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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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SIGNATURE AMY OLMERT
TITLE VP FUND ADMIN.
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 00000809584
<NAME> MORGAN GRENFELL SMALLCAP FUND, INC
<MULTIPLIER> 1,000
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<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> DEC-31-1999
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 102596
<INVESTMENTS-AT-VALUE> 149024
<RECEIVABLES> 1935
<ASSETS-OTHER> 8056
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 159015
<PAYABLE-FOR-SECURITIES> 2766
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 354
<TOTAL-LIABILITIES> 3120
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 93509
<SHARES-COMMON-STOCK> 9802054
<SHARES-COMMON-PRIOR> 9802054
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</TABLE>
Independent Auditors' Report
To the Board of Directors
Morgan Grenfell SMALLCap Fund, Inc.:
In planning and performing our audit of the financial statements of Morgan
Grenfell SMALLCap Fund, Inc., for the year ended December 31, 1999, 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 Morgan Grenfell SMALLCap 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 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, errors or fraud 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 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 controls for
safeguarding securities, which we consider to be material weaknesses as
defined above as of December 31, 1999.
This report is intended solely for the information and use of management,
the Board of Directors of Morgan Grenfell SMALLCap Fund, Inc., and the
Securities and Exchange Commission and is not intended to be and should not be
used by anyone other than these specified parties.
KMPG, LLP
New York, New York
February 4, 2000
MG SMALLCap Fund - 10f3
Transactions - Q4 1999
<TABLE>
<CAPTION>
Security Purchased Comparison Security Comparison Security
<C> <C> <C>
Issuer Allied Riser Communications Verio Inc. Digex Inc.
Underwriters Goldman, Merril Lynch, DLJ, n/a n/a
Thomas Weisel, Banc of
America, Bear Stearns, DB
Securities, Hambrecht &
Quist, Edward D. Jones, J.C.
Bradford, Dain Rauscher
Wessels, Doley Securities,
Stephens Inc., Stifel, Wit
Capital
Years of continuous
operation, including
predecessors > 3 years > 3 years > 3 years
Security ARCC VRIO DIGX
Is the affiliate a
manager or co-manager
of offering? no no no
Name of underwriter
or dealer from which
purchased Goldman n/a n/a
Firm commitment
underwriting? yes yes yes
Trade date/Date of
Offering 10/29/1999 5/12/1998 7/30/1999
Total dollar amount
of offering sold to
QIBs $- $- $-
Total dollar amount of
any concurrent public
offering $283,500,000.00 $126,500,000 $170,000,000
Total $283,500,000.00 $126,500,000 $170,000,000
Public offering price 18.00 $23.00 $17.00
Price paid if other
than public offering
price same n/a n/a
Underwriting spread or
commission $1.08 (6%) $1.50 (6.52%) $1.19 (7%)
Shares purchased 50,800 n/a n/a
$ amount of purchase $914,400.00 n/a n/a
% of offering purchased
by fund 0.32254% n/a n/a
% of offering purchased
by associated funds* 0.11143% n/a n/a
Total 0.43397% n/a n/a
*Only former MG funds
</TABLE>
Morgan Grenfell SMALLCap Fund
Procedures Pursuant to Rule 10f-3
<TABLE>
<CAPTION>
SECURITIES PURCHASED COMPARABLE SECURITY #1 COMPARABLE SECURITY #2
<C> <C> <C>
(1) Names of Underwriters Goldman Sachs, Donaldson William Blair, ABN AMRO, US Morgan Keegan,
Lufkin & Jenrette, Hambrecht Bancorp Piper Jaffray, Interstate/Johnson Lane,
& Quist, DLJdirect, E*TRADE, BancAmerica, BancBoston Advest, Robert Baird, JC
Deutsche Bank Secs., Robertson Stephens, Bear Bradford, Brean Murray,
BancBoston Robertson Stearns, BT Alex Brown, Crowell Weedon, Equitable
Stephens, AG Edwards, Credit Suisse First Boston, Securities, Gerard Klauer
Merrill Lynch, Wassertein Donaldson Lufkin & Jenrette, Mattison, J.J.B. Hilliard,
Perella, Advest, Robert Hambrecht & Quist, Merrill McDonald & Co., Edgar Norris,
Baird, Dain Rauscher Lynch, Morgan Stanley, The Ohio Co., Piper Jaffray,
Wessels, Legg Mason Wood PaineWebber, Prudential, Robinson-Humphrey, Stephens,
Walker, U.S. Bancorp Piper Warburg Dillon Read, Advest, Sterne, Agee & Leach, Tucker
Jaffray, Charles Schwab Dain Rauscher Wessels, EVEREN Anthony
Secs., Ferris Baker Watts,
Jefferies, Legg Mason Wood
Walker, McDonald Invest.,
Mesirow, Raymond James,
Southeast, Sutro
(2) Names of Issuer E-LOAN, Inc. Prism Financial Corporation Net.Bank, Inc.
