CONTACT: Pat Vaughan Tremmel at (847) 491-4892 or at p-tremmel@northwestern.edu

FOR RELEASE: Immediate

NEWLY ISSUED SEC RULES TO BE DISCUSSED AT INDEPENDENT INVESTMENT COMPANY DIRECTORS CONFERENCE IN WASHINGTON, D.C. JANUARY 11 AND 12

CHICAGO --- A high-level policy conference designed for independent investment company directors will open with a presentation and discussions at 3:15 p.m. Jan. 11 by Paul Roye, director of the U. S. Securities and Exchange Commission (SEC), and other SEC staff members about rules announced Wednesday, Jan. 3, to enhance the effectiveness of mutual fund directors.

"Crucial Issues for Investment Company Directors - 2001" will take place Thursday and Friday, Jan 11 and 12, at the Wyndam City Center in Washington, D.C. It is the second annual policy conference to be presented by the Mutual Fund Directors Education Council, with support and cooperation of Northwestern University School of Law and extensive participation by the SEC.

"The initiatives just announced by the Commission reaffirm the primary responsibility of mutual fund independent directors -- protecting investors, " said David Ruder, William W. Gurley Memorial Professor of Law at Northwestern, chairman, Mutual Fund Directors Education Council, and former chairman, SEC."The reforms will go a long way in helping directors to maintain their independence and to protect the interests of mutual find directors."

The conference also will feature a keynote speech by John C. Bogel, the founder and former chairman of the Vanguard Group, as well as presentations by SEC staff members, experienced fund directors, counsel and accountants. Following discussions about the new reforms at 3:15 p.m. Jan. 11, Bogel will deliver the keynote address at 6 p.m.

"This year…s conference is especially timely and will continue our goal toward enhancing effectiveness and improving fund governance," said Ruder. "Independent directors will have an opportunity to hear directly from senior SEC officials about the reforms that grew out of a SEC roundtable held in February 1999 to reevaluate the role of mutual fund independent directors."

The Jan. 12 session will begin at 8:30 a.m. with a mock board meeting, "Dealing with Dismissal Fund Performance," which will consider "real life" mutual fund board situations, including poor comparative performance, inaccurate valuations and "Heartland" problems.The 10:30 a.m. panel, "Challenging Issues in Board Oversight of Fund Operations," will discuss monitoring securities valuation, oversights of best execution and trading practices, current problem areas and proxy voting. The final panel, "Maximizing Board Effectiveness," begins at 11:45 a.m. and will discuss committee structures, use of experts, organization of materials, recruitment of new directors, board self-evaluation, role of independent counsel and limits on directors… responsibilities. The conference will end at 1 p.m. Jan. 12.

Tuition for the conference is $600. For more information, call (312) 503-8932 or R. A. Pete Wentz, planning director, at (312) 503-1828.

Administered by Northwestern University School of Law, the Mutual Fund Directors Education Council was formed last year with support of the SEC to offer expertise in the complex responsibilities of fund management. The Council seeks to improve fund governance by creating programs that promote a culture of independence and accountability in fund boardrooms.

Drawing on the knowledge and experience of independent fund directors, corporate governance experts, investor advocates, industry representatives, attorneys and leading academics, the council is developing educational activities designed to encourage independent fund directors to develop the tools they need to be more effective advocates of fund shareholder interests.

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