<PAGE> PAGE 1
000 B000000 06/30/99
000 C000000 0000885414
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 THE PREFERRED GROUP OF MUTUAL FUNDS
001 B000000 811-6602
001 C000000 8006624769
002 A000000 411 HAMILTON BLVD., SUITE 1200
002 B000000 PEORIA
002 C000000 IL
002 D010000 61602
002 D020000 5330
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 8
007 C010100 1
007 C020100 PREFERRED VALUE FUND
007 C030100 N
007 C010200 2
007 C020200 PREFERRED GROWTH FUND
007 C030200 N
007 C010300 3
007 C020300 PREFERRED INTERNATIONAL FUND
007 C030300 N
007 C010400 4
007 C020400 PREFERRED FIXED INCOME FUND
007 C030400 N
007 C010500 5
007 C020500 PREFERRED ASSET ALLOCATION FUND
007 C030500 N
007 C010600 6
007 C020600 PREFERRED SHORT-TERM GOV'T SECURITIES FUND
007 C030600 N
007 C010700 7
007 C020700 PREFERRED MONEY MARKET FUND
007 C030700 N
007 C010800 8
007 C010900 9
007 C020900 PREFERRED SMALL CAP FUND
007 C030900 N
007 C011000 10
011 A00AA01 CATERPILLAR SECURITIES INC.
011 B00AA01 8-41210
<PAGE> PAGE 2
011 C01AA01 PEORIA
011 C02AA01 IL
011 C03AA01 61602
011 C04AA01 5330
012 A00AA01 BOSTON FINANCIAL DATA SERVICES, INC.
012 B00AA01 84-896
012 C01AA01 QUINCY
012 C02AA01 MA
012 C03AA01 02171
013 A00AA01 PRICEWATERHOUSECOOPERS, LLP
013 B01AA01 BOSTON
013 B02AA01 MA
013 B03AA01 02110
014 A00AA01 CATERPILLAR SECURITIES INC.
014 B00AA01 8-41210
015 A00AA01 STATE STREET BANK AND TRUST CO.
015 B00AA01 C
015 C01AA01 BOSTON
015 C02AA01 MA
015 C03AA01 02101
015 E01AA01 X
015 A00AA02 CITIBANK, N.A.
015 B00AA02 S
015 C01AA02 BUENOS AIRES
015 D01AA02 ARGENTINA
015 E04AA02 X
015 A00AA03 WESTPAC BANKING CORPORATION
015 B00AA03 S
015 C01AA03 SYDNEY
015 D01AA03 AUSTRALIA
015 E04AA03 X
015 A00AA04 GENERALE BANK
015 B00AA04 S
015 C01AA04 BRUSSELS
015 D01AA04 BELGIUM
015 E04AA04 X
015 A00AA05 CITIBANK, N.A.
015 B00AA05 S
015 C01AA05 SAO PAULO
015 D01AA05 BRAZIL
015 E04AA05 X
015 A00AA06 STATE STREET TRUST COMPANY CANADA
015 B00AA06 S
015 C01AA06 TORONTO
015 D01AA06 CANADA
015 E04AA06 X
015 A00AA07 DEN DANSKE BANK
015 B00AA07 S
015 C01AA07 COPENHAGEN
015 D01AA07 DENMARK
015 E04AA07 X
<PAGE> PAGE 3
015 A00AA08 MERITA BANK PLC.
015 B00AA08 S
015 C01AA08 HELSINKI
015 D01AA08 FINLAND
015 E04AA08 X
015 A00AA09 BANQUE PARIBAS
015 B00AA09 S
015 C01AA09 PARIS
015 D01AA09 FRANCE
015 E04AA09 X
015 A00AA10 DRESDNER BANK, A.G.-FRANKFURT
015 B00AA10 S
015 C01AA10 FRANKFURT
015 D01AA10 GERMANY
015 E04AA10 X
015 A00AA11 NATIONAL BANK OF GREECE S.A.
015 B00AA11 S
015 C01AA11 ATHENS
015 D01AA11 GREECE
015 E04AA11 X
015 A00AA12 STANDARD CHARTERED BANK, HONG KONG
015 B00AA12 S
015 C01AA12 HONG KONG
015 D01AA12 HONG KONG
015 E04AA12 X
015 A00AA13 BANK OF IRELAND
015 B00AA13 S
015 C01AA13 DUBLIN
015 D01AA13 IRELAND
015 E04AA13 X
015 A00AA14 PARIBAS, S.A.
015 B00AA14 S
015 C01AA14 MILAN
015 D01AA14 ITALY
015 E04AA14 X
015 A00AA15 FUJI BANK LIMITED
015 B00AA15 S
015 C01AA15 TOKYO
015 D01AA15 JAPAN
015 E04AA15 X
015 A00AA16 SUMITOMO TRUST & BANKING CO., LTD.
015 B00AA16 S
015 C01AA16 TOKYO
015 D01AA16 JAPAN
015 E04AA16 X
015 A00AA17 THE HONG KONG & SHANGHAI BANKING CORP. LTD.
015 B00AA17 S
015 C01AA17 SEOUL
015 D01AA17 KOREA
015 E04AA17 X
015 A00AA18 STANDARD CHARTERED BANK, KUALA LUMPUR
<PAGE> PAGE 4
015 B00AA18 S
015 C01AA18 KUALA LUMPUR
015 D01AA18 MALAYSIA
015 E04AA18 X
015 A00AA19 CITIBANK, N.A. - MEXICO
015 B00AA19 S
015 C01AA19 MEXICO CITY
015 D01AA19 MEXICO
015 E04AA19 X
015 A00AA20 MEESPIERSON N.V.
015 B00AA20 S
015 C01AA20 AMSTERDAM
015 D01AA20 NETHERLANDS
015 E04AA20 X
015 A00AA21 ANZ BANKING GROUP (NEW ZEALAND) LIMITED
015 B00AA21 S
015 C01AA21 WELLINGTON
015 D01AA21 NEW ZEALAND
015 E04AA21 X
015 A00AA22 CHRISTIANA BANK OG KREDITKASSE
015 B00AA22 S
015 C01AA22 OSLO
015 D01AA22 NORWAY
015 E04AA22 X
015 A00AA23 BANCO COMMERCIAL PORTUGUES
015 B00AA23 S
015 C01AA23 LISBON
015 D01AA23 PORTUGAL
015 E04AA23 X
015 A00AA24 THE DEVELOPMENT BANK OF SINGAPORE LTD.
015 B00AA24 S
015 C01AA24 SINGAPORE
015 D01AA24 SINGAPORE
015 E04AA24 X
015 A00AA25 BANCO SANTANDER, S.A.
015 B00AA25 S
015 C01AA25 MADRID
015 D01AA25 SPAIN
015 E04AA25 X
015 A00AA26 SKANDINAVISKA ENSKILDA BANKEN
015 B00AA26 S
015 C01AA26 STOCKHOLM
015 D01AA26 SWEDEN
015 E04AA26 X
015 A00AA27 UNION BANK OF SWITZERLAND
015 B00AA27 S
015 C01AA27 ZURICH
015 D01AA27 SWITZERLAND
015 E04AA27 X
015 A00AA28 STANDARD CHARTERED BANK
015 B00AA28 S
<PAGE> PAGE 5
015 C01AA28 BANGKOK
015 D01AA28 THAILAND
015 E04AA28 X
015 A00AA29 STATE STREET LONDON LIMITED
015 B00AA29 S
015 C01AA29 LONDON
015 D01AA29 UNITED KINGDOM
015 E04AA29 X
018 00AA00 Y
019 A00AA00 N
019 B00AA00 0
020 A000001 INSTINET
020 C000001 359
020 A000002 JEFFRIES & CO
020 C000002 143
020 A000003 SALOMON SMITH BARNEY
020 C000003 110
020 A000004 DONALDSON, LUFKIN & JENRETTE
020 C000004 67
020 A000005 SALOMON SMITH BARNEY HOLDINGS
020 C000005 67
020 A000006 MERRILL LYNCH PIERCE FENNER
020 C000006 63
020 A000007 GOLDMAN SACHS
020 C000007 61
020 A000008 JP MORGAN SECURITIES
020 C000008 53
020 A000009 LEHMAN BROS INC
020 C000009 50
020 A000010 WARBURG DILLON READ LLC
020 C000010 45
021 000000 1645
022 A000001 STATE STREET BANK & TRUST CO
022 C000001 10833490
022 D000001 0
022 A000002 HSBC SECURITIES INC.
022 C000002 3074756
022 D000002 9946
022 A000003 TEXACO INC.
022 C000003 1705247
022 D000003 0
022 A000004 FORD MOTOR CREDIT
022 C000004 1017461
022 D000004 0
022 A000005 CHASE SECURITIES
022 C000005 941471
022 D000005 10711
022 A000006 ASSOCIATES CORP NAO.
022 C000006 852821
022 D000006 0
022 A000007 MORGAN STANLEY & CO
<PAGE> PAGE 6
022 C000007 744784
022 D000007 51664
022 A000008 CS FIRST BOSTON CORP
022 C000008 697541
022 D000008 38539
022 A000009 GOLDMAN SACHS
022 C000009 533340
022 D000009 93771
022 A000010 LEHMAN COMMERCIAL PAPER
022 C000010 434755
022 D000010 46354
023 C000000 23184737
023 D000000 702967
026 A000000 N
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 N
026 F000000 Y
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
029 00AA00 N
