<PAGE> PAGE 1
000 B000000 06/30/99
000 C000000 784055
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 U
001 A000000 PILGRIM BANK AND THRIFT FUND
001 B000000 811-4504
001 C000000 6024178100
002 A000000 40 NORTH CENTRAL AVENUE SUITE 1200
002 B000000 PHOENIX
002 C000000 AZ
002 D010000 85004
002 D020000 4424
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
008 A000001 PILGRIM INVESTMENTS, INC.
008 B000001 A
008 C000001 801-48282
008 D010001 PHOENIX
008 D020001 AZ
008 D030001 85004
008 D040001 4424
010 A000001 PILGRIM GROUP, INC.
010 C010001 PHOENIX
010 C020001 AZ
010 C030001 85004
010 C040001 4424
011 A000001 PILGRIM SECURITIES, INC.
011 B000001 8-48020
011 C010001 PHOENIX
011 C020001 AZ
011 C030001 85004
011 C040001 4424
<PAGE> PAGE 2
012 A000001 PILGRIM GROUP, INC.
012 B000001 85-
012 C010001 PHOENIX
012 C020001 AZ
012 C030001 85004
012 C040001 4408
013 A000001 KPMG LLP
013 B010001 LOS ANGELES
013 B020001 CA
013 B030001 90017
015 A000001 INVESTORS FIDUCIARY TRUST COMPANY
015 B000001 C
015 C010001 KANSAS CITY
015 C020001 MO
015 C030001 64105
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 19
019 C000000 PILGRIMINC
020 A000001 AUTRANET
020 B000001 13-2961507
020 C000001 408
020 A000002 FOX-PITT KELTON
020 B000002 06-1058201
020 C000002 24
020 A000003 KEFFE BRUYETTE & WOODS
020 B000003 13-1964616
020 C000003 17
020 A000004 HOEFER & ARNETT
020 B000004 94-2831518
020 C000004 13
020 A000005 JC BRADFORD
020 B000005 62-0136910
020 C000005 11
020 A000006 WASSERSTEIN
020 B000006 13-3502273
020 C000006 11
020 A000007 MCDONALD & CO.
020 B000007 34-0642435
020 C000007 10
020 A000008 OPPENHEIMER
020 B000008 13-2798343
020 C000008 8
020 A000009 LEHMAN BROTHERS
020 B000009 13-5669076
020 C000009 7
020 A000010 STIFEL NICOLAUS
020 B000010 43-0538770
020 C000010 7
021 000000 584
<PAGE> PAGE 3
022 A000001 KEEFE, BRUYETTE & WOODS
022 B000001 13-1964616
022 C000001 13897
022 D000001 8632
022 A000002 SANDLER O'NEILL
022 C000002 4577
022 D000002 6359
022 A000003 MERRILL LYNCH
022 B000003 13-5674085
022 C000003 6837
022 D000003 3788
022 A000004 FOX-PITT KELTON
022 B000004 06-1058201
022 C000004 1332
022 D000004 7892
022 A000005 CS FIRST BOSTON
022 B000005 13-5659485
022 C000005 1870
022 D000005 6908
022 A000006 RYAN BECK
022 B000006 22-1773796
022 C000006 7421
022 D000006 88
022 A000007 GOLDMAN SACHS
022 B000007 13-5108880
022 C000007 6451
022 D000007 51
022 A000008 BEAR STEARNS
022 B000008 13-3299429
022 C000008 2203
022 D000008 3459
022 A000009 SALOMON SMITH BARNEY
022 B000009 13-3082694
022 C000009 560
022 D000009 4986
022 A000010 LEHMAN BROTHERS
022 B000010 13-5669076
022 C000010 5243
022 D000010 0
023 C000000 96402
023 D000000 66820
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
<PAGE> PAGE 4
026 B000000 Y
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 14872
028 A020000 -10
028 A030000 0
028 A040000 37231
028 B010000 18407
028 B020000 1
028 B030000 0
028 B040000 38496
028 C010000 19837
028 C020000 0
028 C030000 0
028 C040000 41121
028 D010000 17328
028 D020000 1
028 D030000 0
028 D040000 40554
028 E010000 23478
028 E020000 0
028 E030000 0
028 E040000 45781
028 F010000 5757
028 F020000 0
028 F030000 0
028 F040000 24991
028 G010000 99679
028 G020000 -8
028 G030000 0
028 G040000 228174
028 H000000 67687
029 000000 Y
030 A000000 2838
030 B000000 5.75
030 C000000 0.00
031 A000000 474
031 B000000 0
032 000000 2364
033 000000 0
034 000000 Y
035 000000 1683
036 A000000 Y
036 B000000 0
037 000000 Y
<PAGE> PAGE 5
038 000000 408
