JP MORGAN INSTITUTIONAL FUNDS
NSAR-B, 1999-10-28
Previous: FIRST TRUST SPECIAL SITUATIONS TRUST SYSTEMS SERIES 49, 485BPOS, 1999-10-28
Next: JP MORGAN INSTITUTIONAL FUNDS, 485BPOS, 1999-10-28



<PAGE>      PAGE  1
000 B000000 08/31/99
000 C000000 894088
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 J.P. MORGAN INSTITUTIONAL FUNDS
001 B000000 811-7342
001 C000000 6175573334
002 A000000 60 STATE STREET SUITE 1300
002 B000000 BOSTON
002 C000000 MA
002 D010000 02109
003  000000 N
004  000000 N
005  000000 N
006  000000 N
007 A000000 Y
007 B000000 22
007 C010100  1
007 C010200  2
007 C010300  3
007 C010400  4
007 C010500  5
007 C010600  6
007 C010700  7
007 C020700 J.P. MORGAN INSTITUTIONAL TAX-EXEMPT MONEY M
007 C030700 N
007 C010800  8
007 C010900  9
007 C011000 10
007 C011100 11
007 C011200 12
007 C011300 13
007 C011400 14
007 C011500 15
007 C011600 16
007 C011700 17
007 C011800 18
007 C011900 19
007 C012000 20
007 C012100 21
007 C012200 22
007 C012300 23
007 C012400 24
007 C022400 JP MORGAN INSTITUTIONAL SERVICE TAX EXEMPT MM
007 C032400 N
007 C012500 25
<PAGE>      PAGE  2
007 C012600 26
007 C012700 27
007 C012800 28
007 C012900 29
007 C013000 30
010 A00AA01 FUNDS DISTRIBUTOR, INC.
010 B00AA01 8-420518
010 C01AA01 BOSTON
010 C02AA01 MA
010 C03AA01 02116
010 A00AA02 PIERPONT GROUP, INC.
010 C01AA02 NEW YORK
010 C02AA02 NY
010 C03AA02 10017
010 A00AA03 MORGAN GUARANTY TRUST CO. OF NEW YORK
010 B00AA03 8-49999
010 C01AA03 NEW YORK
010 C02AA03 NY
010 C03AA03 10036
011 A00AA01 FUNDS DISTRIBUTOR, INC.
011 B00AA01 8-420518
011 C01AA01 BOSTON
011 C02AA01 MA
011 C03AA01 02116
012 A00AA01 STATE STREET BANK AND TRUST CO.
012 B00AA01 85-50003
012 C01AA01 BOSTON
012 C02AA01 MA
012 C03AA01 02101
012 A00AA02 MORGAN GUARANTY TRUST CO. OF NEW YORK
012 B00AA02 85-9999999
012 C01AA02 NEW YORK
012 C02AA02 NY
012 C03AA02 10036
013 A00AA01 PRICEWATERHOUSECOOPERS LLP
013 B01AA01 NEW YORK
013 B02AA01 NY
013 B03AA01 10036
014 A00AA01 FUNDS DISTRIBUTOR, INC.
014 B00AA01 8-420518
014 A00AA02 JP MORGAN SECURITIES, INC.
014 B00AA02 8-99999
014 A00AA03 JP MORGAN SECURITIES LTD.
014 B00AA03 8-99999
014 A00AA04 BOSTON INSTITUTIONAL SERVICES INC.
014 B00AA04 8-99999
015 A00AA01 STATE STREET BANK AND TRUST CO.
015 B00AA01 C
015 C01AA01 BOSTON
015 C02AA01 MA
015 C03AA01 02101
<PAGE>      PAGE  3
015 E01AA01 X
018  00AA00 Y
019 A00AA00 Y
019 B00AA00   71
019 C00AA00 J.P.MORGAN
020 C000001      0
020 C000002      0
020 C000003      0
020 C000004      0
020 C000005      0
020 C000006      0
020 C000007      0
020 C000008      0
020 C000009      0
020 C000010      0
021  000000        0
022 C000001         0
022 D000001         0
022 A000002 THE TAX-EXEMPT MONEY MARKET PORTFOLIO
022 B000002 04-3194418
022 C000002    983201
022 D000002   1155563
022 C000003         0
022 D000003         0
022 C000004         0
022 D000004         0
022 C000005         0
022 D000005         0
022 C000006         0
022 D000006         0
022 C000007         0
022 D000007         0
022 C000008         0
022 D000008         0
022 C000009         0
022 D000009         0
022 C000010         0
022 D000010         0
023 C000000     983201
023 D000000    1155563
024  00AA00 N
025 D00AA01       0
025 D00AA02       0
025 D00AA03       0
025 D00AA04       0
025 D00AA05       0
025 D00AA06       0
025 D00AA07       0
025 D00AA08       0
026 A000000 N
026 B000000 N
<PAGE>      PAGE  4
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
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