030 A00AA00 0
030 B00AA00 0.00
030 C00AA00 0.00
031 A00AA00 0
031 B00AA00 0
032 00AA00 0
033 00AA00 0
034 00AA00 N
035 00AA00 0
036 B00AA00 0
037 00AA00 N
038 00AA00 0
039 00AA00 N
040 00AA00 N
041 00AA00 N
042 A00AA00 0
042 B00AA00 0
042 C00AA00 0
042 D00AA00 0
042 E00AA00 0
042 F00AA00 0
042 G00AA00 0
042 H00AA00 0
043 00AA00 0
044 00AA00 0
077 A000000 Y
077 B000000 Y
<PAGE> PAGE 7
077 C000000 N
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 N
077 Q020000 N
077 Q030000 N
078 000000 N
080 A00AA00 GULF UNDERWRITERS INSURANCE COMPANY
080 C00AA00 2000
081 A00AA00 N
081 B00AA00 0
082 A00AA00 Y
082 B00AA00 5
083 A00AA00 N
083 B00AA00 0
084 A00AA00 N
084 B00AA00 0
085 A00AA00 Y
085 B00AA00 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
008 A000101 CATERPILLAR INVESTMENT MANAGEMENT LTD.
008 B000101 A
008 C000101 801-34522
008 D010101 PEORIA
008 D020101 IL
008 D030101 61602
008 D040101 5330
008 A000102 OPPENHEIMER CAPITAL
008 B000102 S
<PAGE> PAGE 8
008 C000102 801-10708
008 D010102 NEW YORK
008 D020102 NY
008 D030102 10105
024 000100 Y
025 A000101 MORGAN STANLEY DEAN WITTER & CO.
025 B000101 N/A
025 C000101 E
025 D000101 13854
025 A000102 CITIGROUP INC.
025 B000102 N/A
025 C000102 E
025 D000102 35625
025 D000103 0
025 D000104 0
025 D000105 0
025 D000106 0
025 D000107 0
025 D000108 0
028 A010100 11157
028 A020100 -5
028 A030100 0
028 A040100 11658
028 B010100 8879
028 B020100 0
028 B030100 0
028 B040100 6763
028 C010100 6637
028 C020100 0
028 C030100 0
028 C040100 11466
028 D010100 15359
028 D020100 0
028 D030100 0
028 D040100 6873
028 E010100 9204
028 E020100 0
028 E030100 0
028 E040100 12430
028 F010100 5434
028 F020100 0
028 F030100 0
028 F040100 5049
028 G010100 56670
028 G020100 -5
028 G030100 0
028 G040100 54239
028 H000100 0
045 000100 Y
046 000100 N
047 000100 Y
<PAGE> PAGE 9
048 000100 0.750
048 A010100 0
048 A020100 0.000
048 B010100 0
048 B020100 0.000
048 C010100 0
048 C020100 0.000
048 D010100 0
048 D020100 0.000
048 E010100 0
048 E020100 0.000
048 F010100 0
048 F020100 0.000
048 G010100 0
048 G020100 0.000
048 H010100 0
048 H020100 0.000
048 I010100 0
048 I020100 0.000
048 J010100 0
048 J020100 0.000
048 K010100 0
048 K020100 0.000
049 000100 N
050 000100 N
051 000100 N
052 000100 N
053 A000100 N
062 A000100 N
062 B000100 0.0
062 C000100 0.0
062 D000100 0.0
062 E000100 0.0
062 F000100 0.0
062 G000100 0.0
062 H000100 0.0
062 I000100 0.0
062 J000100 0.0
062 K000100 0.0
062 L000100 0.0
062 M000100 0.0
062 N000100 0.0
062 O000100 0.0
062 P000100 0.0
062 Q000100 0.0
062 R000100 0.0
063 A000100 0
063 B000100 0.0
070 A010100 Y
070 A020100 N
070 B010100 Y
<PAGE> PAGE 10
070 B020100 N
070 C010100 Y
070 C020100 N
070 D010100 Y
070 D020100 N
070 E010100 N
070 E020100 N
070 F010100 Y
070 F020100 N
070 G010100 Y
070 G020100 N
070 H010100 Y
070 H020100 N
070 I010100 N
070 I020100 N
070 J010100 Y
070 J020100 N
070 K010100 Y
070 K020100 Y
070 L010100 Y
070 L020100 Y
070 M010100 Y
070 M020100 N
070 N010100 Y
070 N020100 N
070 O010100 Y
070 O020100 N
070 P010100 Y
070 P020100 N
070 Q010100 Y
070 Q020100 N
070 R010100 Y
070 R020100 N
071 A000100 86509
071 B000100 97506
071 C000100 371999
071 D000100 23
072 A000100 12
072 B000100 911
072 C000100 5246
072 D000100 0
072 E000100 0
072 F000100 2964
072 G000100 0
072 H000100 0
072 I000100 154
072 J000100 89
072 K000100 0
072 L000100 0
072 M000100 11
072 N000100 4
<PAGE> PAGE 11
072 O000100 34
072 P000100 0
072 Q000100 0
072 R000100 30
072 S000100 28
072 T000100 0
072 U000100 0
072 V000100 0
072 W000100 41
072 X000100 3355
072 Y000100 0
072 Z000100 2802
072AA000100 53622
072BB000100 4613
072CC010100 0
072CC020100 26632
072DD010100 4000
072DD020100 0
072EE000100 15869
073 A010100 0.2639
073 A020100 0.0000
073 B000100 1.0471
073 C000100 0.0000
074 A000100 0
074 B000100 0
074 C000100 29072
074 D000100 0
074 E000100 0
074 F000100 397653
074 G000100 0
074 H000100 0
074 I000100 0
074 J000100 0
074 K000100 0
074 L000100 871
074 M000100 0
074 N000100 427596
074 O000100 0
074 P000100 258
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 105
074 S000100 0
074 T000100 427233
074 U010100 15940
074 U020100 0
074 V010100 26.80
074 V020100 0.00
074 W000100 0.0000
<PAGE> PAGE 12
074 X000100 3715
074 Y000100 0
075 A000100 0
075 B000100 394948
076 000100 0.00
008 A000201 CATERPILLAR INVESTMENT MANAGEMENT LTD.
008 B000201 A
008 C000201 801-34522
008 D010201 PEORIA
008 D020201 IL
008 D030201 61602
008 D040201 5330
008 A000202 JENNISON ASSOCIATES LLC
008 B000202 S
008 C000202 801-5608
008 D010202 NEW YORK
008 D020202 NY
008 D030202 10071
024 000200 Y
025 A000201 MORGAN STANLEY DEAN WITTER DISCOVER
025 B000201 36-3145972
025 C000201 E
025 D000201 13969
025 A000202 CHARLES SCHWAB CORP
025 B000202 94-3025021
025 C000202 E
025 D000202 7624
025 A000203 GOLDMAN SACHS & CO.
025 B000203 13-4019460
025 C000203 E
025 D000203 6618
025 D000204 0
025 D000205 0
025 D000206 0
025 D000207 0
025 D000208 0
028 A010200 69494
028 A020200 0
028 A030200 0
028 A040200 59340
028 B010200 45202
028 B020200 0
028 B030200 0
028 B040200 52408
028 C010200 61817
028 C020200 0
028 C030200 0
028 C040200 61976
028 D010200 63850
028 D020200 0
028 D030200 0
<PAGE> PAGE 13
028 D040200 32587
028 E010200 86096
028 E020200 0
028 E030200 0
028 E040200 87824
028 F010200 9454
028 F020200 0
028 F030200 0
028 F040200 20974
028 G010200 335913
028 G020200 0
028 G030200 0
028 G040200 315109
028 H000200 0
045 000200 Y
046 000200 N
047 000200 Y
048 000200 0.750
048 A010200 0
048 A020200 0.000
048 B010200 0
048 B020200 0.000
048 C010200 0
048 C020200 0.000
048 D010200 0
048 D020200 0.000
048 E010200 0
048 E020200 0.000
048 F010200 0
048 F020200 0.000
048 G010200 0
048 G020200 0.000
048 H010200 0
048 H020200 0.000
048 I010200 0
048 I020200 0.000
048 J010200 0
048 J020200 0.000
048 K010200 0
048 K020200 0.000
049 000200 N
050 000200 N
051 000200 N
052 000200 N
053 A000200 N
062 A000200 N
062 B000200 0.0
062 C000200 0.0
062 D000200 0.0
062 E000200 0.0
