<PAGE> PAGE 1
000 A000000 06/30/99
000 C000000 0000898745
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 PRINCIPAL SPECIAL MARKETS FUND, INC.
001 B000000 811-07572
001 C000000 5152475476
002 A000000 PRINCIPAL FINANCIAL GROUP
002 B000000 DES MOINES
002 C000000 IA
002 D010000 50392
002 D020000 0200
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 4
007 C010100 1
007 C020100 INTERNATIONAL SMALLCAP PORTFOLIO
007 C030100 N
007 C010200 2
007 C020200 INTERNATIONAL EMERGING MARKETS PORTFOLIO
007 C030200 N
007 C010300 3
007 C020300 INTERNATIONAL SECURITIES PORTFOLIO
007 C030300 N
007 C010400 4
007 C020400 MORTGAGE-BACKED SECURITIES PORTFOLIO
007 C030400 N
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
020 A000001 JAMES CAPPEL INC.
020 B000001 52-1348224
020 C000001 91
020 A000002 MERRILL LYNCH
020 B000002 13-5674085
020 C000002 82
020 A000003 GOLDMAN SACHS CO.
020 B000003 13-5108880
020 C000003 76
020 A000004 CREDIT SUISSE FIRST BOSTON
<PAGE> PAGE 2
020 B000004 13-5659485
020 C000004 73
020 A000005 ABM AMRO SECURITIES
020 B000005 13-3227945
020 C000005 58
020 A000006 MORGAN STANLEY & CO.
020 B000006 13-2655998
020 C000006 45
020 A000007 SALOMON BROTHERS, SMITH BARNEY
020 B000007 13-3082694
020 C000007 35
020 A000008 ROBERT FLEMING
020 B000008 13-3298866
020 C000008 34
020 A000009 BEAR STEARNS & CO.
020 B000009 13-3299429
020 C000009 26
020 A000010 SG WARBURG & CO.
020 B000010 13-3340045
020 C000010 25
021 000000 856
022 A000001 GENERAL ELECTRIC CAPITAL CORP.
022 B000001 13-1500700
022 C000001 306696
022 D000001 0
022 A000002 ASSOCIATES CORP. OF NORTH AMERICA
022 B000002 74-1494554
022 C000002 206205
022 D000002 0
022 A000003 FIRST CHICAGO CAPITAL MARKETS
022 B000003 36-3595942
022 C000003 58642
022 D000003 0
022 A000004 MERRILL LYNCH
022 B000004 13-5674085
022 C000004 4581
022 D000004 10670
022 A000005 GOLDMAN SACHS CO.
022 B000005 13-5108880
022 C000005 7769
022 D000005 2943
022 A000006 CREDIT SUISSE FIRST BOSTON CORP
022 B000006 13-5659485
022 C000006 5205
022 D000006 3304
022 A000007 SALOMON BROTHERS, SMITH BARNEY
022 B000007 13-3082694
022 C000007 2480
022 D000007 5478
022 A000008 AMERICAN EXPRESS CREDIT CORP.
022 B000008 11-1988350
<PAGE> PAGE 3
022 C000008 7713
022 D000008 0
022 A000009 HOUSEHOLD FINANCE
022 B000009 36-1239445
022 C000009 7527
022 D000009 0
022 A000010 LEHMAN BROTHERS
022 B000010 13-2501865
022 C000010 776
022 D000010 6401
023 C000000 639783
023 D000000 47334
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
027 000000 Y
077 A000000 N
028 A010100 0
028 A020100 0
028 A030100 0
028 A040100 0
028 B010100 0
028 B020100 1726
028 B030100 0
028 B040100 0
028 C010100 0
028 C020100 0
028 C030100 0
028 C040100 0
028 D010100 0
028 D020100 0
028 D030100 0
028 D040100 0
028 E010100 0
028 E020100 0
028 E030100 0
028 E040100 0
028 F010100 0
028 F020100 0
028 F030100 0
028 F040100 0
028 G010100 0
028 G020100 1726
028 G030100 0
028 G040100 0
<PAGE> PAGE 4
028 H000100 0
055 A000100 N
055 B000100 Y
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
066 A000100 Y
066 B000100 N
066 C000100 N
066 D000100 Y
066 E000100 N
066 F000100 N
066 G000100 N
067 000100 N
068 A000100 N
068 B000100 Y
069 000100 N
070 A010100 Y
070 A020100 N
070 B010100 Y
070 B020100 N
070 C010100 Y
070 C020100 N
070 D010100 Y
070 D020100 N
070 E010100 Y
070 E020100 N
070 F010100 Y
070 F020100 N
070 G010100 Y
