<PAGE>
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Pilgrim Prime Rate Trust Fiscal 1996 Third Quarter Report
- --------------------------------------------------------------------------------
Dear Shareholders:
Pilgrim Prime Rate Trust continued in the third quarter to meet its objectives
of providing a high level of monthly income while maintaining a relatively
stable net asset value (NAV). During this period short term interest rates did
not move significantly. The economy delivered a wide range of mixed signals and
until December 19, 1995, the Federal Reserve Board interpreted these signals
conservatively, opting for no significant change in prevailing interest rates.
Based on $0.214 of dividends declared in the 91 day quarterly period and the
$9.67 NAV as of November 30, 1995, the annualized dividend yield for the quarter
was 8.90%, compared with a prime rate of 8.75% for the same period.
THIRD QUARTER HIGHLIGHTS
During the quarter ended November 30, 1995, Pilgrim Prime Rate Trust:
CONTINUED TO DELIVER A RELATIVELY STABLE NAV
Asset quality remains acceptable. The portfolio remains highly diversified, a
primary strategy of Pilgrim Prime Rate Trust. The NAV on November 30, 1995
represented a $ 0.01 increase in NAV over the closing NAV on August 31, 1995.
ADDED 12 NEW TRANSACTIONS
The Trust's diversified sources of transactions allowed it to review and approve
new credits syndicated by seven different institutions. The Trust was able to
maintain access to transactions which generated yields consistent with those
achieved historically. New credits added to the portfolio include Jackson
Products, Inc., Eller Media Co., Cobblestone Golf Group, Inc., Pierce Leahy
Corp., Orion Pictures Corp., Fiberite, Inc. and Cedar Chemical Corp.
CONTINUED TO BENEFIT FROM THE STRONG SECONDARY MARKET
The Portfolio Manager was able to buy and sell investments in the strong
secondary market generally on favorable terms. The secondary market allows the
Portfolio Manager to harvest profits, manage exposure to industries or issues
and acquire attractive investments without having to rely on new transaction
flow.
CHANGE OF PORTFOLIO MANAGER
As discussed in the last letter to shareholders, Michael McAdams resigned
effective mid-November 1995. Mr. McAdams guided the Trust with vision and
effectiveness during his eight years as Portfolio Manager and we wish him well
in his new position in the institutional arena.
On November 13, 1995, the Trust appointed Howard Tiffen, a newly hired Senior
Vice President of Pilgrim America Investments, Inc., to be the Portfolio Manager
of the Trust. Mr. Tiffen came to the Trust after nearly 14 years with
Continental Bank and Bank of America. He has been actively involved in the
syndicated credit and corporate finance markets for nearly 25 of his 30 years in
banking. Working with other colleagues at Pilgrim America, he has been able to
put in place an analyst team that is experienced in both the capital and
corporate finance markets.
OUTLOOK
The Federal Reserve Board announced a 25 basis point reduction in the discount
rate on December 19, 1995, which led to an immediate cut in the prime rate to
8.50%. During the coming months, the Trust's dividend will adjust to the new
level of interest rates. Balancing this, the Portfolio Manager sees a healthy
pipeline of new transactions into the first quarter of 1996 being generated by a
broad array of major banks and other financial institutions. This should ensure
continued diversification and maintenance of the historical relationship between
the prime rate and the Trust's dividend.
It is generally felt that credit risk is increasing. The Portfolio Manager sees
isolated examples of this in the Trust's portfolio. In fact, during December,
the Trust's NAV was reduced by $0.02 to reflect the lowered valuation of two
credits. First, the New Almacs Inc. bankruptcy proceeding has advanced. Second,
the Portfolio Manager is monitoring Color Tile, Inc. closely as its new
management team implements it's 1996 Business Plan, but in view of the continued
uncertainty, the Portfolio Manager has further reduced the carrying value of
this investment. Additionally, we continue to
<PAGE>
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Pilgrim Prime Rate Trust Fiscal 1996 Third Quarter Report
- --------------------------------------------------------------------------------
closely monitor the ongoing efforts of Rowe International, Inc. as it
consolidates operations and introduces new products. The Portfolio Manager will
continuously manage this risk and will emphasize credit quality in new
investments.
