<PAGE> PAGE 1
000 A000000 06/30/98
000 C000000 0000885980
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 THE YACKTMAN FUNDS, INC.
001 B000000 811-6628
001 C000000 3122011200
002 A000000 303 WEST MADISON STREET
002 B000000 CHICAGO
002 C000000 IL
002 D010000 60606
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 2
007 C010100 1
007 C020100 THE YACKTMAN FUND
007 C030100 N
007 C010200 2
007 C020200 THE YACKTMAN FOCUSED FUND
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 YACKTMAN ASSET MANAGEMENT CO.
008 B00AA01 A
008 C00AA01 801-41058
008 D01AA01 CHICAGO
008 D02AA01 IL
008 D03AA01 60606
010 A00AA01 SUNSTONE FINANCIAL GROUP, INC.
010 C01AA01 MILWAUKEE
010 C02AA01 WI
010 C03AA01 53202
012 A00AA01 FIRSTAR TRUST COMPANY
012 B00AA01 85-00410
012 C01AA01 MILWAUKEE
012 C02AA01 WI
012 C03AA01 53202
<PAGE> PAGE 2
013 A00AA01 PRICEWATERHOUSECOOPERS LLC
013 B01AA01 MILWAUKEE
013 B02AA01 WI
013 B03AA01 53202
015 A00AA01 FIRSTAR TRUST COMPANY
015 B00AA01 C
015 C01AA01 MILWAUKEE
015 C02AA01 WI
015 C03AA01 53202
015 E01AA01 X
018 00AA00 Y
019 A00AA00 N
019 B00AA00 0
020 A000001 JEFFERIES & CO., INC.
020 B000001 95-2622900
020 C000001 122
020 A000002 GOLDMAN, SACHS & CO.,
020 B000002 13-5108880
020 C000002 118
020 A000003 WEEDEN & CO.
020 B000003 13-3364318
020 C000003 71
020 A000004 ABN AMRO INC.
020 B000004 37-1303980
020 C000004 53
020 A000005 FIDELITY CAPITAL
020 B000005 04-2653569
020 C000005 49
020 A000006 BLACK & COMPANY, INC.
020 B000006 93-0479581
020 C000006 47
020 A000007 CHARLES SCHWAB & CO., INC.
020 B000007 94-1727783
020 C000007 36
020 A000008 NEUBERGER & BERMAN, LLC
020 B000008 13-6354410
020 C000008 32
020 A000009 LEHMAN BROTHERS INC.
020 B000009 13-2518466
020 C000009 30
020 A000010 BARRINGTON RESEARCH ASSOCIATION, INC.
020 C000010 30
021 000000 646
022 A000001 FIRSTAR BANK
022 B000001 39-0711710
022 C000001 1737051
022 D000001 89367
022 A000002 JEFFERIES & CO., INC.
022 B000002 95-2622900
022 C000002 7199
022 D000002 31375
<PAGE> PAGE 3
022 A000003 CLEARY, GULL, REILAND & MCDEVITT INC.
022 C000003 23416
022 D000003 0
022 A000004 GOLDMAN SACHS
022 B000004 13-5108880
022 C000004 8937
022 D000004 4950
022 A000005 LEHMAN BROTHERS NEY YORK
022 B000005 13-2518466
022 C000005 7918
022 D000005 0
022 A000006 WEEDEN & CO.
022 B000006 13-3364318
022 C000006 3331
022 D000006 0
022 A000007 CHARLES SCHWAB & CO., INC.
022 B000007 94-1727783
022 C000007 634
022 D000007 0
022 C000008 0
022 D000008 0
022 C000009 0
022 D000009 0
022 C000010 0
022 D000010 0
023 C000000 1789086
023 D000000 125692
024 00AA00 N
026 A000000 Y
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 Y
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
054 A00AA00 Y
054 B00AA00 Y
<PAGE> PAGE 4
054 C00AA00 N
054 D00AA00 N
054 E00AA00 N
054 F00AA00 N
054 G00AA00 Y
054 H00AA00 Y
054 I00AA00 N
054 J00AA00 Y
054 K00AA00 N
054 L00AA00 N
054 M00AA00 Y
054 N00AA00 N
054 O00AA00 N
055 A00AA00 Y
055 B00AA00 N
056 00AA00 Y
057 00AA00 N
062 A00AA00 N
062 B00AA00 0.0
062 C00AA00 0.0
