-----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, JSnv4snDpvuWDIRtIa05fro59UvmGWdJxPhpSGwOUtGZBIsvQSHwpQQHfEfSmecB gJmzxOgpff5Z8OPfcFX54w== 0000950147-98-000690.txt : 19980903 0000950147-98-000690.hdr.sgml : 19980903 ACCESSION NUMBER: 0000950147-98-000690 CONFORMED SUBMISSION TYPE: NSAR-B PUBLIC DOCUMENT COUNT: 12 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980902 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PILGRIM AMERICA INVESTMENT FUNDS INC CENTRAL INDEX KEY: 0000061448 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 221891924 STATE OF INCORPORATION: MD FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: NSAR-B SEC ACT: SEC FILE NUMBER: 811-01939 FILM NUMBER: 98703166 BUSINESS ADDRESS: STREET 1: TWO RENAISSANCE SQUARE 40 N CENTRAL STREET 2: STE 1200 CITY: PHOENIX STATE: AZ ZIP: 85004-4424 BUSINESS PHONE: 6024178100 MAIL ADDRESS: STREET 1: TWO RENAISSANCE SQ STREET 2: 40 N CENTRAL STE 1200 CITY: PHOENIX STATE: AZ ZIP: 85004-4424 FORMER COMPANY: FORMER CONFORMED NAME: PILGRIM INVESTMENT FUNDS INC DATE OF NAME CHANGE: 19950503 FORMER COMPANY: FORMER CONFORMED NAME: PILGRIM MAGNACAP FUND INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: MAGNACAP FUND INC DATE OF NAME CHANGE: 19850701 NSAR-B 1 N-SAR (3.0) PAGE 1 000 B000000 06/30/98 000 C000000 0000061448 000 D000000 N 000 E000000 NF 000 F000000 Y 000 G000000 N 000 H000000 N 000 I000000 3.0 000 J000000 A 001 A000000 PILGRIM AMERICA INVESTMENT FUNDS, INC. 001 B000000 811-1939 001 C000000 6024178100 002 A000000 40 NORTH CENTRAL AVENUE, SUITE 1200 002 B000000 PHOENIX 002 C000000 AZ 002 D010000 85004 002 D020000 4424 003 000000 N 004 000000 N 005 000000 N 006 000000 N 007 A000000 Y 007 B000000 2 007 C010100 1 007 C020100 MAGNACAP FUND 007 C030100 N 007 C010200 2 007 C020200 HIGH YIELD FUND 007 C030200 N 007 C010300 3 007 C010400 4 007 C010500 5 007 C010600 6 007 C010700 7 007 C010800 8 007 C010900 9 007 C011000 10 008 A00AA01 PILGRIM AMERICA INVESTMENTS, INC. 008 B00AA01 A 008 C00AA01 801-48282 008 D01AA01 PHOENIX 008 D02AA01 AZ 008 D03AA01 85004 008 D04AA01 4424 010 A00AA01 PILGRIM AMERICA GROUP, INC. 010 C01AA01 PHOENIX 010 C02AA01 AZ 010 C03AA01 85004 010 C04AA01 4424 011 A00AA01 PILGRIM AMERICA SECURITIES, INC. 011 B00AA01 8-48020 PAGE 2 011 C01AA01 PHOENIX 011 C02AA01 AZ 011 C03AA01 85004 011 C04AA01 4424 012 A00AA01 INVESTORS FIDUCIARY TRUST COMPANY 012 B00AA01 85-00535 012 C01AA01 KANSAS CITY 012 C02AA01 MO 012 C03AA01 64105 013 A00AA01 KPMG PEAT MARWICK LLP 013 B01AA01 LOS ANGELES 013 B02AA01 CA 013 B03AA01 90017 015 A00AA01 INVESTORS FIDUCIARY TRUST COMPANY 015 B00AA01 C 015 C01AA01 KANSAS CITY 015 C02AA01 MO 015 C03AA01 64105 015 E01AA01 X 018 00AA00 Y 019 A00AA00 Y 019 B00AA00 8 019 C00AA00 PILGRIMAME 020 A000001 AUTRANET 020 B000001 13-2961507 020 C000001 219 020 A000002 LIPPER ANALYTICAL 020 B000002 13-2792478 020 C000002 47 020 A000003 BERSTEIN & CO. 020 B000003 13-2625874 020 C000003 27 020 A000004 MERRILL LYNCH 020 B000004 13-5674085 020 C000004 26 020 A000005 MORGAN STANLEY 020 B000005 13-2655998 020 C000005 26 020 A000006 SCOTT & STRING 020 B000006 54-0957557 020 C000006 18 020 A000007 LEHMAN BROTHERS 020 B000007 13-2518466 020 C000007 13 020 A000008 GOLDMAN SACHS 020 B000008 13-5108880 020 C000008 11 020 A000009 SALOMON BROTHERS 020 B000009 13-3082694 020 C000009 11 020 A000010 PRUDENTIAL SECURITIES PAGE 3 020 B000010 13-2308901 020 C000010 10 021 000000 456 022 A000001 MERRILL LYNCH 022 B000001 13-5674085 022 C000001 