(3) Title of Security E-LOAN, Inc. Prism Financial Corporation Net.Bank, Inc.
Common Stock Common Stock Common Stock
(4) Date of First Offering June 29, 1999 May 25, 1999 July 28, 1997
(5) Amount of Total Offering 3,500,000 shares 2,500,000 shares 3,500,000 shares
(6) Total Value of Offering $49,000,000 $35,000,000 $42,000,000
(7) Unit Price $14.00 $14.00 $12.00
(8) Underwriting Discount $0.98 (7%) $0.98 (7%) $0.84 (7%)
(9) Dollar Amount Purchased $1,400 NA NA
(10) Number of Shares
Purchased 100 NA NA
(11) Years of Continuous
Operation The company has been in NA NA
continuous operation for
at least three years
(12) % of Offering Purchased
by Fund 0.0028 NA NA
(13) % of Offering Purchased
by Associated Investment
Companies NA NA NA
(14) % of Offering Purchased
by Fund and Associated
Funds (Limited to 25%
of the Offering) 0.0028 NA NA
(15) Name(s) of Underwriter(s)
or Dealer(s) from
whom Purchased Goldman Sachs, Donaldson
Lufkin & Jenrette, Hambrecht
& Quist NA NA
</TABLE>
Mg SMALLCap Fund - 10-f3
Transactions - Q4 1999
<TABLE>
<CAPTION>
Security Purchased Comparison Security Comparison Security
<C> <C> <C>
Issuer FreeMarkets, Inc. Commerce One Ariba
Underwriters Goldman Sachs, Morgan Credit Suisse First Boston, Morgan Stanley, Dain
Stanley, DLJ, Wit Capital, DLJ, US Bancorp Piper Rauscher Wessels, DBAB,
BancBoston Robertson Jaffray and others Merrill Lynch and others
Stephens, DBSI, Edward D
Jones & Co, Advest, Dain
Rauscher, JJB Hilliard WL
Lyons Inc., Legg Mason,
SoundView Technology, Sutro
& Co, US Bancorp Piper Jaffray
Years of continuous
operation, including
predecessors >3 >3 >3
Security FMKT CMRC ARBA
Is the affiliate a
manager or co-manager
of offering? no no no
Name of underwriter or
dealer from which
purchased Goldman Sachs n/a n/a
Firm commitment
underwriting? yes yes yes
Trade date/Date of
Offering 12/9/1999 7/1/1999 6/23/1999
Total dollar amount of
offering sold to QIBs $- $- $-
Total dollar amount of any
concurrent public offering $172,800,000.00 $69,300,000 $115,000,000
Total $172,800,000.00 $69,300,000 $115,000,000
Public offering price 48.00 21.00 23.00
Price paid if other than
public offering price same n/a n/a
Underwriting spread or
commission $3.36 (7%) $1.47 (7%) $1.61 (7%)
Shares purchased 800 n/a n/a
$ amount of purchase $38,400.00 n/a n/a
% of offering purchased
by fund 0.022% n/a n/a
% of offering purchased
by associated funds* 0.036% n/a n/a
Total 0.058% n/a n/a
* Small Cap Active Equity
</TABLE>
Morgan Grenfell SMALLCap Fund
Procedures Pursuant to Rule 10f-3
<TABLE>
<CAPTION>
SECURITIES PURCHASED COMPARABLE SECURITY #1 COMPARABLE SECURITY #2
<C> <C> <C>
(1) Names of Underwriters Credit Suisse First Morgan Stanley & Co.; BT Morgan Stanley & Co.;
Boston, Hambrecht & Alex. Brown; Dain Rauscher BancBoston Robertson
Quist, Morgan Keegan, Wessels; Banc of America Stephens, Inc.; Dain
BancBoston Robertson Securities LLC; BancBoston Rauscher Wessels;
Stephens, Dain Rauscher Robertson Stephens Inc.; L.H. Hambrecht & Quist LLC;
Wessels, Deutsche Bank Friend, Weinress, Frankson & Hoefer & Arnett, Incorporated;
Securities, Invemed Presson; Edward D. Jones & Edward D. Jones & Co., L.P.;
Associates, Needham, Co., L.P.; Morgan Keegan & Ladenburg Thalmann & Co.