The Trust is ranked number one among the five funds in the "Loan Participation
Fund" category according to Lipper Analytical Services for each of the one,
three and five-year periods ended September 30, 1995, October 31, 1995 and
November 30, 1995.*
As always, our goal is for every investor to have a successful investment
experience. We appreciate your continued support and confidence, and welcome
your questions and comments.
Sincerely,
/s/ Robert W. Stallings
Robert W. Stallings
Chairman and Chief Executive Officer
January 2, 1996
Pilgrim Prime Rate Trust is a closed-end management investment company listed on
the New York Stock Exchange (Symbol: PPR) that seeks to provide a high level of
current income, consistent with preservation of capital. The Trust seeks to
achieve these objectives by investing in a portfolio of senior, collateralized
corporate loans, whose interest rates float with the prime lending rate as
posted by major banks or LIBOR (London Inter-Bank Offered Rate).
* Source: Lipper Analytical Services, Inc. Lipper ranked Pilgrim Prime Rate
Trust for total return, without deducting sales charges, and assuming
reinvestment of all dividends and capital gains distributions.
Performance data represents past performance and is no guarantee of future
results. Investment return will fluctuate. Shares, when sold, may be worth more
or less than their original cost.
For a free prospectus on any Pilgrim America open-end fund which contain more
complete information, including all fees, charges and expenses, please call your
investment professional or Pilgrim America at 1-800-334-3444. Be sure to read
the prospectus carefully before investing or sending money. Pilgrim America
open-end funds are offered through PILGRIM AMERICA SECURITIES, INC. DISTRIBUTOR.
- -----
2
<PAGE>
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Pilgrim Prime Rate Trust Fiscal 1996 Third Quarter Report
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TOLL-FREE SHAREHOLDER INFORMATION
Call us from 9:00 a.m. to 7:00 p.m. Eastern time on any business day for Account
Information or special account services at 1-800-331-1080.
WRITTEN REQUESTS
Please mail all account inquiries and other comments to:
Pilgrim America Group, Inc.
Two Renaissance Square
40 North Central Avenue, Suite 1200
Phoenix, Arizona 85004-4224
Attn : Pilgrim Prime Rate Trust Account Services
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN
Trust shareholders whose shares are registered in their own names will
automatically be paid distributions in cash, unless an election is made to
reinvest the payments in additional shares of the Trust, at reduced brokerage
commissions, pursuant to the Dividend Reinvestment and Cash Purchase Plan. The
Plan also provides for a convenient method to add to shareholders' holdings by
enabling them to make periodic cash purchases. For a copy of the Plan, or for
more information, contact our Shareholder Service Department at 1-800-331-1080.
STOCK DATA
The Trust's Shares are traded on the New York Stock Exchange (Symbol: PPR). The
Trust's NAV and market price are tracked weekly under the "Closed-End Funds"
featured in Barron's, the New York Times, Wall Street Journal and many other
regional and national publications.
ANNUAL MEETING
Annual shareholder meetings are held at the executive offices of Pilgrim America
Group, Inc. As of this date the next shareholder meeting has not been scheduled.
KEY FINANCIAL DATES - Calendar 1996 Dividends:
Declaration Date Ex-Date Payable Date
- --------------------------------------------------------------------------------
January 31 February 8 February 23
February 29 March 7 March 21
March 29 April 3 April 18
April 30 May 8 May 22
May 31 June 6 June 20
June 28 July 3 July 18
July 31 August 8 August 22
August 30 September 5 September 19
September 30 October 8 October 23
October 31 November 7 November 22
November 29 December 5 December 19
December 20 December 27 January 13, 1997
Record date will be two business days after each Ex-Date.
