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SIGNATURE SUSAN C. COTE'
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<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
For the six months ended (a) 10/31/94
File number (c) 811-6047
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 Directors.
Affirmative Negative
votes cast votes cast
Edward D. Beach 7,486,920 386,917
Donald D. Lennox 7,495,218 378,619
Douglas H. McCorkindale 7,492,165 381,672
Lawrence C. McQuade 7,494,921 378,916
Thomas T. Mooney 7,491,738 382,099
Richard A. Redeker 7,499,416 374,421
Louis A. Weil, III 7,499,878 373,959
b)Approval of an amendment of the Fund's Articles of Incorporation to
permit a conversion feature for Class B shares.
Affirmative Negative
votes cast votes cast
7,231,363 142,250
c) Approval of an amended and restated Class A Distribution and
Service Plan.
Affirmative Negative
votes cast votes cast
Class A 2,481,740 49,589
Class B 4,654,980 140,412
d) Approval of an amended and restated Class B Distribution and
Service Plan.
Affirmative Negative
votes cast votes cast
Class B 4,669,673 134,849
e)Approval of the elimination of each Portfolio's investment
restrictions regarding restricted and illiquid securities.
Affirmative Negative
votes cast votes cast
6,976,780 314,120
f)Approval of an amendment of the Fund's investment restriction
limiting the Fund's ability to invest in a security if the Fund
would hold more than 10% of any class of securities of an issuer.
Affirmative Negative
votes cast votes cast
6,991,840 335,149
g)Approval of the elimination of the Fund's investment restriction
limiting the Fund's ability to invest in the securities of any
issuer in which officers and Directors of the Fund or officers and
directors of its investment adviser own more than a specified
interest.
Affirmative Negative
votes cast votes cast
6,840,641 464,104
MSF1094.77C
NSAR#3
For the six months ended (a) October 31, 1994
File number (c) 811-6047
SUB-ITEM 77 D
Policies With Respect to Security Investments
At a meeting of the Board of Directors held on August 16,
1994, the Directors approved revised procedures for the valuation
of the Fund's portfolio securities. The procedures have been
revised primarily to change the method of pricing options on stocks
and stock indices which will now be priced at the mean between the
most recently quoted bid and asked prices on the relevant exchange
rather than at the close of the trading.
MSF1094.77D
For the six months ended (a) October 31, 1994
File number (c) 811-6047
SUB-ITEM 77I
Terms of New or Amended Securities
The Directors 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].
MSF1094.77I
NSAR#3
For six months ended (a) October 31, 1994
File number (c) 811-6047
SUB-ITEM 77J
Revaluation of Assets or Restatement of Capital Share Account
The Fund accounts for and reports distributions to
shareholders in accordance with the A.I.C.P.A.'s 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. During the six months ended October 31,
1994, the Fund reclassified $293,473 net operating losses to
accumulated net realized gains on investment transactions from
overdistributed net investment income. Net investment income, net
realized gains, and net assets were not affected by this change.
For the six months ended (a) 10/31/94
File number (c) 811-6047
SUB-ITEM 77 0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
Fore Systems
2. Date of Purchase
5/24/94
3. Number of Securities Purchased
3,000
4. Dollar Amount of Purchase
$48,000
5. Price Per Unit
$16.00
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Goldman, Sachs & Co.
7. Other Members of the Underwriting Syndicate
Montgomery Securities
Advest, Inc.
Bear, Stearns & Co. Inc.
William Blair & Company
Alex. Brown & Sons Incorporated
CS First Boston Corporation
Cowen & Company
Dean Witter Reynolds Inc.
Donaldson, Lufkin & Jenrette Securities Corporation
A.G. Edwards & Sons, Inc.
Furman Selz Incorporated
Hambrecht Quist Incorporated
Hunter Associates, Inc.
Janney Montgomery Scott Inc.
Josephthal Lyon & Ross Incorporated
Kemper Securities, Inc.
Kidder, Peabody & Co. Incorporated
Legg Mason Wood Walker Incorporated
Lehman Brothers Inc.
McDonald & Company Securities, Inc.
Morgan Stanley & Co. Incorporated
Needham & Company, Inc.
Nutmeg Securities, Ltd.
Oppenheimer & Co., Inc.
PaineWebber Incorporated
Parker/Hunter Incorporated
Pennsylvania Merchant Group Ltd.
Piper Jaffray Inc.
Prudential Securities Incorporated
Punk, Ziegel & Knoell
Rauscher Pierce Refsnes, Inc.
Robertson, Stephens & Company, L.P.
The Robinson-Humphrey Company, Inc.
Salomon Brothers Inc.
Scott & Stringfellow, Inc.
SoundView Financial Group, Inc.
Sutro & Co. Incorporated
Unterberg Harris
Wheat, First Securities, Inc.