070 G020100 N
070 H010100 Y
070 H020100 N
070 I010100 N
<PAGE> PAGE 5
070 I020100 N
070 J010100 Y
070 J020100 Y
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 Y
070 P020100 N
070 Q010100 N
070 Q020100 N
070 R010100 Y
070 R020100 N
071 A000100 89269
071 B000100 87006
071 C000100 88349
071 D000100 99
072 A000100 6
072 B000100 39
072 C000100 670
072 D000100 0
072 E000100 0
072 F000100 445
072 G000100 0
072 H000100 0
072 I000100 0
072 J000100 0
072 K000100 0
072 L000100 0
072 M000100 0
072 N000100 0
072 O000100 0
072 P000100 0
072 Q000100 0
072 R000100 0
072 S000100 0
072 T000100 0
072 U000100 0
072 V000100 0
072 W000100 0
072 X000100 445
072 Y000100 0
072 Z000100 265
072AA000100 1555
072BB000100 0
<PAGE> PAGE 6
072CC010100 13058
072CC020100 0
072DD010100 6
072DD020100 0
072EE000100 1720
073 A010100 0.0000
073 A020100 0.0000
073 B000100 0.0000
073 C000100 0.0000
074 A000100 509
074 B000100 0
074 C000100 0
074 D000100 0
074 E000100 0
074 F000100 99479
074 G000100 0
074 H000100 0
074 I000100 0
074 J000100 1590
074 K000100 0
074 L000100 174
074 M000100 0
074 N000100 101752
074 O000100 1527
074 P000100 0
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 2017
074 S000100 0
074 T000100 98208
074 U010100 7684
074 U020100 0
074 V010100 12.78
074 V020100 0.00
074 W000100 0.0000
074 X000100 2
074 Y000100 0
075 A000100 0
075 B000100 89802
076 000100 0.00
028 A010200 0
028 A020200 0
028 A030200 0
028 A040200 0
028 B010200 0
028 B020200 17
028 B030200 0
028 B040200 0
028 C010200 0
<PAGE> PAGE 7
028 C020200 0
028 C030200 0
028 C040200 0
028 D010200 0
028 D020200 0
028 D030200 0
028 D040200 0
028 E010200 0
028 E020200 0
028 E030200 0
028 E040200 0
028 F010200 0
028 F020200 0
028 F030200 0
028 F040200 0
028 G010200 0
028 G020200 17
028 G030200 0
028 G040200 0
028 H000200 0
055 A000200 Y
055 B000200 N
062 A000200 N
062 B000200 0.0
062 C000200 0.0
062 D000200 0.0
062 E000200 0.0
062 F000200 0.0
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
066 A000200 Y
066 B000200 N
066 C000200 N
066 D000200 Y
066 E000200 N
066 F000200 N
066 G000200 N
067 000200 N
068 A000200 N
<PAGE> PAGE 8
068 B000200 Y
069 000200 N
071 A000200 48301
071 B000200 47488
071 C000200 83348
071 D000200 57
072 A000200 6
072 B000200 46
072 C000200 1300
072 D000200 0
072 E000200 0
072 F000200 489
072 G000200 0
072 H000200 0
072 I000200 0
072 J000200 0
072 K000200 0
072 L000200 0
072 M000200 0
072 N000200 0
072 O000200 0
072 P000200 0
072 Q000200 0
072 R000200 0
072 S000200 0
072 T000200 0
072 U000200 0
072 V000200 0
072 W000200 0
072 X000200 489
072 Y000200 0
072 Z000200 857
072AA000200 0
072BB000200 21188
072CC010200 23850
072CC020200 0
072DD010200 20
072DD020200 0
072EE000200 0
073 A010200 0.0000
073 A020200 0.0000
073 B000200 0.0000
073 C000200 0.0000
074 A000200 108
074 B000200 0
074 C000200 3400
074 D000200 0
074 E000200 9716
074 F000200 88548
074 G000200 0
074 H000200 0
<PAGE> PAGE 9
074 I000200 0
074 J000200 521
074 K000200 0
074 L000200 544
074 M000200 0
074 N000200 102837
074 O000200 750
074 P000200 0
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 92
074 S000200 0
074 T000200 101995
074 U010200 9686
074 U020200 0
074 V010200 10.53
074 V020200 0.00
074 W000200 0.0000
074 X000200 3
074 Y000200 0
075 A000200 0
075 B000200 85797
076 000200 0.00
028 A010300 94
028 A020300 0
028 A030300 0
028 A040300 66
028 B010300 42
028 B020300 530
