<PAGE> PAGE 1
000 B000000 07/31/94
000 C000000 0000811444
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 PRUDENTIAL FLEXIFUND
001 B000000 811-5055
001 C000000 2122141250
002 A000000 199 WATER STREET
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10292
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 2
007 C010100 1
007 C020100 CONSERVATIVELY MANAGED PORTFOLIO
007 C030100 N
007 C010200 2
007 C020200 STRATEGY PORTFOLIO
007 C030200 N
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 A00AA01 PRUDENTIAL MUTUAL FUND MANAGEMENT, INC.
008 B00AA01 A
008 C00AA01 801-31104
008 D01AA01 NEW YORK
008 D02AA01 NY
008 D03AA01 10292
008 A00AA02 PRUDENTIAL INVESTMENT CORPORATION
008 B00AA02 S
008 C00AA02 801-22808
008 D01AA02 NEWARK
008 D02AA02 NJ
008 D03AA02 07101
010 A00AA01 PRUDENTIAL MUTUAL FUND MANAGEMENT, INC.
010 B00AA01 811-31104
010 C01AA01 NEW YORK
<PAGE> PAGE 2
010 C02AA01 NY
010 C03AA01 10292
011 A00AA01 PRUDENTIAL MUTUAL FUND DISTRIBUTORS
011 B00AA01 8-38739
011 C01AA01 NEW YORK
011 C02AA01 NY
011 C03AA01 10292
011 A00AA02 PRUDENTIAL SECURITIES INCORPORATED
011 B00AA02 8-27154
011 C01AA02 NEW YORK
011 C02AA02 NY
011 C03AA02 10292
012 A00AA01 PRUDENTIAL MUTUAL FUND SERVICES, INC.
012 B00AA01 85-4110019
012 C01AA01 NEW BRUNSWICK
012 C02AA01 NJ
012 C03AA01 08906
013 A00AA01 DELOITTE & TOUCHE
013 B01AA01 NEW YORK
013 B02AA01 NY
013 B03AA01 10048
014 A00AA01 PRUDENTIAL SECURITIES INCORPORATED
014 B00AA01 8-8-27154
014 A00AA02 PRUCO SECURITIES CORP.
014 B00AA02 8-16402
015 A00AA01 STATE STREET BANK AND TRUST CO.
015 B00AA01 C
015 C01AA01 BOSTON
015 C02AA01 MA
015 C03AA01 02171
015 E01AA01 X
015 A00AA02 CANADA TRUSTCO MORTGAGE COMPANY
015 B00AA02 S
015 C01AA02 TORONTO
015 D01AA02 CANADA
015 E04AA02 X
015 A00AA03 BANQUE PARIBAS
015 B00AA03 S
015 C01AA03 PARIS
015 D01AA03 FRANCE
015 E04AA03 X
015 A00AA04 STATE STREET BANK AND TRUST CO.
015 B00AA04 S
015 C01AA04 LONDON
015 D01AA04 UNITED KINGDOM
015 E04AA04 X
015 A00AA05 WESTPAC BANKING CORP.
015 B00AA05 S
015 C01AA05 SYDNEY
015 D01AA05 AUSTRALIA
015 E04AA05 X
<PAGE> PAGE 3
015 A00AA06 GIROCREDIT BANK AKTIENGESELLCAFT DER SPARKAS
015 B00AA06 S
015 C01AA06 VIENNA
015 D01AA06 AUSTRIA
015 E04AA06 X
015 A00AA07 GENERALE BANK
015 B00AA07 S
015 C01AA07 BRUSSELS
015 D01AA07 BELGIUM
015 E04AA07 X
015 A00AA08 DEN DANSKE BANK
015 B00AA08 S
015 C01AA08 COPENHAGEN
015 D01AA08 DENMARK
015 E04AA08 X
015 A00AA09 KANSALLIS OSAKE PANKKI
015 B00AA09 S
015 C01AA09 HELSINKI
015 D01AA09 FINLAND
015 E04AA09 X
015 A00AA10 BERLINER HANDELS-UND FRANKFURTER BANK
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015 C01AA10 FRANKFURT
015 D01AA10 GERMANY
015 E04AA10 X
015 A00AA11 STANDARD CHARTERED BANK
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015 C01AA11 HONG KONG
015 D01AA11 HONG KONG
015 E04AA11 X
015 A00AA12 BANK OF IRELAND
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015 C01AA12 DUBLIN
015 D01AA12 IRELAND
015 E04AA12 X
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015 B00AA13 S
015 C01AA13 MILAN
015 D01AA13 ITALY
015 E04AA13 X
015 A00AA14 SUMITOMO TRUST & BANKING CO., LTD.
015 B00AA14 S
015 C01AA14 TOKYO
015 D01AA14 JAPAN
015 E04AA14 X
015 A00AA15 BANK OF SEOUL
015 B00AA15 S
015 C01AA15 SEOUL
015 D01AA15 KOREA
015 E04AA15 X
015 A00AA16 CEDEL
<PAGE> PAGE 4
015 B00AA16 S
015 C01AA16 LUXEMBOURG
015 D01AA16 LUXEMBOURG
015 E04AA16 X
015 A00AA17 STANDARD CHARTERED BANK
015 B00AA17 S
015 C01AA17 MALAYSIA
015 D01AA17 MALAYSIA
015 E04AA17 X
015 A00AA18 CITIBANK, NA-MEXICO
015 B00AA18 S
015 C01AA18 MEXICO CITY
015 D01AA18 MEXICO
015 E04AA18 X
015 A00AA19 MEESPIERSON N.V.
015 B00AA19 S
015 C01AA19 AMSTERDAM
015 D01AA19 NETHERLANDS
015 E04AA19 X
015 A00AA20 ANZ BANKING GROUP (NEW ZEALAND) LIMITED
015 B00AA20 S
015 C01AA20 WELLINGTON
015 D01AA20 NEW ZEALAND
015 E04AA20 X
015 A00AA21 CHRISTIANIA BANK OG KREDITKASSE
015 B00AA21 S
015 C01AA21 OLSO
015 D01AA21 NORWAY
015 E04AA21 X
015 A00AA22 BANCO COMERCIAL PORTUGUES
015 B00AA22 S
015 C01AA22 LISBON
015 D01AA22 PORTUGAL
015 E04AA22 X
015 A00AA23 THE DEVELOPMENT BANK OF SINGAPORE, LTD.
015 B00AA23 S
015 C01AA23 SINGAPORE
015 D01AA23 SINGAPORE
015 E04AA23 X
015 A00AA24 BANCO SANTANDER, S.A.
015 B00AA24 S
015 C01AA24 MADRID
015 D01AA24 SPAIN
015 E04AA24 X
015 A00AA25 SKANDINAVISKA ENSKILDA BANKEN
015 B00AA25 S
015 C01AA25 STOCKOLM
015 D01AA25 SWEDEN
015 E04AA25 X
015 A00AA26 UNION BANK OF SWITZERLAND
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<PAGE> PAGE 5
015 C01AA26 ZURICH
015 D01AA26 SWITZERLAND
015 E04AA26 X
015 A00AA27 STANDARD CHARTERED BANK
015 B00AA27 S
015 C01AA27 THAILAND
015 D01AA27 THAILAND
015 E04AA27 X
018 00AA00 Y
019 A00AA00 Y
019 B00AA00 68
019 C00AA00 PRUDENTIAL
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020 A000003 WEEDEN & CO.
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020 C000003 44
020 A000004 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
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020 C000004 39
020 A000005 MORGAN STANLEY & CO., INC.
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020 C000005 37
020 A000006 BEAR, STEARNS & CO., INC.
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020 C000006 36
020 A000007 SALOMON BROTHERS, INC.
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020 A000008 KIDDER PEABODY & CO., INC.
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020 C000008 31
020 A000009 PAINEWEBBER INCORPORATED
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020 C000009 30
020 A000010 OPPENHEIMER & CO., INC.
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020 C000010 30
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022 A000001 J.P. MORGAN SECURITIES, INC.