5028896 022 D000001 60691 022 A000002 GENERAL ELECTRIC CAPITAL 022 B000002 06-1362678 022 C000002 1393852 022 D000002 0 022 A000003 DONALDSON LUFKIN JENRETTE 022 B000003 13-2741729 022 C000003 119280 022 D000003 80151 022 A000004 FORD MOTOR CREDIT 022 C000004 142537 022 D000004 0 022 A000005 JEFFERIES & CO 022 B000005 95-4373918 022 C000005 23855 022 D000005 20177 022 A000006 FIRST BOSTON 022 B000006 13-5659485 022 C000006 32220 022 D000006 9819 022 A000007 GOLDMAN SACHS 022 B000007 13-5108880 022 C000007 31055 022 D000007 8167 022 A000008 FIRST CHICAGO 022 B000008 13-5659485 022 C000008 13956 022 D000008 20067 022 A000009 ING BARING SECURITIES 022 B000009 95-4339369 022 C000009 12270 022 D000009 14350 022 A000010 NATIONSBANC 022 B000010 75-0520130 022 C000010 15489 022 D000010 7623 023 C000000 7001716 023 D000000 330704 024 00AA00 N 025 D00AA01 0 025 D00AA02 0 025 D00AA03 0 025 D00AA04 0 025 D00AA05 0 025 D00AA06 0 PAGE 4 025 D00AA07 0 025 D00AA08 0 026 A000000 N 026 B000000 Y 026 C000000 N 026 D000000 Y 026 E000000 N 026 F000000 N 026 G010000 N 026 G020000 N 026 H000000 N 027 000000 Y 077 A000000 Y 077 B000000 Y 077 C000000 Y 077 D000000 Y 077 E000000 N 077 F000000 N 077 G000000 N 077 H000000 N 077 I000000 N 077 J000000 N 077 K000000 N 077 L000000 N 077 M000000 N 077 N000000 N 077 O000000 N 077 P000000 N 077 Q010000 Y 077 Q020000 N 077 Q030000 N 078 000000 N 080 A00AA00 RELIANCE INSURANCE COMPANY 080 C00AA00 7500 081 A00AA00 Y 081 B00AA00 11 082 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 0 086 A020000 0 086 B010000 0 086 B020000 0 086 C010000 0 086 C020000 0 086 D010000 0 PAGE 5 086 D020000 0 086 E010000 0 086 E020000 0 086 F010000 0 086 F020000 0 028 A010100 12780 028 A020100 0 028 A030100 0 028 A040100 12119 028 B010100 21418 028 B020100 288 028 B030100 0 028 B040100 18201 028 C010100 19159 028 C020100 0 028 C030100 0 028 C040100 18909 028 D010100 18106 028 D020100 0 028 D030100 0 028 D040100 19314 028 E010100 13229 028 E020100 0 028 E030100 0 028 E040100 11931 028 F010100 48969 028 F020100 0 028 F030100 0 028 F040100 39114 028 G010100 133661 028 G020100 288 028 G030100 0 028 G040100 119588 028 H000100 114258 029 000100 Y 030 A000100 863 030 B000100 5.75 030 C000100 0.00 031 A000100 146 031 B000100 0 032 000100 717 033 000100 0 034 000100 Y 035 000100 71050 036 A000100 Y 036 B000100 0 037 000100 N 038 000100 0 039 000100 N 040 000100 Y 041 000100 Y PAGE 6 042 A000100 0 042 B000100 0 042 C000100 0 042 D000100 0 042 E000100 0 042 F000100 0 042 G000100 0 042 H000100 100 043 000100 1644 044 000100 0 045 000100 Y 046 000100 N 047 000100 Y 048 000100 0.000 048 A010100 30000 048 A020100 1.000 048 B010100 220000 048 B020100 0.750 048 C010100 250000 048 C020100 0.625 048 D010100 0 048 D020100 0.000 048 E010100 0 048 E020100 0.000 048 F010100 0 048 F020100 0.000 048 G010100 0 048 G020100 0.000 048 H010100 0 048 H020100 0.000 048 I010100 0 048 I020100 0.000 048 J010100 0 048 J020100 0.000 048 K010100 500000 048 K020100 0.500 049 000100 N 050 000100 N 051 000100 N 052 000100 N 053 A000100 N 054 A000100 Y 054 B000100 N 054 C000100 N 054 D000100 N 054 E000100 N 054 F000100 N 054 G000100 Y 054 H000100 Y 054 I000100 N 054 J000100 Y PAGE 7 054 K000100 N 054 L000100 N 054 M000100 Y 054 N000100 N 054 O000100 N 055 A000100 N 055 B000100 N 056 000100 Y 057 000100 N 058 A000100 N 058 B000100 N 058 C000100 N 058 D000100 N 058 E000100 N 059 000100 Y 060 A000100 Y 060 B000100 Y 061 000100 1000 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 