Report 
 
      
Registrant:   Scudder Portfolio Trust — List all N-SARs

Annual Report for the 2nd-half period ended at fiscal year end:  2/28/98

Were there any Answer File errors in the Filing?  None FoundNone Found by SEC InfoNot Checked by the FilerOne or more Found by SEC Info
Was the Answer File completed by the Registrant?  Yes

Is this an Amendment to a previous Report?  No
Is this a change to a previous Report?      No
 
Registrant 
 
 1.
SEC CIK:      88063
SEC File #:   811-00042

Telephone #:  617-295-2567
 
 2.
Address:      Two International Place
              Boston, MA  02110
 
 3.
Is this the first Form N-SAR filed by the Registrant?  No
 
 4.
Is this the final Form N-SAR filed by the Registrant?  No
 
 
Funds/Series 
↑Top of Form N-SAR 
     
                                                                               
 7.
Is the Registrant a Funds/Series (multiple portfolios) company?  Yes

The number of separate Funds/Series (portfolios) at period end:  3
The number of separate Funds/Series (portfolios) reported here:  1...

N-SAR S#      Fund/Series — Filings for F/S#… ⇒ Symbols 
 
↓Information Common to All 
↓
Series 3:     Scudder High Yield Bond Fund — N-SARs
 
Family of Investment Companies 
 
19.
Is the Registrant/Series part of a “family” of investment companies?  Yes

Total number of registered management investment companies, Series
and portfolios (excluding any Unit Investment Trusts) in the family:  62

The Identification Code of the family for Form N-SAR Filings:  SCUDDERKEM
 
Additional Disclosures 
 
77.
Did the Registrant file any additional Exhibits with the filing of this
Report (listed here and filed either herewith — as one of the ‘EX-99.*’
↑Exhibits in this Filing — or separately and incorporated by reference)?  Yes

EX-99.77B:  Accountant’s Report re: Internal Controls?  Yes

EX-99.77C:  Matters Submitted to a Vote of Security Holders?  Yes

EX-99.77Q1: Other Disclosure?  Yes

EX-99.77Q3: Other Info?  Yes
 
Subsidiaries 
 
78.
Does the Registrant have any wholly-owned investment company
subsidiaries whose operating and financial data are consolidated with
that of the Registrant in this Report?  No
 
 All Series
↑List of Funds/Series Reported Here 

Information Common to All Funds/Series
 
 All: 
Investment Adviser 
 
 8.1
Name:         Scudder Kemper Investments, Inc.
Role:         Adviser
SEC File #:   801-00252
Location:     Boston, MA
 
 All: 
Shareholder Servicing/Transfer Agent 
 
12.1
Name:         Scudder Service Corp.
SEC File #:   084-01489
Location:     Boston, MA
 
12.2
Name:         (See a prior Form N-SAR for who was...)  Deleted
 
12.3
Name:         (See a prior Form N-SAR for who was...)  Deleted
 
12.4
Name:         (See a prior Form N-SAR for who was...)  Deleted
 
 All: 
Affiliated Broker/Dealer 
 
14.1
Name:         Scudder Investor Services, Inc.
SEC File #:   008-00298
 
14.2
Name:         Kemper Distributors, Inc.
SEC File #:   008-47765
 
14.3
Name:         Gruntal Securities, Inc.
SEC File #:   008-31022
 
14.4
Name:         The GMS Group, Inc.
SEC File #:   008-23936
 
14.5
Name:         Zurich Capital Markets
SEC File #:   008-49827
 
14.6
Name:         Bank Handlowy
SEC File #:   008-24613
 
 All: 
Custodian 
 
15.1
Name:         State Street Bank & Trust Co.
Role:         Custodian
Location:     Boston, MA

Type of custody:  Section 17(f)(1) — Bank
 
15.2
Name:         Standard Chartered Bank
Role:         Sub-Custodian
Location:     Dhaka
              Bangladesh

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.3
Name:         Citibank, N.A.
Role:         Sub-Custodian
Location:     Buenos Aires
              Argentina

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.4
Name:         Westpac Banking Corp.
Role:         Sub-Custodian
Location:     Sydney
              Australia

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.5
Name:         Girocredit Bank
Role:         Sub-Custodian
Location:     Vienna
              Austria

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.6
Name:         Generale Banque
Role:         Sub-Custodian
Location:     Brussels
              Belgium