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022 C000002 4258417
022 D000002 59479
<PAGE> PAGE 6
022 A000003 BEAR STEARNS & CO., INC.
022 B000003 13-3299429
022 C000003 3771013
022 D000003 6986
022 A000004 SMITH BARNEY SHEARSON, INC.
022 B000004 13-1912900
022 C000004 2510105
022 D000004 12151
022 A000005 CS FIRST BOSTON CORP.
022 B000005 13-5659485
022 C000005 2339792
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022 C000006 2309622
022 D000006 16701
022 A000007 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
022 B000007 13-5674085
022 C000007 2221342
022 D000007 70446
022 A000008 KIDDER PEABODY & CO., INC.
022 B000008 13-5650440
022 C000008 2126255
022 D000008 6792
022 A000009 BT SECURITIES INTERNATIONAL, INC.
022 B000009 13-2642206
022 C000009 1134404
022 D000009 13860
022 A000010 NOMURA SECURITIES INTERNATIONAL, INC.
022 B000010 13-2642206
022 C000010 1090135
022 D000010 1973
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<PAGE> PAGE 7
047 00AA00 Y
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<PAGE> PAGE 8
060 B00AA00 Y
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<PAGE> PAGE 9
086 C010000 0
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025 C000103 D
025 D000103 25683
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<PAGE> PAGE 10
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<PAGE> PAGE 11
070 J020100 N
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<PAGE> PAGE 12
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<PAGE> PAGE 13
085 B000100 N
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<PAGE> PAGE 14
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<PAGE> PAGE 15
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<PAGE> PAGE 16
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SIGNATURE SUSAN C. COTE'
TITLE TREASURER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 001
<NAME> CONSERVATIVELY MANAGED PORTFOLIO - CLASS A
<S> <C>
<PERIOD-TYPE> YEAR
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<PERIOD-END> JUL-31-1994
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<APPREC-INCREASE-CURRENT> (13,575,563)
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<EQUALIZATION> 1,077,644
<DISTRIBUTIONS-OF-INCOME> (10,699,693)
<DISTRIBUTIONS-OF-GAINS> (18,060,300)
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<PER-SHARE-NAV-BEGIN> 11.75
<PER-SHARE-NII> 0.33
<PER-SHARE-GAIN-APPREC> (0.05)
<PER-SHARE-DIVIDEND> (0.37)
<PER-SHARE-DISTRIBUTIONS> (0.54)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.12
<EXPENSE-RATIO> 1.23
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 001
<NAME> Conservatively Managed Portfolio - Class B
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1994
<PERIOD-END> JUL-31-1994
<INVESTMENTS-AT-COST> 476,104,179
<INVESTMENTS-AT-VALUE> 493,040,569
<RECEIVABLES> 8,847,052
<ASSETS-OTHER> 182,081
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 502,069,702
<PAYABLE-FOR-SECURITIES> 16,838,273
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,111,255
<TOTAL-LIABILITIES> 18,949,528
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 461,556,208
<SHARES-COMMON-STOCK> 43,551,047
<SHARES-COMMON-PRIOR> 29,388,407
<ACCUMULATED-NII-CURRENT> 1,867,647
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2,759,929
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 16,936,390
<NET-ASSETS> 483,120,174
<DIVIDEND-INCOME> 3,341,833
<INTEREST-INCOME> 13,871,237
<OTHER-INCOME> 0
<EXPENSES-NET> 8,214,219
<NET-INVESTMENT-INCOME> 8,998,851
<REALIZED-GAINS-CURRENT> 8,854,437
<APPREC-INCREASE-CURRENT> (13,575,563)
<NET-CHANGE-FROM-OPS> 4,277,725
<EQUALIZATION> 1,077,644
<DISTRIBUTIONS-OF-INCOME> (10,699,693)
<DISTRIBUTIONS-OF-GAINS> (18,060,300)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 216,417,990
<NUMBER-OF-SHARES-REDEEMED> (80,947,022)
<SHARES-REINVESTED> 26,617,480
<NET-CHANGE-IN-ASSETS> 138,683,824
<ACCUMULATED-NII-PRIOR> 2,707,799
<ACCUMULATED-GAINS-PRIOR> 11,727,706
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,743,056
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 8,214,219
<AVERAGE-NET-ASSETS> 422,008,000
<PER-SHARE-NAV-BEGIN> 11.72
<PER-SHARE-NII> 0.24
<PER-SHARE-GAIN-APPREC> (0.05)
<PER-SHARE-DIVIDEND> (0.28)
<PER-SHARE-DISTRIBUTIONS> (0.54)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.09
<EXPENSE-RATIO> 2.00
<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
<SERIES>
<NUMBER> 002
<NAME> STRATEGY PORTFOLIO - CLASS A
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1994
<PERIOD-END> JUL-31-1994
<INVESTMENTS-AT-COST> 374,612,190
<INVESTMENTS-AT-VALUE> 388,040,662
<RECEIVABLES> 5,338,150
<ASSETS-OTHER> 97,665
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 393,476,477
<PAYABLE-FOR-SECURITIES> 8,004,180
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,847,753
<TOTAL-LIABILITIES> 9,851,933
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 358,612,295
<SHARES-COMMON-STOCK> 33,228,879
<SHARES-COMMON-PRIOR> 32,737,228
<ACCUMULATED-NII-CURRENT> 1,547,219
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 10,160,450
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 13,304,580
<NET-ASSETS> 383,624,544
<DIVIDEND-INCOME> 4,897,587
<INTEREST-INCOME> 10,028,623
<OTHER-INCOME> 0
<EXPENSES-NET> 7,754,366
<NET-INVESTMENT-INCOME> 7,171,844
<REALIZED-GAINS-CURRENT> 14,878,620
<APPREC-INCREASE-CURRENT> (13,682,115)
<NET-CHANGE-FROM-OPS> 8,368,349
<EQUALIZATION> 48,191
<DISTRIBUTIONS-OF-INCOME> 5,753,522
<DISTRIBUTIONS-OF-GAINS> 10,897,997
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 76,851,235
<NUMBER-OF-SHARES-REDEEMED> (86,835,010)
<SHARES-REINVESTED> 15,914,742
<NET-CHANGE-IN-ASSETS> 30,999,026
<ACCUMULATED-NII-PRIOR> 3,160,863
<ACCUMULATED-GAINS-PRIOR> 3,092,901
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,555,883
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 7,754,366
<AVERAGE-NET-ASSETS> 393,213,000
<PER-SHARE-NAV-BEGIN> 11.82
<PER-SHARE-NII> 0.30
<PER-SHARE-GAIN-APPREC> 0.05
<PER-SHARE-DIVIDEND> (0.23)
<PER-SHARE-DISTRIBUTIONS> (0.34)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.60
<EXPENSE-RATIO> 1.26
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 002
<NAME> STRATEGY PORTFOLIO - CLASS B
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1994
<PERIOD-END> JUL-31-1994
<INVESTMENTS-AT-COST> 374,612,190
<INVESTMENTS-AT-VALUE> 388,040,662
<RECEIVABLES> 5,338,150
<ASSETS-OTHER> 97,665
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 393,476,477
<PAYABLE-FOR-SECURITIES> 8,004,180
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,847,753
<TOTAL-LIABILITIES> 9,851,933
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 358,612,295
<SHARES-COMMON-STOCK> 33,228,879
<SHARES-COMMON-PRIOR> 32,737,228
<ACCUMULATED-NII-CURRENT> 1,547,219
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 10,160,450
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 13,304,580
<NET-ASSETS> 383,624,544
<DIVIDEND-INCOME> 4,897,587
<INTEREST-INCOME> 10,028,623
<OTHER-INCOME> 0
<EXPENSES-NET> 7,754,366
<NET-INVESTMENT-INCOME> 7,171,844
<REALIZED-GAINS-CURRENT> 14,878,620
<APPREC-INCREASE-CURRENT> (13,682,115)
<NET-CHANGE-FROM-OPS> 8,368,349
<EQUALIZATION> 48,191
<DISTRIBUTIONS-OF-INCOME> 5,753,522
<DISTRIBUTIONS-OF-GAINS> 10,897,997
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 76,851,235
<NUMBER-OF-SHARES-REDEEMED> (86,835,010)
<SHARES-REINVESTED> 15,914,742
<NET-CHANGE-IN-ASSETS> 30,999,026
<ACCUMULATED-NII-PRIOR> 3,160,863
<ACCUMULATED-GAINS-PRIOR> 3,092,901
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,555,883
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 7,754,366
<AVERAGE-NET-ASSETS> 393,213,000
<PER-SHARE-NAV-BEGIN> 11.79
<PER-SHARE-NII> 0.21
<PER-SHARE-GAIN-APPREC> 0.05
<PER-SHARE-DIVIDEND> (0.17)
<PER-SHARE-DISTRIBUTIONS> (0.34)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 11.54
<EXPENSE-RATIO> 2.03
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
For the six months ended (a) 1/31/94
File number (c) 811-5055
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
Kendall International
2. Date of Purchase
10/18/93
3. Number of Securities Purchased
8,900
4. Dollar Amount of Purchase
$393,825
5. Price Per Unit
$44.25
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Merrill Lunch & Co.
