INDEPENDENT AUDITOR'S REPORT
The Board of Directors of the Kenilworth Fund, Inc.
and the Securities and Exchange Commission
We have examined management's assertion about the Kenilworth Fund, Inc.'s (the
Fund) compliance with certain rules under the Investment Company Act of 1940
(the Act) as of December 31, 1998, and during the period December 31, 1997 (the
date of the last report on Management's Statement Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940) through December 31,
1998, included in the accompanying Management Statement Regarding Compliance
with Certain Provisions of the Investment Company Act of 1940. Management is
responsible for the Fund's compliance with those requirements. Our
responsibility is to express an opinion on management's assertion about the
Fund's compliance based on our examination.
Our examination was made in accordance with standards established by the
American Institute of Certified Public Accountants and, accordingly, included
examining, on a test basis, evidence about the Fund's compliance with those
requirements and performing such other procedures as we considered necessary in
the circumstances. Included among our procedures were the following tests
performed as of December 31, 1998, with respect to securities of the Kenilworth
Fund, Inc. and similar investments purchases and sales:
Count and inspection of all securities located in the vault of the National
Safe Deposit Company, One First National Plaza, Chicago, Illinois 60603.
Confirmation of all securities purchased but not received with brokers.
Reconciliation of all such securities to the books and records of the
Company.
We believe that our examination provides a reasonable basis for our opinion.
Our examination does not provide a legal determination on the Company's
compliance with specified requirements.
In our opinion, management's assertion that the Kenilworth Fund, Inc. was in
compliance with certain provisions of Rule 17f-2 of the Investment Company Act
of 1940 as of December 31, 1998, is fairly stated, in all material respects.
This report is intended solely for the information and use of management of the
Kenilworth Fund, Inc. and the Securities and Exchange Commission and should not
be used for any other purpose.
/S/ McGladrey & Pullen, LLP
Chicago, Illinois
January 8, 1999<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-17f-2 OMB APPROVAL
OMB Number: 3235-0360
Expires: July 31, 1994
Estimated average burden
hours per response ...0.05
Certificate of Accounting of Securities and Similar
Investments in the Custody of
Management Investment Companies
Pursuant to Rule 17-f-2 (17 CFR 270.17f-2)
1. Investment Company Act File Number: Date examination completed:
811-7620 1/04/99
2. State identification Number:
CA: 5/6/97 FL: 048290 IL: 9325975 TX: C5286000000
3. Exact name of investment company as specified in registration statement:
KENILWORTH FUND, INC.
4. Address of principal executive office (number, street, city, state, zip
code):
One First National Plaza, Suite 2594, Chicago, IL 60603
INSTRUCTIONS
This Form must be completed by investment companies that have custody of
securities or similar investments.
Investment Company
1. All items must be completed by the investment company.
2. Give this Form to the independent public accountant who, in compliance with
Ruled 17-f-2 under the Act and applicable state law, examines securities and
similar investments in the custody of the investment company.
Accountant.
3. Submit this Form to the securities and Exchange Commission and appropriate
state securities administrators when filing the certificate of accounting
required by Rule 17f-2 under the Act and applicable law. File the original and
one copy with the Securities and Exchange Commission's principal office in
Washington, D.C., one copy with the regional office for the region in which the
investment company's principal business operations are conducted, and one copy
with the appropriate state administrator(s), if applicable.
THIS FORM MUST BE GIVEN TO YOUR INDEPENDENT PUBLIC ACCOUNTANT
SEC 2198 (8-95)<PAGE>
