INFORMATION ABOUT SECURITY SALES               SM3.11               PAGE 1 OF 3

When selling securities, the way in which shares (or other units) to be sold
are allocated to shares you purchased on different dates may be important not
only to you, but also to the taxing authorities (both Federal and State).

The portfolio manager can use several different methods to perform this allo-
cation.  Your tax advisor should be consulted as to which method is to be used.
In general, you should probably pick one method and stick to it for all sales
of securities.

Sales of any securities in this portfolio will not affect any other portfolios.
If you want to sell all of your IBM stock in all portfolios, you will have to
sell in each portfolio separately.

The program will ask you for the number of shares to sell (unless you press E
for "entire" holding), the date of sale and the proceeds of sale.  Use the net
proceeds of sale, after deduction of commission and other expenses.  This in-
formation comes from your brokerage firm or mutual fund statement.  You can put
your calculator away; the program will do all the necessary arithmetic.



INFORMATION ABOUT SECURITY SALES                                    PAGE 2 OF 3

To select the method of allocating shares sold to existing purchases, press one
of the keys S, E, L or F.  Or, press the Esc key to cancel the (S)ell function.
Note: if there is only one open purchase, the (S) option is chosen for you.

S = Selected purchase.  This function allows you to sell all or part of just
    the selected purchase.  You can select any individual purchase which has
    not already been sold.  If you specify a number of shares (or other units)
    less than the number of shares in the selected purchase, the program will
    automatically divide the existing purchase into two parts and sell just the
    appropriate part.

E = Entire holding.  This function allows you to sell all purchases of the
    indicated security in this portfolio (other portfolios are not affected).
    The program will automatically calculate the total number of shares on
    hand, and allocate the sale proceeds among the different purchases accor-
    ding to the number of shares in each.  It will also handle rounding errors
    to insure the individual proceeds of sale all add up to the specified total
    amount.  Of course, purchases that had already been sold are left intact.



INFORMATION ABOUT SECURITY SALES                                    PAGE 3 OF 3

F = FIFO (First-In, First-Out).  The shares you are selling are allocated to
    existing purchases starting with the first (earliest) one.  If all of that
    purchase is to be sold, remaining shares will be allocated to the next
    (later) one, and so on.

L = LIFO (Last-In, First-Out).  The shares you are selling are allocated to
    existing purchases starting with the last (most recent) one. If all of that
    purchase is to be sold, remaining shares will be allocated to the previous
    (earlier) one, and so on.

For example, assume you own 200 shares purchased on each of these three dates:
Jan. 2, 1987; Feb. 6, 1987; and March 6, 1987; for a total of 600 shares.  Now,
assume you wish to sell 350 shares.

On a FIFO basis, you will be selling all of the shares purchased on Jan. 2 and
150 of the shares purchased on Feb. 6.  On a LIFO basis, you will be selling
all of the shares purchased on March 6 and 150 of the shares purchased on Feb.
6.  In either case, the program will automatically divide the Feb. 6 purchase
into two separate parts, one with 150 shares to be sold and the other with the
remaining 50 shares.