7. Other Members of the Underwriting Syndicate
Goldman Sachs & Co.
Kidder, Peabody & Co. Incorporated
Bear, Stearns & Co. Inc.
CS First Boston Corporation
Alex. Brown & Sons Incorporated
Dillion Read & Co. Incorporated
Donaldson, Lufkin & Jenrette Securities Corporation
A.G. Edwards & Sons, Inc.
Hambrecht & Quist Incorporated
Lazard Freres & Co.
Morgan Stanley & Co. Incorporated
Oppenheimer & Co., Inc.
PanieWebber Incorporated
Prudential Securities Incorporated
Smith Barney Shearson Inc.
Wertheim Schroder & Co. Incorporated
Dean Witter Reynolds Inc.
Furman Selz Incorporated
Robert W. Baird & Co. Incorporated
Barington Capital Group, L.P.
William Blair & Company
Cowen Company
Crowell, Weedon & Co.
Dain Bosworth Incorporated
Genesis Merchant Group Securities
J.J.B. Hilliard, W.L. Lyons, Inc.
Interstate/Johnson Lane Corporation
Janney Montgomery Scott Inc.
Ladenburg, Thalmann & Co. Inc.
Legg Mason Wood Walker, Incorporated
Mabon Securities Corp.
Morgan Keegan & Company, Inc.
Needham & Company, Inc.
Piper Jaffray Inc.
Rauscher Pierce Refsnes, Inc.
Raymond James & Associates, Inc.
Wessels, Arnold & Henderson<PAGE>
For the six months ended (a) 1/31/94
File number (c) 811-5055
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
PacTel Corporation
2. Date of Purchase
12/2/93
3. Number of Securities Purchased
13,100
4. Dollar Amount of Purchase
$301,300
5. Price Per Unit
$23.00
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Salomon Brothers, Inc./Lehman Brothers
7. Other Members of the Underwriting Syndicate
Goldman, Sachs & Co.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
CS First Boston Corporation
Donaldson, Lufkin & Jenrette Securities Corporation
Morgan Stanley & Co. Incorporated
Bear, Stearns & Co. Inc.
Alex. Brown & Sons Incorporated
Dillon, Read & Co. Inc.
A.G. Edwards & Sons, Inc.
Hambrecht & Quist Incorporated
Kemper Securities, Inc.
Kidder, Peabody & Co. Incorporated
Lazard Freres & Co.
WR Lazard, Laidlaw & Mead Inc.
Montgomery Securities
Normura Securities International, Inc.
Oppenheimer & Co., Inc.
PaineWebber Incorporated
Prudential Securities Incorporated
Pryor, McClendon, Counts & co., Inc.
Robertson, Stephens & Company, L.P.
ScotiaMcLeod (USA) Inc.
Muriel Siebert & Co., Inc.
Smith Barney Shearson Inc.
SBCI Swiss Bank Corporation Investment Banking Inc.
UBS Securities Inc.
S.G. Warburg & Co. Inc.
Wertheim Schroder & Co. Incorporated
Dean Witter Reynolds Inc.
Yamaichi International (America), Inc.
Advest, Inc.
Robert W. Baird & Co., Inc.
Sanford C. Bernstein & Co., Inc.
Cowen & Company
Crowell, Weedon & Co.
Dain Bosworth Incorporated
Robert Fleming Inc.
Ladenburg, Thalmann & Co. Inc.
C.J. Lawrence/Deutsche Bank Securities Corporation
Legg Mason Wood Walker Incorporated
Moran & Associates, Inc. Securities Brokerage
Needham & Company, Inc.
Neuberger & Berman
Piper Jaffray Inc.
Raymond James & Associates, Inc.
The Robinson-Humphrey Company, Inc.
Stifel, Nicholaus & Company, Incorporated
Sutro & Co. Incorporated
AIBC Investment Services Corporation
Apex Securities, Inc.
M.R. Beal & Co.
Charles A. Bell Securities Corp.
The Buckingham Research Group Incorporated
D.A. Davidson & Co. Incorporated
Doley Securities, Inc.
First Analysis Securities Corporation
Gabelli & Company, Inc.
Gerard Klauer Mattison & Co., Inc.
Grigsby Bradford Powell Inc.
Hanifen, Imhoff Inc.
Janney Montgomery Scott Inc.
Edward D. Jones & Co.
Luther, Smith & Smalls, Inc.
Ragen MacKenzie Incorporated
Samuel A. Ramirez & Co. Inc.
Redwood Securities Group, Inc.
Robert Van Securities, Inc.
The Seidler Companies Incorporated
Sturdivant & Co., Inc.
Utendahl Capital Partners, L.P.
Wedbush Morgan Securities<PAGE>
For the six months ended (a) 1/31/94
File number (c) 811-5055
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
Belden Inc.
2. Date of Purchase
9/29/93
3. Number of Securities Purchased
12,800
4. Dollar Amount of Purchase
$182,400
5. Price Per Unit
$14.25
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Dillon, Read & Co., Inc.
7. Other Members of the Underwriting Syndicate
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Adams, Harkness & Hill, Inc.
Advest, Inc.
Arnhold and S. Bleichroeder, Inc.
Robert W. Baird & Co. Incorporated
George K. Baum & Company
Bear, Stearns & Co. Inc.
William Blair & Company
J.C. Bradford & Co.
Brean Murray, Foster Securities Inc.
Alex. Brown & Sons Incorporated
BT Securities Corporation
The Chicago Dearborn Company
Cleary Gull Reiland & McDevitt Inc.
Coburn & Meredith, Inc.
Cowen & Company
Crowell, Weedon & Co.
Dominick & Dominick, Incorporated
Donald, Lufkin & Jenrette Securities Corporation
A.G. Edwards & Sons, Inc.
Equitable Securities Corporation
Fahnestock & Co. Inc.
Fechtor, Detwiler & Co., Incorporated
Ferris, Baker Watts Incorporated
First Albany Corporation
The First Boston Corporation
First Equity Corporation of Florida
First of Michigan Corporation
First Southwest Company
Furman Selz Incorporated
Goldman, Sachs & Co.
Hambrecht & Quist Incorporated
Hanifen, Imhoff Inc.
J.J.B. Hilliard, W.L. Lyons, Inc.
Howard, Weil, Labouisse, Friedrichs Inc.
Interstate Johnson Lane Corporation
Janney Montgomery Scott Inc.
Edward D. Jones & Co.
Josephthal Lyon & Ross Incorporated
Kemper Securities, Inc.
Kidder, Peabody & Co. Incorporated
C.L. King & Associates, Inc.
Ladenburg, Thalmann & Co., Inc.
C.J. Lawrence Inc.
Lazard Freres & Co.
Legg Mason Wood Walker, Incorporated
Lehman Brothers Inc.