062 F000200 0.0
<PAGE> PAGE 14
062 G000200 0.0
062 H000200 0.0
062 I000200 0.0
062 J000200 0.0
062 K000200 0.0
062 L000200 0.0
062 M000200 0.0
062 N000200 0.0
062 O000200 0.0
062 P000200 0.0
062 Q000200 0.0
062 R000200 0.0
063 A000200 0
063 B000200 0.0
070 A010200 Y
070 A020200 N
070 B010200 Y
070 B020200 N
070 C010200 Y
070 C020200 N
070 D010200 Y
070 D020200 N
070 E010200 N
070 E020200 N
070 F010200 Y
070 F020200 N
070 G010200 Y
070 G020200 N
070 H010200 Y
070 H020200 N
070 I010200 N
070 I020200 N
070 J010200 Y
070 J020200 N
070 K010200 Y
070 K020200 N
070 L010200 Y
070 L020200 Y
070 M010200 Y
070 M020200 N
070 N010200 Y
070 N020200 N
070 O010200 Y
070 O020200 N
070 P010200 Y
070 P020200 Y
070 Q010200 Y
070 Q020200 N
070 R010200 Y
070 R020200 N
071 A000200 415848
<PAGE> PAGE 15
071 B000200 398412
071 C000200 536141
071 D000200 74
072 A000200 12
072 B000200 714
072 C000200 3072
072 D000200 0
072 E000200 0
072 F000200 4115
072 G000200 0
072 H000200 0
072 I000200 162
072 J000200 127
072 K000200 0
072 L000200 0
072 M000200 15
072 N000200 36
072 O000200 9
072 P000200 0
072 Q000200 0
072 R000200 34
072 S000200 42
072 T000200 0
072 U000200 0
072 V000200 0
072 W000200 50
072 X000200 4590
072 Y000200 0
072 Z000200 -804
072AA000200 110355
072BB000200 46841
072CC010200 88791
072CC020200 0
072DD010200 0
072DD020200 0
072EE000200 111232
073 A010200 0.0000
073 A020200 0.0000
073 B000200 4.9566
073 C000200 0.0000
074 A000200 787
074 B000200 0
074 C000200 6733
074 D000200 0
074 E000200 0
074 F000200 658934
074 G000200 0
074 H000200 0
074 I000200 0
074 J000200 8954
074 K000200 0
<PAGE> PAGE 16
074 L000200 1373
074 M000200 0
074 N000200 676781
074 O000200 9455
074 P000200 385
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 538
074 S000200 0
074 T000200 666403
074 U010200 29123
074 U020200 0
074 V010200 22.88
074 V020200 0.00
074 W000200 0.0000
074 X000200 4080
074 Y000200 0
075 A000200 0
075 B000200 550106
076 000200 0.00
008 A000301 CATERPILAR INVESTMENT MANAGEMENT LTD.
008 B000301 A
008 C000301 801-34522
008 D010301 PEORIA
008 D020301 IL
008 D030301 61602
008 D040301 5330
008 A000302 MERCATOR ASSET MANAGEMENT, L.P.
008 B000302 S
008 C000302 801-50347
008 D010302 FORT LAUDERDALE
008 D020302 FL
008 D030302 33308
024 000300 N
028 A010300 43536
028 A020300 0
028 A030300 0
028 A040300 36317
028 B010300 41063
028 B020300 0
028 B030300 0
028 B040300 49854
028 C010300 48921
028 C020300 0
028 C030300 0
028 C040300 51373
028 D010300 49288
028 D020300 0
028 D030300 0
<PAGE> PAGE 17
028 D040300 46146
028 E010300 56484
028 E020300 0
028 E030300 0
028 E040300 55964
028 F010300 26743
028 F020300 0
028 F030300 0
028 F040300 19683
028 G010300 266035
028 G020300 0
028 G030300 0
028 G040300 259337
028 H000300 0
045 000300 Y
046 000300 N
047 000300 Y
048 000300 0.950
048 A010300 0
048 A020300 0.000
048 B010300 0
048 B020300 0.000
048 C010300 0
048 C020300 0.000
048 D010300 0
048 D020300 0.000
048 E010300 0
048 E020300 0.000
048 F010300 0
048 F020300 0.000
048 G010300 0
048 G020300 0.000
048 H010300 0
048 H020300 0.000
048 I010300 0
048 I020300 0.000
048 J010300 0
048 J020300 0.000
048 K010300 0
048 K020300 0.000
049 000300 N
050 000300 N
051 000300 N
052 000300 N
053 A000300 N
062 A000300 N
062 B000300 0.0
062 C000300 0.0
062 D000300 0.0
062 E000300 0.0
062 F000300 0.0
<PAGE> PAGE 18
062 G000300 0.0
062 H000300 0.0
062 I000300 0.0
062 J000300 0.0
062 K000300 0.0
062 L000300 0.0
062 M000300 0.0
062 N000300 0.0
062 O000300 0.0
062 P000300 0.0
062 Q000300 0.0
062 R000300 0.0
063 A000300 0
063 B000300 0.0
070 A010300 Y
070 A020300 N
070 B010300 Y
070 B020300 N
070 C010300 Y
070 C020300 N
070 D010300 Y
070 D020300 N
070 E010300 N
070 E020300 N
070 F010300 Y
070 F020300 N
070 G010300 Y
070 G020300 N
070 H010300 Y
070 H020300 N
070 I010300 N
070 I020300 N
070 J010300 Y
070 J020300 N
070 K010300 N
070 K020300 N
070 L010300 Y
070 L020300 Y
070 M010300 Y
070 M020300 Y
070 N010300 Y
070 N020300 N
070 O010300 Y
070 O020300 N
070 P010300 Y
070 P020300 N
070 Q010300 Y
070 Q020300 N
070 R010300 Y
070 R020300 N
071 A000300 48732
<PAGE> PAGE 19
071 B000300 39006
071 C000300 254718
071 D000300 15
072 A000300 12
072 B000300 993
072 C000300 7061
072 D000300 0
072 E000300 0
072 F000300 2634
072 G000300 0
072 H000300 0
072 I000300 88
072 J000300 505
072 K000300 0
072 L000300 0
072 M000300 7
072 N000300 3
072 O000300 765
072 P000300 0
072 Q000300 0
072 R000300 35
072 S000300 19
072 T000300 0
072 U000300 0
072 V000300 0
072 W000300 24
072 X000300 4080
072 Y000300 0
072 Z000300 3974
072AA000300 18110
072BB000300 9764
072CC010300 11523
072CC020300 0
072DD010300 2900
072DD020300 0
072EE000300 8300
073 A010300 0.1652
073 A020300 0.0000
073 B000300 0.4728
073 C000300 0.0000
074 A000300 0
074 B000300 13743
074 C000300 0
074 D000300 0
074 E000300 0
074 F000300 288963
074 G000300 0
074 H000300 0
074 I000300 0
074 J000300 0
074 K000300 0
<PAGE> PAGE 20
074 L000300 11063
074 M000300 205
074 N000300 313974
074 O000300 1211
074 P000300 236
074 Q000300 0
074 R010300 0
074 R020300 0
074 R030300 0
074 R040300 143
074 S000300 0
074 T000300 312384
074 U010300 18786
074 U020300 0
074 V010300 16.63
074 V020300 0.00
074 W000300 0.0000
074 X000300 2378
074 Y000300 0
075 A000300 0
075 B000300 277216
076 000300 0.00
008 A000401 CATERPILLAR INVESTMENT MANAGEMENT LTD.
008 B000401 A
008 C000401 801-34522
008 D010401 PEORIA
008 D020401 IL
008 D030401 61602
008 D040401 5330
008 A000402 J.P. MORGAN INVESTMENT MANAGEMENT, INC.
008 B000402 S
008 C000402 801-21011
008 D010402 NEW YORK
008 D020402 NY
008 D030402 10036
024 000400 Y
025 A000401 ASSOCIATES CORP OF N.A.
025 B000401 N/A
025 C000401 D
025 D000401 558
025 A000402 MORGAN STANLEY
025 B000402 N/A
025 C000402 D
025 D000402 994
025 D000403 0
025 D000404 0
025 D000405 0
025 D000406 0
025 D000407 0
025 D000408 0
028 A010400 10359
<PAGE> PAGE 21
028 A020400 791
028 A030400 0
028 A040400 2679
028 B010400 3138
028 B020400 810
028 B030400 0
