<PAGE> PAGE 1
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000 C000000 0000885980
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<PAGE> PAGE 2
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<PAGE> PAGE 4
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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<PAGE> PAGE 10
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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SIGNATURE JON KIEKHOFER
TITLE ADMINISTRATOR
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<NAME> THE YACKTMAN FUNDS, INC.
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THE YACKTMAN FUNDS, INC.
FORM N-SAR
Report for the Six Months ending June 30, 1997
Item 77I - Terms of New or Amended Securities
During the first six months of fiscal 1997, the Company commenced
investment operations of one additional portfolio, The Yacktman
Focused Fund. The Fund has one class of shares with a par value of
$0.0001. Each share represents a proportionate interest in the Fund and
is entitled to such dividends and distributions out of the income
belonging to the Fund as declared by the Directors. Shares bear the
expenses of the Fund, and do not have any preemptive or conversion
rights. Upon liquidation of the Fund, shareholders are entitled to share
pro rata in the net assets available for distribution.
jk
K:\YACKTMAN\NSAR\ITEM77I.DOC
08/28/97
jk
K:\YACKTMAN\NSAR\ITEM77I.DOC
08/28/97
Exhibit to Accompany
Item 77J (b)
Form N-SAR
The Yacktman Funds, Inc.
(the "Fund")
According to the provisions of Statement of Position 93 - 2 (SOP
93 - 2) "Determination, Disclosure and Financial Statement
Presentation of Income, Capital Gain and Return of Capital
Distributions by Investment Companies," the Fund is required to
report the accumulated net investment income (loss) and
accumulated net capital gain (loss) accounts to approximate
amounts available for future distributions on a tax basis (or to
offset future realized capital gains). Accordingly, at June 30, 1997
reclassifications in The Yacktman Focused Fund were recorded to
undistributed net investment income to reduce capital stock by
$20,292.
This reclassification has no impact on the net asset value of the
Fund and is designed to present the Funds' capital account on a tax
basis.
