-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Lomj87FKYbe0aTp36h37N/dC2CWY0+feXR2QSP/RvTSfwkubF5oHl7MZ/gvfh5CX NL+5brtVDpM0XF7HKN1J1w== 0000701265-97-000007.txt : 19970228 0000701265-97-000007.hdr.sgml : 19970228 ACCESSION NUMBER: 0000701265-97-000007 CONFORMED SUBMISSION TYPE: NSAR-B PUBLIC DOCUMENT COUNT: 12 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970227 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: OPPENHEIMER INTEGRITY FUNDS CENTRAL INDEX KEY: 0000701265 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 042912220 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: NSAR-B SEC ACT: 1940 Act SEC FILE NUMBER: 811-03420 FILM NUMBER: 97545935 BUSINESS ADDRESS: STREET 1: 3410 S GALENA CITY: DENVER STATE: CO ZIP: 80231 BUSINESS PHONE: 3036713200 MAIL ADDRESS: STREET 2: 3410 SOUTH GALENA STREET 3RD FL CITY: DENVER STATE: CO ZIP: 80231 FORMER COMPANY: FORMER CONFORMED NAME: MASSMUTUAL INTEGRITY FUNDS DATE OF NAME CHANGE: 19910329 FORMER COMPANY: FORMER CONFORMED NAME: MASSMUTUAL LIQUID ASSETS TRUST DATE OF NAME CHANGE: 19880403 NSAR-B 1 N-SAR (3.0.A) PAGE 1 000 B000000 12/31/96 000 C000000 0000701265 000 D000000 N 000 E000000 NF 000 F000000 Y 000 G000000 N 000 H000000 N 000 I000000 3.0.a 000 J000000 U 001 A000000 OPPENHEIMER INTEGRITY FUNDS 001 B000000 811-3420 001 C000000 3036713200 002 A000000 3410 SOUTH GALENA 002 B000000 DENVER 002 C000000 CO 002 D010000 80231 003 000000 N 004 000000 N 005 000000 N 006 000000 N 007 A000000 Y 007 B000000 2 007 C010100 1 007 C010200 2 007 C010300 3 007 C010400 4 007 C010500 5 007 C020500 OPPENHEIMER BOND FUND 007 C030500 N 007 C010600 6 007 C010700 7 007 C020700 OPPENHEIMER VALUE STOCK FUND 007 C030700 N 007 C010800 8 007 C010900 9 007 C011000 10 018 00AA00 Y 019 A00AA00 Y 019 B00AA00 49 019 C00AA00 OPPENHEIMR 020 A000001 FIRST BOSTON CORP. (THE) 020 B000001 13-5659485 020 C000001 10 020 A000002 BEAR SECURITIES CORP. 020 B000002 13-3299429 020 C000002 6 020 A000003 GOLDMAN, SACHS & CO. 020 B000003 13-5108880 020 C000003 6 020 A000004 DONALDSON, LUFKIN & JENRETTE SECURITIES CORP. 020 B000004 13-2741729 PAGE 2 020 C000004 6 020 A000005 JONES & ASSOCIATES, INC. 020 B000005 UNKNOWN 020 C000005 5 020 A000006 SALOMON BROTHERS, INC. 020 B000006 13-3082694 020 C000006 4 020 A000007 PRUDENTIAL SECURITIES, INC. 020 B000007 22-2347336 020 C000007 3 020 A000008 SCHRODER WERTHEIM & CO. 020 B000008 UNKNOWN 020 C000008 3 020 A000009 BERNSTEIN (SANFORD C.) & CO., INC. 020 B000009 13-2625874 020 C000009 3 020 A000010 PAINEWEBBER, INC. 020 B000010 13-2638166 020 C000010 3 021 000000 75 022 A000001 ZION FIRST NATIONAL BANK 022 B000001 87-0189025 022 C000001 980200 022 D000001 0 022 A000002 MORGAN GUARANTY TRUST CO. 022 B000002 13-5123346 022 C000002 535885 022 D000002 0 022 A000003 PAINEWEBBER, INC. 022 B000003 13-2638166 022 C000003 507051 022 D000003 723 022 A000004 FIRST CHICAGO CAPITAL MARKET 022 B000004 36-3595942 022 C000004 401800 022 D000004 0 022 A000005 GOLDMAN, SACHS & CO. 022 B000005 13-5108880 022 C000005 244172 022 D000005 12434 022 A000006 SALOMON BROTHERS, INC. 022 B000006 13-3082694 022 C000006 82499 022 D000006 110779 022 A000007 LEHMAN BROTHERS, INC. 022 B000007 13-2518466 022 C000007 43324 022 D000007 79354 022 A000008 CANADIAN IMPERIAL BANK OF COMMERCE 022 B000008 FOREIGN 022 C000008 110700 PAGE 3 022 D000008 0 022 A000009 NOMURA SECURITIES INTERNATIONAL, INC. 022 B000009 13-2642206 022 C000009 41592 022 D000009 38723 022 A000010 