Mabon Securities Corp.
McDonald & Company Securities, Inc.
Montgomery Securities
J.P. Morgan Securities Inc.
Morgan Stanley & Co., Incorporated
Needham & Company, Inc.
Neuberger & Berman
David A. Noyes & Company
The Ohio Company
Oppenheimer & Co., Inc.
PaineWebber Incorporated
Parker/Hunter Incorporated
Pennsylvania Merchant Group Ltd.
Prudential Securities Incorporated
Raffensperger, Hughes & Co. Incorporated
Ragen Mackenzie Incorporated
Rauscher Pierce Refsnes, Inc.
Raymond James & Associates, Inc.
Robertson, Stephens & Company, L.P.
The Robertson-Humphrey Company, Inc.
Roney & Co.
Salomon Brothers Inc.
Sanford C. Bernstein & Co., Inc.
SBCI Swiss Bank Corporation
The Seidler Companies Incorporated
Smith Barney Shearson Inc.
Stephens Inc.
Stifel, Nicolaus & Company, Incorporated
Tucker Anthony Incorporated
Wasserstein Perella Securities, Inc.
H.G. Wellington & Co., Inc.
Wertheim Schroder & Co. Incorporated
Dean Witter Reynolds Inc.<PAGE>
For the six months ended (a) 1/31/94
File number (c) 811-5055
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
Cygne Designs, Inc.
2. Date of Purchase
7/30/93
3. Number of Securities Purchased
37,000
4. Dollar Amount of Purchase
$370,000
5. Price Per Unit
$10.00
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
PaineWebber Incorporated
7. Other Members of the Underwriting Syndicate
Furman Selz Incorporated
Dean Witter Reynolds, Inc.
Dillon, Read & Co. Inc.
A.G. Edwards & Sons, Inc.
The First Boston Corporation
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Montgomery Securities
Prudential Securities Incorporated
Shearson Lehman Brothers Inc.
Wertheim Schroder & Co. Incorporated
Gruntal & Co. Incorporated
Ladenburg, Thalmann & Co. Inc.
Legg Mason Wood Walker, Inc.
McDonald & Company Securities, Inc.
Needham & Company, Inc.
Neuberger & Berman
Stifel, Nicolaus & Company, Incorporated
Sutro & Co. Incorporated
Brean Murray, Foster Securities Inc.
The Buckingham Research Group Incorporated
Fahnestock & Co. Inc.
Fechtor, Detwiler & Co., Inc.
First Equity Corporation of Florida
First Manhattan Co.
The Ohio Company
Pennsylvania Merchant Group Ltd.
Ragen MacKenzie Incorporated
Van Kasper & Company<PAGE>
For the six months ended (a) 1/31/94
File number (c) 811-5055
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
CCP Insurance, Inc.
2. Date of Purchase
9/22/93
3. Number of Securities Purchased
25,400
4. Dollar Amount of Purchase
$711,200
5. Price Per Unit
$28.00
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Merrill Lynch & Co.
7. Other Members of the Underwriting Syndicate
Dean Witter Reynolds Inc.
Ladenburg, Thalmann & Co. Inc.
Bear, Stearns & Co. Inc.
The First Boston Corporation
Alex. Brown & Sons Incorporated
Dillon, Read & Co. Inc.
Donaldson, Lufkin & Jenrette Securities Corporation
A.G. Edwards & Sons, Inc.
Goldman, Sachs & Co.
Lehman Brothers Inc.
Oppenheimer & Co. Inc.
Prudential Securities Incorporated
Salomon Brothers Inc.
Smith Barney Shearson Inc.
S.G. Warburg & Co. Inc.
Sands Brothers & Co. Ltd.
RAS Securities Corp.
Advest, Inc.
J.C. Bradford & Co.
Conning & Company
Dain Bosworth Incorporated
First Manhattan Co.
Fox-Pitt, Kelton Inc.
Janney Montgomery Scott Inc.
Kemper Securities, Inc.
Legg Mason Wood Walker, Incorporated
McDonald & Company Securities, Inc.
Neuberger & Berman
Northington Capital Markets Inc.
Piper Jaffray Inc.
The Robinson-Humphrey Company, Inc.
Stephens Inc.
Wheat, First Securities, Inc.
Raffensperger, Hughes & Co., Inc
Sterne, Agee & Leach, Inc.
Traub and Company, Inc.<PAGE>
For the six months ended (a) 1/31/94
File number (c) 811-5055
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
Duke Realty Investments, Inc.
2. Date of Purchase
9/27/93
3. Number of Securities Purchased
25,400
4. Dollar Amount of Purchase
$603,250
5. Price Per Unit
$23.75
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Merrill Lynch & Co.
7. Other Members of the Underwriting Syndicate
A.G. Edwards & Sons, Inc.
Dean Witter Reynolds Inc.
Legg Mason Wood Walker, Incorporated
Bear, Stearns & Co. Inc.
Alex, Brown & Sons Incorporated
Dillon, Read & Co. Inc.
Kidder, Peabody & Co. Incorporated
Lehman Brothers Inc.
Oppenheimer & Co., Inc.
PaineWebber Incorporated
Prudential Securities Incorporated
Smith Barney Shearson Inc.
Wertheim Schroder & Co. Incorporated
Advest, Inc.
Robert W. Baird & Co. Incorporated
J.C. Bradford & Co.
City Securities Corporation
Cowen & Company
Dain Bosworth Incorporated
Doft & Co., Inc.
Fahnstock & Co. Inc.
First Albany Corporation
First of Michigan Corporation
Gruntal & Co., Incorporated
Interstate/Johnson Lane Corporation
Janney Montgomery Scott Inc.
Edward D. Jones & Co.
Kemper Securities, Inc.
McDonald & Company Securities, Inc.
Morgan Keegan & Company, Inc.
The Ohio Company
Piper Jaffray Inc.
The Principal/Eppler, Guerin & Turner, Inc.
Raffensperger, Hughes & Co. Inc.
Ragen MacKenzie Incorporated
Rauscher Pierce Refsnes, Inc.
The Robinson-Humphrey Company, Inc.
Roney & Co.
Stephens Inc.
Stifel, Nicholaus & Company, Incorporated
Sutro & Co. Incorporated
Tucker Anthony Incorporated
Wheat, First Securities, Inc.
The Chicago Corporation
JW Charles Securities, Inc.
Crowell, Weedon & Co.
D.A. Davidson & Co. Incorporated
Dominick & Dominick, Incorporated
J.J.B. Hilliard, W.L. Lyons, Inc.
Johnston, Lemon & Co. Incorporated
Mesirow Financial, Inc.
Parker/Hunter Incorporated
Scott & Stringfellow, Inc.
Smith, Moore & Co.
Traub and Company, Inc.<PAGE>
For the six months ended (a) 1/31/94
File number (c) 811-5055
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
Post Properties Incorporated
2. Date of Purchase
7/15/93
3. Number of Securities Purchased
15,400
4. Dollar Amount of Purchase
$392,700
5. Price Per Unit
$25.50
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Merrill Lynch & Co.
7. Other Members of the Underwriting Syndicate
Dean Witter Reynolds Inc.
The Robinson-Humphrey Company, Inc.
Bear, Stearns & Co. Inc.
Alex Brown & Sons Incorporated
Donaldson, Lufkin & Jenrette Securities Corporation
A.G. Edwards & Sons, Inc.
Kidder, Peabody & Co. Incorporated
Oppenheimer & Co. Inc.
PaineWebber Incorporated
Prudential Securities Incorporated
Shearson Lehman Brothers Inc.
Smith Barney, Harris Upham & Co. Incorporated
Wertheim Schroder & Co. Incorporated
Advest, Inc.
Robert W. Baird & Co. Incorporated
J.C. Bradford & Co.
Cowen & Company
Dain Bosworth Incorporated
Fahnestock & Co. Inc.
First Albany Corporation
First of Michigan Corporation
Gruntal & Co. Incorporated
Interstate/Johnson Lane Corporation
Janney Montgomery Scott Inc.