INSTITUTIONAL INVESTOR CONTACTS
Institutional investor and analyst comments should be directed to:
Pilgrim Prime Rate Trust
Investor Relations Department
c/o Pilgrim America Group, Inc. or
by calling 1-602-417-8256
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3
<PAGE>
PORTFOLIO OF INVESTMENTS (UNAUDITED)
NOVEMBER 30, 1995
=========================
<TABLE>
<CAPTION>
SENIOR COLLATERALIZED LOAN PARTICIPATIONS: 92.7%*
PRINCIPAL
AMOUNT (DOLLAR WEIGHTED PORTFOLIO INTEREST RESET PERIOD IS 41 DAYS.) VALUE
--------- -----
<C> <S> <C>
AEROSPACE PRODUCTS & SERVICES: 6.0%
$ 14,917,607 Aviall, Inc. (aircraft engine maintenance) November 2000.................................... $ 14,917,607
8,000,000 Dallas Airmotive, Inc. (aircraft engine maintenance) March 2001............................. 8,000,000
5,975,957 Grimes Aerospace Corp. (aerospace products) December 1999................................... 5,378,361
5,000,000 Gulfstream Delaware Corp. (aircraft manufacturer) March 1998................................ 5,000,000
18,549,759 VSI Corp. (aerospace products) March 1997................................................... 18,549,759
------------
51,845,727
------------
APPAREL & TEXTILES: 2.2%
1,077,706 Butterick Pattern Co. (sewing aids) May 1996................................................ 996,878
10,935,025 Chicopee, Inc. (specialty fabrics) March 2003............................................... 10,935,025
7,000,000 Humphreys, Inc. (belts and personal leather goods) January 2003............................. 7,000,000
------------
18,931,903
------------
COMMUNICATION SERVICES: 1.5%
12,500,000 Paging Network Inc. (paging services) March 2002............................................ 12,531,250
------------
CONSTRUCTION PRODUCTS AND SERVICES: 3.0%
19,800,000 MTF Acquisition Corp. (paint and coating products) November 2002............................ 19,800,000
4,000,000 The Presley Companies (homebuilder) May 1997................................................ 4,000,000
2,442,741 United Building Materials, Inc. (stone and concrete products) March 1996.................... 2,381,673
------------
26,181,673
------------
CONTAINER PRODUCTS: 2.5%
10,000,000 Reid Plastics Inc. (plastic bottle manufacturer) January 2002............................... 10,000,000
12,000,000 Silgan Corp. (metal and plastic containers) September 1996.................................. 12,045,000
------------
22,045,000
------------
DIVERSIFIED MANUFACTURING: 9.6%
19,950,000 Graco Children's Products, Inc. (juvenile products) June 2003............................... 19,950,000
10,000,000 Jackson Products, Inc. (industrial safety equipment manufacturer) September 2003............ 10,000,000
978,489 (2) KDI Corp. (defense and leisure products) March 1998......................................... 783,099
5,824,784 Mail-Well Corp. (envelopes and specialty printing) July 2003................................ 5,824,784
10,000,000 Merkle-Korfff Industries (custom industrial electric motors) March 2003..................... 10,000,000
16,965,929 Pullman Company (transportation, industrial products) September 2000........................ 16,965,929
8,175,000 Rowe International, Inc. (vending machine, jukebox and currency changer manufacturer)
June 2000................................................................................. 7,806,250
12,361,111 Spalding & Evenflo Companies, Inc. (sporting goods, juvenile products) October 2002......... 12,361,111
------------
83,691,173
------------
ELECTRONIC EQUIPMENT: 2.3%
12,500,000 Dictaphone Acquisition, Inc. (dictation and recording equipment) June 2002.................. 12,500,000
7,500,000 K-Tec Holdings (telephone and communications equipment) March 2004.......................... 7,500,000
------------
20,000,000
------------
FOOD/BEVERAGE PRODUCTS AND SERVICES: 3.5%
6,875,000 Bumble Bee Seafoods, Inc. (canned seafood) December 1996.................................... 6,875,000
4,500,000 Edward's Baking Company (food and tobacco products) September 2002.......................... 4,500,000
2,162,262 Tom's Foods, Inc. (snack foods) December 1998............................................... 2,108,205
16,976,865 U.S. Foodservice, Inc. (food wholesaler) November 2000...................................... 16,976,865
------------
30,460,070
------------
FOOD STORES: 3.1%
12,499,741 Dominick's Finer Foods, Inc. (Chicago supermarkets) September 2003.......................... 12,530,991
1,040,312 (1) New Almac's Inc. (formerly Almac's, Rhode Island supermarkets) December 2001................ 1,014,305
13,300,000 Ralphs Grocery Company (California and midwest supermarkets) June 2001...................... 13,333,250