062 D00AA00 0.0
062 E00AA00 0.0
062 F00AA00 0.0
062 G00AA00 0.0
062 H00AA00 0.0
062 I00AA00 0.0
062 J00AA00 0.0
062 K00AA00 0.0
062 L00AA00 0.0
062 M00AA00 0.0
062 N00AA00 0.0
062 O00AA00 0.0
062 P00AA00 0.0
062 Q00AA00 0.0
062 R00AA00 0.0
063 A00AA00 0
063 B00AA00 0.0
066 A00AA00 Y
066 B00AA00 N
066 C00AA00 N
066 D00AA00 Y
066 E00AA00 N
066 F00AA00 N
066 G00AA00 N
067 00AA00 N
068 A00AA00 N
068 B00AA00 N
069 00AA00 N
077 A000000 Y
077 B000000 N
077 C000000 N
<PAGE> PAGE 5
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 Y
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 Y
077 Q020000 N
077 Q030000 N
078 000000 N
028 A010100 18750
028 A020100 7
028 A030100 0
028 A040100 87065
028 B010100 11159
028 B020100 10
028 B030100 0
028 B040100 72045
028 C010100 13698
028 C020100 0
028 C030100 0
028 C040100 43857
028 D010100 6940
028 D020100 4829
028 D030100 0
028 D040100 60512
028 E010100 6409
028 E020100 -4
028 E030100 0
028 E040100 71986
028 F010100 4481
028 F020100 0
028 F030100 0
028 F040100 48990
028 G010100 61437
028 G020100 4842
028 G030100 0
028 G040100 384455
028 H000100 0
037 000100 N
038 000100 0
039 000100 N
040 000100 Y
041 000100 Y
<PAGE> PAGE 6
042 A000100 0
042 B000100 0
042 C000100 0
042 D000100 100
042 E000100 0
042 F000100 0
042 G000100 0
042 H000100 0
043 000100 248
044 000100 0
045 000100 Y
046 000100 N
047 000100 Y
048 000100 0.000
048 A010100 500000
048 A020100 0.650
048 B010100 500000
048 B020100 0.600
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 1000000
048 K020100 0.550
049 000100 N
050 000100 N
051 000100 N
052 000100 N
053 A000100 N
058 A000100 N
059 000100 Y
060 A000100 Y
060 B000100 Y
061 000100 500
070 A010100 N
070 A020100 N
070 B010100 N
070 B020100 N
070 C010100 N
<PAGE> PAGE 7
070 C020100 N
070 D010100 N
070 D020100 N
070 E010100 N
070 E020100 N
070 F010100 N
070 F020100 N
070 G010100 N
070 G020100 N
070 H010100 N
070 H020100 N
070 I010100 N
070 I020100 N
070 J010100 Y
070 J020100 N
070 K010100 Y
070 K020100 N
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 N
070 P020100 N
070 Q010100 N
070 Q020100 N
070 R010100 N
070 R020100 N
071 A000100 80651
071 B000100 348913
071 C000100 909643
071 D000100 9
072 A000100 6
072 B000100 1147
072 C000100 10125
072 D000100 0
072 E000100 0
072 F000100 2963
072 G000100 155
072 H000100 0
072 I000100 620
072 J000100 87
072 K000100 0
072 L000100 87
072 M000100 14
072 N000100 68
072 O000100 0
072 P000100 0
<PAGE> PAGE 8
072 Q000100 34
072 R000100 10
072 S000100 21
072 T000100 248
072 U000100 0
072 V000100 0
072 W000100 7
072 X000100 4314
072 Y000100 0
072 Z000100 6958
072AA000100 79391
072BB000100 5118
072CC010100 0
072CC020100 42318
072DD010100 6917
072DD020100 0
072EE000100 0
073 A010100 0.1100
073 A020100 0.0000
073 B000100 0.0000
073 C000100 0.0000
074 A000100 10
074 B000100 0
074 C000100 22701
074 D000100 0
074 E000100 0
074 F000100 774324
074 G000100 0
074 H000100 0
074 I000100 0
074 J000100 0
074 K000100 0
074 L000100 2233
074 M000100 42
074 N000100 799310