Edward D. Jones & Co.
Kemper Securities, Inc.
Ladenburg, Thalmann & Co. Inc.
C.J. Lawrence Inc.
Legg Mason Wood Walker, Incorporated
McDonald & Company Securities, Inc.
Morgan Keegan & Company, Inc.
Piper Jaffray Inc.
The Principal/Eppler, Guerin & Turner, Inc.
Ragen MacKenzie Incorporated
Rauscher Pierce Refsnes, Inc.
Raymond James & Associates, Inc.
Stephens Inc.
Stifel, Nicolaus & Company, Incorporated
Sutro & Co. Incorporated
Tucker Anthony Incorporated
Wheat, First Securities, Inc.
Baird, Patrick & Co., Inc.
Barclay Investment, Inc.
The Chicago Corporation
JW Charles Securities, Inc.
Crowell, Weedon & Co.
Doft & Co., Inc.
Dominick & Dominick, Incorporated
Allen C. Ewing & Co.
Johnston, Lemon & Co. Incorporated
Mesirow Financial, Inc.
The Ohio Company
Parker/Hunter Incorporated
Pennsylvania Merchant Group Ltd.
Samuel A. Ramierz & Co., Inc.
Sanders Morris Mundy Inc.
Scott & Stringfellow, Inc.
The Seidler Companies Incorporated
Sterne, Agee & Leach, Inc.<PAGE>
For the six months ended (a) 1/31/94
File number (c) 811-5055
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
United Dominion Realty Trust
2. Date of Purchase
7/8/93
3. Number of Securities Purchased
23,900
4. Dollar Amount of Purchase
$322,650
5. Price Per Unit
$13.50
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Merrill Lynch & Co.
7. Other Members of the Underwriting Syndicate
Alex. Brown & Sons Incorporated
A.G. Edwards & Sons, Inc.
Scott & Stringfellow, Inc.
Bear, Stearns & Co. Inc.
Davenport & Co. of Virginia, Inc.
Kidder, Peabody & Co. Incorporated
Legg Mason Wood Walker, Incorporated
PaineWebber Incorporated
Prudential Securities Incorporated
Shearson Lehman Brothers, Inc.
Smith Barney, Harris Upham & Co. Incorporated
Wheat, First Securities, Inc.
Dean Witter Reynolds Inc.
Advest, Inc.
Anderson & Strudwick, Incorporated
J.C. Bradford & Co.
Branch, Cabell and Company
Craigie Incorporated
Ferris, Baker Watts, Incorporated
Interstate/Johnson Lane Corporation
Janney Montgomergy Scott Inc.
Johnston, Lemon & Co. Incorporated
Edward D. Jones & Co.
Morgan Keegan & Company, Inc.
The Robinson-Humphrey Company, Inc.
Tucker Anthony Incorporated
For the fiscal year (a) 7/31/94
File number (c) 811-5055
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
Societe Nationale Elf Aquitaine ADR
2. Date of Purchase
2/14/94
3. Number of Securities Purchased
1,300
4. Dollar Amount of Purchase
$44,656
5. Price Per Unit
$34.35
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Merrill Lynch & Co.
7. Other Members of the Underwriting Syndicate
Banque Paribas
Credit Lyonnais
Merrill Lynch International Limited
Banque Nationale de Paris
Banque Indosuez
UBS S.A. Maison de Titres
Credit Commercial de France
Daiwa Europe Limited
Deutsche Bank France SNC
Goldman Sachs International Limited
Morgan Stanley S.A.
Societe Generale
Banque S.G. Warburg
Caisse des Depots et Consignations
Donaldson, Lufkin & Jenrette Securities Corporation
Caisse Nationale de Credit Agricole
Rothschild et Cie Banque and
NM Rothschild & Sons Limited (acting jointly)
Lazard Freres & Cie
Barclays de Zoete Wedd Limited
J.P. Morgan & Cie S.A.
Banque Nomura France
Compagnie Financiere de CIC et de I'Union Europe'enne-
J. Henrey Schroeder Wagg & Co. Limited
RBC Dominion Securities Inc.
Banque Worms
CS First Boston France S.A.
Dresdner Bank Aktiengesellschaft
ABN AMRO Bank N.V.
Societe de Banque Suisse (France) S.A.
Bear Stearns International Limited
Caisse Centrale Des Banques Populaires
Enskilda Corporate
Skandinaviska Enskilada Banken
HSBC Investment Banking Group Limited
Kleinwort Benson Limited
Lehman Brothers International (Europe)
Nikko Europe Plc
PaineWebber International (U.K.) Ltd.
Prudential Securities Incorporated
Salomon Brothers Inc.
Smith Barney Shearson Inc.
Yamaichi International (Europe) Limited
Banco Central Hispanoamericano S.A.
Banque du Louvre
Banque Pallas Stern
CPR Compagnie Parisienne de Reescompte
La Compagnie Financiere Edmond de Rothschild Banque
Union de Garantie et de Placement<PAGE>
For the fiscal year (a) 7/31/94
File number (c) 811-5055
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
Infosoft International
2. Date of Purchase
3/01/94
3. Number of Securities Purchased
1,800
4. Dollar Amount of Purchase
$27,000
5. Price Per Unit
$15.00
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
CS First Boston Corporation
7. Other Members of the Underwriting Syndicate
Adams, Harkness & Hill, Inc.
L.H. Alton & Company
Brean Murray, Foster Securities Inc.
Alex. Brown & Sons Incorporated
Dillon, Read & Co. Inc.
Donaldson, Lufkin & Jenrette Securities Corporation
First Albany Corporation
Gerard Klauer Mattison & Co., Inc.
Hambrecht & Quist Incorporated
Invemed Associates, Inc.
Josephthal Lyon & Ross Incorporated
Kemper Securities, Inc.
Kidder, Peadoby & Co. Incorporated
C.J. Lawrence/Deutsche Bank Securities Corporation
Legg Mason Wood Walker Incorporated
Lehman Brothers Inc.
Mabon Securities Corp.
Montgomery Securities
Morgan Stanley & Co. Incorporated
Needham & Company, Inc.
Pennsylvania Merchant Group Ltd.
Prudential Securities Incorporated
Punk, Ziegel & Knoell
Raymond James & Associates, Inc.
Robertson, Stephens & Company, L.P.
Rothschild Inc.
Sutro & Co. Incorporated
Trilon Securities International
Tucker Anthony Incorporated
Wessels, Arnold & Henderson<PAGE>
For the fiscal year (a) 7/31/94
File number (c) 811-5055
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
Rouge Steel Company
2. Date of Purchase
3/28/94
3. Number of Securities Purchased
12,000
4. Dollar Amount of Purchase
$264,000
5. Price Per Unit
$22.00
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Morgan Stanley & Co., Incorporated
7. Other Members of the Underwriting Syndicate
CS First Boston Corporation
PaineWebber Incorporated
Arnhold and S. Bleichroeder, Inc.
Robert W. Baird & Co. Incorporated
Sanford C. Bernstein & Co., Inc.
William Blair & Company
Dean Witter Reynolds Inc.
Donaldson, Lufkin & Jenrette Securities Corporation
A.G. Edwards & Sons, Inc.
First of Michigan Corporation
Interstate/Johnson Lane Corporation
Janney Montgomery Scott Inc.
Kemper Securities, Inc.
C.J. Lawrence/Deutsche Bank Securities Corporation
Lehman Brothers Inc.
McDonald & Company Securities, Inc.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
The Ohio Company
Piper Jaffray Inc.
Prudential Securities Incorporated
Ragen MacKenzie Incorporated
Rauscher Pierce Refsnes, Inc.
Raymond James & Associates, Inc.
Roney & Co.
Salomon Brothers Inc.
Smith Barney Shearson Inc.
Sutro & co. Incorporated
Wheat, First Securities, Inc.
International Underwriters:
Morgan Stanely & Co. International Limited
CS First Boston Limited
PaineWebber International (U.K.) Ltd.