------------
26,878,546
------------
</TABLE>
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4
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<C> <S> <C>
GENERAL MERCHANDISE STORES: 4.2%
$ 20,000,000 Liberty House, Inc. (Hawaiian department store chain) June 2002............................. $ 20,000,000
16,763,408 Saks and Company (general merchandise retailer) June 2000................................... 16,763,408
------------
36,763,408
------------
HEALTH CARE SERVICES: 2.2%
6,068,980 Covenant Care, Inc. (operator of long-term health care facilities) June 1999................ 6,068,980
7,000,000 H.E.C. Investments, Inc. (health club operator) December 2000............................... 7,000,000
1,625,000 IVAC Corporation (manufacturer of intravenous and vital sign measurement instruments)
December 1999............................................................................. 1,625,000
4,220,432 Mediq/PRN Life Support Inc. (hospital equipment leasing) September 1998..................... 4,220,432
------------
18,914,412
------------
HEALTH & BEAUTY PRODUCTS: 3.7%
17,500,000 ICON Health & Fitness Co. (exercise equipment) November 2001................................ 17,500,000
10,000,000 Mary Kay Cosmetics, Inc. (client sale cosmetics) December 2002.............................. 10,000,000
5,000,000 Revlon Inc. (cosmetics manufacturer) June 1997.............................................. 5,000,000
------------
32,500,000
------------
INDUSTRIAL EQUIPMENT: 6.3%
5,000,000 Calmar (non-aerosol fluid dispensing systems) March 2003.................................... 5,000,000
9,250,000 Cedar Chemical Corp. (specialized chemicals) October 2003................................... 9,250,000
5,000,000 Graphic Controls Corp. (industrial and medical charts) September 1999....................... 5,000,000
4,657,315 Intermetro Industries Inc. (storage and material transport products) December 2002.......... 4,657,315
9,958,333 National Propane Inc. (propane distribution) June 2002...................................... 9,958,333
5,800,000 National Refractories Inc. (kiln lining materials) September 1999........................... 5,800,000
1,208,396 Newflo Corporation (pump and valve manufacturer) February 1998.............................. 1,208,396
9,960,000 Primeco, Inc. (equipment rental) December 2000.............................................. 9,960,000
4,025,915 Sperry Marine, Inc. (manufacturer of navigation products) November 2000..................... 4,025,915
------------
54,859,959
------------
INDUSTRIAL SERVICES: 3.0%
7,000,000 Bankers Systems, Inc. (compliance services to banking industry) November 2002............... 7,000,000
8,999,998 Clean Harbors (industrial cleaning) May 2000................................................ 8,999,998
9,580,000 Staff Capital, L.P. (payroll and human resource services) December 1999..................... 9,580,000
------------
25,579,998
------------
MEDIA/ENTERTAINMENT: 8.6%
7,250,000 Eller Media Co. (outdoor advertising) December 2003......................................... 7,250,000
20,000,000 Metro-Goldwyn-Mayer, Inc. (motion picture distribution) April 1997.......................... 20,000,000
9,496,667 Orion Pictures Corp. (theatrical motion pictures) December 2000............................. 9,496,667
9,950,000 Phoenix Associates Inc. (cable television company) December 1999............................ 9,950,000
8,530,352 U. S. Radio Holdings (independent radio stations) September 2003............................ 8,530,352
19,394,097 Ziff-Davis Corporation (electronics trade magazine publishing) December 2002................ 19,394,097
------------
74,621,116
------------
METAL PRODUCTS: 5.4%
10,000,000 GS Technologies (metal products fabricator) September 2002.................................. 10,000,000
14,064,750 The Hawk Group of Companies, Inc. (friction materials, metal stampings and powder metal)
June 2002................................................................................. 14,064,750
19,500,000 Titanium Metals, Inc. (metal smelter) April 1996............................................ 19,500,000
3,250,000 Triangle Wire and Cable Inc. (metal products fabricator) April 1997......................... 3,250,000
------------
46,814,750
------------
MISCELLANEOUS COMPANIES: 5.9%
9,698,690 Cobblestone Golf Group, Inc. (golf courses) September 2001.................................. 9,698,690
6,000,000 Explosive Technologies Corp. (industrial explosives manufacturer) February 1998............. 6,000,000