Charles Schwab, SG Company, Inc.; Needham & Inc..; NationsBanc Montgomery
Cowen Securities, Company, Inc.; Brad Peery Securities LLC; Brad Peery
Soundview, US Bancorp Inc.; Soundview Technology Inc.; Raymond James &
Piper Jaffray Group, Inc.; U.S. Bancorp Associates, Inc.; U.S.
Piper Jaffray Inc. Bancorp Piper Jaffray
Inc.; Wasserstein Perella Securities, Inc.
(2) Names of Issuer Gadzooks Networks, Inc. Brocade Communications Copper Mountain Networks Inc.
Systems
(3) Title of Security Gadzooks Networks, Inc. Brocade Communications SystemsCopper Mountain Networks Inc.
Common Stock Common Stock Common Stock
(4) Date of First Offering July 19, 1999 May 25, 1999 May 13, 1999
(5) Amount of Total Offering 3,500,000 shares 3,000,000 4,000,000
(6) Total Value of Offering $73,500,000 $61,750,000 $84,000,000
(7) Unit Price $21.00 $19.00 $21.00
(8) Underwriting Discount $1.47 (7%) $1.33 (7%) $1.47 (7%)
(9) Dollar Amount Purchased $23,100 NA NA
(10) Number of Shares
Purchased 1,100 NA NA
(11) Years of Continuous
Operation The company has been in NA NA
continuous operation for
at least three years
(12) % of Offering Purchased
by Fund 0.0314 NA NA
(13) % of Offering Purchased
by Associated Investment
Companies 0.0028 NA NA
(14) % of Offering Purchased
by Fund and Associated
Funds (Limited to 25%
of the Offering) 0.0342 NA NA
(15) Name(s) of Underwriter(s)
or Dealer(s) from
whom Purchased Credit Suisse First Boston, NA NA
Hambrecht & Quist, Morgan
Keegan
</TABLE>
MG SMALLCap Fund - 10f3
Transactions - Q4 1999
<TABLE>
<CAPTION>
Security Purchased Comparison Security Comparison Security
<C> <C> <C>
Issuer GetThere.com, Inc. pcOrder Digital River
Underwriters DLJ, SSB, Bear Stearns, WR Goldman Sachs, Credit Suisse BT Alex Brown,
Hambrecht, Allen & Co, First Boston, SG Cowen, Bancamerica Robertson
Robertson Stephens, DBAB, and others Stephens, Bear Stearns,
AG Edwards, First Union, and others
SG Cowen, CE Unterberg
Towbin, Thomas Weisel
Partners, Admas, Harkness
& Hill, Robert W. Baird,
JC Bradford, Crowell
Weedon, DA Davidson,
Fahnstock, Wachovia,
Janney Montgomery Scott,
Johnston Lemon, CL King,
Legg Mason, McDonald Inv,
Morgan Keegan, Needham,
Parker/Hunter, Pennsylvania
Merchant Group, Ragen
Mackenzie, Raymond James,
Sanders Morris Mundy, Sands
Bros, Scott&Stringfellow,
Seidler, Sutro, Tucker Anthony
Years of continuous
operation, including
predecessors >3 years >3 years >3 years
Security GTHR PCOR DRIV
Is the affiliate a
manager or co-manager
of offering? no no yes
Name of underwriter or
dealer from which
purchased Donaldson, Lufkin & Jenrette n/a n/a
Firm commitment? yes yes yes
Trade date/Date of
Offering 11/23/1999 2/26/1999 8/11/1998
Total dollar amount of
offering sold to QIBs - $-
Total dollar amount of
any concurrent public
offering $80,000,000.00 $46,200,000 $25,500,000
Total $80,000,000.00 $46,200,000 $25,500,000
Public offering price $16.00 $21.00 $8.50
Price paid if other than
public offering price same n/a n/a
Underwriting spread or
commission 1.12 (7)% $1.47 (7%) $.595 (7%)
Shares purchased 4,200 n/a n/a
$ amount of purchase $67,200.00 n/a n/a
% of offering purchased
by fund 0.08400% n/a n/a
% of offering purchased by
associated funds* 0.03400% n/a n/a
Total 0.11800% n/a n/a
*Only former MG funds
</TABLE>
Morgan Grenfell SMALLCap Fund
Procedures Pursuant to Rule 10f-3
<TABLE>
<CAPTION>
SECURITIES PURCHASED COMPARABLE SECURITY #1 COMPARABLE SECURITY #2
<C> <C> <C>
(1) Names of Underwriters Goldman Sachs, BancBoston Hambrecht & Quist, PaineWebber, Goldman, DLJ, Hambrecht
Robertson Stephens, Donaldson ABN AMRO, Charles Schwab, & Quist, DLJdirect,
Lufkin & Jenrette, AG Banc of America Securities, E*TRADE, Deutsche Bank
Edwards, Deutsche Bank Bear Stearns, Deutsche Banc Securities Inc.,
Securities, Prudential, SG Alex Brown, Donaldson Lufkin BancBoston Robertson
Cowen Securities, Advest, & Jenrette, ING Barings, Stephens Inc., A.G.