Credit Lyonnais Securities
Daiwa Europe Limited
Dresdner Bank Aktiengesellschaft
UBS Limted S.G. Warburg Securities Ltd.<PAGE>
For the fiscal year (a) 7/31/94
File number (c) 811-5055
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
GFC Financial Corporation
2. Date of Purchase
5/16/94
3. Number of Securities Purchased
20,799
4. Dollar Amount of Purchase
$605,862
5. Price Per Unit
$29.13
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Merrill Lynch & Co.
7. Other Members of the Underwriting Syndicate
Legg Mason Wood Walker, Incorporated
CS First Boston Corporation
Bear, Stearns & Co. Inc.
Dean Witter Reynolds Inc.
Goldman, Sachs & Co.
Lehman Brothers Inc.
Morgan Stanley & Co. Incorporated
PaineWebber Incorporated
Prudential Securities Incorporated
Salmon Brothers Inc.
Smith Barney Shearson Inc.
Robert W. Baird & Co. Incorporated
Sanford C. Bernstein & Co., Inc.
J.C. Bradford & Co.
Cowen & Company
Dain Bosworth Incorporated
Interstate/Johnson Lane Corporation
Janney Montgomery Scott Inc.
Edward D. Jones & Co.
Kemper Securities, Inc.
Piper Jaffray Inc.
Raymond James & Associates, Inc.
The Robinson-Humphrey Company, Inc.
Wheat, First Securities, Inc<PAGE>
For the fiscal year (a) 7/31/94
File number (c) 811-5055
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
Charles E. Smith Residential Realty, Inc.
2. Date of Purchase
6/23/94
3. Number of Securities Purchased
7,900
4. Dollar Amount of Purchase
$189,600
5. Price Per Unit
$24.00
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Goldman, Sachs & Co.
7. Other Members of the Underwriting Syndicate
A.G. Edwards & Sons, Inc.
PaineWebber Incorporated
Legg Mason Wood Walker, Incorporated
Advest, Inc.
Bear, Stearns & Co. Inc.
William Blair & Company
Branch, Cabell and Company
Alex. Brown & Sons Incorporated
CS First Boston Corporation
Cowen & Company
Craigie Incorporated
Dain Bosworth Incorporated
Davenport & Co. of Virginia, Inc.
Dean Witter Reynolds Inc.
Donaldson, Lufkin & Jenrette Securities Corporation
Ewing Capital, Inc.
Ferris, Baker Watts, Incorporated
Folger Nolan Fleming Douglas, Inc.
Gerard Klauer Mattison & Co. Inc.
Interstate/Johnson Lane Corporation
Johnson, Lemon & Co. Incorporated
Edward D. Jones & Co.
Kemper Securities, Inc.
Ladenburg, Thalmann & Co. Inc.
Lehman Brothers Inc.
McDonald & Company Securities, Inc.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Morgan Keegan & Company, Inc.
Morgan Stanley & Co. Incorporated
Oppenheimber & Co. Inc.
Piper Jaffray Inc.
Prudential Securities Incorporated
Rauscher Pierce Refsnes, Inc.
Raymond James & Associates, Inc.
The Robinson-Humphrey Company, Inc.
Salomon Brothers Inc.
Scott & Stringfellow, Inc.
Smith Barney Inc.
Stifel, Nicholaus & Company, Incorporated
Sutro & Co. Incorporated
Tucker Anthony Incorporated
Wheat, First Securities, Inc.
For the six months ended (a) 1/31/94
File number (c) 811-5055
SUB-ITEM 77D
Policies With Respect to Security Investments
At a meeting of the Trustees held on November 9, 1993, the
Fund adopted new procedures pursuant to Rules 17a-7, 10f-3 and 17e-
1 of the Investment Company Act of 1940. The revised procedures
eliminated the need for the Trustees to review annually the Fund's
Rule 10f-3, 17a-7 and 17e-1 procedures.
At the same meeting of the Trustees held on November 9, 1993,
the Fund adopted new procedures under the Investment Company Act of
1940 relating to authorization for securities transactions with
affiliated brokers pursuant to Section 11(a) of the Securities
Exchange Act of 1934 and Rule 11a2-2(T) thereunder. The revised
Section 11(a) procedures were broadened to permit members of
national securities exchanges to execute trades for their
discretionary accounts on a national securities exchange with the
use of an affiliated floor broker.
For the fiscal year ended (a) July 31, 1994
File number (c) 811-5055
SUB-ITEM 77 D
Policies With Respect to Security Investments
At a meeting of the Trustees held on February 8, 1994, the
Trustees approved (i) the use of tri-party repurchase agreements
and (ii) the use of Bank of New York, Chemical Bank, Morgan
Guaranty Trust Company and Bankers Trust Company as subcustodians
in connection with effecting tri-party repurchase transactions.
AF794.77D
NSAR#3
For the fiscal year ended (a) 7/31/94
File number (c) 811-5055
SUB-ITEM 77C
Submission of Matters to a Vote of Security Holders
A special Meeting of Shareholders was called for July 19,
1994. At such meeting the shareholders approved the following
proposals.
a)Election of Trustees.
Affirmative Negative
votes cast votes cast
Edward D. Beach 39,867,102 3,223,142
Donald D. Lennox 39,887,960 3,191.402
Douglas H. McCorkindale 39,880,449 3,198,913
Lawrence C. McQuade 39,889,465 3,179,897
Thomas T. Mooney 39,905,956 3,173,406
Richard A. Redeker 39,887,509 3,191,853
Louis A. Weil, III 39,906,813 3,172,549
b)Approval of an amendment of the Fund's Declaration of Trust to
permit a conversion feature for Class B shares.
Affirmative Negative
votes cast votes cast
38,021,061 973,230
c) Approval of an amended and restated Class A Distribution and
Service Plan.
Affirmative Negative
votes cast votes cast
37,460,682 1,038,859
d) Approval of an amended and restated Class B Distribution and
Service Plan.
Affirmative Negative
votes cast votes cast
Class B 34,945,661 1,186,655
e)Approval of the elimination of each Portfolio's investment
restrictions regarding restricted and illiquid securities.
Affirmative Negative
votes cast votes cast
36,060,614 2,336,269
f)Approval of an amendment of each Portfolio's investment restriction
limiting the Portfolio's ability to invest in a security if the
Portfolio would hold more than 10% of any class of securities of an
issuer.
Affirmative Negative
votes cast votes cast
36,293,002 2,139,050
g)Approval of the elimination of each Porfolio's investment
restriction limiting the Portfolio's ability to invest in the
securities of any issuer in which officers and Trustees of the Fund
or its investment adviser own more than a specified interest.
Affirmative Negative
votes cast votes cast
35,312,235 3,123,874
h) Approval of a modification of each Portfolio's investment
restriction to permit each Portfolio to enter into interest rate
swap transactions.
Affirmative Negative
votes cast votes cast
36,157,905 2,207,360
i) Ratification of the selection by the Trustees of Deloitte & Touche
as independent accountants for the fiscal year ending July 31,
1994.
Affirmative Negative
votes cast votes cast
38,459,535 536,102
fF994.77C
NSAR#3
For the fiscal year ended (a) July 31, 1994
File number (c) 811-5055
SUB-ITEM 77I
Terms of New or Amended Securities
The Trustees approved the offering of a new class of shares,
to be designated Class C shares, which was offered simultaneously
with the offering of Class B shares with the proposed conversion
feature as of August 1, 1994. [See Submission of Matters to a Vote
of Security Holders, Item 77C].