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.7
Name:         Bankboston, N.A.
Role:         Sub-Custodian
Location:     Sao Paulo
              Brazil

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.8
Name:         Canada Trust Co. Mortgage Co.
Role:         Sub-Custodian
Location:     Toronto
              Canada

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.9
Name:         Citibank, N.A.
Role:         Sub-Custodian
Location:     Santiago
              Chile

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.10
Name:         Cititrust Colombia S.A. Sociedad Fiduciaria
Role:         Sub-Custodian
Location:     Bogota
              Colombia

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.11
Name:         Den Danske Bank
Role:         Sub-Custodian
Location:     Copenhagen
              Denmark

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.12
Name:         Merita Bank Ltd.
Role:         Sub-Custodian
Location:     Helsinki
              Finland

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.13
Name:         Banque Paribas
Role:         Sub-Custodian
Location:     Paris
              France

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.14
Name:         Dresdner Bank AG
Role:         Sub-Custodian
Location:     Frankfurt
              Germany

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.15
Name:         National Bank of Greece
Role:         Sub-Custodian
Location:     Athens
              Greece

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.16
Name:         Standard Chartered Bank
Role:         Sub-Custodian
Location:     Hong Kong
              Hong Kong

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.17
Name:         Deutsche Bank AG
Role:         Sub-Custodian
Location:     Bombay
              India

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.18
Name:         Standard Chartered Bank
Role:         Sub-Custodian
Location:     Jakarta
              Indonesia

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.19
Name:         Bank of Ireland
Role:         Sub-Custodian
Location:     Dublin
              Ireland

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.20
Name:         Banque Paribas
Role:         Sub-Custodian
Location:     Milan
              Italy

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.21
Name:         The Fiji Bank, Ltd.
Role:         Sub-Custodian
Location:     Tokyo
              Japan

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.22
Name:         Citibank, N.A.
Role:         Sub-Custodian
Location:     Seoul
              Korea

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.23
Name:         Standard Chartered Bank
Role:         Sub-Custodian
Location:     Kuala Lumpur
              Malaysia

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.24
Name:         Citibank, N.A.
Role:         Sub-Custodian
Location:     Mexico City
              Mexico

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.25
Name:         Mees Pierson N.V.
Role:         Sub-Custodian
Location:     Amsterdam
              Netherlands

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.26
Name:         Anz Banking Group
Role:         Sub-Custodian
Location:     Wellington
              New Zealand

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.27
Name:         Christiania Bank Og Kreditkasse
Role:         Sub-Custodian
Location:     Oslo
              Norway

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.28
Name:         Deutsche Bank A.G.
Role:         Sub-Custodian
Location:     Karachi
              Pakistan

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.29
Name:         Standard Chartered Bank
Role:         Sub-Custodian
Location:     Manila
              Philippines

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.30
Name:         Banco Comercial Portugues
Role:         Sub-Custodian
Location:     Lisbon
              Portugal

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.31
Name:         The Development Bank of Singapore, Ltd.
Role:         Sub-Custodian
Location:     Singapore
              Singapore

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.32
Name:         Banco Santander
Role:         Sub-Custodian
Location:     Madrid
              Spain

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.33
Name:         The Hong Kong & Shanghai Banking Co., Ltd.
Role:         Sub-Custodian
Location:     Colombo
              Sri Lanka

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.34
Name:         Skandinaviska Enskilda Banken
Role:         Sub-Custodian
Location:     Stockholm
              Sweden

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.35
Name:         Union Bank of Switzerland
Role:         Sub-Custodian
Location:     Zurich
              Switzerland

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.36
Name:         Central Trust of China
Role:         Sub-Custodian
Location:     Taipei
              Taiwan

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.37
Name:         Standard Chartered Bank
Role:         Sub-Custodian
Location:     Bangkok
              Thailand

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.38
Name:         Citibank, N.A.
Role:         Sub-Custodian
Location:     Istanbul
              Turkey

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.39
Name:         State Street Bank & Trust Co.
Role:         Sub-Custodian
Location:     London
              United Kingdom

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.40
Name:         Citibank, N.A.
Role:         Sub-Custodian
Location:     Montevideo
              Uruguay

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.41
Name:         Citibank, N.A.
Role:         Sub-Custodian
Location:     Caracas
              Venezuela