N 066 E000100 Y 066 F000100 N 066 G000100 N 067 000100 N 068 A000100 N 068 B000100 N 069 000100 N 070 A010100 Y 070 A020100 Y PAGE 8 070 B010100 Y 070 B020100 N 070 C010100 Y 070 C020100 N 070 D010100 Y 070 D020100 N 070 E010100 N 070 E020100 N 070 F010100 N 070 F020100 N 070 G010100 N 070 G020100 N 070 H010100 N 070 H020100 N 070 I010100 N 070 I020100 N 070 J010100 N 070 J020100 N 070 K010100 N 070 K020100 N 070 L010100 N 070 L020100 N 070 M010100 N 070 M020100 N 070 N010100 N 070 N020100 N 070 O010100 Y 070 O020100 N 070 P010100 Y 070 P020100 N 070 Q010100 N 070 Q020100 N 070 R010100 N 070 R020100 N 071 A000100 234303 071 B000100 200194 071 C000100 376051 071 D000100 53 072 A000100 12 072 B000100 890 072 C000100 5570 072 D000100 0 072 E000100 0 072 F000100 2846 072 G000100 0 072 H000100 0 072 I000100 730 072 J000100 165 072 K000100 100 072 L000100 68 072 M000100 30 PAGE 9 072 N000100 95 072 O000100 0 072 P000100 0 072 Q000100 0 072 R000100 36 072 S000100 50 072 T000100 1644 072 U000100 0 072 V000100 0 072 W000100 70 072 X000100 5834 072 Y000100 0 072 Z000100 626 072AA000100 63903 072BB000100 0 072CC010100 7552 072CC020100 0 072DD010100 1189 072DD020100 86 072EE000100 40860 073 A010100 0.0600 073 A020100 0.0300 073 B000100 1.8500 073 C000100 0.0000 074 A000100 13 074 B000100 0 074 C000100 17084 074 D000100 0 074 E000100 0 074 F000100 425441 074 G000100 0 074 H000100 0 074 I000100 0 074 J000100 0 074 K000100 0 074 L000100 1226 074 M000100 53 074 N000100 443817 074 O000100 896 074 P000100 4 074 Q000100 0 074 R010100 0 074 R020100 0 074 R030100 0 074 R040100 1696 074 S000100 0 074 T000100 441221 074 U010100 20429 074 U020100 4615 074 V010100 17.07 074 V020100 16.86 PAGE 10 074 W000100 0.0000 074 X000100 29723 074 Y000100 0 075 A000100 0 075 B000100 393370 076 000100 0.00 028 A010200 24846 028 A020200 458 028 A030200 0 028 A040200 5784 028 B010200 23789 028 B020200 529 028 B030200 0 028 B040200 7976 028 C010200 28756 028 C020200 564 028 C030200 0 028 C040200 6213 028 D010200 25076 028 D020200 633 028 D030200 0 028 D040200 6962 028 E010200 31692 028 E020200 680 028 E030200 0 028 E040200 5419 028 F010200 54434 028 F020200 763 028 F030200 0 028 F040200 26822 028 G010200 188593 028 G020200 3627 028 G030200 0 028 G040200 59176 028 H000200 101611 029 000200 Y 030 A000200 1477 030 B000200 4.75 030 C000200 0.00 031 A000200 212 031 B000200 0 032 000200 1265 033 000200 0 034 000200 Y 035 000200 157 036 A000200 Y 036 B000200 0 037 000200 N 038 000200 0 039 000200 N 040 000200 Y PAGE 11 041 000200 Y 042 A000200 0 042 B000200 0 042 C000200 0 042 D000200 0 042 E000200 0 042 F000200 0 042 G000200 0 042 H000200 100 043 000200 1117 044 000200 0 045 000200 Y 046 000200 N 047 000200 Y 048 000200 0.600 048 A010200 0 048 A020200 0.000 048 B010200 0 048 B020200 0.000 048 C010200 0 048 C020200 0.000 048 D010200 0 048 D020200 0.000 048 E010200 0 048 E020200 0.000 048 F010200 0 048 F020200 0.000 048 G010200 0 048 G020200 0.000 048 H010200 0 048 H020200 0.000 048 I010200 0 048 I020200 0.000 048 J010200 0 048 J020200 0.000 048 K010200 0 048 K020200 0.000 049 000200 N 050 000200 N 051 000200 N 052 000200 N 053 A000200 Y 053 B000200 Y 054 A000200 Y 054 B000200 N 054 C000200 N 054 D000200 N 054 E000200 N 054 F000200 N 054 G000200 Y 054 H000200 Y PAGE 12 054 I000200 N 054 J000200 Y 054 K000200 N 054 L000200 N 054 M000200 Y 054 N000200 N 054 O000200 N 055 A000200 N 055 B000200 N 056 000200 Y 057 000200 N 058 A000200 N 058 B000200 N 058 C000200 