AF794.77I
NSAR#3
For the year ended (a) July 31, 1994
File number (c) 811-5055
SUB-ITEM 77J
Restatement of Capital Share Account
Reclassification of Capital Accounts: Effective August 1, 1993,
the Fund began accounting and reporting for distributions to
shareholders in accordance with Statement of Position 93-2:
Determination, Disclosure, and Financial Statement Presentation of
Income, Capital Gain, and Return of Capital Distributions by
Investment Companies. As a result of this statement, the Fund
changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts
and distributions determined in accordance with income tax
regulations. The effect caused by adopting this statement was to
decrease paid-in capital for the Conservatively Managed Portfolio
and the Strategy Portfolio by $21,132 and $6,769, respectively,
increase (decrease) undistributed net investment income for the
Conservatively Managed Portfolio and the Strategy Portfolio by
$214,969 and $(329,527), respectively, and increase (decrease)
accumulated net realized gains on investments for the
Conservatively Managed Portfolio and the Strategy Portfolio by
$(193,837) and $336,296, respectively, as compared to amounts
previously reported through July 31, 1993. For the year ended July
31, 1994, the Conservatively Managed Portfolio and the Strategy
Portfolio each decreased accumulated net investment income and
increased accumulated gains by $431,923 and $2,750,630,
respectively. Net investment income, net realized gains and net
assets were not affected by this change.
Board of Trustees
Prudential Allocation Fund:
In planning and performing our audit of the financial statements of Prudential
Allocation Fund ("Fund") for the year ended July 31, 1994, we considered its
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 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 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 July 31, 1994.
This report is intended solely for the information and use of management and
the Securities and Exchange Commission.
DELOITTE & TOUCHE
September 14, 1994
Board of Directors or Trustees of:
Prudential Adjustable Rate Securities Fund
The BlackRock Government Income Trust
Prudential California Municipal Fund
Prudential Equity Fund
Prudential Equity Income Fund
Prudential FlexiFund (2 Portfolios)
Prudential GNMA Fund
Prudential Global Fund
Prudential Global Genesis Fund
Prudential Global Natural Resources Fund
Prudential Government Plus Fund
Prudential Growth Fund
Prudential Growth Opportunity
Prudential High Yield Fund
Prudential IncomeVertible Fund
Prudential Intermediate Global Income Fund
Prudential Multi-Sector Fund
Prudential Municipal Bond Fund (3 Portfolios)
Prudential Municipal Series Fund (11 Portfolios)
Prudential National Municipals Fund
Prudential Pacific Growth Fund
Prudential Short-Term Global Income Fund (2 Portfolios)
Prudential Strategic Income Fund
Prudential Structured Maturity Fund
Prudential U.S. Government Fund
Prudential Utility Fund
Global Utility Fund, Inc.
Nicholas-Appelgate Fund, Inc.
We have examined the accompanying description of the Prudential Dual Pricing
Worksheet (the "Worksheet") application of State Street Bank and Trust Company
("State Street"), custodian and recordkeeper for the Prudential Mutual Funds
(the "Funds"). Our examination included procedures to obtain reasonable
assurance about whether (1) the accompanying description presents fairly, in
all material respects, the aspects of State Street's policies and procedures
that may be relevant to a Fund's internal control structure relating to the
Worksheet, (2) the control structure policies and procedures included in the
description were suitably designed to achieve the control objectives specified
in the description, if those policies and procedures were complied with
satisfactorily, and (3) such policies and procedures had been placed in
operation as of June 30, 1993. The control objectives were specified by
Prudential Mutual Fund Management. Our examination was performed in accordance
with standards established by the American Institute of Certified Public
Accountants and included those procedures we considered necessary in the
circumstances to obtain a reasonable basis for rendering our opinion.
In our opinion, the accompanying description of the aforementioned application
presents fairly, in all material respects, the relevant aspects of State
Street's policies and procedures that had been placed in operation as of June
30, 1993. Also, in our opinion, the policies and procedures, as described, are
suitably designed to provide reasonable assurance that the specified control
objectives would be achieved if the described policies and procedures were
complied with satisfactorily.
In addition to the procedures we considered necessary to render our opinion as
expressed in the previous paragraph, we applied tests to specific policies and
procedures, listed in Section I, to obtain evidence about their effectiveness
in meeting the control objectives, described in Section I during the period
from July 1, 1992 to June 30, 1993. The nature, timing, extent, and results of
the tests are listed in Section II. In our opinion the policies and procedures
that were tested, as described in Section II, were operating with sufficient
effectiveness to provide reasonable, but not absolute, assurance that the
control objectives specified in Section I were achieved during the period from
July 1, 1992 to June 30, 1993.
The relative effectiveness and significance of specific policies and procedures
at State Street, and their effect on assessments of control risk on the Funds
are dependent on their interaction with the policies, procedures, and other
factors present at individual Funds. We have performed no procedures to
evaluate the effectiveness of policies and procedures at individual Funds in
connection with this report.
The description of policies and procedures at State Street is as of June 30,
1993, and information about tests of the operating effectiveness of specified
policies and procedures covers the period from July 1, 1992 to June 30, 1993.
Any projection of such information to the future is subject to the risk that,
because of change, the description may no longer portray the system in
existence. The potential effectiveness of specified policies and procedures at
State Street is subject to inherent limitations and, accordingly, errors or
irregularities may occur and not be detected. Furthermore, the projection of
any conclusions, based on our findings, to future periods is subject to the
risk that changes may alter the validity of such conclusions.
This report is intended solely for use by the management and Boards of
Directors/Trustees of the Funds, the independent auditors of the Funds and the
Securities and Exchange Commission.
DELOITTE & TOUCHE
August 13, 1993
SECTION I
Policies and Procedures Placed in Operation
Prudential Dual Pricing Worksheet
Effective January 22, 1990, the Funds, offered by Prudential Securities
Incorporated (formerly Prudential-Bache Securities, Inc.) and Prudential Mutual
Fund Distributors, Inc., adopted a dual pricing system. The dual pricing
system consists of two classes of shares (Class A and Class B) for the Funds.
The Class A shares are subject to a front-end sales load and the Class B shares
are subject to a contingent deferred sales charge. The two classes of shares
represent interests in the same portfolio of investments of the respective Fund
and are identical in all respects, except that each class is subject to
different distribution expenses and has exclusive voting rights with respect to
the Rule 12b-1 distribution plan pursuant to which such distribution expenses
are paid.
In order to allocate income and expenses between the two classes of shares,
State Street Bank and Trust Company (the Funds' custodian and recordkeeper)
utilizes the Prudential Dual Pricing Worksheet (the "Worksheet") (see Exhibit
I). The Worksheet is a manual supplementary application that extracts relevant
data from the Funds' primary accounting system, allocates income and expenses
between the two classes of shares and computes the daily net asset value and,
if applicable, the dividend/distribution for each class of shares. Internal
accounting controls that are relevant to the Fund can be divided into two
components - controls related to the mutual fund accounting system resident at
State Street Bank and Trust Company (the "primary accounting system") and
controls related to the Worksheet.
The specific control objectives and policies and procedures relating to the
Worksheet are described on pages 4 and 5. A description of the tests of the
policies and procedures designed to obtain evidence about the operating
effectiveness of those policies and procedures in achieving the specific
control objectives is included in Section II.
Control Objectives and Policies and Procedures
Prudential Dual Pricing Worksheet
The Worksheet is a supplementary manual application to the Funds' primary
accounting system. Certain data is extracted from the primary accounting
system to allocate income and expenses and to calculate the daily net asset
value and, if applicable, dividends/distributions for each class of shares.
The primary accounting system includes the details of transactions in
accordance with the Investment Company Act of 1940, as amended.
The following represents the internal accounting control objectives and
policies and procedures for the allocation of income and expenses and the
computation of the net asset value and, if applicable, the
dividend/distribution for each class of shares utilizing the Worksheet. It
does not cover the internal accounting control policies and procedures
surrounding the processing of information into the Funds' primary accounting
system.
CONTROL OBJECTIVES CONTROL POLICIES AND PROCEDURES
A. Capital share activity 1. Daily, the transfer agent forwards
as reported by the Fund's reports of capital share capital share
transfer agent is recorded activity for each class which includes
for each class in an accurate a summary of subscriptions,
and timely manner by the fund. redemptions, exchanges and other
information (the "Supersheet"). The
opening day's balance for shares
outstanding and for shares eligible for
dividends are recorded on the
Worksheet. shares eligible for
dividends are recorded on
2. Estimated interim share activity
for the current day not recorded in the
Supersheet is received via telefax from
the transfer agent and is recorded for
each class on the Worksheet.
