FOR IMMEDIATE RELEASE                                       2001-14



    SEC Adopts Rule Prohibiting Misleading Mutual Fund Names
                                
                                
                                
     Washington, DC, January 17, 2001 - The Securities and Exchange
Commission announced today that it has adopted a new rule to
prohibit the use of mutual fund names that may mislead investors
about a fund's investments and risks.  The rule requires that a
mutual fund with a name suggesting that it focuses on a particular
type of investment invest at least 80% of its assets in accordance
with its name.  The text of the rule will be available on the
Commission's website at http://www.sec.gov/rules/finrindx.htm.

     Paul Roye, Director of the Commission's Division of Investment
Management, said, "Today's Commission action will contribute
greatly to `truth in labeling' of mutual funds.  It will benefit
investors significantly, by giving them greater assurance that a
fund's investments will be consistent with its name.  We caution
investors, however, that a mutual fund's name cannot tell the whole
story about the fund and that, before investing, investors should
consult other sources of information, particularly the fund's
prospectus."
     
     The significant aspects of the fund names rule include the
following:
     
* New 80% Investment Standard -- The rule requires a fund with
  a name suggesting that the fund focuses on a particular type of
  investment (e.g., "stocks" or "bonds") to invest at least 80% of
  its assets accordingly.  Under Commission staff positions, these
  funds previously were subject to a 65% investment requirement.
  
* Truth in Labeling -- By tightening the investment
  requirement, the rule is intended to provide an investor greater
  assurance that the fund's investments will be consistent with its
  name and to help reduce confusion when an investor selects a fund
  for specific investment needs and asset allocation goals.

* Prior Shareholder Approval or Notice Required to Change
  Investment Policy -- A fund may not change the 80% investment
  policy suggested by its name unless it obtains the prior approval
  of shareholders or notifies shareholders of the change at least
  60 days in advance.

* Fund Names Suggesting Guarantee or Approval by the U.S.
  Government -- The rule prohibits the use of any name suggesting
  that a fund or its securities are guaranteed or approved by the
  U.S. government.

* Funds That Desire More Investment Flexibility - A fund whose
  name does not connote a particular investment emphasis is not
  required to invest 80% of its assets in a particular type of
  investment.

For further information, contact Susan Nash at (202) 942-0630.



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