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC. 022 B000010 13-5674085 022 C000010 56284 022 D000010 0 023 C000000 3281717 023 D000000 457923 037 00AA00 N 038 00AA00 0 039 00AA00 N 040 00AA00 Y 041 00AA00 Y 077 A000000 Y 077 B000000 Y 077 C000000 N 077 D000000 N 077 E000000 N 077 F000000 N 077 G000000 N 077 H000000 N 077 I000000 N 077 J000000 Y 077 K000000 N 077 L000000 N 077 M000000 Y 077 N000000 N 077 O000000 N 077 P000000 N 077 Q010000 Y 077 Q020000 N 077 Q030000 N 078 000000 N 080 A00AA00 ICI MUTUAL INSURANCE 080 C00AA00 72000 081 A00AA00 Y 081 B00AA00 85 082 A00AA00 N 082 B00AA00 0 083 A00AA00 N 083 B00AA00 0 084 A00AA00 N 084 B00AA00 0 085 A00AA00 Y 085 B00AA00 N 008 A000501 OPPENHEIMERFUNDS, INC. 008 B000501 A 008 C000501 801-8253 PAGE 4 008 D010501 NEW YORK 008 D020501 NY 008 D030501 10048 008 D040501 0203 028 A010500 2631 028 A020500 1 028 A030500 0 028 A040500 4400 028 B010500 2105 028 B020500 935 028 B030500 0 028 B040500 3644 028 C010500 2233 028 C020500 986 028 C030500 0 028 C040500 4829 028 D010500 2026 028 D020500 847 028 D030500 0 028 D040500 3883 028 E010500 3452 028 E020500 940 028 E030500 0 028 E040500 4486 028 F010500 22438 028 F020500 1863 028 F030500 0 028 F040500 13372 028 G010500 34885 028 G020500 5572 028 G030500 0 028 G040500 34614 028 H000500 24403 029 000500 Y 030 A000500 300 030 B000500 4.75 030 C000500 0.00 031 A000500 118 031 B000500 0 032 000500 182 033 000500 0 034 000500 Y 035 000500 126 036 A000500 N 036 B000500 0 042 A000500 0 042 B000500 0 042 C000500 0 042 D000500 100 042 E000500 0 042 F000500 0 PAGE 5 042 G000500 0 042 H000500 0 043 000500 856 044 000500 0 055 A000500 N 055 B000500 N 056 000500 N 057 000500 N 062 A000500 Y 062 B000500 0.0 062 C000500 0.0 062 D000500 0.0 062 E000500 0.0 062 F000500 0.0 062 G000500 0.0 062 H000500 0.0 062 I000500 0.0 062 J000500 0.0 062 K000500 0.0 062 L000500 0.0 062 M000500 10.4 062 N000500 26.0 062 O000500 0.0 062 P000500 52.1 062 Q000500 12.2 062 R000500 1.8 063 A000500 0 063 B000500 16.5 064 A000500 Y 064 B000500 N 070 A010500 Y 070 A020500 Y 070 B010500 Y 070 B020500 N 070 C010500 Y 070 C020500 N 070 D010500 Y 070 D020500 N 070 E010500 Y 070 E020500 Y 070 F010500 Y 070 F020500 N 070 G010500 Y 070 G020500 Y 070 H010500 Y 070 H020500 N 070 I010500 N 070 I020500 N 070 J010500 Y 070 J020500 Y 070 K010500 Y PAGE 6 070 K020500 N 070 L010500 Y 070 L020500 Y 070 M010500 Y 070 M020500 Y 070 N010500 Y 070 N020500 N 070 O010500 N 070 O020500 N 070 P010500 Y 070 P020500 Y 070 Q010500 N 070 Q020500 N 070 R010500 N 070 R020500 N 071 A000500 122496 071 B000500 142135 071 C000500 228291 071 D000500 54 072 A000500 12 072 B000500 18906 072 C000500 100 072 D000500 0 072 E000500 0 072 F000500 1640 072 G000500 0 072 H000500 0 072 I000500 376 072 J000500 43 072 K000500 77 072 L000500 109 072 M000500 7 072 N000500 16 072 O000500 0 072 P000500 0 072 Q000500 0 072 R000500 15 072 S000500 6 072 T000500 855 072 U000500 0 072 V000500 0 072 W000500 30 072 X000500 3174 072 Y000500 0 072 Z000500 15831 072AA000500 4648 072BB000500 4335 072CC010500 0 072CC020500 5325 072DD010500 12577 072DD020500 2406 PAGE 7 072EE000500 0 073 A010500 0.7814 073 A020500 0.7014 073 B000500 0.0000 073 C000500 0.0300 074 A000500 1408 074 B000500 0 074 C000500 0 074 D000500 238213 074 E000500 3797 074 F000500 4 074 G000500 0 074 H000500 0 074 I000500 525 074 J000500 0 074 K000500 0 074 L000500 4434 074 M000500 13 074 N000500 248394 074 O000500 10082 074 P000500 0 