FOR IMMEDIATE RELEASE                                     97-102

                                
                                
   CHAIRMAN ARTHUR LEVITT SENDS LETTERS TO INVESTMENT ADVISERS
                 REGARDING YEAR 2000 COMPLIANCE




     Washington, D.C., November 13, 1997 -- Chairman Levitt has
recently sent a letter to all investment advisers registered with
the Commission regarding their computer systems' readiness for
the Year 2000.  "Preparing for the Year 2000 should be of the
highest priority for advisory firms," Chairman Levitt wrote in
the letter.  In addition, the Chairman stressed the importance
of all advisory firms implementing plans and devoting adequate
resources to modify their computer systems to make them ready for
the Year 2000.  The Chairman further encouraged investment
advisers to mutual fund groups, whose computer systems are
typically linked to custodians, transfer agents, broker-dealers
and other service providers, to prepare for the Year 2000
sufficiently early to allow for the testing of integrated
systems.  The Chairman also encouraged advisers to begin
discussing Year 2000 issues with their clients.  This
letter is part of the Commission's ongoing communication with the
securities industry to make a successful technological transition
to the next millennium.


                                
                                
                                

Dear Sir/Madam:

     I am writing to express my significant interest in a most
compelling issue for the investment advisory industry -- the
industry's readiness for the Year 2000.  As you well know, unless
modifications are made, at midnight on December 31, 1999, the
vast majority of computer systems may not be able to distinguish
the Year 2000 from the Year 1900.  Obviously, this could have
extremely serious consequences for our financial system.

     Preparing for the Year 2000 should be of the highest
priority to advisory firms.  While many investment advisers have
already begun to address this issue, I want to stress how
important it is that all investment advisers currently be
implementing plans and devoting adequate resources to modify
their computers to make them ready for the Year 2000.  I am
particularly concerned that advisers to mutual fund groups, whose
computer systems are typically linked to those of custodians,
transfer agents, broker-dealers and other service providers,
prepare for the Year 2000 sufficiently early that integrated
systems may be tested before the Year 2000.

     Finally, I urge all advisers to begin discussing Year 2000
issues and their preparedness to deal with these issues with all
of their clients.  Advisers that are not confident that they will
perform smoothly during the transition have an obligation under
the securities laws to inform their clients.

     Please convey this letter to the chief executive officer of
your firm.  Thank you for your attention to this critical matter.
If you have any questions, please contact Gene Gohlke, Associate
Director, Office of Compliance Inspections and Examinations at
(202) 942-0540.

                                   Sincerely,



                                           Arthur Levitt