074 O000100 0
074 P000100 425
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 2925
074 S000100 0
074 T000100 795960
074 U010100 55048
074 U020100 0
074 V010100 14.46
074 V020100 0.00
074 W000100 0.0000
074 X000100 10810
074 Y000100 0
<PAGE> PAGE 9
075 A000100 0
075 B000100 951459
076 000100 0.00
028 A010200 7184
028 A020200 0
028 A030200 0
028 A040200 3626
028 B010200 3694
028 B020200 -2
028 B030200 0
028 B040200 2834
028 C010200 5296
028 C020200 0
028 C030200 0
028 C040200 3507
028 D010200 2951
028 D020200 52
028 D030200 0
028 D040200 2989
028 E010200 2324
028 E020200 1
028 E030200 0
028 E040200 1935
028 F010200 2214
028 F020200 0
028 F030200 0
028 F040200 2578
028 G010200 23663
028 G020200 51
028 G030200 0
028 G040200 17469
028 H000200 0
037 000200 N
038 000200 0
039 000200 N
040 000200 N
041 000200 N
042 A000200 0
042 B000200 0
042 C000200 0
042 D000200 0
042 E000200 0
042 F000200 0
042 G000200 0
042 H000200 0
043 000200 0
044 000200 0
045 000200 Y
046 000200 N
047 000200 Y
048 000200 1.000
<PAGE> PAGE 10
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 Y
053 B000200 Y
053 C000200 N
058 A000200 N
059 000200 Y
060 A000200 N
060 B000200 N
061 000200 500
070 A010200 N
070 A020200 N
070 B010200 Y
070 B020200 Y
070 C010200 N
070 C020200 N
070 D010200 N
070 D020200 N
070 E010200 N
070 E020200 N
070 F010200 N
070 F020200 N
070 G010200 N
070 G020200 N
070 H010200 N
070 H020200 N
070 I010200 N
<PAGE> PAGE 11
070 I020200 N
070 J010200 Y
070 J020200 N
070 K010200 Y
070 K020200 N
070 L010200 Y
070 L020200 N
070 M010200 Y
070 M020200 N
070 N010200 Y
070 N020200 N
070 O010200 Y
070 O020200 N
070 P010200 N
070 P020200 N
070 Q010200 N
070 Q020200 N
070 R010200 N
070 R020200 N
071 A000200 23315
071 B000200 13656
071 C000200 58078
071 D000200 24
072 A000200 6
072 B000200 348
072 C000200 276
072 D000200 0
072 E000200 0
072 F000200 338
072 G000200 25
072 H000200 0
072 I000200 17
072 J000200 8
072 K000200 0
072 L000200 7
072 M000200 0
072 N000200 20
072 O000200 0
072 P000200 0
072 Q000200 0
072 R000200 7
072 S000200 20
072 T000200 0
072 U000200 0
072 V000200 0
072 W000200 1
072 X000200 443
072 Y000200 20
072 Z000200 201
072AA000200 1689
072BB000200 4
<PAGE> PAGE 12
072CC010200 3280
072CC020200 0
072DD010200 171
072DD020200 0
072EE000200 0
073 A010200 0.0300
073 A020200 0.0000
073 B000200 0.0000
073 C000200 0.0000
074 A000200 1
074 B000200 0
074 C000200 7785
074 D000200 0
074 E000200 0
074 F000200 61757
074 G000200 210
074 H000200 0
074 I000200 0
074 J000200 0
074 K000200 3
074 L000200 169
074 M000200 32
074 N000200 69957
074 O000200 0
074 P000200 57
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 48
074 R040200 165
074 S000200 0
074 T000200 69687
074 U010200 5758
074 U020200 0
074 V010200 12.10
074 V020200 0.00
074 W000200 0.0000
074 X000200 862
074 Y000200 0
075 A000200 0
075 B000200 67499
076 000200 0.00
SIGNATURE JON KIEKHOFER
TITLE ADMINISTRATOR
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885980
<NAME> THE YACKTMAN FUNDS, INC.