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 100
043 000000 4768
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 30000
048 A020000 1.000
048 B010000 95000
048 B020000 0.750
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
048 J010000 0
048 J020000 0.000
048 K010000 125000
048 K020000 0.700
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 N
054 C000000 N
054 D000000 N
054 E000000 N
054 F000000 N
<PAGE> PAGE 6
054 G000000 Y
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 1000
062 A000000 N
062 B000000 0.0
062 C000000 0.0
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 Y
070 A020000 Y
<PAGE> PAGE 7
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 N
070 M020000 N
070 N010000 N
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 N
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 228836
071 B000000 228696
071 C000000 781687
071 D000000 29
072 A000000 12
072 B000000 1892
072 C000000 18005
072 D000000 0
072 E000000 408
072 F000000 5894
072 G000000 0
072 H000000 0
072 I000000 2115
072 J000000 267
072 K000000 147
072 L000000 97
072 M000000 57
<PAGE> PAGE 8
072 N000000 229
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 85
072 S000000 142
072 T000000 4768
072 U000000 0
072 V000000 0
072 W000000 309
072 X000000 14110
072 Y000000 0
072 Z000000 6195
072AA000000 86793
072BB000000 0
072CC010000 0
072CC020000 179567
072DD010000 3516
072DD020000 860
072EE000000 19782
073 A010000 0.1775
073 A020000 0.0547
073 B000000 0.5562
073 C000000 0.0000
074 A000000 0
074 B000000 2321
074 C000000 0
074 D000000 0
074 E000000 0
074 F000000 738225
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 6701
074 K000000 0
074 L000000 1509
074 M000000 114
074 N000000 748870
074 O000000 340
074 P000000 10
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 2895
074 S000000 0
074 T000000 745625
074 U010000 16526
074 U020000 14155
074 V010000 24.38
074 V020000 24.21
<PAGE> PAGE 9
074 W000000 0.0000
074 X000000 104702
074 Y000000 0
075 A000000 0
075 B000000 742537
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 AIG INSURANCE COMPANY
080 C000000 8000
081 A000000 Y
081 B000000 24
082 A000000 Y
082 B000000 25
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 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
<PAGE> PAGE 10
SIGNATURE MIKE J ROLAND
TITLE CHIEF FINANCIAL OFFICER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 784055
<NAME> PILGRIM BANK AND THRIFT FUND
<SERIES>
<NUMBER> 1
<NAME> CLASS A
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1998
<PERIOD-END> JUN-30-1999
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 641,043
<INVESTMENTS-AT-VALUE> 738,225
<RECEIVABLES> 8,209
<ASSETS-OTHER> 114
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 748,870
<PAYABLE-FOR-SECURITIES> 341
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,904
<TOTAL-LIABILITIES> 3,245
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 571,097
<SHARES-COMMON-STOCK> 16,526
<SHARES-COMMON-PRIOR> 20,008
<ACCUMULATED-NII-CURRENT> 3,311
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 71,714
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 99,503
<NET-ASSETS> 402,895
<DIVIDEND-INCOME> 18,005
<INTEREST-INCOME> 1,892
<OTHER-INCOME> 408
<EXPENSES-NET> 14,110
<NET-INVESTMENT-INCOME> 6,195
<REALIZED-GAINS-CURRENT> 86,793
<APPREC-INCREASE-CURRENT> (179,567)
<NET-CHANGE-FROM-OPS> (86,579)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 4,468
<DISTRIBUTIONS-OF-GAINS> 40,869
