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SIGNATURE JULIAN F.SLUYTERS
TITLE TREASURER
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For period ending September 30, 1996 Attachment 77C
File Number 811-7096
Investment Grade Municipal Income Fund Inc.
A special meeting of shareholders was held on April 11, 1996, at which the
following proposals were approved:
To vote for or against the
following changes to the Fund s
fundamental investment restrictions
and policies (the enumeration below
follows that used in the related proxy Shares Voted Shares Voted Shares
statement): For Against Abstain
1. Modification of Fundamental
Restriction on Portfolio
Diversification for Diversified Funds 4,632,020 163,316 200,905
2. Modification of Fundamental
Restriction on Concentration 4,626,823 164,008 205,407
3. Modification of Fundamental
Restriction on Senior Securities and
Borrowing 4,610,630 157,752 227,860
4. Modification of Fundamental
Restriction on Making Loans 4,600,746 196,505 198,990
5. Modification of Fundamental
Restriction on Underwriting Securities 4,620,216 169,867 206,158
6. Modification of Fundamental
Restriction on Real Estate Investments 4,626,862 150,567 218,812
7. Modification of Fundamental
Restriction on Investing in Commodities 4,597,135 185,784 213,322
8. Elimination of Fundamental
Restriction on Margin Transactions 4,580,577 212,896 202,768
9. Elimination of Fundamental
Restriction on Short Sales 4,581,495 197,652 217,095
10. Elimination of Fundamental
Restriction on Investments in Oil, Gas
and Mineral Leases and Programs 4,631,334 171,924 192,984
In addition to the item noted above, the Fund s shareholders elected board
members. Pursuant to Instruction 2 of Sub-Item 77C of Form N-SAR, it is not
necessary to provide in this exhibit details concerning shareholder action on
this proposal since there were no solicitations in opposition to the
registrant s nominees and all of the nominees were elected.
A more complete description of the proposal referred to above is hereby
incorporated by reference to the Fund s proxy materials dated February 28, 1996
relating to the Special Meeting of Shareholders. These Schedule 14A materials
were filed with the Securities and Exchange Commission via EDGAR on February 29,
1996; the accession code number was 0000912057-96-003594.
For period ending September 30, 1996 Attachment 77D
File Number 811-7096
Investment Grade Municipal Income Fund Inc.
Investment Grade Municipal Income Fund Inc. amended its investment
policies to allow for the current use of options and futures strategies,
including interest rate futures.
For the period ended September 30, 1996 Exhibit 77Q(2)
File Number 811-7096
Investment Grade Municipal Income Fund Inc.
A Form 3 required by Section 16(a) of the Exchange Act was filed late by
the following directors and officers during the most recent or prior
fiscal years.
Number of Number of Transactions
Not
Name Position with Fund Late Reports* Reported on Timely
Basis
Emil Polito Vice President 1 0
* Report related solely to such person having been elected an officer of
the Fund.
November 20, 1996
To the Board of Directors of
Investment Grade Municipal Income Fund
In planning and performing our audit of the financial statements of
Investment Grade Municipal Income Fund (the "Fund") for the year ended
September 30, 1996, we considered its internal control structure,
including procedures for safeguarding securities, in order to determine
our auditing procedures for the purposes of expressing our opinion on the
financial statements and to comply with the requirements of Form N-SAR,
and not to provide assurance on the internal control structure.
The management of the Fund is responsible for establishing and
maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of internal control
structure policies and procedures. Two of the objectives of an internal
control structure are to provide management with reasonable, but not
absolute, assurance that assets are appropriately safeguarded against
loss from unauthorized use or disposition and that transactions are
executed in accordance with management's authorization and recorded
properly to permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors
or irregularities may occur and may not be detected. Also, projection of
any evaluation of the structure 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 the internal control structure would not
necessarily disclose all matters in the internal control structure 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 the specific internal
control structure elements does not reduce to a relatively low level the
risk that errors or irregularities 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 the internal control structure, including procedures for
safeguarding securities, that we consider to be material weaknesses as
defined above as of September 30, 1996.
This report is intended solely for the information and use of management
and the Securities and Exchange Commission.
PRICE WATERHOUSE LLP