N 058 D000200 N 058 E000200 N 059 000200 Y 060 A000200 Y 060 B000200 Y 061 000200 1000 062 A000200 Y 062 B000200 0.0 062 C000200 0.0 062 D000200 8.2 062 E000200 0.0 062 F000200 0.0 062 G000200 0.0 062 H000200 0.0 062 I000200 5.0 062 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 84.7 062 Q000200 0.0 062 R000200 0.3 063 A000200 0 063 B000200 7.3 064 A000200 N 064 B000200 Y 065 000200 N 066 A000200 N 067 000200 N 068 A000200 N 068 B000200 N 069 000200 N 070 A010200 Y 070 A020200 Y 070 B010200 Y PAGE 13 070 B020200 N 070 C010200 N 070 C020200 N 070 D010200 N 070 D020200 N 070 E010200 N 070 E020200 N 070 F010200 N 070 F020200 N 070 G010200 N 070 G020200 N 070 H010200 N 070 H020200 N 070 I010200 N 070 I020200 N 070 J010200 Y 070 J020200 Y 070 K010200 N 070 K020200 N 070 L010200 Y 070 L020200 Y 070 M010200 N 070 M020200 N 070 N010200 Y 070 N020200 N 070 O010200 Y 070 O020200 N 070 P010200 N 070 P020200 N 070 Q010200 N 070 Q020200 N 070 R010200 N 070 R020200 N 071 A000200 469753 071 B000200 312276 071 C000200 149144 071 D000200 209 072 A000200 12 072 B000200 16145 072 C000200 0 072 D000200 0 072 E000200 0 072 F000200 978 072 G000200 0 072 H000200 0 072 I000200 246 072 J000200 60 072 K000200 40 072 L000200 18 072 M000200 9 072 N000200 61 PAGE 14 072 O000200 0 072 P000200 0 072 Q000200 0 072 R000200 10 072 S000200 30 072 T000200 1117 072 U000200 0 072 V000200 0 072 W000200 16 072 X000200 2585 072 Y000200 269 072 Z000200 13829 072AA000200 1228 072BB000200 0 072CC010200 0 072CC020200 2127 072DD010200 5189 072DD020200 6677 072EE000200 0 073 A010200 0.6300 073 A020200 0.5800 073 B000200 0.0000 073 C000200 0.0000 074 A000200 42 074 B000200 22645 074 C000200 13970 074 D000200 234307 074 E000200 0 074 F000200 726 074 G000200 0 074 H000200 0 074 I000200 0 074 J000200 5128 074 K000200 20 074 L000200 9643 074 M000200 46 074 N000200 286527 074 O000200 9504 074 P000200 2 074 Q000200 0 074 R010200 0 074 R020200 0 074 R030200 0 074 R040200 509 074 S000200 0 074 T000200 276512 074 U010200 14769 074 U020200 22305 074 V010200 6.94 074 V020200 6.92 074 W000200 0.0000 PAGE 15 074 X000200 8312 074 Y000200 0 075 A000200 0 075 B000200 161 076 000200 0.00 SIGNATURE MICHAEL J. ROLAND TITLE SR. VICE PRESIDENT EX-27.1 2 FINANCIAL DATA SCHEDULE
6 061448 Pilgrim America Investment Funds, Inc. 011 Pilgrim America MagnaCap Fund - Class A 1,000 U.S. Dollars 12-MOS JUN-30-1998 JUL-01-1997 JUN-30-1998 1 324,312 442,525 1,226 66 0 443,817 896 0 1,700 2,596 0 276,915 20,429 18,239 0 0 46,093 0 118,213 348,759 5,570 890 0 5,834 626 63,903 7,552 72,081 0 1,189 33,691 0 11,184 10,784 1,791 106,691 1,291 22,431 0 0 2,846 0 5,836 322,976 15.92 0.04 3.02 0.06 1.85 0 17.07 1.37 0 0

EX-27.2 3 FINANCIAL DATA SCHEDULE
6 061448 Pilgrim America Investment Funds, Inc. 012 Pilgrim America MagnaCap Fund - Class B 1,000 U.S. Dollars 12-MOS JUN-30-1998 JUL-01-1997 JUN-30-1998 1 324,312 442,525 1,226 66 0 443,817 896 0 1,700 2,596 0 276,915 4,615 2,367 0 0 46,093 0 118,213 77,787 5,570 890 0 5,834 626 63,903 7,552 72,081 0 86 6,013 0 2,389 478 337 106,691 1,291 22,431 0 0 2,846 0 5,836 59,001 15.81 (0.04) 2.97 0.03 1.85 0 16.86 2.07 0 0

EX-27.3 4 FINANCIAL DATA SCHEDULE
6 061448 Pilgrim America Investment Funds, Inc. 013 Pilgrim America MagnaCap Fund - Class M 1,000 U.S. Dollars 12-MOS JUN-30-1998 JUL-01-1997 JUN-30-1998 1 324,312 442,525 1,226 66 0 443,817 896 0 1,700 2,596 0 276,915 866 425 0 0 46,093 0 118,213 14,676 5,570 890 0 5,834 626 63,903 7,552 72,081 0 23 1,156 0 473 106 75 106,691 1,291 22,431 0 0 2,846 0 5,836 11,393 15.87 0 2.98 0.05 1.85 0 16.95 1.82 0 0