Chatsworth Securities, Dain Prudential, William Blair, Edwards, Merrill,
Rauscher, Legg Mason Wood First Analysis Securities, Wasserstein Perella
Walker, McDonald Investments, Fox-Pitt Kelton, John G. Securities, Advest,
Tucker Anthony Kinnard, Legg Mason Wood Robert W. Baird, Dain
Walker, Needham, Stephens, Rauscher Wessels,
US Bancorp Piper Jaffray Legg Mason Wood Walker,
U.S. Bancorp Piper
Jaffray Inc., Charles
Schwab
(2) Names of Issuer Insweb, Inc. Quotesmith.com, Inc. E-Loan, Inc.
(3) Title of Security Insweb, Inc. Quotesmith.com, Inc. E-Loan, Inc.
Common Stock Common Stock Common Stock
(4) Date of First Offering July 22, 1999 August 3, 1999 June 29. 1999
(5) Amount of Total Offering 5,000,000 shares 5,000,000 shares 3,500,000
(6) Total Value of Offering $85,000,000 $52,000,003 $45,504,900
(7) Unit Price $17.00 $11.00 $14.00
(8) Underwriting Discount $1.19 (7%) $0.77 (7%) $0.98 (7%)
(9) Dollar Amount Purchased $10,200 NA NA
(10) Number of Shares
Purchased 600 NA NA
(11) Years of Continuous
Operation The company has been in
continuous operation for
at least three years NA NA
(12) % of Offering Purchased
by Fund 0.012 NA NA
(13) % of Offering Purchased
by Associated Investment
Companies NA NA NA
(14) % of Offering Purchased
by Fund and Associated
Funds (Limited to 25%
of the Offering) 0.012 NA NA
(15) Name(s) of Underwriter(s)
or Dealer(s) from
whom Purchased Goldman Sachs, BancBoston
Robertson Stephens, Donaldson
Lufkin & Jenrette NA NA
</TABLE>
Morgan Grenfell SMALLCap Fund
Procedures Pursuant to Rule 10f-3
<TABLE>
<CAPTION>
SECURITIES PURCHASED COMPARABLE SECURITY #1 COMPARABLE SECURITY #2
<C> <C> <C>
(1) Names of Underwriters BT Alex Brown, BancBoston Credit Suisse First Boston, Morgan Stanley Dean Witter,
Robertson Stephens, US Dain Rauscher Wessels, Hambrecht & Quist, Dain
Bancorp Piper Jaffray, Nationsbanc Montgomery, Rauscher Wessels, BancBoston
Deutsche Bank Securities, Hambrecht & Quist, Invemed Robertson Stephens, BT
Hambrecht & Quist, Furman Associates, Needham & Co., Alex. Brown, Edward D.
Selz, Morgan Stanley, Charles Schwab, Tucker Jones, Kaufman Bros.,
Nationsbanc Montgomery, Anthony, C.E. Unterberg, Nationsbanc Montgomery,
Warburg Dillon Read, Wedbush Morgan Securities Raymond James, Robinson-
Advest, Dain Rauscher Humphrey, Soundview, C.E.
Wessels, Dominick & Unterberg, Warburg Dillon
Dominick, FAC/Equities, Read
Friedman Billings Ramsey,
Jeffries, David A Noyes &
Co., Brad Peery, Penn.