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.42
Name:         Citibank Budapest
Role:         Sub-Custodian
Location:     Budapest
              Hungary

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.43
Name:         Bank Hapoalim
Role:         Sub-Custodian
Location:     Tel Aviv
              Israel

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.44
Name:         Citibank, N.A. Lima
Role:         Sub-Custodian
Location:     Lima
              Peru

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.45
Name:         The Hong Kong & Shanghai Banking Co.
Role:         Sub-Custodian
Location:     Shanghai & Shenzhen
              China

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.46
Name:         State Street London Ltd.
Role:         Sub-Custodian
Location:     London
              United Kingdom

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.47
Name:         Barclays Bank of Botswana Ltd.
Role:         Sub-Custodian
Location:     Gaborone
              Botswana

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.48
Name:         Barclays Bank plc
Role:         Sub-Custodian
Location:     Nicosia
              Cyprus

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.49
Name:         Ceskoslovenska Obchodni Banka
Role:         Sub-Custodian
Location:     Prague
              Czech Republic

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.50
Name:         Barclays Bank of Ghana Ltd.
Role:         Sub-Custodian
Location:     Accra
              Ghana

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.51
Name:         Barclays Bank of Kenya Ltd.
Role:         Sub-Custodian
Location:     Nairobi
              Kenya

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.52
Name:         Citibank Poland S.A.
Role:         Sub-Custodian
Location:     Warsaw
              Poland

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.53
Name:         Standard Bank of South Africa Ltd.
Role:         Sub-Custodian
Location:     Johannesburg
              South Africa

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.54
Name:         Barclays Bank of Swaziland Ltd.
Role:         Sub-Custodian
Location:     Xxxxx
              Swaziland

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.55
Name:         Barclays Bank of Zambia Ltd.
Role:         Sub-Custodian
Location:     Lusaka
              Zambia

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.56
Name:         Barclays Bank of Zimbabwe Ltd.
Role:         Sub-Custodian
Location:     Harare
              Zimbabwe

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.57
Name:         Ceskoslovenska Obchodna Banka A.S.
Role:         Sub-Custodian
Location:     Bratislava
              Slovak Republic

Type of custody:  Rule 17f-5 — Foreign Custodian
 
15.58
Name:         The Bank of Bermuda Ltd.
Role:         Sub-Custodian
Location:     Bermuda
              Bermuda

Type of custody:  Rule 17f-5 — Foreign Custodian
 
18.
Does the Registrant’s/Series’ Custodian(s) maintain some or all of the
Registrant’s/Series’ securities in a central depository or book-entry
system pursuant to Rule 17f-4?  Yes
 
 All: 
Portfolio Transactions with Entities Acting as Principals 
 
22.
The entities acting as principals with whom the Registrant did the
largest amount of portfolio transactions, based on total value of
principal, during the period:
 
22.1
Entity:       State Street Bank
IRS #:        04-1867445
Registrant’s purchases ($000s):  1,007
 
22.2
Entity:       Donaldson Luf & Jen Fixed Inc.
IRS #:        13-2741729
Registrant’s purchases ($000s):  130
Registrant’s sales ($000s):  12
 
22.3
Entity:       Merrill Lynch
IRS #:        13-5674085
Registrant’s purchases ($000s):  47
Registrant’s sales ($000s):  20
 
22.4
Entity:       Bear, Stearns & Co.
IRS #:        13-3299429
Registrant’s purchases ($000s):  22
Registrant’s sales ($000s):  7
 
22.5
Entity:       BT Securities
Registrant’s purchases ($000s):  17
Registrant’s sales ($000s):  6
 
22.6
Entity:       Smith Barney Shearson
IRS #:        13-1912900
Registrant’s purchases ($000s):  12
Registrant’s sales ($000s):  6
 
22.7
Entity:       Chemical Bank
IRS #:        13-4994650
Registrant’s purchases ($000s):  14
Registrant’s sales ($000s):  4
 
22.8
Entity:       Bank of Boston
IRS #:        04-2472499
Registrant’s purchases ($000s):  8
Registrant’s sales ($000s):  8
 
22.9
Entity:       J.P. Morgan Securities
IRS #:        13-3224016
Registrant’s purchases ($000s):  9
Registrant’s sales ($000s):  6
 