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,843
<NUMBER-OF-SHARES-REDEEMED> 10,663
<SHARES-REINVESTED> 388
<NET-CHANGE-IN-ASSETS> (86,579)
<ACCUMULATED-NII-PRIOR> 2,307
<ACCUMULATED-GAINS-PRIOR> 3,516
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5,894
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 14,122
<AVERAGE-NET-ASSETS> 400,181
<PER-SHARE-NAV-BEGIN> 27.52
<PER-SHARE-NII> 0.29
<PER-SHARE-GAIN-APPREC> (2.70)
<PER-SHARE-DIVIDEND> 0.18
<PER-SHARE-DISTRIBUTIONS> 0.55
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 24.38
<EXPENSE-RATIO> 1.39
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 784055
<NAME> PILGRIM BANK AND THRIFT FUND
<SERIES>
<NUMBER> 2
<NAME> CLASS B
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1998
<PERIOD-END> JUN-30-1999
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 641,043
<INVESTMENTS-AT-VALUE> 738,225
<RECEIVABLES> 8,209
<ASSETS-OTHER> 114
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 748,870
<PAYABLE-FOR-SECURITIES> 341
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,904
<TOTAL-LIABILITIES> 3,245
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 571,097
<SHARES-COMMON-STOCK> 14,155
<SHARES-COMMON-PRIOR> 13,132
<ACCUMULATED-NII-CURRENT> 3,311
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 71,714
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 99,503
<NET-ASSETS> 342,729
<DIVIDEND-INCOME> 18,005
<INTEREST-INCOME> 1,892
<OTHER-INCOME> 408
<EXPENSES-NET> 14,110
<NET-INVESTMENT-INCOME> 6,195
<REALIZED-GAINS-CURRENT> 86,793
<APPREC-INCREASE-CURRENT> (179,567)
<NET-CHANGE-FROM-OPS> (86,579)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 860
<DISTRIBUTIONS-OF-GAINS> 40,869
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5,775
<NUMBER-OF-SHARES-REDEEMED> 5,029
<SHARES-REINVESTED> 277
<NET-CHANGE-IN-ASSETS> 86,579
<ACCUMULATED-NII-PRIOR> 2,307
<ACCUMULATED-GAINS-PRIOR> 4,703
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5,894
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 14,122
<AVERAGE-NET-ASSETS> 342,356
<PER-SHARE-NAV-BEGIN> 27.40
<PER-SHARE-NII> 0.08
<PER-SHARE-GAIN-APPREC> (2.66)
<PER-SHARE-DIVIDEND> 0.06
<PER-SHARE-DISTRIBUTIONS> 0.55
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 24.21
<EXPENSE-RATIO> 2.14
</TABLE>
The Board of Directors
Pilgrim Bank and Thrift Fund, Inc.:
In planning and performing our audit of the financial statements of the Pilgrim
Bank and Thrift Fund (the single series of the Pilgrim Bank and Thrift Fund,
Inc.) for the year ended June 30, 1999, we considered the Fund's 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 the Fund 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. 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. Those controls include the safeguarding of assets against
unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control, error or fraud may occur
and not be detected. Also, projection 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 one or more
of the internal control components does not reduce to a relatively low level the
risk that misstatements caused by error or fraud 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 and its operation, including procedures for safeguarding
securities that we consider to be material weaknesses as defined above as of
June 30, 1999.
This report is intended solely for the information and use of management, the
Board of Directors of the Fund 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 LLP
August 20, 1999