028 B030300 0
028 B040300 0
028 C010300 249
028 C020300 0
028 C030300 0
028 C040300 403
028 D010300 0
028 D020300 0
028 D030300 0
028 D040300 196
028 E010300 0
028 E020300 0
028 E030300 0
028 E040300 250
028 F010300 0
028 F020300 0
028 F030300 0
028 F040300 271
028 G010300 385
028 G020300 530
<PAGE> PAGE 10
028 G030300 0
028 G040300 1186
028 H000300 0
055 A000300 N
055 B000300 Y
062 A000300 N
062 B000300 0.0
062 C000300 0.0
062 D000300 0.0
062 E000300 0.0
062 F000300 0.0
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
066 A000300 Y
066 B000300 N
066 C000300 N
066 D000300 Y
066 E000300 N
066 F000300 N
066 G000300 N
067 000300 N
068 A000300 N
068 B000300 Y
069 000300 N
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 Y
070 E020300 N
070 F010300 Y
070 F020300 N
070 G010300 Y
070 G020300 N
070 H010300 Y
<PAGE> PAGE 11
070 H020300 N
070 I010300 N
070 I020300 N
070 J010300 Y
070 J020300 N
070 K010300 Y
070 K020300 N
070 L010300 Y
070 L020300 Y
070 M010300 Y
070 M020300 N
070 N010300 Y
070 N020300 N
070 O010300 Y
070 O020300 N
070 P010300 Y
070 P020300 N
070 Q010300 N
070 Q020300 N
070 R010300 Y
070 R020300 N
071 A000300 15594
071 B000300 17810
071 C000300 46914
071 D000300 33
072 A000300 6
072 B000300 41
072 C000300 868
072 D000300 0
072 E000300 0
072 F000300 219
072 G000300 0
072 H000300 0
072 I000300 0
072 J000300 0
072 K000300 0
072 L000300 0
072 M000300 0
072 N000300 0
072 O000300 0
072 P000300 0
072 Q000300 0
072 R000300 0
072 S000300 0
072 T000300 0
072 U000300 0
072 V000300 0
072 W000300 0
072 X000300 219
072 Y000300 0
072 Z000300 690
<PAGE> PAGE 12
072AA000300 3053
072BB000300 0
072CC010300 0
072CC020300 1355
072DD010300 14
072DD020300 0
072EE000300 754
073 A010300 0.0000
073 A020300 0.0000
073 B000300 0.0000
073 C000300 0.0000
074 A000300 21
074 B000300 0
074 C000300 2579
074 D000300 0
074 E000300 207
074 F000300 46647
074 G000300 0
074 H000300 0
074 I000300 0
074 J000300 447
074 K000300 0
074 L000300 211
074 M000300 0
074 N000300 50112
074 O000300 815
074 P000300 0
074 Q000300 0
074 R010300 0
074 R020300 0
074 R030300 0
074 R040300 37
074 S000300 0
074 T000300 49260
074 U010300 3198
074 U020300 0
074 V010300 15.41
074 V020300 0.00
074 W000300 0.0000
074 X000300 19
074 Y000300 0
075 A000300 0
075 B000300 48790
076 000300 0.00
028 A010400 0
028 A020400 7
028 A030400 0
028 A040400 0
028 B010400 0
028 B020400 67
028 B030400 0
<PAGE> PAGE 13
028 B040400 0
028 C010400 0
028 C020400 76
028 C030400 0
028 C040400 0
028 D010400 0
028 D020400 72
028 D030400 0
028 D040400 0
028 E010400 0
028 E020400 85
028 E030400 0
028 E040400 600
028 F010400 0
028 F020400 130
028 F030400 0
028 F040400 9100
028 G010400 0
028 G020400 437
028 G030400 0
028 G040400 9700
028 H000400 0
055 A000400 N
055 B000400 N
061 000400 0
062 A000400 Y
062 B000400 0.0
062 C000400 2.1
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 0.0
062 M000400 0.0
062 N000400 97.2
062 O000400 0.0
062 P000400 0.0
062 Q000400 0.0
062 R000400 0.7
063 A000400 0
063 B000400 24.1
064 A000400 Y
064 B000400 N
066 A000400 N
071 A000400 985
071 B000400 10235
071 C000400 13115
<PAGE> PAGE 14
071 D000400 8
072 A000400 6
072 B000400 469
072 C000400 0
072 D000400 0
072 E000400 0
072 F000400 32
072 G000400 0
072 H000400 0
072 I000400 0
072 J000400 0
072 K000400 0
072 L000400 0
072 M000400 0
072 N000400 0
072 O000400 0
072 P000400 0
072 Q000400 0
072 R000400 0