289,414 General Acquatics, Inc. (swimming pool manufacturer) June 2000.............................. 419,992
</TABLE>
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5
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----
<C> <S> <C>
MISCELLANEOUS COMPANIES (CONTINUED)
$ 10,000,000 Intesys Technologies, Inc. (contract engineering and manufacturing) December 2001........... $ 10,000,000
2,500,000 Liggett Group Inc. (tobacco products) March 1997............................................ 2,500,000
10,606,396 Six Flags Theme Parks (amusement parks) June 2003........................................... 10,606,396
12,000,000 Worldwide Sports & Recreation Corp. (optics, airguns & sports products) March 2001.......... 12,000,000
------------
51,225,078
------------
PAPER PRODUCTS: 2.7%
10,000,000 Crown Paper Co. (coated paper products) August 2003......................................... 10,025,000
10,000,000 Stone Container Corp. (diversified paper products) October 2003............................. 10,025,000
2,899,000 Supremex, Inc. (Canadian envelope manufacturer) July 2003................................... 2,899,000
------------
22,949,000
------------
PUBLISHING AND INFORMATION SERVICES: 2.0%
7,500,000 NBC Acquisition (wholesale and retail textbooks) August 2003................................ 7,500,000
10,000,000 Pierce Leahy Corp. (document storage) July 2000............................................. 10,000,000
------------
17,500,000
------------
RESTAURANTS: 3.0%
19,180,448 America's Favorite Chicken Co. (quick service restaurant chain) November 1998............... 19,180,448
5,780,467 Friendly's Ice Cream Company (Northeastern restaurant chain) January 1996................... 5,029,007
1,789,236 Long John Silvers Inc. (quick service seafood restaurant chain) December 1998............... 1,789,236
------------
25,998,691
------------
SPECIALTY CHEMICALS: 1.0%
9,000,000 Fiberite, Inc. (plastic composite manufacturer) December 2001............................... 9,000,000
------------
SPECIALTY RETAILING: 3.5%
4,844,340 Camelot Music, Inc. (music stores) February 2002............................................ 4,723,231
15,193,333 Color Tile, Inc. (home improvement retailer) December 1998.................................. 14,053,833
2,484,184 M & H Drugs, Inc. (Midwestern retail drugstores) March 1996................................. 2,422,080
9,000,000 Murray's Discount Auto Parts (auto parts retailer) September 2001........................... 9,000,000
------------
30,199,144
------------
TRANSPORTATION: 7.5%
5,750,000 Cruise Ship L.L.C. (cruise ship operator) July 2001......................................... 5,750,000
2,054,668 Gateway Western Railway (regional railroad) December 2000................................... 2,054,668
37,353,979 Northwest Airlines, Inc. (international airline) December 1999.............................. 37,353,979
20,000,000 Sky Chefs International (airline food service) September 2003............................... 20,000,000
------------
65,158,647
------------
Total Senior Collateralized Loan Participations (Cost $808,123,030)..................... 804,649,545
------------
OTHER CORPORATE DEBT: 0.1%
FOOD STORES: 0.1%
1,110,798 (1) New Almac's Inc. (formerly Almac's, Rhode Island supermarkets)
Senior Subordinated Note, December 2004................................................... 833,099
------------
Total Other Corporate Debt (Cost $848,197).............................................. 833,099
------------
COMMON STOCK AND PREFERRED STOCK: 0.9%
<CAPTION>
SHARES VALUE
--------- -----
<C> <S> <C>
DIVERSIFIED MANUFACTURING: 0.1%
100,000 @ Interco, Inc.---common (furniture).......................................................... 837,500
2,633 (2) KDI Corp.---common (defense and leisure products)........................................... --
------------
837,500
------------
</TABLE>
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6
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
--------- -----
<C> <S> <C>
ELECTRONIC PRODUCTS: 0.2%
174,951 @(R) MICOM Communications Corp.--common (wide area networking products).......................... $ 1,594,241
------------
RESTAURANTS: 0.4%
413,980 @(R) America's Favorite Chicken Co.--common (quick service restaurant chain)..................... 786,562
24,848 (R) America's Favorite Chicken Co.--preferred (quick service restaurant chain).................. 2,484,800
17,664 @ Flagstar, Inc.--common (family restaurants and institutional food service companies)........ 72,864
------------
3,344,226
------------
TEXTILES: 0.2%
12,764 @(R) Dan River (Braelan) Corp.---common (diversified textiles)................................... 2,288,045