22.10
Entity:       The First Boston Corp.
IRS #:        13-5659485
Registrant’s purchases ($000s):  7
Registrant’s sales ($000s):  6
 
23.
Total purchase/sale transactions by the Registrant during the period:
   Aggregate purchases ($000s):  1,342,884
   Aggregate sales ($000s):  133,188
 
 All: 
Sales Load (Front-End or Deferred) and Fees (Redemption or Maintenance) 
 
29.
Was a front-end sales load deducted from any share sales during the
period?  No
 
37.
Did the Registrant/Series impose a redemption fee other than a deferred
or contingent sales load during the period?  Yes
 
38.
Total amount of redemption fees other than deferred or contingent
deferred sales loads collected from redemptions and repurchases of the
Registrant’s/Series’ shares during the period ($000s):  120
 
39.
Were any account maintenance fees or other administrative fees imposed
directly on shareholders during the period?  No
 
 All: 
Payment Plan for the Distribution of Fund Shares 
 
40.
During the period, did the Registrant/Series have a plan of distribution
adopted pursuant to Rule 12b-1?  No
 
 All: 
Fidelity Bond in Effect at Fiscal Year End 
 
80.
Insurer:      Ici Mutual Insurance
2nd Insurer:  National Union Fire Insurance Co.

Aggregate face amount of coverage for the Registrant/Series on all bonds
on which it is named as an insured ($000s):  60,000
 
81.
Is the bond part of a joint fidelity bond(s) shared with other
investment companies or other entities?  Yes

How many other investment companies or other entities are covered by the
bond (counting each Fund/Series as a separate investment company):  80
 
82.
Does the mandatory coverage of the fidelity bond have a deductible?  Yes

The amount of the deductible ($000s):  100
 
83.
Were any claims with respect to this Registrant/Series filed under the
bond during the period?  No
 
84.
Were any losses incurred with respect to this Registrant/Series that
could have been filed as a claim under the fidelity bond but were not?  No
 
85.
Are the Registrant’s/Series’ Officers and Directors covered as Officers
and Directors of the Registrant/Series under any errors and omissions
insurance policy owned by the Registrant/Series or anyone else?  Yes

Were any claims filed under such policy during the period with respect
to the Registrant/Series?  No
 
 Series 1
↑Information Common to All Funds/Series  ↑List of Funds/Series 
 
 S 1: 
Classification and Asset Allocation 
 
62.
Does the Registrant/Series invest primarily in debt securities,
including convertible debt securities, options & futures on debt
securities or indices of debt securities?  Yes

The percentage of net assets in each type at period end:

Debt — Short-Term Maturities
U.S. Treasury ...............................    10.0%
U.S. Government Agency ......................      0.0
Repurchase agreements .......................    11.6
State and Municipal – tax-free ..............      0.0
Bank certificates of deposit – domestic .....      0.0
Bank certificates of deposit – foreign ......      0.0
Bankers acceptances .........................      0.0
Commercial paper – taxable ..................      0.0
Time deposits ...............................      0.0
Options .....................................      0.0
All other ...................................      0.0

Debt — Intermediate & Long-Term Maturities
U.S. Treasury ...............................      0.0%
U.S. Government Agency ......................    26.1
State and Municipal – tax-free ..............      0.0
Corporate ...................................    37.4
All other ...................................    14.9

Non-Debt
Investments other than debt securities ......      1.7%
 
 S 1: 
Portfolio Turnover 
 
71.
Portfolio turnover rate for the period:
 
Purchases ($000s):  348,061
Sales ($000s):      391,617

Monthly average Value of portfolio ($000s):  520,627

Percent turnover (lesser of Purchases or Sales, divided by Value):  67%
 
 S 1: 
Financial Info — Income and Expenses 
 
72.
The number of months covered by the values in Items 72 and 73:  12
 
 S 1: 
Financial Info — Condensed Balance Sheet Data 
 
74.
Assets  ($000s)
Total assets .....................................................
 596,375
Net assets of common shareholders ................................
 578,520
 
75.
Monthly average net assets during the period ($000s):  575,867
 
 Series 2
↑Information Common to All Funds/Series  ↑List of Funds/Series 
 
 S 2: 
Classification and Asset Allocation 
 
62.
Does the Registrant/Series invest primarily in debt securities,
including convertible debt securities, options & futures on debt
securities or indices of debt securities?  No
 
