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Restructuring A Portfolio of Funds

BEFORE

The ''Cranes,'' a couple in their early 40s, held $544,051 in taxable and 
tax-deferred retirement accounts--more than 80% of it in 15 equity mutual 
funds. Working with Lou Stanasolovich of Legend Financial Advisors, they 
decided to scale back their equity holdings about 60%. Stanasolovich analyzed 
the funds for investment style and performance and developed a new investment 
plan

DOMESTIC EQUITIES***

                            ALLOCATION(%)   INVESTMENT CATEGORY
BERGER 100                      2.9         MID-CAP GROWTH
NEUBERGER & BERMAN MANHATTAN    1.0*        MID-CAP BLEND
T. ROWE PRICE CAP. APPREC.      4.4*        MID-CAP VALUE
JANUS TWENTY                    2.9         LARGE-CAP GROWTH
AMER. CENT.-20thC ULTRA INV.    8.2         LARGE-CAP GROWTH
GROWTH FUND OF AMERICA          10.0*       LARGE-CAP GROWTH
CGM MUTUAL                      6.0         LARGE-CAP VALUE
AMERICAN MUTUAL                 11.3*       LARGE-CAP VALUE
WASHINGTON MUTUAL INVESTORS     8.1*        LARGE-CAP VALUE
T. ROWE PRICE EQUITY-INCOME     5.5*        LARGE-CAP VALUE
INVESCO INDUSTRIAL INCOME       3.6         DOMESTIC HYBRID

INTERNATIONAL EQUITIES

SMALLCAP WORLD                  8.8*        SMALL-CAP GROWTH**
MONTGOMERY EMERGING MARKETS     0.7         DIV. EMRG. MKTS.
OAKMARK INTERNATIONAL           0.8         FOREIGN
EUROPACIFIC GROWTH              6.2*        FOREIGN

*Funds in tax-deferred retirement accounts
**Advisor considers this an international fund, while Morningstar puts it with 
domestic funds.
***Includes 0.4% in stocks


AFTER

Stanasolovich slashed domestic equities to 23.5%, mainly by cutting large-cap 
stocks. He added small growth and value funds to the mix and put in new mid-cap 
funds. He unloaded several international funds-but boosted the allocation in 
total by adding to several existing position and bringing in others. About 8% 
went toward low-risk short-term bond funds, 14% into domestic bond funds. In 
international bond funds, he selected both investment grade and low-quality. 
For further diversification, he introduced real estate funds and a 
risk-arbitrage fund.

SHORT-TERM BONDS

                            ALLOCATION(%)   INVESTMENT CATEGORY
PILGRIM AMERICA PRIME RATE**    4.4%        ULTRA SHORT
PIMCO LOW DURATION              3.7         SHORT TERM

DOMESTIC EQUITIES***

BERGER SMALL CO. GROWTH         5.5         SMALL-CAP GROWTH
ROYCE MICRO-CAP                 3.7         SMALL-CAP VALUE
VAN WAGONER MID-CAP             5.5*        MID-CAP GROWTH
FRANKLIN MUTUAL BEACON Z        2.8*        MID-CAP VALUE
JANUS TWENTY                    2.9         LARGE-CAP GROWTH
NEUBERGER & BERMAN GUARDIAN     2.8         LARGE-CAP VALUE

INTERNATIONAL EQUITIES

OAKMARK INTERNATIONAL           3.8         FOREIGN
ACORN INTERNATIONAL             2.8         FOREIGN
WARBURG PINCUS INT. EQ. COMM.   2.4         FOREIGN
IVY INTERNATIONAL A             2.4*        FOREIGN
SOGEN OVERSEAS                  1.8*        FOREIGN
MORGAN STANLEY EMRG. MKTS. A    5.0         DIV. EMRG. MKTS.
MONTGOMERY EMERGING MARKETS     3.7*        DIV. EMRG. MKTS.

DOMESTIC BONDS

NORTHEAST INVESTORS             5.3*        HIGH-YIELD
PIMCO TOTAL RETURN              4.9*        INTERMEDIATE-TERM
LOOMIS SAYLES BOND              3.7*        LONG-TERM

INTERNATIONAL BONDS

PIMCO FOREIGN                   4.4*        INTERNATIONAL BOND
SCUDDER EMRG. MKTS. INCOME      2.2*        INTERNATIONAL BOND

REAL ESTATE

COHEN & STEERS REALTY SHARES    2.9*        REAL ESTATE
HEITMAN REAL ESTATE-INSTL.      2.9*        REAL ESTATE
CGM REALTY SHARES               1.8*        REAL ESTATE

RISK ARBITRAGE

MERGER FUND                     3.8*        MID-CAP BLEND

*Funds in tax-deferred retirement accounts
**Closed-end fund
***Includes 0.4% in stocks
Percentages may not equal 100 because of rounding.

DATA: LEGEND FINANCIAL ADVISORS INC., MORNINGSTAR INC.


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Updated June 15, 1997 by bwwebmaster
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