045  00AA00 N
048  00AA00  0.000
048 A01AA00        0
048 A02AA00 0.000
048 B01AA00        0
048 B02AA00 0.000
048 C01AA00        0
048 C02AA00 0.000
048 D01AA00        0
048 D02AA00 0.000
048 E01AA00        0
048 E02AA00 0.000
048 F01AA00        0
048 F02AA00 0.000
048 G01AA00        0
048 G02AA00 0.000
048 H01AA00        0
<PAGE>      PAGE  5
048 H02AA00 0.000
048 I01AA00        0
048 I02AA00 0.000
048 J01AA00        0
048 J02AA00 0.000
048 K01AA00        0
048 K02AA00 0.000
055 A00AA00 N
055 B00AA00 N
056  00AA00 N
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 N
067  00AA00 N
068 A00AA00 N
068 B00AA00 N
069  00AA00 N
077 A000000 Y
077 B000000 Y
078  000000 N
080 C00AA00    25000
081 A00AA00 Y
081 B00AA00  22
082 A00AA00 Y
082 B00AA00       25
083 A00AA00 N
083 B00AA00        0
084 A00AA00 N
084 B00AA00        0
085 A00AA00 Y
085 B00AA00 N
086 A010000      0
<PAGE>      PAGE  6
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
028 A010700    116250
028 A020700       992
028 A030700         0
028 A040700    130636
028 B010700    229741
028 B020700       788
028 B030700         0
028 B040700    347237
028 C010700    175738
028 C020700       893
028 C030700         0
028 C040700    162131
028 D010700    139231
028 D020700       862
028 D030700         0
028 D040700    172387
028 E010700    141016
028 E020700       743
028 E030700         0
028 E040700    163746
028 F010700    160320
028 F020700       808
028 F030700         0
028 F040700    140599
028 G010700    962296
028 G020700      5086
028 G030700         0
028 G040700   1116736
028 H000700         0
058 A000700 N
059  000700 Y
060 A000700 Y
060 B000700 Y
061  000700 10000000
070 A010700 Y
070 A010700 N
070 A020700 N
070 A020700 N
070 B010700 N
070 B010700 N
<PAGE>      PAGE  7
070 B020700 N
070 B020700 N
070 C010700 N
070 C010700 N
070 C020700 N
070 C020700 N
070 D010700 N
070 D010700 N
070 D020700 N
070 D020700 N
070 E010700 N
070 E010700 N
070 E020700 Y
070 E020700 N
070 F010700 Y
070 F010700 Y
070 F020700 N
070 F020700 N
070 G010700 N
070 G010700 N
070 G020700 Y
070 G020700 N
070 H010700 Y
070 H010700 N
070 H020700 N
070 H020700 N
070 I010700 N
070 I010700 N
070 I020700 N
070 I020700 N
070 J010700 N
070 J020700 N
070 K010700 Y
070 K020700 Y
070 L010700 N
070 L020700 N
070 M010700 N
070 M020700 N
070 N010700 N
070 N020700 N
070 O010700 N
070 O020700 N
070 P010700 N
070 P020700 N
070 Q010700 N
070 Q020700 N
070 R010700 N
070 R020700 N
071 A000700         0
071 B000700         0
071 C000700         0
<PAGE>      PAGE  8
071 D000700    0
072 A000700 12
072 B000700        0
072 C000700        0
072 D000700        0
072 E000700    16675
072 F000700        0
072 G000700      170
072 H000700        0
072 I000700      580
072 J000700        0
072 K000700        0
072 L000700       13
072 M000700        8
072 N000700       11
072 O000700        0
072 P000700        0
072 Q000700        0
072 R000700       12
072 S000700        6
072 T000700        0
072 U000700        0
072 V000700        0
072 W000700       14
072 X000700      814
072 Y000700      809
072 Z000700    16670
072AA000700        1
072BB000700        0
072CC010700        0
072CC020700        0
072DD010700    16670
072DD020700        0
072EE000700        0
073 A010700   0.0302
073 A020700   0.0000
073 B000700   0.0000
073 C000700   0.0000
074 A000700        0
074 B000700        0
074 C000700        0
074 D000700        0
074 E000700        0
074 F000700        0