074 Q000500 0 074 R010500 0 074 R020500 0 074 R030500 0 074 R040500 1650 074 S000500 0 074 T000500 236662 074 U010500 18090 074 U020500 3630 074 V010500 10.70 074 V020500 10.69 074 W000500 0.0000 074 X000500 16031 074 Y000500 20529 075 A000500 0 075 B000500 219602 076 000500 0.00 008 A000701 OPPENHEIMERFUNDS, INC. 008 B000701 A 008 C000701 801-8253 008 D010701 NEW YORK 008 D020701 NY 008 D030701 10048 008 D040701 0203 008 A000702 DAVID L. BABSON & CO., INC. 008 B000702 S 008 C000702 801-241 008 D010702 CAMBRIDGE 008 D020702 MA 008 D030702 02142 PAGE 8 008 D040702 1300 028 A010700 2462 028 A020700 0 028 A030700 0 028 A040700 2805 028 B010700 2615 028 B020700 0 028 B030700 0 028 B040700 1545 028 C010700 2892 028 C020700 483 028 C030700 0 028 C040700 2765 028 D010700 6318 028 D020700 0 028 D030700 0 028 D040700 7730 028 E010700 6060 028 E020700 0 028 E030700 0 028 E040700 5332 028 F010700 3182 028 F020700 5025 028 F030700 0 028 F040700 8340 028 G010700 23529 028 G020700 5508 028 G030700 0 028 G040700 28517 028 H000700 6890 029 000700 Y 030 A000700 345 030 B000700 5.75 030 C000700 0.00 031 A000700 193 031 B000700 0 032 000700 152 033 000700 0 034 000700 Y 035 000700 20 036 A000700 N 036 B000700 0 042 A000700 0 042 B000700 0 042 C000700 0 042 D000700 100 042 E000700 0 042 F000700 0 042 G000700 0 042 H000700 0 043 000700 692 PAGE 9 044 000700 0 055 A000700 N 055 B000700 N 056 000700 N 057 000700 N 062 A000700 N 062 B000700 0.0 062 C000700 0.0 062 D000700 0.0 062 E000700 0.0 062 F000700 0.0 062 G000700 0.0 062 H000700 0.0 062 I000700 0.0 062 J000700 0.0 062 K000700 0.0 062 L000700 0.0 062 M000700 0.0 062 N000700 0.0 062 O000700 0.0 062 P000700 0.0 062 Q000700 0.0 062 R000700 0.0 070 A010700 Y 070 A020700 Y 070 B010700 Y 070 B020700 N 070 C010700 N 070 C020700 N 070 D010700 Y 070 D020700 N 070 E010700 Y 070 E020700 N 070 F010700 Y 070 F020700 N 070 G010700 Y 070 G020700 N 070 H010700 Y 070 H020700 N 070 I010700 N 070 I020700 N 070 J010700 Y 070 J020700 N 070 K010700 Y 070 K020700 N 070 L010700 Y 070 L020700 N 070 M010700 Y 070 M020700 N 070 N010700 Y 070 N020700 N PAGE 10 070 O010700 Y 070 O020700 N 070 P010700 Y 070 P020700 N 070 Q010700 N 070 Q020700 N 070 R010700 N 070 R020700 N 071 A000700 28499 071 B000700 23591 071 C000700 163207 071 D000700 14 072 A000700 12 072 B000700 818 072 C000700 4410 072 D000700 0 072 E000700 0 072 F000700 1316 072 G000700 0 072 H000700 0 072 I000700 238 072 J000700 10 072 K000700 22 072 L000700 48 072 M000700 6 072 N000700 3 072 O000700 0 072 P000700 0 072 Q000700 0 072 R000700 10 072 S000700 4 072 T000700 692 072 U000700 0 072 V000700 0 072 W000700 56 072 X000700 2405 072 Y000700 0 072 Z000700 2823 072AA000700 7897 072BB000700 736 072CC010700 21457 072CC020700 0 072DD010700 2534 072DD020700 367 072EE000700 5557 073 A010700 0.3444 073 A020700 0.2047 073 B000700 0.6121 073 C000700 0.0000 074 A000700 317 074 B000700 8300 PAGE 11 074 C000700 0 074 D000700 0 074 E000700 0 074 F000700 180087 074 G000700 0 074 H000700 0 074 I000700 0 074 J000700 2380 074 K000700 0 074 L000700 1048 074 M000700 8 074 N000700 192140 074 O000700 34 074 P000700 10 074 Q000700 0 074 R010700 0 074 R020700 0 074 R030700 0 074 R040700 1969 074 S000700 0 074 T000700 190127 074 U010700 7287 074 U020700 1988 074 V010700 20.33 074 V020700 20.19 074 W000700 0.0000 074 X000700 12010 074 Y000700 0 075 A000700 0 075 B000700 178660 076 000700 0.00 SIGNATURE GEORGE C. BOWEN TITLE TREASURER EX-27 2 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