028 B040400 2344
028 C010400 2961
028 C020400 823
028 C030400 0
028 C040400 1453
028 D010400 10193
028 D020400 826
028 D030400 0
028 D040400 3330
028 E010400 6031
028 E020400 868
028 E030400 0
028 E040400 2831
028 F010400 2288
028 F020400 882
028 F030400 0
028 F040400 2417
028 G010400 34970
028 G020400 5000
028 G030400 0
028 G040400 15054
028 H000400 0
045 000400 Y
046 000400 N
047 000400 Y
048 000400 0.500
048 A010400 0
048 A020400 0.000
048 B010400 0
048 B020400 0.000
048 C010400 0
048 C020400 0.000
048 D010400 0
048 D020400 0.000
048 E010400 0
048 E020400 0.000
048 F010400 0
048 F020400 0.000
048 G010400 0
048 G020400 0.000
048 H010400 0
048 H020400 0.000
048 I010400 0
048 I020400 0.000
048 J010400 0
<PAGE> PAGE 22
048 J020400 0.000
048 K010400 0
048 K020400 0.000
049 000400 N
050 000400 N
051 000400 N
052 000400 N
053 A000400 N
062 A000400 Y
062 B000400 0.0
062 C000400 3.4
062 D000400 0.0
062 E000400 0.0
062 F000400 0.0
062 G000400 0.0
062 H000400 0.0
062 I000400 0.0
062 J000400 0.0
062 K000400 0.0
062 L000400 4.1
062 M000400 16.5
062 N000400 44.1
062 O000400 0.0
062 P000400 19.5
062 Q000400 11.6
062 R000400 0.8
063 A000400 0
063 B000400 15.5
070 A010400 Y
070 A020400 N
070 B010400 Y
070 B020400 N
070 C010400 Y
070 C020400 N
070 D010400 N
070 D020400 N
070 E010400 Y
070 E020400 N
070 F010400 N
070 F020400 N
070 G010400 Y
070 G020400 N
070 H010400 N
070 H020400 N
070 I010400 N
070 I020400 N
070 J010400 Y
070 J020400 Y
070 K010400 Y
070 K020400 N
070 L010400 Y
<PAGE> PAGE 23
070 L020400 Y
070 M010400 Y
070 M020400 Y
070 N010400 Y
070 N020400 N
070 O010400 Y
070 O020400 N
070 P010400 Y
070 P020400 N
070 Q010400 Y
070 Q020400 N
070 R010400 Y
070 R020400 N
071 A000400 289775
071 B000400 245956
071 C000400 155213
071 D000400 158
072 A000400 12
072 B000400 10651
072 C000400 0
072 D000400 0
072 E000400 0
072 F000400 829
072 G000400 0
072 H000400 0
072 I000400 67
072 J000400 110
072 K000400 0
072 L000400 0
072 M000400 5
072 N000400 8
072 O000400 0
072 P000400 0
072 Q000400 0
072 R000400 32
072 S000400 13
072 T000400 0
072 U000400 0
072 V000400 0
072 W000400 17
072 X000400 1081
072 Y000400 0
072 Z000400 9570
072AA000400 4944
072BB000400 5107
072CC010400 0
072CC020400 8278
072DD010400 9549
072DD020400 0
072EE000400 3004
073 A010400 0.5885
<PAGE> PAGE 24
073 A020400 0.0000
073 B000400 0.1908
073 C000400 0.0000
074 A000400 1
074 B000400 0
074 C000400 13560
074 D000400 165065
074 E000400 0
074 F000400 0
074 G000400 0
074 H000400 0
074 I000400 0
074 J000400 6459
074 K000400 0
074 L000400 2041
074 M000400 0
074 N000400 187126
074 O000400 6882
074 P000400 74
074 Q000400 0
074 R010400 0
074 R020400 0
074 R030400 0
074 R040400 122
074 S000400 0
074 T000400 180048
074 U010400 18444
074 U020400 0
074 V010400 9.76
074 V020400 0.00
074 W000400 0.0000
074 X000400 1666
074 Y000400 36239
075 A000400 0
075 B000400 165776
076 000400 0.00
008 A000501 CATERPILLAR INVESTMENT MANAGEMENT LTD.
008 B000501 A
008 C000501 801-34522
008 D010501 PEORIA
008 D020501 IL
008 D030501 61602
008 D040501 5330
008 A000502 MELLON CAPITAL MANAGEMENT CORPORATION
008 B000502 S
008 C000502 801-19785
008 D010502 SAN FRANCISCO
008 D020502 CA
008 D030502 94105
008 A000503 PANAGORA ASSET MANAGEMENT
008 B000503 S
<PAGE> PAGE 25
008 C000503 801-999
008 D010503 BOSTON
008 D020503 MA
008 D030503 02110
024 000500 Y
025 A000501 AMERICAN EXPRESS CO.
025 B000501 N/A
025 C000501 E
025 D000501 584
025 A000502 MORGAN, JP & CO. INC
025 B000502 N/A
025 C000502 E
025 D000502 228
025 A000503 MERRILL LYNCH & CO. INC.
025 B000503 N/A
025 C000503 E
025 D000503 257
025 A000504 SEARS
025 B000504 N/A
025 C000504 E
025 D000504 67
025 A000505 MORGAN STANLEY DEAN WITTER
025 B000505 N/A
025 C000505 E
025 D000505 496
025 A000506 CHARLES SCHWAB CORP
025 B000506 N/A
025 C000506 E
025 D000506 212
025 A000507 BEAR STEARNS COS. INC.
025 B000507 N/A
025 C000507 E
025 D000507 40
025 A000508 LEHMAN BROTHERS HOLDINGS INC.
025 B000508 N/A
025 C000508 E
025 D000508 63
025 A000509 FRANKLIN RES. INC.
025 B000509 N/A
025 C000509 E
025 D000509 95
025 A000510 CITIGROUP INC.
025 B000510 N/A
025 C000510 E
025 D000510 1488
025 A000511 PAINE WEBBER GROUP, INC.
025 B000511 N/A
025 C000511 E
025 D000511 36
025 D000512 0
025 D000513 0
<PAGE> PAGE 26
025 D000514 0
025 D000515 0
025 D000516 0
028 A010500 15457
028 A020500 0
028 A030500 0
028 A040500 4498
028 B010500 5971
028 B020500 0
028 B030500 0
028 B040500 2951
028 C010500 8386
028 C020500 1489
028 C030500 0
028 C040500 3699
028 D010500 9352
028 D020500 0
028 D030500 0
028 D040500 2027
028 E010500 6640
028 E020500 0
028 E030500 0
028 E040500 6830
028 F010500 977
028 F020500 1678
028 F030500 0
028 F040500 2798
028 G010500 46783
028 G020500 3167
028 G030500 0
028 G040500 22803
028 H000500 0
045 000500 Y
046 000500 N
047 000500 Y
048 000500 0.700
048 A010500 0
048 A020500 0.000
048 B010500 0
048 B020500 0.000
048 C010500 0
048 C020500 0.000
048 D010500 0
048 D020500 0.000
048 E010500 0
048 E020500 0.000
048 F010500 0
048 F020500 0.000
048 G010500 0
048 G020500 0.000
048 H010500 0
<PAGE> PAGE 27
048 H020500 0.000
048 I010500 0
048 I020500 0.000
048 J010500 0
048 J020500 0.000
048 K010500 0
048 K020500 0.000
049 000500 N
050 000500 N
051 000500 N
052 000500 N
053 A000500 N
062 A000500 N
062 B000500 0.0
062 C000500 0.0
062 D000500 0.0
062 E000500 0.0
062 F000500 0.0
062 G000500 0.0
062 H000500 0.0
062 I000500 0.0
062 J000500 0.0
062 K000500 0.0
062 L000500 0.0
062 M000500 0.0
062 N000500 0.0
062 O000500 0.0
062 P000500 0.0
062 Q000500 0.0
062 R000500 0.0
063 A000500 0
063 B000500 0.0
070 A010500 Y
070 A020500 Y
070 B010500 Y
070 B020500 N
070 C010500 Y
070 C020500 N
070 D010500 Y
070 D020500 N
070 E010500 Y
070 E020500 Y
070 F010500 Y
070 F020500 Y
070 G010500 Y
070 G020500 N
070 H010500 Y
070 H020500 N
070 I010500 N
070 I020500 N
070 J010500 Y
<PAGE> PAGE 28
070 J020500 N
070 K010500 Y
070 K020500 N
070 L010500 Y
070 L020500 Y
070 M010500 Y
070 M020500 N
070 N010500 Y
