FOR IMMEDIATE RELEASE 2000-92 SEC Chairman Arthur Levitt Praises GAO On Mutual Fund Fee Study Washington, DC, July 5, 2000 -- Securities and Exchange Commission Chairman Arthur Levitt today praised the General Accounting Office's report on mutual fund fees. The report, which was delivered to the House Chairman of the Subcommittee on Finance and Hazardous Materials and the Ranking Member of the Committee on Commerce, was issued today. Chairman Levitt said, "The report provides a comprehensive analysis of mutual fund fees and the market forces that impact those fees. I commend the GAO for this important effort. Just as our investor education and disclosure efforts are designed to provide mutual fund investors the tools they need to make wise investment choices, the GAO's report also will contribute to the public dialogue on this important issue." In recent years, the Commission has focused on mutual fund disclosure in an effort to make fund fees and expenses more transparent to investors. Most recently, the Commission proposed a rule that would require mutual funds to report standardized investment returns on an after-tax basis in prospectuses and shareholder reports so that investors can compare funds and understand the impact of taxes on performance. The Commission has mounted an extensive investor education campaign designed to improve the financial literacy of investors. The Commission is a major sponsor of the Facts on Saving and Investing Campaign, a joint effort among government agencies, financial industry associations, and consumer organizations to help Americans get the facts they need to invest wisely. In addition, the Commission has posted on its website (www.sec.gov) information and tools designed to educate fund investors. For example, the website contains a brochure about investing in mutual funds (www.sec.gov/consumer/mperf.htm), as well as a Mutual Fund Cost Calculator, which is a tool investors can use to calculate and compare the costs of mutual funds with various fee structures (www.sec.gov/mfcc/mfcc-int.htm). Moreover, the Commission is now considering a rule proposal designed to strengthen the role of mutual fund directors and to assist them in performing their duties as watchdogs for the interests of shareholders, including the important duty of overseeing mutual fund fee levels. # # #