Deloitte &
Touche
- ----------- ----------------------------------------
Deloitte & Touche LLP
Princeton Forrestal Village
116-300 Village Boulevard
Princeton, New Jersey 08540
Telephone: (609) 987-0234
Facsimile: (609) 987-1515
The Bear Stearns Funds
245 Park Avenue
New York, New York 10167
We are the auditors of The Bear Stearns Funds and Managed Income Securities Plus
Fund, Inc. (the "Funds"). Custodial Trust Company ("CTC"), a related entity, is
custodian of the Funds and the Funds are therefore subject to the provisions of
Rule 17f-2 under the Investment Company Act of 1940. Accordingly, we have
accounted for the Funds' investment securities held by CTC as of the close of
business on March 31, 1998. It is understood that this report is solely for the
use of management and for the information of the Securities and Exchange
Commission and should not be used for any other purpose.
Custodial Trust Company, in addition to acting as custodian for the Funds, is
the holder of investment securities of other customers. Agents of CTC hold, or
account for by book entry, securities which are the responsibility of CTC
through custodian or trust arrangements. Securities held by such agents of CTC,
while identified by such agents as being deposited by CTC, cannot be identified
by such agents as to the specific customers of CTC who have securities included
in such deposits.
CTC confirmed to us that all securities owned by the Funds on March 31, 1998
were held for the account of CTC by The Depository Trust Company, and/or the
Federal Reserve Book Entry System, and/or Participants Trust Company, agents of
CTC. We obtained confirmations from the agents of the securities held for the
account of CTC as of March 31, 1998. We reviewed CTC's reconciliation of the
agent's confirmation to CTC's internal records, identifying securities held by
each agent as a part of CTC's aggregate security position with such agents. We
also reviewed CTC's records which show the owners of the securities held by each
agent for the account of CTC at that date. We determined that securities,
identified by such records as the property of the Funds, were in agreement with
the Funds' records of securities owned at March 31, 1998. We also agreed an
analysis of portfolio transactions recorded subsequent to November 12, 1997, the
date of our last security examination performed pursuant to Rule 17f-2, in the
investment accounts to supporting records and documentation.
- ---------------
Deloitte Touche
Tohmatsu
- ---------------
<PAGE>
Because the above procedures do not constitute an audit made in accordance with
generally accepted accounting standards, we do not express an opinion on the
investment accounts referred to above. In connection with the procedures
referred to above, no matters came to our attention that caused us to believe
that the specified accounts should be adjusted. Had we performed additional
procedures or had we audited the financial statements of the Funds in accordance
with generally accepted auditing standards, matters might have come to our
attention that would have been reported to you. This report relates only to the
investments specified above and does not extend to the financial statements of
the Funds, taken as a whole for any date or period.
/s/ Deloitte & Touche LLP
- -------------------------
Deloitte & Touche LLP
Princeton, New Jersey
May 25, 1998