B. Net Asset Value ("NAV") 1. The prior days ending NAV per
and, if applicable, the share (unrounded) for each class is
dividend/distribution for agreed to the prior day's Worksheet.
each class are accurately
computed on a daily basis. 2. The daily net capital stock
activity for each class for the current
day is agreed to the Supersheet as
described in Control Procedures A.1 and
2., above.
3. Percentage Assets by Class and
Percentage Dividend Assets by Class are
calculated for each class based upon
information from the prior day
Worksheet and information recorded on
the Supersheet.
CONTROL OBJECTIVES CONTROL POLICIES AND PROCEDURES
4. Allocate investment income between
classes based on the appropriate asset
allocation percentage for each class.
5. Agree composite dividend income,
interest income, income amortization,
income equalization, management fees,
other expenses, realized gains and
losses, and unrealized
appreciation/depreciation to the
primary accounting system of the Fund.
6. Allocate expenses between classes
as follows:
a. Expenses directly
attributable to each class (12b-1
distribution expenses) are calculated
and recorded to that class.
b. Expenses attributable to both
classes are allocated in accordance
with the appropriate asset allocation
percentage for each class.
7. Allocate realized and
unrealized gains and losses between the
classes in accordance with the
appropriate asset allocation percentage
of each class.
8. Record dividends/distributions to
shareholders of each class in the
primary accounting system.
9. Aggregate the net assets for each
class and agree to the total net assets
per the primary accounting system.
10. For each class, reconcile the
current day's NAV and, if applicable,
the dividend/distribution to the
previous day's NAV and
dividend/distribution for each class.
11. The above procedures are reviewed
by the Fund supervisor or manager.
SECTION II
Tests of Operating Effectiveness
Prudential Dual Pricing Worksheet
July 1, 1992 to June 30, 1993
We reviewed the methodology and procedures for calculating the daily net asset
value and, if applicable, the dividends/distributions of the two classes of
shares and the allocation of income and expenses between the two classes of
shares.
The following are the detailed procedures which we performed with respect to
the Worksheet. These procedures were performed for selected days encompassing
all Funds subject to dual pricing during the year ended June 30, 1993, which we
believe is a representative sample, to test compliance with the control
policies and procedures as described in Section I.
Prudential Mutual Fund Management, Inc. is the manager of the Funds and has
represented to us that adequate facilities are in place to ensure
implementation of the methodology and procedures for calculating the net asset
value and dividends/distributions of the two classes of shares and the
allocation of income and expenses between the two classes of shares. Based on
our review of the description of the policies and procedures of the Worksheet,
as described in Section I, and performance of tests of operating effectiveness
as described in Section II, we concur with such representation.
Agreed "Prior Day NAV Per Share" to the previous day's Worksheet and
to the rounded NAV included on the Supersheet for each class.
Agreed "Shares Outstanding Beginning of the Day" to the Supersheet
for each class.
Agreed "Activity/Estimate" to the estimated interim share activity
reported via fax from the transfer agent for each class.
Recalculated "Current Shares Outstanding" by adding "Shares
Outstanding Beginning of the Day" and "Activity/Estimate" for each
class.
Recalculated for each class "Adjusted Total Assets" by multiplying
"Prior Day NAV Per Share" by "Current Shares Outstanding."
Recalculated "Percentage Assets-Class A/Front End" by dividing
"Adjusted Total Assets-Class A/Front End" by "Adjusted Total Assets
Composite."
Recalculated "Percentage Assets-Class B/Back End" by dividing
"Adjusted Total Assets-Class B/Back End" by "Adjusted Total Assets
Composite."
Agreed "Dividend Shares Beginning of Day" to the Supersheet for each
class.
Agreed "Activity/Estimate" to the estimated interim share activity
reported via fax from the transfer agent for each class.
Recalculated "Current Dividend Shares" by adding "Dividend Shares
Beginning of Day" and "Activity/Estimate" for each class.
Recalculated for each class "Adjusted Dividend Assets" by multiplying
"Prior Day NAV Per Share" by "Current Dividend Shares."
Recalculated "Percentage Dividend Assets-Class A/Front End" by
dividing "Adjusted Dividend Assets-Class A/Front End" by "Adjusted
Dividend Assets Composite."
Recalculated "Percentage Dividend Assets-Class B/Back End" by
dividing "Adjusted Dividend Assets-Class B/Back End" by "Adjusted
Dividend Assets Composite."
Agreed composite total "Dividend Income", "Interest Income",
"Amortization" and "Income Equalization" to the primary accounting
system.
Recalculated the allocation for each class of "Dividend Income",
"Interest Income" and "Amortization" for daily dividend funds by
multiplying the composite total by "Percentage Dividend Assets-Class
A/Front End" and "Percentage Dividend Assets-Class B/Back End," and
for non-daily dividend funds by multiplying the composite total by
"Percentage Assets-Class A/Front End" and "Percentage Assets-Class
B/Back End."
Recalculated "Daily Income", composite and for each class, by
totaling "Dividend Income", "Interest Income", "Amortization" and
"Income Equalization."
Agreed composite total "Management Fee" and "Other Fixed Expenses" to
the primary accounting system.
Recalculated the allocation for each class of "Management Fee" and
"Other Fixed Expenses" for daily dividend funds by multiplying the
composite total by "Percentage Dividend Assets-Class A/Front End" and
"Percentage Dividend Assets-Class B/Back End," and non-daily dividend
funds by multiplying the composite total by "Percentage Assets-Class
A/Front End" and "Percentage Assets-Class B/Back End."
Agreed the "12b-1 Fee-Class A/Front End" and "12b-1 Fee-Class B/Back
End" to the respective "PC Expense Worksheet."
Recalculated "Daily Expense", composite and for each class, by
totaling "Management Fee", "12b-1 Fee" and "Other Fixed Expenses."
Recalculated "Daily Net Income" for each class by subtracting "Daily
Expense" from "Daily Income."
Recalculated "Dividend Rate" for each class for daily dividend funds
by dividing "Daily Net Income" by "Dividend Shares Beginning of
Day-Class A/Front End" and "Dividend Shares Beginning of Day-Class
B/Back End."
Agreed "Daily Income" and "Income Distribution" for each class to the
primary accounting system.
Recalculated "Undistributed Net Income" for each Class by subtracting
"Income Distribution" from "Income Available for Distribution."
Agreed "Capital Stock Activity" for each Class to the Supersheet.
Agreed the "Capital Gain Distribution" to the amount recorded in the
primary accounting system.
Agreed composite total "Realized Gain/Loss", "Unrealized
Appreciation/Depreciation", "Unrealized Appreciation/Depreciation -
Options" and "Unrealized Appreciation/Depreciation - Futures" to the
primary accounting system.
Recalculated the allocation for each class of "Realized Gain/Loss",
"Unrealized Appreciation/Depreciation", "Unrealized
Appreciation/Depreciation - Options" and "Unrealized
Appreciation/Depreciation - Futures" by multiplying the composite
amount by the "Percentage Assets-Class A/Front End" and "Percentage
Assets-Class B/Back End."
Agreed "Prior Days Net Assets" to the previous day's Worksheet.
Recalculated "Net Assets", composite and for each class, by totaling
"Undistributed Net Income", "Capital Stock Activity", "Capital Gain
Distribution", "Realized Gain/Loss", "Unrealized
Appreciation/Depreciation", "Unrealized Appreciation/Depreciation -
Options", "Unrealized Appreciation/Depreciation - Futures", and
"Prior Days Net Assets."
Recalculated "NAV Per Share" dividing the "Net Assets-Class A/Front
End" and "Net Assets - Class B/Back End" by "Current Shares
Outstanding - Class A/Front End" and 'Current Shares Outstanding -
Class B/Back End", respectively.
Recalculated "Offering Price" for Class A shares by applying the
"Load" percentage as stated in the fund's prospectus.