EX-27.4 5 FINANCIAL DATA SCHEDULE
6 061448 Pilgrim America Investment Funds, Inc. 021 Pilgrim America High Yield Fund - Class A 1,000 U.S. DOLLARS 12-MOS JUN-30-1998 JUL-01-1997 JUN-30-1998 1 271,983 271,648 14,791 88 0 286,527 9,504 0 512 10,016 0 284,646 14,769 5,288 1,300 0 0 9,099 (335) 102,424 0 16,145 0 2,316 13,829 1,228 (2,127) 12,931 0 5,189 0 0 17,205 8,125 401 191,498 554 0 0 10,328 978 0 2,626 60,494 6.80 0.61 0.16 0.63 0.00 0 6.94 1.00 0 0

EX-27.5 6 FINANCIAL DATA SCHEDULE
6 061448 Pilgrim America Investment Funds, Inc. 022 Pilgrim America High Yield Fund - Class B 1,000 U.S. DOLLARS 12-MOS JUN-30-1998 JUL-01-1997 JUN-30-1998 1 271,983 271,648 14,791 88 0 286,527 9,504 0 512 10,016 0 284,646 22,305 5,931 1,300 0 0 9,099 (335) 154,303 0 16,145 0 2,316 13,829 1,228 (2,127) 12,931 0 6,677 0 0 18,361 2,357 369 191,498 554 0 0 10,328 978 0 2,626 85,468 6.78 0.58 0.14 0.58 0.00 0 6.92 1.75 0 0

EX-27.6 7 FINANCIAL DATA SCHEDULE
6 061448 Pilgrim America Investment Funds, Inc. 023 Pilgrim America High Yield Fund - Class M 1,000 U.S. DOLLARS 12-MOS JUN-30-1998 JUL-01-1997 JUN-30-1998 1 271,983 271,648 14,791 88 0 286,527 9,504 0 512 10,016 0 284,646 2,858 1,304 1,300 0 0 9,099 (335) 19,785 0 16,145 0 2,316 13,829 1,228 (2,127) 12,931 0 1,217 0 0 2,577 1,119 96 191,498 554 0 0 10,328 978 0 2,626 14,758 6.78 0.59 0.14 0.59 0.00 0 6.92 1.50 0 0

EX-99.1 8 INTERNAL CONTROL LETTER [LETTERHEAD OF KPMG PEAT MARWICK LLP] The Board of Directors Pilgrim America Investment Funds, Inc.: In planning and performing our audit of the financial statements of Pilgrim America MagnaCap Fund and Pilgrim America High Yield Fund (two funds comprising Pilgrim America Investment Funds, Inc.), as of and for the year ended June 30, 1998, we considered the Funds' 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 Pilgrim America MagnaCap Fund and Pilgrim America High Yield 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 risks 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 June 30, 1998. This report is intended solely for the information and use of management and the Securities and Exchange Commission. /s/ KPMG Peat Marwick LLP July 31, 1998 EX-99.2 9 MATTERS SUBMITTED TO A VOTE OF SEC. HOLDERS Exhibit 77(c) -- MATTERS SUBMITTED TO A VOTE OF SECURITY HOLDERS SPECIAL MEETING: A special meeting of shareholders of Pilgrim America High Yield Fund was held at the offices of the Fund on April 16, 1998. A brief description of each matter voted upon as well as the voting results are outlined below: Shares Shares voted against Shares Broker voted for or withheld abstained non-vote Total --------- ----------- --------- -------- ----- I. To approve an Amendment to the Investment Management Agreement between the Fund and Pilgrim America Investments, Inc. that changes the investment management fee paid by the Fund. 11,065,450 1,624,190 861,237 -- 13,550,877 II. To transact such other business as may properly come before the Special Meeting of Shareholders or any adjournments thereof: 12,049,644 613,076 888,156 -- 13,550,876 EX-99.3 10 SUPPLEMENT DATED FEBRUARY 3, 1998 Exhibit 77D(g) SUPPLEMENT DATED FEBRUARY 3, 1998 TO THE PROSPECTUS FOR THE PILGRIM AMERICA ELITE SERIES DATED NOVEMBER 1, 1997 CHANGE TO CERTAIN INVESTMENT POLICIES OF PILGRIM AMERICA MAGNACAP FUND On February 2, 1998, the Board of Directors of Pilgrim America Investment Funds, Inc. (the "Company") approved changes to certain investment policies of the Pilgrim America MagnaCap Fund ("MagnaCap Fund"), which became effective on February 2. The investment objective of MagnaCap Fund continues to be growth of capital, with dividend income as a secondary consideration. The changes in investment policies revise to some degree the criteria generally used to select portfolio companies. The investment objective and policies of the MagnaCap Fund, as described on page 8 of the Prospectus, are changed to read as follows: MAGNACAP FUND. The Fund's objective is growth of capital, with dividend income as a secondary consideration. In selecting investments for the Fund, preservation of capital is also an important consideration. The Fund normally seeks its objectives by investing primarily in equity securities issued by companies that the Investment Manager determines are of high quality based upon the selection criteria described below. The equity securities in which the Fund may invest include common stocks, securities convertible into common stocks, rights or warrants to subscribe for or purchase common stocks, repurchase agreements, and foreign securities (including American Depository Receipts (ADRs)), although it is anticipated that the Fund normally will be invested as fully as practicable in equity securities in accordance with its investment policies. Assets of the Fund not invested in equity securities may be invested in high quality debt securities, as described in "Investment Techniques--Temporary Defensive and other Short-Term Positions." In a period that the Investment Manager believes presents weakness in the stock market or in economic conditions, the Fund may establish a defensive position to attempt to preserve capital and increase its investment in these instruments. MagnaCap Fund is managed in accordance with the philosophy that companies that can best meet the Fund's objectives have paid increasing dividends or have had the capability to pay rising dividends from their operations. Normally, stocks are acquired only if at least 65% of the Fund's assets are invested in companies that meet the following criteria: 1. CONSISTENT DIVIDENDS. A company must have paid or had the financial capability from its operations to pay a dividend in 8 out of the last 10 years. 2. SUBSTANTIAL DIVIDEND INCREASES. A company must have increased its dividend or had the financial capability from its operations to have increased its dividend at least 100% over the past 10 years. 3. REINVESTED EARNINGS. Dividend payout must be less than 65% of current earnings. 4. STRONG BALANCE SHEET. Long term debt should be no more than 25% of the company's total capitalization or a company's bonds must be rated at least A- or A-3. 5. ATTRACTIVE PRICE. A company's current share price should be in the lower half of the stock's price/earnings ratio range for the past ten years, or the ratio of the share price to its anticipated future earnings must be an attractive value in relation to the average for its industry peer group or that of the Standard & Poor's 500 Composite Stock Price Index. The Investment Manager may also consider other factors in selecting investments for the Fund. The remainder of the Fund's assets may be invested in equity securities that the Investment Manager believes have growth potential because they represent an attractive value. MagnaCap Fund may not invest more than 5% of its total assets in the securities of companies