------------
Total Common Stock and Preferred Stock (Cost $4,621,827).................................... 8,064,012
------------
STOCK PURCHASE WARRANTS AND OTHER SECURITIES: 0.2%
48,930 @(R) Autotote Systems, Inc., Warrants (designer and manufacturer of wagering equipment),
Exercise price $3.835, Expires 10/30/03................................................... 48,441
8,771 @(R) Cruise Ship L.L.C., Warrants (cruise ship operator), Exercise Price $.01, Expires 7/1/04.... 276,584
18,954,373 @(R) Gateway Western Railway, Warrants (regional railroad), Exercise Price $.001................. 497,818
26,606 @(R)(2) KDI Corp. Units of Trust (defense and leisure products)..................................... --
1 @(R) Staff Capital, L.P., Warrants (payroll and human resource services), Expires 11/5/03........ 540,000
45,000 @(R)(1) Victory Holding Corp., Warrants (Rhode Island supermarkets), Exercise Price $10,
Expires 12/1/01........................................................................... --
------------
Total Stock Purchase Warrants and Other Securities (Cost $2,239,007)....................... 1,362,843
------------
SHORT-TERM INVESTMENTS: 6.0%
<CAPTION>
PRINCIPAL
AMOUNT
---------
<C> <S> <C>
U.S. AGENCY DISCOUNT NOTES: 6.0%
$ 52,052,000 Federal Home Loan Mortgage Corporation, 5.80%, Due 12/1/95.................................. 52,052,000
------------
Total Short-Term Investments (Cost $52,052,000)............................................. 52,052,000
------------
<CAPTION>
<C> <S> <C> <C>
TOTAL INVESTMENTS (COST $867,231,512).................................... 99.9% 866,961,499
CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES-NET....................... 0.1 1,154,099
----- ------------
TOTAL NET ASSETS......................................................... 100.0% $868,115,598
===== ============
</TABLE>
====================
@ Non-income producing security
(R) Restricted security
* Collaterized loan participations, while exempt from registration under the
Securities Act of 1933, contain certain restrictions on resale and cannot be
sold publicly. These collaterized loan participations bear interest (unless
otherwise noted) at rates that float periodically at a margin above the
Prime Rate of a U. S. bank specified in the credit agreement, LIBOR, the
certificate of deposit rate, or in some cases another base lending rate
(1) The borrower filed for protection under Chapter 11 of the U.S. Federal
bankruptcy code and is in the process of developing a plan of reorganization
(2) The borrower filed for protection under Chapter 7 of the U.S. Federal
bankruptcy code and is in the process of developing a plan of liquidation
- -----
7
<PAGE>
================================================================================
PILGRIM AMERICA
FUNDS
- --------------------------------------------------------------------------------
OPEN-END FUNDS
ELITE SERIES:
Pilgrim America MagnaCap Fund
Pilgrim America High Yield Fund
Pilgrim Government Securities Income Fund
MASTERS SERIES:
Pilgrim America Masters Asia-Pacific Equity Fund
Pilgrim America Masters MidCap Value Fund
Pilgrim America Masters LargeCap Value Fund
CLOSED-END FUNDS
Pilgrim Regional BankShares/SM/
Pilgrim Prime Rate Trust/(TM)/
MONEY MARKET FUND
Pilgrim America General Money Market Shares
Pilgrim America General Money Market Shares is a class of the Cortland General
Money Market Fund Series of Cortland Trust, Inc.
Prospectuses containing more complete information about the money market and
open-end funds, including charges and expenses, may be obtained from PILGRIM
AMERICA SECURITIES, INC. DISTRIBUTOR. Please read the prospectus carefully
before you invest or send money.
<PAGE>
- ----------------------------------------
Two Renaissance Square
40 North Central Avenue
Suite 1200
Phoenix, Arizona 85004-4424
- ----------------------------------------
Pilgrim Prime Rate Trust
INVESTMENT MANAGER
Pilgrim America Investments, Inc.
Two Renaissance Square
40 North Central Avenue
Suite 1200
Phoenix, Arizona 85004-4424
SHAREHOLDER SERVICING AGENT
Pilgrim America Group, Inc.
Two Renaissance Square
40 North Central Avenue
Suite 1200
Phoenix Arizona 85004-4424
1-800-331-1080
TRANSFER AGENT
Investors Fiduciary Trust Company
c/o DST Systems, Inc.
P.O. Box 419368
Kansas City, Missouri 64141
----------
PILGRIM AMERICA
FUNDS
This report is submitted for the
general information of the
shareholders of the fund.
RRD 61 13-SS-010196 012296
PILGRIM AMERICA
FUNDS
- ----------------------------------------
Pilgrim
Prime Rate Trust
- ----------------------------------------
Third Quarter Report
November 30, 1995
