US MUTUAL FUND PROBE
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.