Merchant Group, Muriel
Siebert, Soundview, Wit
Capital
(2) Names of Issuer Netobjects Inc. Allaire Corporation Vignette Corporation
(3) Title of Security Netobjects Inc. Allaire Corporation Vignette Corporation
Common Stock Common Stock Common Stock
(4) Date of First Offering May 7, 1999 January 22, 1999 December 3, 1998
(5) Amount of Total Offering 6,000,000 shares 2,500,000 shares 4,000,000 shares
(6) Total Value of Offering $72,000,000 $46,500,000 $76,000,000
(7) Unit Price $12.00 $20.00 $19.00
(8) Underwriting Discount $0.84 (7%) $1.40 (7%) $1.33 (7%)
(9) Dollar Amount Purchased $538,000 NA NA
(10) Number of Shares
Purchased 44,900 NA NA
(11) Years of Continuous
Operation The company has been in
continuous operation for
at least three years NA NA
(12) % of Offering Purchased
by Fund .7483% NA NA
(13) % of Offering Purchased
by Associated Investment
Companies .0416% NA NA
(14) % of Offering Purchased
by Fund and Associated
Funds (Limited to 25%
of the Offering) .7899% NA NA
(15) Name(s) of Underwriter(s)
or Dealer(s) from whom
Purchased BT Alex Brown, BancBoston
Robertson Stephens, US
Bancorp Piper Jaffray NA NA
</TABLE>
MG SMALLCap Fund - 10f3
Transactions - Q4 1999
<TABLE>
<CAPTION>
Security Purchased Comparison Security Comparison Security
<C> <C> <C>
Issuer PC Tel Broadcom Corporation HI/FN Inc.
Underwriters Banc of America, Warburg n/a n/a
Dillon Read, Needham & Co.,
BancBoston Robertson Stephens,
DB Alex. Brown, Hambrecht &
Quist, Lehman Brothers, Dain
Rauscher Wessels, John G.
Kinnard, Pacific Crest
Securities, Pacific Growth
Equities, Sandler O'Neil and
Partners, H.C. Wainright
Years of continuous
operation, including
predecessors > 3 years > 3 years > 3 years
Security PCTI BRCM HIFN
Is the affiliate a
manager or co-manager
of offering? no yes no
Name of underwriter or
dealer from which
purchased Montgomery, Warburg, Neeham n/a n/a
Firm commitment
underwriting? yes yes yes
Trade date/Date of
Offering 10/22/1999 4/16/1998 10/26/1999
Total dollar amount of
offering sold to QIBs $- $- $-
Total dollar amount of
any concurrent public
offering $78,200,000.00 $84,000,000 $66,000,000
Total $78,200,000.00 $84,000,000 $66,000,000
Public offering price 17.00 24.00 33
Price paid if other than
public offering price same n/a n/a
Underwriting spread or
commission $1.19 (7%) $1.68 (7%) $1.98 (6%)
Shares purchased 2,800 n/a n/a
$ amount of purchase $47,600.00 n/a n/a
% of offering purchased
by fund 0.06087% n/a n/a
% of offering purchased
by associated funds* 0.04565% n/a n/a
Total 0.10652% n/a n/a
* Only former MG funds
</TABLE>
Morgan Grenfell SMALLCap Fund
Procedures Pursuant to Rule 10f-3
<TABLE>
<CAPTION>
SECURITIES PURCHASED COMPARABLE SECURITY #1 COMPARABLE SECURITY #2
<C> <C> <C>
(1) Names of Underwriters BancBoston Robertson Credit Suisse First Boston, Goldman Sachs, Alex Brown,
Stephens, US Bancorp Piper BancBoston Robertson Robertson Stephens, Soundview,
Jaffray, Soundview, Stephens, Nationsbanc Deutsche Morgan Grenfell,
Deutsche Bank Secs., Montgomery, First Union AG Edwards, Morgan Stanley,
Donaldson Lufkin & Jenrette, Capital Markets, Dain PaineWebber, Smith Barney,
Hambrecht & Quist, Lehman Rauscher Wessels, First UBS Securities, Cowen & Co.,
Brothers, Dain Rauscher Albany, Invemed Associates, Dain Bosworth, Needham &
Wessels, First Albany, Kaufman Bros., Legg Mason Co., Sutro, Unterberg Harris,
Needham & Co. Wood Walker, Needham & Co., Wessels Arnold Henderson
Charles Schwab, SG Cowens
Securities, C.E. Unterberg
(2) Names of Issuer Persistence Software, Inc. Silknet Software, Inc. BEA Systems, Inc.
(3) Title of Security Persistence Software, Inc. Silknet Software, Inc. BEA Systems, Inc.