072 S000400 0
072 T000400 0
072 U000400 0
072 V000400 0
072 W000400 0
072 X000400 32
072 Y000400 0
072 Z000400 437
072AA000400 0
072BB000400 131
072CC010400 0
072CC020400 476
072DD010400 437
072DD020400 0
072EE000400 0
073 A010400 0.3109
073 A020400 0.0000
073 B000400 0.0000
073 C000400 0.0000
074 A000400 10
074 B000400 0
074 C000400 0
074 D000400 4957
074 E000400 0
074 F000400 0
074 G000400 0
074 H000400 0
074 I000400 0
074 J000400 0
074 K000400 0
074 L000400 27
074 M000400 0
<PAGE> PAGE 15
074 N000400 4994
074 O000400 0
074 P000400 0
074 Q000400 0
074 R010400 0
074 R020400 0
074 R030400 0
074 R040400 4
074 S000400 0
074 T000400 4990
074 U010400 499
074 U020400 0
074 V010400 10.00
074 V020400 0.00
074 W000400 0.0000
074 X000400 1
074 Y000400 736
075 A000400 0
075 B000400 13332
076 000400 0.00
SIGNATURE A S FILEAN
TITLE VICE PRES/SECRETARY
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 87,497,766
<INVESTMENTS-AT-VALUE> 99,479,464
<RECEIVABLES> 1,763,035
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 509,218
<TOTAL-ASSETS> 101,751,717
<PAYABLE-FOR-SECURITIES> 1,526,968
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,016,948
<TOTAL-LIABILITIES> 3,543,916
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 84,409,966
<SHARES-COMMON-STOCK> 7,684,131
<SHARES-COMMON-PRIOR> 7,533,783
<ACCUMULATED-NII-CURRENT> 231,472
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,588,288
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 11,978,075
<NET-ASSETS> 98,207,801
<DIVIDEND-INCOME> 670,361
<INTEREST-INCOME> 39,153
<OTHER-INCOME> 0
<EXPENSES-NET> (444,814)
<NET-INVESTMENT-INCOME> 264,700
<REALIZED-GAINS-CURRENT> 1,555,277
<APPREC-INCREASE-CURRENT> 13,057,967
<NET-CHANGE-FROM-OPS> 14,877,944
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (6,027)
<DISTRIBUTIONS-OF-GAINS> (1,719,963)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 150,348
<NET-CHANGE-IN-ASSETS> 14,877,944
<ACCUMULATED-NII-PRIOR> 24,067
<ACCUMULATED-GAINS-PRIOR> 1,701,706
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 444,814
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 444,814
<AVERAGE-NET-ASSETS> 89,776,451
<PER-SHARE-NAV-BEGIN> 11.06
<PER-SHARE-NII> .04
<PER-SHARE-GAIN-APPREC> 1.91
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.23)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.78
<EXPENSE-RATIO> 1.00
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 90,845,054
<INVESTMENTS-AT-VALUE> 101,664,018
<RECEIVABLES> 1,064,337
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 108,380
<TOTAL-ASSETS> 102,836,735
<PAYABLE-FOR-SECURITIES> 749,542
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 92,023
<TOTAL-LIABILITIES> 841,565
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 98,442,502
<SHARES-COMMON-STOCK> 9,685,555
<SHARES-COMMON-PRIOR> 9,683,451
<ACCUMULATED-NII-CURRENT> 649,436
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (7,872,795)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 10,776,027
<NET-ASSETS> 101,995,170
<DIVIDEND-INCOME> 1,299,776
<INTEREST-INCOME> 45,910
<OTHER-INCOME> 0
<EXPENSES-NET> (489,163)
<NET-INVESTMENT-INCOME> 856,523
<REALIZED-GAINS-CURRENT> (2,188,482)
<APPREC-INCREASE-CURRENT> 23,849,804
<NET-CHANGE-FROM-OPS> 22,517,845
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (20,335)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 2,104