6 701265 OPPENHEIMER BOND FUND-A 5 OPPENHEIMER INTEGRITY FUNDS 12-MOS DEC-31-1996 JAN-01-1996 DEC-31-1996 237,223,924 242,538,589 4,434,485 12,849 1,407,908 248,393,831 10,082,292 0 1,649,751 11,732,043 0 235,499,946 18,089,841 15,399,839 0 0 (4,146,188) 0 5,308,030 193,514,612 99,649 18,905,698 0 3,174,349 15,830,998 313,209 (5,325,416) 10,818,791 0 12,577,460 0 517,955 6,776,643 4,901,741 815,100 24,444,494 116,937 (4,129,345) 0 0 1,640,483 0 3,174,349 178,130,217 10.98 0.78 (0.28) 0.75 0.00 0.03 10.70 1.30 0 0.00

EX-27 3 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
6 701265 OPPENHEIMER BOND FUND-B 5 OPPENHEIMER INTEGRITY FUNDS 12-MOS DEC-31-1996 JAN-01-1996 DEC-31-1996 237,223,924 242,538,589 4,434,485 12,849 1,407,908 248,393,831 10,082,292 0 1,649,751 11,732,043 0 235,499,946 3,630,498 3,570,470 0 0 (4,146,188) 0 5,308,030 38,825,664 99,649 18,905,698 0 3,174,349 15,830,998 313,209 (5,325,416) 10,818,791 0 2,405,982 0 103,919 954,273 1,057,712 163,467 24,444,494 116,937 (4,129,345) 0 0 1,640,483 0 3,174,349 38,068,097 10.98 0.70 (0.29) 0.67 0.00 0.03 10.69 2.05 0 0.00

EX-27 4
6 701265 OPPENHEIMER BOND FUND-C 5 OPPENHEIMER INTEGRITY FUNDS 12-MOS DEC-31-1996 JAN-01-1996 DEC-31-1996 237,223,924 242,538,589 4,434,485 12,849 1,407,908 248,393,831 10,082,292 0 1,649,751 11,732,043 0 235,499,946 403,745 361,451 0 0 (4,146,188) 0 5,308,030 4,321,512 99,649 18,905,698 0 3,174,349 15,830,998 313,209 (5,325,416) 10,818,791 0 214,115 0 11,567 279,925 254,743 17,112 24,444,494 116,937 (4,129,345) 0 0 1,640,483 0 3,174,349 3,403,965 10.99 0.70 (0.29) 0.67 0.00 0.03 10.70 2.05 0 0.00

EX-27 5 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
6 701265 OPPENHEIMER VALUE STOCK FUND -A 7 OPPENHEIMER INTEGRITY FUNDS 12-MOS DEC-31-1996 JAN-01-1996 DEC-31-1996 122,680,928 188,386,472 3,427,937 7,941 317,473 192,139,823 33,730 0 1,978,959 2,012,689 0 122,783,317 7,286,952 7,639,176 23,659 0 1,614,614 0 65,705,544 148,128,771 4,410,082 818,192 0 2,405,254 2,823,020 7,161,305 21,456,991 31,441,316 0 2,534,251 4,334,550 0 1,459,943 2,062,372 250,205 27,080,811 0 10,802 16,697 0 1,315,853 0 2,405,254 144,498,000 17.84 0.34 3.11 0.35 0.61 0.00 20.33 1.20 0 0.00

EX-27 6 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
6 701265 OPPENHEIMER VALUE STOCK FUND -B 7 OPPENHEIMER INTEGRITY FUNDS 12-MOS DEC-31-1996 JAN-01-1996 DEC-31-1996 122,680,928 188,386,472 3,427,937 7,941 317,473 192,139,823 33,730 0 1,978,959 2,012,689 0 122,783,317 1,988,443 1,502,706 23,659 0 1,614,614 0 65,705,544 40,142,493 4,410,082 818,192 0 2,405,254 2,823,020 7,161,305 21,456,991 31,441,316 0 366,547 1,169,914 0 730,295 315,951 71,393 27,080,811 0 10,802 16,697 0 1,315,853 0 2,405,254 33,258,000 17.73 0.19 3.09 0.21 0.61 0.00 20.19 1.97 0 0.00

EX-27 7
6 701265 OPPENHEIMER VALUE STOCK FUND -C 7 OPPENHEIMER INTEGRITY FUNDS 12-MOS DEC-31-1996 JAN-01-1996 DEC-31-1996 122,680,928 188,386,472 3,427,937 7,941 317,473 192,139,823 33,730 0 1,978,959 2,012,689 0 122,783,317 91,685 7,290 23,659 0 1,614,614 0 65,705,544 1,855,870 4,410,082 818,192 0 2,405,254 2,823,020 7,161,305 21,456,991 31,441,316 0 13,143 53,029 0 93,935 12,697 3,157 27,080,811 0 10,802 16,697 0 1,315,853 0 2,405,254 904,000 17.81 0.22 3.05 0.23 0.61 0.00 20.24 2.02 0 0.00