Common Stock Common Stock Common Stock
(4) Date of First Offering June 25, 1999 May 5, 1999 April 11, 1997
(5) Amount of Total Offering 3,000,000 shares 3,000,000 shares 5,000,000 shares
(6) Total Value of Offering $33,000,000 $45,000,000 $30,000,000
(7) Unit Price $11.00 $15.00 6.00
(8) Underwriting Discount $0.77 (7%) $1.05 (7%) $0.42 (7%)
(9) Dollar Amount Purchased $5,500 NA NA
(10) Number of Shares
Purchased 500 NA NA
(11) Years of Continuous
Operation The company has been in
continuous operation for at
least three years NA NA
(12) % of Offering Purchased
by Fund 0.0166 NA NA
(13) % of Offering Purchased
by Associated Investment
Companies NA NA NA
(14) % of Offering Purchased
by Fund and Associated
Funds (Limited to % of
the Offering) 0.0166 NA NA
(15) Name(s) of Underwriter(s)
or Dealer(s) from whom
Purchased BancBoston Robertson
Stephens, US Bancorp Piper
Jaffray, Soundview NA NA
</TABLE>
MG SMALLCap Fund - 10f3
Transactions - Q4 1999
<TABLE>
<CAPTION>
Security Purchased Comparison Security Comparison Security
<C> <C> <C>
Issuer PlanetRX.com Inc. Barnesandnoble.com eToys Inc.
Underwriters Goldman, BancBoston n/a n/a
Robertson Stephens, Hambrecht
& Quist, Wm. Blair, Bear
Stearns, CIBC World Markets,
DBSI, Gruntal & Co., Edward
D. Jones, C.L. King & Assoc,
Merril Lynch, JP Morgan,
Morgan Keegan & Co., Salomon
Smith Barney Inc., Tucker
Anthony Cleary Gull, US
Bancorp Piper Jaffray, Wachovia
Sec, Wit Capital
Years of continuous
operation, including
predecessors > 3 years > 3 years > 3 years
Security PLRX BNBN ETYS
Is the affiliate a
manager or co-manager
of offering? no no no
Name of underwriter
or dealer from which
purchased Goldman n/a n/a
Firm commitment? yes yes yes
Trade date/Date of
Offering 10/6/1999 5/25/1999 5/20/1999
Total dollar amount
of offering sold
to QIBs 165,420,960 $- $-
Total dollar amount of
any concurrent public
offering 96,000,000 $450,000,000 $166,400,000
Total 261,420,960 $450,000,000 $166,400,000
Public offering price $16.00 $18.00 $20.00
Price paid if other
than public offering
price same n/a n/a
Underwriting spread or
commission $1.12 (7%) $1.08 (6%) $1.35 (6.75%)
Shares purchased 800 n/a n/a
$ amount of purchase $12,800.00 n/a n/a
% of offering purchased
by fund 0.00031% n/a n/a
% of offering purch by
assoc funds* 0.00027% n/a n/a
Total 0.00057% n/a n/a
* Only former MG funds
</TABLE>
MF SMALLCap Fund - 10f3
Transactions - Q4 1999
<TABLE>
<CAPTION>
Security Purchased Comparison Security Comparison Security
<C> <C> <C>
Issuer Quintus Corporation Kana Communication Onyx Software
Underwriters DLJ, Dain Rausher, SG Cowen, Goldman Sachs, Hambrecht & Credit Suisse First
DLJdirect, Allen & Co, Bear Quist, Wit Capital, Boston, SG Cowen, Piper
Stearns, DBAB, AG Edwards, and others Jaffray and others
First Union, Goldman Sachs, (including DBSI)
H&Q, Lehman Bros, Merrill Lynch,
SSB, SoundView Tech, CE Unterberg
Towbin, Arnhold & S Bleichroeder,
Robert W Baird, JC Bradford,
Chapman Co, Crowell, Weedon,
Fahnestock, Gerard Klauer Mattison,
Gruntal, Hoak Breedlove Wesneski,
Johnston, Lemon & Co, Kaufman
Bros, CL King, Legg Mason, McDonald
Inv, Moors & Cabot, Nutmeg,
Penn.Merchant Group, Raymond James,
Sanders Morris Mundy Sands Bros,
Sutro, Tucker Anthony, Piper Jaffrey,