<SERIES>
<NUMBER> 1
<NAME> THE YACKTMAN FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 651,910,056
<INVESTMENTS-AT-VALUE> 797,024,986
<RECEIVABLES> 2,232,750
<ASSETS-OTHER> 52,312
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 799,310,048
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,350,295
<TOTAL-LIABILITIES> 3,350,295
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 576,952,256
<SHARES-COMMON-STOCK> 55,048,419
<SHARES-COMMON-PRIOR> 77,002,248
<ACCUMULATED-NII-CURRENT> 70,264
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 73,822,303
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 145,114,930
<NET-ASSETS> 795,959,753
<DIVIDEND-INCOME> 10,125,511
<INTEREST-INCOME> 1,146,588
<OTHER-INCOME> 0
<EXPENSES-NET> (4,314,055)
<NET-INVESTMENT-INCOME> 6,958,044
<REALIZED-GAINS-CURRENT> 74,273,269
<APPREC-INCREASE-CURRENT> (42,317,602)
<NET-CHANGE-FROM-OPS> 38,913,711
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (6,916,792)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,246,841
<NUMBER-OF-SHARES-REDEEMED> 26,521,181
<SHARES-REINVESTED> 320,511
<NET-CHANGE-IN-ASSETS> (286,179,568)
<ACCUMULATED-NII-PRIOR> 23,937
<ACCUMULATED-GAINS-PRIOR> (445,891)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,962,578
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 4,398,143
<AVERAGE-NET-ASSETS> 951,459,187
<PER-SHARE-NAV-BEGIN> 14.05
<PER-SHARE-NII> .11
<PER-SHARE-GAIN-APPREC> .41
<PER-SHARE-DIVIDEND> (.11)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.46
<EXPENSE-RATIO> .91
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885980
<NAME> THE YACKTMAN FUNDS, INC.
<SERIES>
<NUMBER> 2
<NAME> THE YACKTMAN FOCUSED FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 66,283,707
<INVESTMENTS-AT-VALUE> 69,752,342
<RECEIVABLES> 169,030
<ASSETS-OTHER> 35,607
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 69,956,979
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 270,366
<TOTAL-LIABILITIES> 270,366
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 64,336,502
<SHARES-COMMON-STOCK> 5,757,647
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 30,421
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,697,249
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,622,441
<NET-ASSETS> 69,686,613
<DIVIDEND-INCOME> 347,669
<INTEREST-INCOME> 276,142
<OTHER-INCOME> 0
<EXPENSES-NET> (422,540)
<NET-INVESTMENT-INCOME> 201,271
<REALIZED-GAINS-CURRENT> 1,685,405
<APPREC-INCREASE-CURRENT> 3,279,850
<NET-CHANGE-FROM-OPS> 5,166,526
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (171,033)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,006,633
<NUMBER-OF-SHARES-REDEEMED> 1,465,187
<SHARES-REINVESTED> 4,073
<NET-CHANGE-IN-ASSETS> 69,686,613
<ACCUMULATED-NII-PRIOR> 1,476
<ACCUMULATED-GAINS-PRIOR> 10,551
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 338,032
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 442,747
<AVERAGE-NET-ASSETS> 67,498,759
<PER-SHARE-NAV-BEGIN> 11.21
<PER-SHARE-NII> .04
<PER-SHARE-GAIN-APPREC> .88
<PER-SHARE-DIVIDEND> (.03)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.10
<EXPENSE-RATIO> 1.25
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Exhibit to Accompany
Item 77J
Form N-SAR
The Yacktman Funds, Inc.
(the "Funds")
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 Funds are
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, 1998 reclassifications were recorded to increase
(decrease) undistributed net investment income by $5,075 and
($1,293) and increase (decrease) undistributed net realized
gains by ($5,075) and $1,293 for The Yacktman Fund and The
Yacktman Focused Fund, respectively.
This reclassification has no impact on the net asset value of the
Funds and is designed to present the Funds' capital account on
a tax basis.
sl
K:\YACKTMAN\OTHER\1998 NSAR-A ITEM77JB.DOC
08/21/98