<NET-CHANGE-IN-ASSETS> 22,514,660
<ACCUMULATED-NII-PRIOR> 40,240
<ACCUMULATED-GAINS-PRIOR> (5,911,305)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 489,163
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 489,163
<AVERAGE-NET-ASSETS> 85,879,292
<PER-SHARE-NAV-BEGIN> 8.21
<PER-SHARE-NII> .09
<PER-SHARE-GAIN-APPREC> 2.23
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.53
<EXPENSE-RATIO> 1.15
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 44,898,815
<INVESTMENTS-AT-VALUE> 49,432,095
<RECEIVABLES> 658,714
<ASSETS-OTHER> 109
<OTHER-ITEMS-ASSETS> 20,833
<TOTAL-ASSETS> 50,111,751
<PAYABLE-FOR-SECURITIES> 815,288
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 36,448
<TOTAL-LIABILITIES> 851,736
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 40,626,711
<SHARES-COMMON-STOCK> 3,197,634
<SHARES-COMMON-PRIOR> 3,215,199
<ACCUMULATED-NII-CURRENT> 651,169
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3,453,100
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,529,035
<NET-ASSETS> 49,260,015
<DIVIDEND-INCOME> 867,646
<INTEREST-INCOME> 41,073
<OTHER-INCOME> 0
<EXPENSES-NET> (218,815)
<NET-INVESTMENT-INCOME> 689,904
<REALIZED-GAINS-CURRENT> 3,052,859
<APPREC-INCREASE-CURRENT> (1,355,403)
<NET-CHANGE-FROM-OPS> 2,387,360
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (14,166)
<DISTRIBUTIONS-OF-GAINS> (754,009)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 25,711
<NUMBER-OF-SHARES-REDEEMED> (78,297)
<SHARES-REINVESTED> 35,021
<NET-CHANGE-IN-ASSETS> 1,347,856
<ACCUMULATED-NII-PRIOR> 33,810
<ACCUMULATED-GAINS-PRIOR> 1,095,871
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 218,815
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 218,815
<AVERAGE-NET-ASSETS> 49,036,031
<PER-SHARE-NAV-BEGIN> 14.90
<PER-SHARE-NII> .22
<PER-SHARE-GAIN-APPREC> .53
<PER-SHARE-DIVIDEND> (.01)
<PER-SHARE-DISTRIBUTIONS> (.23)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 15.41
<EXPENSE-RATIO> .90
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<INVESTMENTS-AT-COST> 4,961,542
<INVESTMENTS-AT-VALUE> 4,957,280
<RECEIVABLES> 26,816
<ASSETS-OTHER> 127
<OTHER-ITEMS-ASSETS> 10,018
<TOTAL-ASSETS> 4,994,241
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,116
<TOTAL-LIABILITIES> 4,116
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 6,201,517
<SHARES-COMMON-STOCK> 499,166
<SHARES-COMMON-PRIOR> 1,429,826
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,207,130)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (4,262)
<NET-ASSETS> 4,990,125
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 468,916
<OTHER-INCOME> 0
<EXPENSES-NET> (31,747)
<NET-INVESTMENT-INCOME> 437,169
<REALIZED-GAINS-CURRENT> (131,115)
<APPREC-INCREASE-CURRENT> (476,473)
<NET-CHANGE-FROM-OPS> (170,419)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (437,169)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> (973,483)
<SHARES-REINVESTED> 42,773
<NET-CHANGE-IN-ASSETS> (9,870,417)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (1,076,015)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 31,747
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 31,747
<AVERAGE-NET-ASSETS> 14,172,141
<PER-SHARE-NAV-BEGIN> 10.39
<PER-SHARE-NII> .31
<PER-SHARE-GAIN-APPREC> (.39)
<PER-SHARE-DIVIDEND> (.31)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.00
<EXPENSE-RATIO> .45
</TABLE>