070 N020500 N
070 O010500 Y
070 O020500 N
070 P010500 Y
070 P020500 N
070 Q010500 Y
070 Q020500 N
070 R010500 Y
070 R020500 N
071 A000500 18242
071 B000500 8383
071 C000500 144484
071 D000500 6
072 A000500 12
072 B000500 6483
072 C000500 1299
072 D000500 0
072 E000500 0
072 F000500 1453
072 G000500 0
072 H000500 0
072 I000500 96
072 J000500 197
072 K000500 0
072 L000500 0
072 M000500 6
072 N000500 32
072 O000500 12
072 P000500 0
072 Q000500 0
072 R000500 34
072 S000500 18
072 T000500 0
072 U000500 0
072 V000500 0
072 W000500 21
072 X000500 1869
072 Y000500 0
072 Z000500 5912
072AA000500 24025
072BB000500 8828
072CC010500 10362
072CC020500 0
<PAGE> PAGE 29
072DD010500 5912
072DD020500 0
072EE000500 12057
073 A010500 0.4551
073 A020500 0.0000
073 B000500 1.0151
073 C000500 0.0000
074 A000500 104
074 B000500 23634
074 C000500 29946
074 D000500 80882
074 E000500 0
074 F000500 104429
074 G000500 0
074 H000500 0
074 I000500 0
074 J000500 523
074 K000500 0
074 L000500 2473
074 M000500 0
074 N000500 241991
074 O000500 108
074 P000500 137
074 Q000500 0
074 R010500 0
074 R020500 0
074 R030500 0
074 R040500 234
074 S000500 0
074 T000500 241512
074 U010500 14363
074 U020500 0
074 V010500 16.81
074 V020500 0.00
074 W000500 0.0000
074 X000500 2301
074 Y000500 26204
075 A000500 0
075 B000500 207647
076 000500 0.00
008 A000601 CATERPILLAR INVESTMENT MANAGEMENT LTD.
008 B000601 A
008 C000601 801-34522
008 D010601 PEORIA
008 D020601 IL
008 D030601 61602
008 D040601 5330
024 000600 N
028 A010600 848
028 A020600 250
028 A030600 0
<PAGE> PAGE 30
028 A040600 781
028 B010600 507
028 B020600 245
028 B030600 0
028 B040600 237
028 C010600 711
028 C020600 256
028 C030600 0
028 C040600 589
028 D010600 1708
028 D020600 254
028 D030600 0
028 D040600 307
028 E010600 364
028 E020600 267
028 E030600 0
028 E040600 494
028 F010600 443
028 F020600 263
028 F030600 0
028 F040600 430
028 G010600 4581
028 G020600 1535
028 G030600 0
028 G040600 2838
028 H000600 0
045 000600 Y
046 000600 N
047 000600 Y
048 000600 0.350
048 A010600 0
048 A020600 0.000
048 B010600 0
048 B020600 0.000
048 C010600 0
048 C020600 0.000
048 D010600 0
048 D020600 0.000
048 E010600 0
048 E020600 0.000
048 F010600 0
048 F020600 0.000
048 G010600 0
048 G020600 0.000
048 H010600 0
048 H020600 0.000
048 I010600 0
048 I020600 0.000
048 J010600 0
048 J020600 0.000
048 K010600 0
<PAGE> PAGE 31
048 K020600 0.000
049 000600 N
050 000600 N
051 000600 N
052 000600 N
053 A000600 N
062 A000600 Y
062 B000600 1.5
062 C000600 0.1
062 D000600 0.0
062 E000600 0.0
062 F000600 0.0
062 G000600 0.0
062 H000600 0.0
062 I000600 0.0
062 J000600 0.0
062 K000600 0.0
062 L000600 4.2
062 M000600 45.9
062 N000600 47.4
062 O000600 0.0
062 P000600 0.0
062 Q000600 0.0
062 R000600 0.9
063 A000600 0
063 B000600 2.4
070 A010600 Y
070 A020600 N
070 B010600 N
070 B020600 N
070 C010600 Y
070 C020600 N
070 D010600 N
070 D020600 N
070 E010600 Y
070 E020600 N
070 F010600 N
070 F020600 N
070 G010600 Y
070 G020600 N
070 H010600 N
070 H020600 N
070 I010600 N
070 I020600 N
070 J010600 Y
070 J020600 N
070 K010600 Y
070 K020600 Y
070 L010600 N
070 L020600 N
070 M010600 N
<PAGE> PAGE 32
070 M020600 N
070 N010600 Y
070 N020600 N
070 O010600 Y
070 O020600 N
070 P010600 Y
070 P020600 N
070 Q010600 Y
070 Q020600 N
070 R010600 Y
070 R020600 N
071 A000600 72960
071 B000600 39170
071 C000600 58778
071 D000600 67
072 A000600 12
072 B000600 3451
072 C000600 0
072 D000600 0
072 E000600 0
072 F000600 223
072 G000600 0
072 H000600 0
072 I000600 26
072 J000600 49
072 K000600 0
072 L000600 0
072 M000600 1
072 N000600 6
072 O000600 0
072 P000600 0
072 Q000600 0
072 R000600 33
072 S000600 5
072 T000600 0
072 U000600 0
072 V000600 0
072 W000600 6
072 X000600 349
072 Y000600 0
072 Z000600 3102
072AA000600 111
072BB000600 65
072CC010600 0
072CC020600 1105
072DD010600 3102
072DD020600 0
072EE000600 0
073 A010600 0.4748
073 A020600 0.0000
073 B000600 0.0000
<PAGE> PAGE 33
073 C000600 0.0000
074 A000600 0
074 B000600 0
074 C000600 3829
074 D000600 62098
074 E000600 0
074 F000600 0
074 G000600 0
074 H000600 0
074 I000600 0
074 J000600 0
074 K000600 0
074 L000600 679
074 M000600 0
074 N000600 66606
074 O000600 0
074 P000600 19
074 Q000600 0
074 R010600 0
074 R020600 0
074 R030600 0
074 R040600 36
074 S000600 0
074 T000600 66551
074 U010600 6923
074 U020600 0
074 V010600 9.61
074 V020600 0.00
074 W000600 0.0000
074 X000600 363
074 Y000600 0
075 A000600 0
075 B000600 63746
076 000600 0.00
008 A000701 CATERPILLAR INVESTMENT MANAGEMENT LTD.
008 B000701 A
008 C000701 801-34522
008 D010701 PEORIA
008 D020701 IL
008 D030701 61602
008 D040701 5330
008 A000702 J.P. MORGAN INVESTMENT MANAGEMENT INC.
008 B000702 S
008 C000702 801-21011
008 D010702 NEW YORK
008 D020702 NY
008 D030702 10036
024 000700 Y
025 A000701 ASSOCIATES CORP.
025 B000701 N/A
025 C000701 D
<PAGE> PAGE 34
025 D000701 9000
025 A000702 CITIGROUP INC
025 B000702 N/A
025 C000702 D
025 D000702 4999
025 A000703 FORD MOTOR CREDIT CORP.
025 B000703 N/A
025 C000703 D
025 D000703 7492
025 A000704 MORGAN STANLEY DEAN WITTER
025 B000704 N/A
025 C000704 D
025 D000704 4985
025 A000705 SALOMON SMITH BARNEY
025 B000705 N/A
025 C000705 D
025 D000705 1996
025 D000706 0
025 D000707 0
025 D000708 0
028 A010700 93067
028 A020700 532
028 A030700 0
028 A040700 83454
028 B010700 77067
028 B020700 477
028 B030700 0
028 B040700 67310
028 C010700 126759
028 C020700 592
028 C030700 0
028 C040700 102250
028 D010700 110664
028 D020700 692
028 D030700 0
028 D040700 67878
028 E010700 112636
028 E020700 730
028 E030700 0
028 E040700 145055
028 F010700 33000
028 F020700 706
028 F030700 0
028 F040700 24654
028 G010700 553193
028 G020700 3729
028 G030700 0
028 G040700 490601
028 H000700 0
045 000700 Y
046 000700 N
<PAGE> PAGE 35
047 000700 Y
048 000700 0.300
048 A010700 0
048 A020700 0.000
048 B010700 0
048 B020700 0.000
048 C010700 0
048 C020700 0.000
048 D010700 0
048 D020700 0.000
048 E010700 0
048 E020700 0.000
048 F010700 0