 S 2: 
Portfolio Turnover 
 
71.
Portfolio turnover rate for the period:
 
Purchases ($000s):  84,991
Sales ($000s):      67,692

Monthly average Value of portfolio ($000s):  97,145

Percent turnover (lesser of Purchases or Sales, divided by Value):  70%
 
 S 2: 
Financial Info — Income and Expenses 
 
72.
The number of months covered by the values in Items 72 and 73:  12
 
 S 2: 
Financial Info — Condensed Balance Sheet Data 
 
74.
Assets  ($000s)
Total assets .....................................................
 114,115
Net assets of common shareholders ................................
 109,542
 
75.
Monthly average net assets during the period ($000s):  103,924
 
 Series 3
↑Information Common to All Funds/Series  ↑List of Funds/Series 
 
 7.
Name:         Scudder High Yield Bond Fund — N-SARs

Is this the final Form N-SAR filed for this Fund/Series?  No
 
 S 3: 
Sales and Repurchases 
 
28.
Monthly total Net Asset Value (NAV) of sales and repurchases of the
Registrant’s/Series’ shares:
 
1st Month of period:  ($000s)
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 10,099
      Reinvestment of dividends and distributions ................
 682
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 1,529
2nd Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 11,317
      Reinvestment of dividends and distributions ................
 754
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 4,955
3rd Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 6,622
      Reinvestment of dividends and distributions ................
 762
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 946
4th Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 6,503
      Reinvestment of dividends and distributions ................
 2,018
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 7,956
5th Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 14,240
      Reinvestment of dividends and distributions ................
 871
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 2,485
6th Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 10,047
      Reinvestment of dividends and distributions ................
 834
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 3,226

Total of all months:  ($000s)
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 58,828
      Reinvestment of dividends and distributions ................
 5,921
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 21,097

Total NAV of the Registrant’s/Series’ share sales during the period
subject to a sales load ($000s):  0
 
 S 3: 
Classification and Asset Allocation 
 
62.
Does the Registrant/Series invest primarily in debt securities,
including convertible debt securities, options & futures on debt
securities or indices of debt securities?  Yes

The percentage of net assets in each type at period end:

Debt — Short-Term Maturities
U.S. Treasury ...............................      0.0%
U.S. Government Agency ......................      0.0
Repurchase agreements .......................      4.0
State and Municipal – tax-free ..............      0.0
Bank certificates of deposit – domestic .....      0.0
Bank certificates of deposit – foreign ......      0.0
Bankers acceptances .........................      0.0
Commercial paper – taxable ..................      0.0
Time deposits ...............................      0.0
Options .....................................      0.0
All other ...................................      0.0

Debt — Intermediate & Long-Term Maturities
U.S. Treasury ...............................      0.0%
U.S. Government Agency ......................      0.0
State and Municipal – tax-free ..............      0.0
Corporate ...................................    89.0
All other ...................................      0.0

Non-Debt
Investments other than debt securities ......      7.0%
 
63.
The dollar-weighted average portfolio maturity at period end in days or,
if longer than one year, in years (to one decimal place):
    Days:     0
    Years:    6.5
 
64.
Is the timely payment of principal and interest on any of the
instruments listed in Item 62 insured or guaranteed by an entity other
than the issuer?  No

Is the issuer of any instrument covered in Item 62 delinquent or in
default as to payment of principal or interest at period end?  No
 
66.
Is the Registrant/Series a Fund that usually invests in equity
securities, options & futures on equity securities, indices of equity
securities or securities convertible into equity securities?  No
 
67.
Is the Registrant/Series a “balanced” Fund?  No
 
68.
Does the Registrant/Series have more than 50% of its net assets at
period end invested in the securities of issuers...
    Engaged primarily in production or distribution of precious metals?  No
    Located primarily in countries other than the United States?  No
 
69.
Is the Registrant/Series an index Fund?  No
 
 S 3: 
Investment Practices 
 
70.
Activities that are permitted by the Registrant’s/Series’ investment
policies, and which were engaged in during the period:

