UNITED STATES SECURITIES AND EXCHANGE COMMISSION

          SECURITIES ACT OF 1933
          Release No.   7614 / December 9, 1998

          SECURITIES EXCHANGE ACT OF 1934
          Release No.  40764 / December 9, 1998

          INVESTMENT ADVISERS ACT OF 1940
          Release No.   1776 / December 9, 1998

          ADMINISTRATIVE PROCEEDING
          File No.  3-9784

               The  U.S. Securities and Exchange Commission announced today
          that it issued  an  order  instituting  public administrative and
          cease-and-desist  proceedings  against  Spectrum  Administration,
          Inc. ("Spectrum Administration"), Ronald  Kindschi  ("Kindschi"),
          and Michael A. Flanagan, Sr. ("Flanagan").

               According  to  that  order,  Spectrum  Administration  is  a
          registered  investment  adviser  headquartered  in   Seal  Beach,
          California.    Kindschi  is  an  associated  person  of  Spectrum
          Administration and  operates,  as  an  independent  contractor, a
          branch  office  of  a  registered  broker-dealer. Flanagan  is  a
          registered representative employed by  Kindschi.   In  its order,
          the  Staff  alleges  that between June 1, 1993, and December  31,
          1995, Flanagan, Kindschi  and  Spectrum Administration repeatedly
          recommended to customers and clients that they invest $100,000 or
          more  in class B shares of mutual  funds  without  disclosing  to
          those customers  and clients that the same investments in class A
          shares  of mutual funds  would  have  entitled  the  investor  to
          discounts   on  sales  charges  known  as  breakpoints  and  that
          comparable discounts  on  sales  charges  were  not available for
          large investments in class B shares.  It is also alleged that the
          respondents  failed  to inform their customers and  clients  that
          class A shares generally  produce  materially higher returns than
          class B shares of the same mutual fund  for  long-term  investors
          making   purchases   large   enough  to  take  advantage  of  the
          breakpoints available for purchases of class A shares.  According
          to  the  order,  the respondents  also  failed  to  inform  their
          customers and clients  that  the investments in class B shares as
          opposed to class A shares of the  same mutual funds significantly
          increased the compensation paid to  the registered broker-dealer,
          Flanagan, Kindschi, and Spectrum Administration.

               A  hearing  will  be  scheduled  to  determine  whether  the
          allegations    against    Flanagan,    Kindschi   and    Spectrum
          Administration are true, and if so, what  sanctions,  if any, are
          appropriate in the public interest against them.