048 F020700 0.000
048 G010700 0
048 G020700 0.000
048 H010700 0
048 H020700 0.000
048 I010700 0
048 I020700 0.000
048 J010700 0
048 J020700 0.000
048 K010700 0
048 K020700 0.000
049 000700 N
050 000700 N
051 000700 N
052 000700 N
053 A000700 N
062 A000700 Y
062 B000700 0.0
062 C000700 18.9
062 D000700 0.0
062 E000700 0.0
062 F000700 6.7
062 G000700 8.7
062 H000700 0.0
062 I000700 38.7
062 J000700 0.0
062 K000700 0.0
062 L000700 28.3
062 M000700 0.0
062 N000700 0.0
062 O000700 0.0
062 P000700 0.0
062 Q000700 0.0
062 R000700 -1.3
063 A000700 53
063 B000700 0.0
070 A010700 Y
070 A020700 N
<PAGE> PAGE 36
070 B010700 N
070 B020700 N
070 C010700 N
070 C020700 N
070 D010700 N
070 D020700 N
070 E010700 N
070 E020700 N
070 F010700 N
070 F020700 N
070 G010700 N
070 G020700 N
070 H010700 N
070 H020700 N
070 I010700 N
070 I020700 N
070 J010700 Y
070 J020700 N
070 K010700 Y
070 K020700 N
070 L010700 Y
070 L020700 Y
070 M010700 N
070 M020700 N
070 N010700 N
070 N020700 N
070 O010700 Y
070 O020700 N
070 P010700 Y
070 P020700 N
070 Q010700 Y
070 Q020700 N
070 R010700 N
070 R020700 N
071 A000700 0
071 B000700 0
071 C000700 0
071 D000700 0
072 A000700 12
072 B000700 7544
072 C000700 0
072 D000700 0
072 E000700 0
072 F000700 437
072 G000700 0
072 H000700 0
072 I000700 68
072 J000700 65
072 K000700 0
072 L000700 0
072 M000700 3
<PAGE> PAGE 37
072 N000700 37
072 O000700 0
072 P000700 0
072 Q000700 0
072 R000700 27
072 S000700 11
072 T000700 0
072 U000700 0
072 V000700 0
072 W000700 13
072 X000700 661
072 Y000700 0
072 Z000700 6883
072AA000700 0
072BB000700 0
072CC010700 0
072CC020700 0
072DD010700 6883
072DD020700 0
072EE000700 0
073 A010700 0.0478
073 A020700 0.0000
073 B000700 0.0001
073 C000700 0.0000
074 A000700 2
074 B000700 0
074 C000700 197314
074 D000700 0
074 E000700 0
074 F000700 0
074 G000700 0
074 H000700 0
074 I000700 0
074 J000700 0
074 K000700 0
074 L000700 3411
074 M000700 0
074 N000700 200727
074 O000700 0
074 P000700 48
074 Q000700 0
074 R010700 0
074 R020700 0
074 R030700 0
074 R040700 5871
074 S000700 0
074 T000700 194808
074 U010700 194808
074 U020700 0
074 V010700 1.00
074 V020700 0.00
<PAGE> PAGE 38
074 W000700 1.0008
074 X000700 2847
074 Y000700 0
075 A000700 145638
075 B000700 0
076 000700 0.00
008 A000901 CATERPILLAR INVESTMENT MANAGEMENT LTD.
008 B000901 A
008 C000901 801-34522
008 D010901 PEORIA
008 D020901 IL
008 D030901 61602
008 D040901 5330
024 000900 N
028 A010900 5376
028 A020900 0
028 A030900 0
028 A040900 6982
028 B010900 1472
028 B020900 0
028 B030900 0
028 B040900 3980
028 C010900 3292
028 C020900 0
028 C030900 0
028 C040900 4488
028 D010900 12190
028 D020900 0
028 D030900 0
028 D040900 9516
028 E010900 13010
028 E020900 0
028 E030900 0
028 E040900 15081
028 F010900 2014
028 F020900 0
028 F030900 0
028 F040900 4514
028 G010900 37354
028 G020900 0
028 G030900 0
028 G040900 44561
028 H000900 0
045 000900 Y
046 000900 N
047 000900 Y
048 000900 0.750
048 A010900 0
048 A020900 0.000
048 B010900 0
048 B020900 0.000
<PAGE> PAGE 39
048 C010900 0
048 C020900 0.000
048 D010900 0
048 D020900 0.000
048 E010900 0
048 E020900 0.000
048 F010900 0
048 F020900 0.000
048 G010900 0
048 G020900 0.000
048 H010900 0
048 H020900 0.000
048 I010900 0
048 I020900 0.000
048 J010900 0
048 J020900 0.000
048 K010900 0
048 K020900 0.000
049 000900 N
050 000900 N
051 000900 N
052 000900 N
053 A000900 N
062 A000900 N
062 B000900 0.0
062 C000900 0.0
062 D000900 0.0
062 E000900 0.0
062 F000900 0.0
062 G000900 0.0
062 H000900 0.0
062 I000900 0.0
062 J000900 0.0
062 K000900 0.0
062 L000900 0.0
062 M000900 0.0
062 N000900 0.0
062 O000900 0.0
062 P000900 0.0
062 Q000900 0.0
062 R000900 0.0
063 A000900 0
063 B000900 0.0
070 A010900 Y
070 A020900 N
070 B010900 Y
070 B020900 N
070 C010900 N
070 C020900 N
070 D010900 Y
070 D020900 N
<PAGE> PAGE 40
070 E010900 N
070 E020900 N
070 F010900 Y
070 F020900 N
070 G010900 Y
070 G020900 N
070 H010900 Y
070 H020900 N
070 I010900 N
070 I020900 N
070 J010900 Y
070 J020900 N
070 K010900 Y
070 K020900 Y
070 L010900 Y
070 L020900 N
070 M010900 Y
070 M020900 N
070 N010900 Y
070 N020900 N
070 O010900 Y
070 O020900 N
070 P010900 Y
070 P020900 N
070 Q010900 Y
070 Q020900 N
070 R010900 Y
070 R020900 N
071 A000900 134828
071 B000900 137372
071 C000900 110939
071 D000900 122
072 A000900 12
072 B000900 0
072 C000900 1206
072 D000900 0
072 E000900 0
072 F000900 844
072 G000900 0
072 H000900 0
072 I000900 34
072 J000900 85
072 K000900 0
072 L000900 0
072 M000900 5
072 N000900 19
072 O000900 1
072 P000900 0
072 Q000900 0
072 R000900 29
072 S000900 9
<PAGE> PAGE 41
072 T000900 0
072 U000900 0
072 V000900 0
072 W000900 12
072 X000900 1038
072 Y000900 0
072 Z000900 167
072AA000900 19061
072BB000900 34529
072CC010900 0
072CC020900 10350
072DD010900 150
072DD020900 0
072EE000900 5076
073 A010900 0.0168
073 A020900 0.0000
073 B000900 0.5699
073 C000900 0.0000
074 A000900 0
074 B000900 0
074 C000900 605
074 D000900 0
074 E000900 0
074 F000900 105924
074 G000900 0
074 H000900 0
074 I000900 0
074 J000900 1736
074 K000900 0
074 L000900 473
074 M000900 4
074 N000900 108742
074 O000900 677
074 P000900 65
074 Q000900 0
074 R010900 0
074 R020900 0
074 R030900 0
074 R040900 382
074 S000900 0
074 T000900 107618
074 U010900 8929
074 U020900 0
074 V010900 12.05
074 V020900 0.00
074 W000900 0.0000
074 X000900 622
074 Y000900 0
075 A000900 0
075 B000900 112946
076 000900 0.00
<PAGE> PAGE 42
SIGNATURE FRED KAUFMAN
TITLE VICE PRES/TREASURER
To the Shareholders and
Trustees of The Preferred Group of Mutual Funds
In planning and performing our audits of the financial statements of each of the
eight funds constituting The Preferred Group of Mutual Funds (the "Trust") for
the year ended June 30, 1999, we considered their internal control, including
control activities for safeguarding securities, in order to determine our
auditing procedures for the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-SAR, not to provide
assurance on internal control.