Activity                                            Permitted Engaged In
Writing or investing in repurchase agreements?           Yes to both
Writing or investing in options on equities?             Yes      No
Writing or investing in options on debt securities?      Yes      No
Writing or investing in options on stock indices?        No        –
Writing or investing in interest rate futures?           Yes      No
Writing or investing in stock index futures?             Yes      No
Writing or investing in options on futures?              Yes      No
Writing or investing in options on stock index futures?  No        –
Writing or investing in other commodity futures?         No        –
Investments in restricted securities?                    Yes      No
Investments in shares of other investment companies?     No        –
Investments in securities of foreign issuers?            Yes      No
Currency exchange transactions?                          Yes      No
Loaning portfolio securities?                            Yes      No
Borrowing of money?                                      No        –
Purchases/sales by certain exempted affiliated persons?  Yes      No
Margin purchases?                                        No        –
Short selling?                                           No        –
 
 S 3: 
Portfolio Turnover 
 
71.
Portfolio turnover rate for the period:
 
Purchases ($000s):  225,286
Sales ($000s):      134,284

Monthly average Value of portfolio ($000s):  119,136

Percent turnover (lesser of Purchases or Sales, divided by Value):  113%
 
 S 3: 
Financial Info — Income and Expenses 
 
72.
The number of months covered by the values in Items 72 and 73:  12

Income  ($000s)
Net interest income ..............................................
 10,933
Net dividend income ..............................................
 591
Account maintenance fees .........................................
 –
Net other income .................................................
 –

Expenses  ($000s)
Advisory fees ....................................................
 869
Administrator fees ...............................................
 –
Salaries and other compensation ..................................
 –
Shareholder Servicing Agent fees .................................
 408
Custodian fees ...................................................
 75
Postage ..........................................................
 –
Printing expenses ................................................
 32
Directors’ fees ..................................................
 40
Registration fees ................................................
 34
Taxes ............................................................
 –
Interest .........................................................
 –
Bookkeeping fees paid to anyone performing this service ..........
 –
Auditing fees ....................................................
 38
Legal fees .......................................................
 16
Marketing/distribution payments, incl. Rule 12b-1 plan payments ..
 –
Amortization of organization expenses ............................
 –
Shareholder meeting expenses .....................................
 –
Other expenses ...................................................
 9
Total expenses ...................................................
 1,521

Expense reimbursements ($000s):   1,488

Net investment income ($000s):    11,491

Realized capital gains ($000s):   2,681
Realized capital losses ($000s):  0

Net unrealized appreciation during the period ($000s):  3,475
Net unrealized depreciation during the period ($000s):  0

Total income dividends for which the record date passed during the
period ($000s):  11,199

Total capital gains distributions for which the record date passed
during the period ($000s):  1,528
 
73.
Distributions per share for which the record date passed during the
period, shown in fractions of a cent, if so declared:

Dividends from net investment income:    $0.0000

Distribution of capital gains:  $0.0000
Other distributions:            $0.0000
 
 S 3: 
Financial Info — Condensed Balance Sheet Data 
 
74.
Assets  ($000s)
Cash .............................................................
 1
Repurchase agreements ............................................
 6,947
Short-term debt securities, other than repurchase agreements .....
 –
Long-term debt securities, including convertible debt ............
 156,622
Preferred, conv. preferred and adjustable-rate preferred stock ...
 11,792
Common stock .....................................................
 –
Options on equities ..............................................
 –
Options on all futures ...........................................
 –
Other investments ................................................
 –
Receivables from portfolio instruments sold ......................
 1,787
Receivables from affiliated persons ..............................
 –
Other receivables ................................................
 3,679
All other assets .................................................
 13
Total assets .....................................................
 180,841

Liabilities  ($000s)
Payables for portfolio instruments purchased .....................
 3,715
Amounts owed to affiliated persons ...............................
 –
Senior long-term debt ............................................
 –
Other liabilities:
  Reverse repurchase agreements ..................................
 –
  Short sales ....................................................
 –
  Written options ................................................
 –
  All other liabilities ..........................................
 905

Equity  ($000s)
Senior equity ....................................................
 –
Net assets of common shareholders ................................
 176,221

Number of shares outstanding (000s):   13,323

Net Asset Value (NAV) per share (to nearest cent):  $13.23

Total number of shareholder accounts:  6,607

Total value of assets in segregated accounts ($000s):  0
 
75.
Monthly average net assets during the period ($000s):  123,772
 
 Signature 
 
↑Top of Form N-SAR 
     
                                                                               
/s/      Thomas F. McDonough      
Name:   Thomas F. McDonough
Title:  Secretary