EX-2 8 On December 20, 1996, the Fund acquired all the net assets of Jefferson-Pilot Investment Grade Bond Fund, Inc. pursuant to an agreement and plan of reorganization approved by the Jefferson Pilot Investment Grade Bond Fund shareholders on December 3, 1996. The Fund issued 1,801,334 shares of beneficial interest for Class A, valued at $19,273,967, in exchange for the net assets, resulting in combined Class A net assets of $202,088,473 on December 20, 1996. The net assets acquired included net unrealized appreciation of $1,288,511. The exchange qualifies as a tax-free reorganization for federal income tax purposes. EX-23 9 DELOITTE & TOUCHE LLP/LOGO/ Suite 3600 555 Seventeenth Street Denver, Colorado 80202-3942 Telephone: (303)292-5400 Facsimile: (303)312-4000 To the Board of Trustees of Oppenheimer Bond Fund: In planning and performing our audit of the financial statements of Oppenheimer Bond Fund (Fund) for the year ended December 31, 1996 (on which we have issued our report dated January 22, 1997), we considered its internal control structure, including procedures 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 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 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 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 December 31, 1996. This report is intended solely for the information and use of management, the Board of Trustees and the Securities and Exchange Commission. Yours truly, /S/DELOITTE & TOUCHE LLP January 22, 1997 - --------------- DELOITTE TOUCHE TOHMATSU INTERNATIONAL - --------------- EX-99 10 During the year ended December 31, 1996, the Fund adjusted the classification of distributions to shareholders to reflect the differences between financial statement amounts and distributions determined in accordance with income tax regulations. Accordingly, during the year ended December 31, 1996, amounts have been reclassified to reflect an increase in paid-in capital of $446,989, a decrease in undistributed net investment income of $116,937, and an increase in accumulated net realized loss on investments of $330,052. EX-23 11 DELOITTE & TOUCHE LLP/LOGO/ Suite 3600 555 Seventeenth Street Denver, Colorado 80202-3942 Telephone: (303)292-5400 Facsimile: (303)312-4000 To the Board of Trustees of Oppenheimer Value Stock Fund: In planning and performing our audit of the financial statements of Oppenheimer Value Stock Fund (Fund) for the year ended December 31, 1996 (on which we have issued our report dated January 22, 1997), we considered its internal control structure, including procedures 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 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 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 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 December 31, 1996. This report is intended solely for the information and use of management, the Board of Trustees and the Securities and Exchange Commission. Yours truly, /S/DELOITTE & TOUCHE LLP January 22, 1997 - --------------- DELOITTE TOUCHE TOHMATSU INTERNATIONAL - --------------- EX-99 12 During the year ended December 31, 1996, the Fund adjusted the classification of distributions to shareholders to reflect the differences between financial statement amounts and distributions determined in accordance with income tax regulations. Accordingly, during the year ended December 31, 1996, amounts have been reclassified to reflect a decrease in paid-in capital of $131,277. Overdistributed net investment income was decreased by the same amount. ~~-----END PRIVACY-ENHANCED MESSAGE-----~~