Wachovia
Years of continuous
operation, including
predecessors >3 years >3 years >3years
Security QNTS KANA ONXS
Is the affiliate a
manager or co-manager
of offering? no no no
Name of underwriter or
dealer from which
purchased Donaldson, Lufkin & Jenrette n/a n/a
Firm commitment? yes yes yes
Trade date/Date of Offering 11/16/1999 9/22/1999 2/15/1999
Total dollar amount of
offering sold to QIBs $-
Total dollar amount of
any concurrent public
offering $81,000,000.00 $49,500,000 $40,300,000
Total $81,000,000.00 $49,500,000 $40,300,000
Public offering price 18.00 15.00 13.00
Price paid if other than
public offering price same n/a n/a
Underwriting spread or
commission $1.26 (7%) $1.05 (7%) $.91 (7%)
Shares purchased 1,900 n/a n/a
$ amount of purchase $34,200.00 n/a n/a
% of offering purchased
by fund 0.04222% n/a n/a
% of offering purchased by
associated funds* 0.01778% n/a n/a
Total 0.06000% n/a n/a
* Only former MG funds
</TABLE>
MG SMALLCap Fund - 10f3
Transactions - Q4 1999
<TABLE>
<CAPTION>
Security Purchased Comparison Security Comparison Security
<C> <C> <C>
Issuer Spanish Broadcasting Radio Unica Univision Communications
Underwriters Lehman Brothers, Merrill, n/a n/a
Bear Stears, BancBoston
Robertson Stephens, DB
Securities, Lazard Freres,
Morgan Stanley, Prudential
Securities, Salomon Smith
Barney, Wasserstein Perella
Securities, Gabelli & Co.,
First Union Securities,
Neuberger & Berman, Raymond
James & Assoc., Sutro & Co.,
The Chapman Company,
Chatsworth Securities, Guzman
& Co., Pryor McClendon,
Ramirez & Co.
Years of continuous
operation, including
predecessors > 3 years > 3 years > 3 years
Security SBSA UNCA UVN
Is the affiliate a
manager or co-manager of
offering? no no no
Name of underwriter or
dealer from which
purchased Lehman Brothers n/a n/a
Firm commitment? yes yes yes
Trade date/Date of
Offering 10/28/1999 10/19/1999 9/27/1996
Total dollar amount of
offering sold to QIBs $- $- $-
Total dollar amount of
any concurrent public
offering $435,748,000.00 $109,440,000.00 $187,910,000
Total $435,748,000.00 $109,440,000.00 $187,910,000
Public offering price 20.00 16.00 23.00
Price paid if other
than public offering
price same n/a n/a
Underwriting spread or
commission $1.25 (6.25%) $1.12 (7%) $1.55 (6.74%)
Shares purchased 11,000 n/a n/a
$ amount of purchase $220,000.00 n/a n/a
% of offering purchased
by fund 0.05049% n/a n/a
% of offering purchased by
associated funds* 0.02065% n/a n/a
Total 0.07114% n/a n/a
* Only former MG funds
</TABLE>
Morgan Grenfell SMALLCap Fund
Procedures Pursuant to Rule 10f-3
<TABLE>
<CAPTION>
SECURITIES PURCHASED COMPARABLE SECURITY #1 COMPARABLE SECURITY #2
<C> <C> <C>
(1) Names of Underwriters Merrill Lynch, Banc of Lehman Brothers, Banc of Dean Witte
America Securities, Robert America, Bear Stearns,
Baird, William Blair, Bear Johnson Rice, Tucker
Stearns, Deutsche Bank Anthony, BT Alex. Brown,
Securities, C.L. King Goldman, Merrill, Morgan
Keegan, Schroder & Co.,
William Blair & Co., HD
Brous & Co., Edward D.
Jones & Co., C.L. King &
Assoc., McDonald
Investments Inc.
(2) Names of Issuer Shopko Stores, Inc. Ames Department Stores, Inc. Sears, Roebuck & Co.
(3) Title of Security Shopko Stores, Inc. Ames Department Stores, Inc. Sears, Roebuck & Co.
