Of late, there has been a lot of attention on the ongoing probe of the U.S mutual fund industry. The news media recently reported that the Securities Exchange Commission (SEC) is looking into allegations of improper trading practices by fund companies. They are specifically investigating the "market timing" and "late trading" of mutual fund shares.

Recently Alliance Capital Management L.P. ("Alliance Capital"), investment adviser to the Alliance family of mutual funds, announced that it had been contacted by government regulators in connection with this mutual fund investigation, and was providing full co-operation. The firm added that based on the preliminary results of its own internal investigations, it identified conflicts of interest in connection with certain market timing transactions. As a result, Alliance Capital had suspended some of its employees.

Currently, Fundsupermart distributes 4 Alliance Capital Management (ACM) funds. They are ACMIF Asian Technology Portfolio, ACMIF Global Growth Trends Portfolio, ACMIF International Healthcare A, ACMIS Short Maturity Dollar A. Though investigations are still goin on, we do not believe there is cause for alarm for unit holders of these funds. We will continue to monitor the situation and keep investors informed of further developments.