which, including predecessors, have not had a record of at least three years of continuous operations, and it may not invest in any restricted securities. No change has been made to the investment objectives or policies of the Pilgrim America High Yield Fund or the Pilgrim Government Securities Income Fund. EX-99.4 11 ANSWER TO SUB-ITEM Exhibit 77Q1(b) - Text of proposal as described in answer to sub-item 77D(g) Incorporated by reference is answer to sub-item 77D(g) which is an exhibit in this NSAR which shows the change in Pilgrim America MagnaCap Fund's investment policies and objectives. EX-99.5 12 AMENDMENT TO RESTATED INV. MGMT. AGREEMENT Exhibit 77Q1(e) AMENDMENT TO RESTATED INVESTMENT MANAGEMENT AGREEMENT The INVESTMENT MANAGEMENT AGREEMENT made as of the 7th day of April, 1995, and restated on the 7th day of April, 1997, by and between PILGRIM AMERICA INVESTMENT FUNDS, INC., (formerly Pilgrim Investment Funds, Inc.) a corporation organized and existing under the laws of the State of Maryland (hereinafter called the "Company") on behalf of its PILGRIM AMERICA HIGH YIELD FUND series (formerly Pilgrim High Yield Fund) (the "Fund"), and PILGRIM AMERICA INVESTMENTS, INC., a corporation organized and existing under the laws of the State of Delaware (hereinafter called the "Manager"), is hereby amended as set forth in this Amendment to the Investment Management Agreement, which is made as of the ___ day of __________, 1998. W I T N E S S E T H: WHEREAS, the Fund is a series of the Company, an open-end management investment company, registered as such under the Investment Company Act of 1940; and WHEREAS, the Manager is registered as an investment adviser under the Investment Advisers Act of 1940, and is engaged in the business of supplying investment advice, investment management and administrative services, as an independent contractor; and WHEREAS, the Company, on behalf of the Fund, and the Manager wish to amend the Investment Management Agreement as provided below; and NOW, THEREFORE, in consideration of the covenants and the mutual promises in the Investment Management Agreement, the parties hereto, intending to be legally bound hereby, mutually agree as follows: 1. Section 8(a) of the Investment Management Agreement is amended by replacing the language thereof with the following paragraph: 8. (a) The Fund agrees to pay to the Manager, and the Manager agrees to accept, as full compensation for all administrative and investment management services furnished or provided to the Fund and as full reimbursement for all expenses assumed by the Manager, a management fee computed at an annual percentage rate of .60% of the average daily net assets of the Fund. 2. This Amendment shall become effective as of the date indicated above provided that it has been approved by the shareholders of the Fund at a meeting held for that purpose. IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and attested by their duly authorized officers, on the day and year first above written. PILGRIM AMERICA INVESTMENT FUNDS, INC. (on behalf of its Pilgrim America High Yield Fund series) Attest: By: ------------------------ --------------------------------- Title: Title: ------------------------ ------------------------------ PILGRIM AMERICA INVESTMENTS, INC. Attest: By: ------------------------ --------------------------------- Title: Title: ------------------------ ------------------------------ -2- ~~-----END PRIVACY-ENHANCED MESSAGE-----~~