Common Stock Common Stock Common Stock
(4) Date of First Offering July 15, 1999 May, 1999 September, 1986
(5) Amount of Total Offering 3,500,000 shares 4,500,000 shares 7,500,000
(6) Total Value of Offering $134,750,000 $174,375,000 $331,875,000
(7) Unit Price $38.50 $38.75 $44.25
(8) Underwriting Discount $1.82 (4.727%) $1.90 (4.9%) NA
(9) Dollar Amount Purchased $261,800 NA NA
(10) Number of Shares
Purchased 6,800 NA NA
(11) Years of Continuous
Operation The company has been in
continuous operation for at
least three years NA NA
(12) % of Offering
Purchased by Fund 0.1942 NA NA
(13) % of Offering Purchased
by Associated Investment
Companies 0.0114 NA NA
(14) % of Offering Purchased
by Fund and Associated
Funds (Limited to 25%
of the Offering) 0.2057 NA NA
(15) Name(s) of Underwriter(s)
or Dealer(s) from
whom Purchased Merrill Lynch, Banc of
America Securities, Robert
Baird NA NA
</TABLE>
Mg SMALLCap Fund - 10-f3
Transactions - Q4 1999
<TABLE>
<CAPTION>
Security Purchased Comparison Security Comparison Security
<C> <C> <C>
Issuer Tritel, Inc. Telecorp PCS Triton PCS Holdings
Underwriters Goldman Sachs, Merrill Salomon Smith Barney, Morgan Stanley, Lehman
Lynch, Bear Stearns & Co., Lehman Bros., DBAB, Bros, Salomon Smith Barney,
DLJ, Banc of America Merrill Lynch and others. First Union Securities,
Securities, JC Bradford, JP Morgan and others.
DBSI, AG Edwards, First
Union, Guzman & Co., JJB
Hilliard WL Lyons, Edward
D Jones & Co., JP Morgan
Securities, Morgan Keagan
& Co., Raymond James,
Robinson-Humphrey, Stifel
Nicolaus & Co, Sun Trust
Equitable, Wit Capital
Years of continuous
operation, including
predecessors >3 >3 >2
Security TTEL TLCP TPCS
Is the affiliate a
manager or co-manager
of offering? Yes yes no
Name of underwriter or
dealer from which
purchased Goldman Sachs n/a n/a
Firm commitment
underwriting? Yes yes yes
Trade date/Date of
Offering 12/13/1999 11/23/1999 10/27/1999
Total dollar amount
of offering sold to QIBs $- $- $-
Total dollar amount of
any concurrent public
offering $168,750,000.00 $184,000,000 $180,000,000
Total $168,750,000.00 $184,000,000 $180,000,000
Public offering price 18.00 20.00 18.00
Price paid if other
than public offering
price same n/a n/a
Underwriting spread or
commission $1.26 (7%) $1.35 (6.75%) $1.26 (7%)
Shares purchased 9,600 n/a n/a
$ amount of purchase $172,800.00 n/a n/a
% of offering purchased
by fund 0.102% n/a n/a
% of offering purchased
by associated funds* 0.252% n/a n/a
Total 0.354% n/a n/a
* Small Cap Active Equity
</TABLE>
MG SMALLCap Fund - 10f3
Transactions - Q4 1999
<TABLE>
<CAPTION>
Security Purchased Comparison Security Comparison Security
<C> <C> <C>
Issuer Radio Unica Spanish Broadcasting Univision Communications
Underwriters Salomon Smith Barney, Bear n/a n/a
Stearns, DLJ, CIBC World
Markets, BancBoston Robertson
Stephens, Credit Lyonnais
Securities, Credit Suisse
First Boston, DB Securities,
AG Edwards, ING Barings,
Lazard Freres & Co., Merrill
Lynch, Morgan Stanely & Co.,
PaineWebber Inc., Prudential
Securities Inc., Schroder &
Co. Inc., Wasserstein Perella
Securities, Guzman & Co.,
Samuel A. Ramirez & Co.,
Raymond James & Assoc.,
Robinson-Humphrey
Years of continuous
operation, including
predecessors > 3 years > 3 years > 3 years
Security UNCA SBSA UVN
Is the affiliate a
manager or co-manager
of offering? no no no
Name of underwriter or
dealer from which
purchased Salomon Smith Barney, Bear n/a n/a
Stearns, Oppenheimer (CIBC
World Markets)
Firm commitment? yes yes yes
Trade date/Date of
Offering 10/19/1999 10/28/1999 9/27/1996
Total dollar amount of
offering sold to QIBs $-
Total dollar amount of
any concurrent public
offering $109,440,000.00 $435,748,000 $187,910,000
Total $109,440,000.00 $435,748,000 $187,910,000
Public offering price 16.00 20.00 23.00
Price paid if other than
public offering price same n/a n/a
Underwriting spread or
commission $1.12 (7%) $1.25 (6.25%) $1.55 (6.74%)
Shares purchased 10,900 n/a n/a
$ amount of purchase $174,400.00 n/a n/a
% of offering purchased
by fund 0.15936% n/a n/a
% of offering purchased by
associated funds* 0.06725% n/a n/a
Total 0.22661% n/a n/a
* Only former MG funds
</TABLE>