The management of the Trust is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit pertain to the
entity's objective of preparing financial statements for external purposes that
are fairly presented in conformity with generally accepted accounting
principles. Those controls include the safeguarding of assets against
unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or fraud may occur
and not be detected. Also, projection of any evaluation of internal control to
future periods is subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and operation may
deteriorate.
Our consideration of internal control would not necessarily disclose all matters
in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of one or more
of the internal control components does not reduce to a relatively low level the
risk that misstatements caused by error or fraud in amounts that would be
material in relation to the financial statements being audited may occur and not
be detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters involving
internal control and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above as of
June 30, 1999.
This report is intended solely for the information and use of management and the
Trustees of the Trust and the Securities and Exchange Commission and is not
intended to be and should not be used by anyone other than these specified
parties.
PricewaterhouseCoopers LLP
Boston, Massachusetts
August 16, 1999
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885414
<NAME> THE PREFERRED GROUP OF MUTUAL FUNDS
<SERIES>
<NUMBER> 1
<NAME> PREFERRED VALUE FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1998
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 238,424,373
<INVESTMENTS-AT-VALUE> 426,724,875
<RECEIVABLES> 870,733
<ASSETS-OTHER> 29
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 427,595,637
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 362,161
<TOTAL-LIABILITIES> 362,161
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 193,564,378
<SHARES-COMMON-STOCK> 15,939,562
<SHARES-COMMON-PRIOR> 15,613,985
<ACCUMULATED-NII-CURRENT> 1,212,801
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 44,155,795
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 188,300,502
<NET-ASSETS> 427,233,476
<DIVIDEND-INCOME> 5,246,384
<INTEREST-INCOME> 910,602
<OTHER-INCOME> 0
<EXPENSES-NET> 3,354,760
<NET-INVESTMENT-INCOME> 2,802,226
<REALIZED-GAINS-CURRENT> 49,008,891
<APPREC-INCREASE-CURRENT> (26,632,458)
<NET-CHANGE-FROM-OPS> 25,178,659
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,999,940
<DISTRIBUTIONS-OF-GAINS> 15,868,693
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,868,725
<NUMBER-OF-SHARES-REDEEMED> 5,345,330
<SHARES-REINVESTED> 802,182
<NET-CHANGE-IN-ASSETS> 13,623,633
<ACCUMULATED-NII-PRIOR> 2,410,338
<ACCUMULATED-GAINS-PRIOR> 11,015,774
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,963,545
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,320,545
<AVERAGE-NET-ASSETS> 395,139,239
<PER-SHARE-NAV-BEGIN> 26.49
<PER-SHARE-NII> 0.19
<PER-SHARE-GAIN-APPREC> 1.43
<PER-SHARE-DIVIDEND> 0.26
<PER-SHARE-DISTRIBUTIONS> 1.05
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 26.80
<EXPENSE-RATIO> 0.84
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885414
<NAME> THE PREFERRED GROUP OF MUTUAL FUNDS
<SERIES>
<NUMBER> 2
<NAME> PREFERRED GROWTH FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1998
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 359,518,040
<INVESTMENTS-AT-VALUE> 665,666,610
<RECEIVABLES> 10,327,168
<ASSETS-OTHER> 786,873
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 676,780,651
<PAYABLE-FOR-SECURITIES> 9,455,018
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 922,934
<TOTAL-LIABILITIES> 10,377,952
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 385,222,164
<SHARES-COMMON-STOCK> 29,122,871
<SHARES-COMMON-PRIOR> 23,064,696
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 53,008,065
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 228,172,470
<NET-ASSETS> 666,402,699
<DIVIDEND-INCOME> 3,072,326
<INTEREST-INCOME> 713,552
<OTHER-INCOME> 0
<EXPENSES-NET> 4,589,547
<NET-INVESTMENT-INCOME> (803,669)
<REALIZED-GAINS-CURRENT> 63,513,505
<APPREC-INCREASE-CURRENT> 88,790,969
<NET-CHANGE-FROM-OPS> 151,500,805
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 111,232,130
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 30,109,700
<NUMBER-OF-SHARES-REDEEMED> 29,688,185
<SHARES-REINVESTED> 5,636,660
<NET-CHANGE-IN-ASSETS> 159,572,208
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 101,530,358
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 4,114,811
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4,580,811
<AVERAGE-NET-ASSETS> 548,641,196
<PER-SHARE-NAV-BEGIN> 21.97
<PER-SHARE-NII> 0.00
<PER-SHARE-GAIN-APPREC> 5.87
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 4.96
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 22.88
<EXPENSE-RATIO> 0.83
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885414
<NAME> THE PREFERRED GROUP OF MUTUAL FUNDS
<SERIES>
<NUMBER> 3
<NAME> PREFERRED INTERNATIONAL FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1998
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 229,286,713
<INVESTMENTS-AT-VALUE> 302,706,165
<RECEIVABLES> 11,062,706
<ASSETS-OTHER> 204,629
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 313,973,500
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,589,220
<TOTAL-LIABILITIES> 1,589,220
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 227,122,157
<SHARES-COMMON-STOCK> 18,785,540
<SHARES-COMMON-PRIOR> 17,554,859
<ACCUMULATED-NII-CURRENT> 3,600,408
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 8,262,198
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 73,399,517
<NET-ASSETS> 312,384,280
<DIVIDEND-INCOME> 7,061,429
<INTEREST-INCOME> 993,255
<OTHER-INCOME> 0
<EXPENSES-NET> 4,080,231
<NET-INVESTMENT-INCOME> 3,974,453
<REALIZED-GAINS-CURRENT> 8,346,285
<APPREC-INCREASE-CURRENT> 11,522,516
<NET-CHANGE-FROM-OPS> 23,843,254
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,900,000
<DISTRIBUTIONS-OF-GAINS> 8,299,909
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 33,624,656
<NUMBER-OF-SHARES-REDEEMED> 33,141,675
<SHARES-REINVESTED> 747,700
<NET-CHANGE-IN-ASSETS> 28,328,177
<ACCUMULATED-NII-PRIOR> 2,672,340
<ACCUMULATED-GAINS-PRIOR> 8,069,437
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,634,044
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,315,044
<AVERAGE-NET-ASSETS> 277,267,778
<PER-SHARE-NAV-BEGIN> 16.18
<PER-SHARE-NII> 0.21
<PER-SHARE-GAIN-APPREC> 0.88
<PER-SHARE-DIVIDEND> 0.17
<PER-SHARE-DISTRIBUTIONS> 0.47
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 16.63
<EXPENSE-RATIO> 1.20
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885414
<NAME> THE PREFERRED GROUP OF MUTUAL FUNDS
<SERIES>
<NUMBER> 4
<NAME> PREFERRED FIXED INCOME FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1998
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 183,860,397
<INVESTMENTS-AT-VALUE> 178,624,540
<RECEIVABLES> 8,500,049
<ASSETS-OTHER> 1,364
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 187,125,953
<PAYABLE-FOR-SECURITIES> 6,881,900
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 195,865
<TOTAL-LIABILITIES> 7,077,765
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 187,155,668
<SHARES-COMMON-STOCK> 18,444,425
<SHARES-COMMON-PRIOR> 14,505,934
<ACCUMULATED-NII-CURRENT> 21,439
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,830,666)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (5,298,253)
<NET-ASSETS> 180,048,188
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 10,650,501
