For Immediate Release                                  99-71

   Chairman Levitt Commends ICI on Fund Governance Report
                              
     Washington, DC, June 24, 1999 -- Securities and
Exchange Commission Chairman Arthur Levitt today praised the
Investment Company Institute's Advisory Group on Best
Practices for Fund Directors for its report on improving
fund governance.  "The Best Practices Report reflects the
broad consensus that the mutual fund governance structure
can and should be improved," said Chairman Levitt.

     Chairman Levitt commended the ICI for moving quickly in
response to his call for action, saying, "The ICI Report on
Best Practices for Fund Directors represents an important
step forward in enhancing the effectiveness of fund
directors."  The ICI formed the Advisory Group following the
SEC Roundtable on the Role of Independent Investment Company
Directors, held in February of this year.  The Best
Practices Report responds to many of the fund governance
issues raised by Chairman Levitt.  "Working together, I
believe that the SEC and the fund industry can strengthen
fund governance for the benefit of today's seventy-seven
million mutual fund investors," said Chairman Levitt.

     The SEC will consider rule proposals in the near future
to address fund governance issues, including those not
addressed in the ICI Best Practices Report.

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