN> 18.71
<PER-SHARE-NII> 0.25
<PER-SHARE-GAIN-APPREC> 3.59
<PER-SHARE-DIVIDEND> (0.22)
<PER-SHARE-DISTRIBUTIONS> (0.01)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 22.32
<EXPENSE-RATIO> 1.15
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
For the period ended July 31, 1995 Exhibit 77C
File Number 811-4332 -----------
A special meeting of shareholders of the Mitchell Hutchins/Kidder, Peabody
Equity Income Fund, Inc. ("Fund") was held on April 13, 1995. At the meeting
the following agreements were approved for the Fund:
1) An interim investment advisory agreement between the Fund and Mitchell
Hutchins Asset Management Inc. ("Mitchell Hutchins") containing substantially
the same terms, conditions and fees as the previous investment advisory
agreement with Kidder Peabody Asset Management, Inc. ("KPAM").
The votes were as follows:
All Shares Voting as a Single Class
-----------------------------------------------------------
Shares Shares Shares
Voted For Voted Against Withhold Authority
--------- ------------- ------------------
1,664,176 21,228 112,265
2) A new investment advisory and administration agreement between the
Fund and Mitchell Hutchins containing the same fees and substantively similar
material terms and conditions as the previous investment advisory agreement
with KPAM to commence on the termination of the interim agreement.
All Shares Voting as a Single Class
-----------------------------------------------------------
Shares Shares Shares
Voted For Voted Against Withhold Authority
--------- ------------- ------------------
1,652,299 22,085 123,284
July 25, 1995
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
Gentlemen:
At a meeting held on July 20, 1995, the Boards of Trustees/Directors of the
Funds, listed on the attached schedule, approved the engagement of Ernst &
Young LLP as their independent auditors for the fiscal years ending, as
noted on the attached listing, to replace the firm of Deloitte & Touche LLP
effective July 20, 1995.
The reports of Deloitte & Touche LLP on the Funds' financial statements for
the past two fiscal years did not contain an adverse opinion or a
disclaimer of opinion and were not qualified or modified as to uncertainty,
audit scope, or accounting principles.
In connection with the audits of the Funds' financial statements for each
of the past two fiscal years ended (see attached listing) and in the
subsequent interim period, there were no disagreements with Deloitte &
Touche LLP on any matters of accounting principles or practices, financial
statement disclosure, or auditing scope and procedures which, if not
resolved to the satisfaction of Deloitte & Touche LLP would have caused
Deloitte & Touche LLP to make reference to the matter in their reports.
The Funds have requested Deloitte & Touche LLP to furnish a letter
addressed to the Commission stating whether it agrees with the above
statements. A copy of that letter, dated
July 26, 1995 is attached hereto.
Sincerely,
/s/ Paul Schubert
Paul Schubert
Vice President and Assistant Treasurer
PS:wlq
<PAGE>
Mitchell Hutchins
PAINEWEBBER/KIDDER, PEABODY
MITCHELL HUTCHINS/KIDDER, PEABODY
FUND LISTING
PaineWebber/Kidder, Peabody California Tax-Exempt Money Fund - fiscal year
ending July 31, 1995.
PaineWebber/Kidder, Peabody Cash Reserve Fund, Inc. - fiscal year ending
July 31, 1995.
Mitchell Hutchins/Kidder, Peabody Equity Income Fund Inc. - fiscal year
ending January 31, 1996.
Mitchell Hutchins/Kidder, Peabody Government Income Fund, Inc. - fiscal year
ending January 31, 1996.
PaineWebber/Kidder, Peabody Government Money Fund, Inc. - fiscal year
ending March 31, 1996.
PaineWebber/Kidder, Peabody Premium Account Fund - fiscal year ending March
31, 1996.
PaineWebber/Kidder, Peabody Tax Exempt Money Fund, Inc. - fiscal year ending
September 30, 1995.
Institutional Series Trust
with respect to
Institutional Adjustable Rate Government Portfolio - fiscal year ending
November 30, 1995.
Mitchell Hutchins/Kidder, Peabody Investment Trust
with respect to
Mitchell Hutchins/Kidder, Peabody Adjustable Rate Government Fund - fiscal
year ending August 31, 1995.*
Mitchell Hutchins/Kidder, Peabody Asset Allocation Fund - fiscal year ending
August 31, 1995.
Mitchell Hutchins/Kidder, Peabody Global Equity Fund - fiscal year ending
August 31, 1995.*
Mitchell Hutchins/Kidder, Peabody Intermediate Fixed Income Fund - fiscal
year ending August 31, 1995.*
* Deloitte & Touche LLP also audited and issued reports on the past two
semi-annual periods ended February 28, 1995.
<PAGE>
Mitchell Hutchins
PAINEWEBBER/KIDDER, PEABODY
MITCHELL HUTCHINS/KIDDER, PEABODY
FUND LISTING
Page 2 of 2
Mitchell Hutchins/Kidder, Peabody Investment Trust II
with respect to
Mitchell Hutchins/Kidder, Peabody Emerging Markets Equity Fund - fiscal
year ending June 30, 1996.
Mitchell Hutchins/Kidder, Peabody Municipal Bond Fund - fiscal year ending
June 30, 1996.
Mitchell Hutchins/Kidder, Peabody Investment Trust III
with respect to
Mitchell Hutchins/Kidder, Peabody Small Cap Equity Fund - fiscal year ending
July 31, 1995.
Liquid Institutional Reserves
with respect to
Government Securities Fund - fiscal year ending April 30, 1996.
Money Market Fund - fiscal year ending April 30, 1996.
Treasury Securities Fund - fiscal year ending April 30, 1996.
PaineWebber/Kidder, Peabody
Municipal Money Market Series
with respect to
Connecticut Series - fiscal year ending October 31, 1995.
New Jersey Series - fiscal year ending October 31, 1995
New York Series - fiscal year ending October 31, 1995
(Collectively referred to as "The Funds")
<PAGE>
July 26, 1995
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
Dear Sirs:
We have read and agree with the comments contained in the attached letter
dated July 25, 1995.
Yours truly,
/s/ Deloitte & Touche LLP
Attachment