<OTHER-INCOME> 0
<EXPENSES-NET> 1,080,737
<NET-INVESTMENT-INCOME> 9,569,764
<REALIZED-GAINS-CURRENT> (162,504)
<APPREC-INCREASE-CURRENT> (8,278,344)
<NET-CHANGE-FROM-OPS> 1,128,916
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 9,548,818
<DISTRIBUTIONS-OF-GAINS> 3,004,179
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5,945,932
<NUMBER-OF-SHARES-REDEEMED> 3,232,288
<SHARES-REINVESTED> 1,224,847
<NET-CHANGE-IN-ASSETS> 28,843,914
<ACCUMULATED-NII-PRIOR> 104,812
<ACCUMULATED-GAINS-PRIOR> 1,231,690
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 828,737
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,080,737
<AVERAGE-NET-ASSETS> 165,747,300
<PER-SHARE-NAV-BEGIN> 10.42
<PER-SHARE-NII> 0.58
<PER-SHARE-GAIN-APPREC> (0.46)
<PER-SHARE-DIVIDEND> 0.59
<PER-SHARE-DISTRIBUTIONS> 0.19
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.76
<EXPENSE-RATIO> 0.65
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885414
<NAME> THE PREFERRED GROUP OF MUTUAL FUNDS
<SERIES>
<NUMBER> 5
<NAME> PREFERRED ASSET ALLOCATION FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1998
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 185,403,090
<INVESTMENTS-AT-VALUE> 238,890,998
<RECEIVABLES> 2,996,086
<ASSETS-OTHER> 103,827
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 241,990,911
<PAYABLE-FOR-SECURITIES> 107,958
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 370,832
<TOTAL-LIABILITIES> 478,790
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 186,072,298
<SHARES-COMMON-STOCK> 14,363,121
<SHARES-COMMON-PRIOR> 10,980,440
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3,263,596
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 52,176,227
<NET-ASSETS> 241,512,121
<DIVIDEND-INCOME> 1,298,662
<INTEREST-INCOME> 6,483,235
<OTHER-INCOME> 0
<EXPENSES-NET> 1,869,869
<NET-INVESTMENT-INCOME> 5,912,028
<REALIZED-GAINS-CURRENT> 15,196,704
<APPREC-INCREASE-CURRENT> 10,362,326
<NET-CHANGE-FROM-OPS> 31,471,058
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 5,912,028
<DISTRIBUTIONS-OF-GAINS> 12,057,120
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,918,432
<NUMBER-OF-SHARES-REDEEMED> 2,615,327
<SHARES-REINVESTED> 1,079,576
<NET-CHANGE-IN-ASSETS> 69,678,555
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 124,012
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,453,421
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,857,421
<AVERAGE-NET-ASSETS> 207,630,096
<PER-SHARE-NAV-BEGIN> 15.65
<PER-SHARE-NII> 0.46
<PER-SHARE-GAIN-APPREC> 2.18
<PER-SHARE-DIVIDEND> 0.46
<PER-SHARE-DISTRIBUTIONS> 1.02
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 16.81
<EXPENSE-RATIO> 0.89
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885414
<NAME> THE PREFERRED GROUP OF MUTUAL FUNDS
<SERIES>
<NUMBER> 6
<NAME> PREFERRED SHORT-TERM GOVERNMENT SECURITIES FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1998
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 67,053,073
<INVESTMENTS-AT-VALUE> 65,927,208
<RECEIVABLES> 678,876
<ASSETS-OTHER> 300
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 66,606,384
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 55,011
<TOTAL-LIABILITIES> 55,011
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 68,562,542
<SHARES-COMMON-STOCK> 6,923,208
<SHARES-COMMON-PRIOR> 6,166,612
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (885,304)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1,125,865)
<NET-ASSETS> 66,551,373
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,450,984
<OTHER-INCOME> 0
<EXPENSES-NET> 348,980
<NET-INVESTMENT-INCOME> 3,102,004
<REALIZED-GAINS-CURRENT> 46,059
<APPREC-INCREASE-CURRENT> (1,105,009)
<NET-CHANGE-FROM-OPS> 2,043,054
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,102,004
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,159,310
<NUMBER-OF-SHARES-REDEEMED> 721,087
<SHARES-REINVESTED> 318,373
<NET-CHANGE-IN-ASSETS> 6,315,092
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (931,363)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 222,980
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 348,980
<AVERAGE-NET-ASSETS> 63,708,609
<PER-SHARE-NAV-BEGIN> 9.77
<PER-SHARE-NII> 0.47
<PER-SHARE-GAIN-APPREC> (0.16)
<PER-SHARE-DIVIDEND> 0.47
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.61
<EXPENSE-RATIO> 0.55
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885414
<NAME> THE PREFERRED GROUP OF MUTUAL FUNDS
<SERIES>
<NUMBER> 7
<NAME> PREFERRED MONEY MARKET FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1998
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 197,314,051
<INVESTMENTS-AT-VALUE> 197,314,051
<RECEIVABLES> 3,410,796
<ASSETS-OTHER> 2,309
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 200,727,156
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 5,919,047
<TOTAL-LIABILITIES> 5,919,047
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 194,808,109
<SHARES-COMMON-STOCK> 194,808,109
<SHARES-COMMON-PRIOR> 104,167,524
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 194,808,109
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 7,543,566
<OTHER-INCOME> 0
<EXPENSES-NET> 660,917
<NET-INVESTMENT-INCOME> 6,882,649
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 6,882,649
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 6,882,649
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,084,707,427
<NUMBER-OF-SHARES-REDEEMED> 1,000,663,870
<SHARES-REINVESTED> 6,597,028
<NET-CHANGE-IN-ASSETS> 90,640,585
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 436,917
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 660,917
<AVERAGE-NET-ASSETS> 145,638,367
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> 0.05
<PER-SHARE-GAIN-APPREC> 0.00
<PER-SHARE-DIVIDEND> 0.05
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 0.45
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885414
<NAME> THE PREFFERED GROUP OF MUTUAL FUNDS
<SERIES>
<NUMBER> 9
<NAME> PREFERRED SMALL CAP FUND
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1998
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 91,199,952
<INVESTMENTS-AT-VALUE> 106,529,254
<RECEIVABLES> 2,209,067
<ASSETS-OTHER> 4,159
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 108,742,480
<PAYABLE-FOR-SECURITIES> 677,275
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 446,748
<TOTAL-LIABILITIES> 1,124,023
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 107,618,032
<SHARES-COMMON-STOCK> 8,929,028
<SHARES-COMMON-PRIOR> 8,744,214
<ACCUMULATED-NII-CURRENT> 101,444
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (15,430,321)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 15,329,302
<NET-ASSETS> 107,618,457
<DIVIDEND-INCOME> 1,205,709
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 1,038,409
<NET-INVESTMENT-INCOME> 167,300
<REALIZED-GAINS-CURRENT> (15,467,932)
<APPREC-INCREASE-CURRENT> (10,349,571)
<NET-CHANGE-FROM-OPS> (25,650,203)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 150,000
<DISTRIBUTIONS-OF-GAINS> 5,076,273
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8,651,249
<NUMBER-OF-SHARES-REDEEMED> 8,884,074
<SHARES-REINVESTED> 417,639
<NET-CHANGE-IN-ASSETS> (28,685,006)
<ACCUMULATED-NII-PRIOR> 125,934
<ACCUMULATED-GAINS-PRIOR> 5,072,094
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 843,965
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,036,965
<AVERAGE-NET-ASSETS> 112,528,620
<PER-SHARE-NAV-BEGIN> 15.59
<PER-SHARE-NII> 0.01
<PER-SHARE-GAIN-APPREC> (2.96)
<PER-SHARE-DIVIDEND> 0.02
<PER-SHARE-DISTRIBUTIONS> 0.57
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 12.05
<EXPENSE-RATIO> 0.92
</TABLE>