074 G000700        0
074 H000700        0
074 I000700   416816
074 J000700        0
074 K000700       52
074 L000700        0
074 M000700        3
<PAGE>      PAGE  9
074 N000700   416871
074 O000700        0
074 P000700       52
074 Q000700        0
074 R010700        0
074 R020700        0
074 R030700        0
074 R040700      270
074 S000700        0
074 T000700   416549
074 U010700   416558
074 U020700        0
074 V010700     1.00
074 V020700     0.00
074 W000700   1.0000
074 X000700      320
074 Y000700        0
075 A000700   552311
075 B000700        0
076  000700     0.00
028 A012400     10722
028 A022400        35
028 A032400         0
028 A042400     18562
028 B012400      1873
028 B022400         9
028 B032400         0
028 B042400     11964
028 C012400      3331
028 C022400         8
028 C032400         0
028 C042400      2411
028 D012400      1825
028 D022400         0
028 D032400         0
028 D042400      3269
028 E012400      2021
028 E022400         0
028 E032400         0
028 E042400       226
028 F012400      1133
028 F022400         0
028 F032400         0
028 F042400      2395
028 G012400     20905
028 G022400        52
028 G032400         0
028 G042400     38827
028 H002400         0
058 A002400 N
059  002400 Y
<PAGE>      PAGE  10
060 A002400 Y
060 B002400 Y
061  002400 10000000
070 A012400 Y
070 A022400 N
070 B012400 N
070 B022400 N
070 C012400 N
070 C022400 N
070 D012400 N
070 D022400 N
070 E012400 N
070 E022400 N
070 F012400 N
070 F022400 N
070 G012400 N
070 G022400 N
070 H012400 N
070 H022400 N
070 I012400 N
070 I022400 N
070 J012400 Y
070 J022400 N
070 K012400 Y
070 K022400 Y
070 L012400 N
070 L022400 N
070 M012400 N
070 M022400 N
070 N012400 Y
070 N022400 N
070 O012400 Y
070 O022400 N
070 P012400 N
070 P022400 N
070 Q012400 N
070 Q022400 N
070 R012400 N
070 R022400 N
071 A002400         0
071 B002400         0
071 C002400         0
071 D002400    0
072 A002400 12
072 B002400        0
072 C002400        0
072 D002400        0
072 E002400      348
072 F002400        0
072 G002400        4
072 H002400        0
<PAGE>      PAGE  11
072 I002400        6
072 J002400        0
072 K002400        0
072 L002400       14
072 M002400        0
072 N002400       22
072 O002400        0
072 P002400        0
072 Q002400        0
072 R002400       11
072 S002400        0
072 T002400        0
072 U002400       30
072 V002400        0
072 W002400       23
072 X002400      110
072 Y002400       77
072 Z002400      315
072AA002400        0
072BB002400        0
072CC012400        0
072CC022400        0
072DD012400      315
072DD022400        0
072EE002400        0
073 A012400   0.0275
073 A022400   0.0000
073 B002400   0.0000
073 C002400   0.0000
074 A002400        0
074 B002400        0
074 C002400        0
074 D002400        0
074 E002400        0
074 F002400        0
074 G002400        0
074 H002400        0
074 I002400     8372
074 J002400        0
074 K002400        7
074 L002400        0
074 M002400        9
074 N002400     8388
074 O002400        0
074 P002400        2
074 Q002400        0
074 R012400        0
074 R022400        0
074 R032400        0
074 R042400       68
074 S002400        0
<PAGE>      PAGE  12
074 T002400     8318
074 U012400     8318
074 U022400        0
074 V012400     1.00
074 V022400     0.00
074 W002400   1.0000
074 X002400        1
074 Y002400        0
075 A002400    11870
075 B002400        0
076  002400     0.00
SIGNATURE   GEORGE A. RIO
TITLE       TREASURER


WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
This schedule contains summary financial data extracted from the annual report
dated August 31, 1999 for the J.P. Morgan Institutional Tax Exempt Money Market
Fund and is qualified in its entirety by reference to such annual report.
</LEGEND>
<MULTIPLIER> 1,000

<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          AUG-31-1999
<PERIOD-END>                               AUG-31-1999
<INVESTMENTS-AT-COST>                                0
<INVESTMENTS-AT-VALUE>                          416816
<RECEIVABLES>                                       52
<ASSETS-OTHER>                                       3
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                  416871
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                          322
<TOTAL-LIABILITIES>                                322
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                        416557
<SHARES-COMMON-STOCK>                           416558
<SHARES-COMMON-PRIOR>                           594301
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                            (8)
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                    416549
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                   16675
<EXPENSES-NET>                                       5
<NET-INVESTMENT-INCOME>                          16670
<REALIZED-GAINS-CURRENT>                             1
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                            16671
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                        16670
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                        2747991
<NUMBER-OF-SHARES-REDEEMED>                    2937899
<SHARES-REINVESTED>                              12165
<NET-CHANGE-IN-ASSETS>                        (177742)
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                          (9)
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    814
<AVERAGE-NET-ASSETS>                            552311
<PER-SHARE-NAV-BEGIN>                             1.00
<PER-SHARE-NII>                                   .030
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                         .030
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                               1.00
<EXPENSE-RATIO>                                     .2
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0



</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE> 6
<LEGEND>
This schedule contains summary financial data extracted from the annual report
dated August 31, 1999 for the J.P. Morgan Institutional Service Tax Exempt Money
Market Fund and is qualified in its entirety by reference to such annual report.
</LEGEND>
<MULTIPLIER> 1,000

<S>                             <C>
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          AUG-31-1999
<PERIOD-END>                               AUG-31-1999
<INVESTMENTS-AT-COST>                                0
<INVESTMENTS-AT-VALUE>                            8372
<RECEIVABLES>                                        7
<ASSETS-OTHER>                                       9
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                    8388
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                           70
<TOTAL-LIABILITIES>                                 70
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                          8318
<SHARES-COMMON-STOCK>                             8318
<SHARES-COMMON-PRIOR>                             8237
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                              0
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                             0
<NET-ASSETS>                                      8318
<DIVIDEND-INCOME>                                    0
<INTEREST-INCOME>                                    0
<OTHER-INCOME>                                     348
<EXPENSES-NET>                                      33
<NET-INVESTMENT-INCOME>                            315
<REALIZED-GAINS-CURRENT>                             0
<APPREC-INCREASE-CURRENT>                            0
<NET-CHANGE-FROM-OPS>                              315
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                          315
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                          80507
<NUMBER-OF-SHARES-REDEEMED>                      80588
<SHARES-REINVESTED>                                162
<NET-CHANGE-IN-ASSETS>                              81
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                                0
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                    110
<AVERAGE-NET-ASSETS>                             11870
<PER-SHARE-NAV-BEGIN>                             1.00
<PER-SHARE-NII>                                   .028
<PER-SHARE-GAIN-APPREC>                              0
<PER-SHARE-DIVIDEND>                                 0
<PER-SHARE-DISTRIBUTIONS>                         .028
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                               1.00
<EXPENSE-RATIO>                                    .48
[AVG-DEBT-OUTSTANDING]                               0
[AVG-DEBT-PER-SHARE]                                 0



</TABLE>



                        Report of Independent Accountants

To the Shareholders and Trustees of
J.P. Morgan Institutional Tax Exempt Money Market Fund



In planning and performing our audit of the financial  statements of J.P. Morgan
Institutional  Tax Exempt  Money  Market  Fund (the  "Fund")  for the year ended
August  31,  1999,  we  considered  its  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 Fund 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,



<PAGE>

including controls for safeguarding securities,  that we consider to be material
weaknesses as defined above as of August 31, 1999.

This report is intended solely for the information and use of management and the
Trustees  of the Fund and the  Securities  and  Exchange  Commission  and is not
intended  to be and  should not be used by anyone  other  than  these  specified
parties.


October 19, 1999




                        Report of Independent Accountants

To the Shareholders and Trustees of
J.P. Morgan Tax Exempt Money Market Fund



In planning and performing our audit of the financial  statements of J.P. Morgan
Tax Exempt Money Market Fund (the "Fund") for the year ended August 31, 1999, we
considered its 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 Fund 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,



<PAGE>

including controls for safeguarding securities,  that we consider to be material
weaknesses as defined above as of August 31, 1999.

This report is intended solely for the information and use of management and the
Trustees  of the Fund and the  Securities  and  Exchange  Commission  and is not
intended  to be and  should not be used by anyone  other  than  these  specified
parties.



October 19, 1999



© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission