WASHINGTON - Fund directors should watch and halt "overly aggressive" performance advertisements that fund advisory firms sometimes use to promote funds, according to Arthur Levitt, chairman of the SEC. Ads that suggest funds can produce unrealistic results, can contribute to unreasonable expectations among fund investors, a fact that ultimately spells trouble for investors, Levitt said.

"Fund directors today must... pay more attention to the types of advertisements and commercials that are being used to market their funds," Levitt said. "In far too many instances, these advertisements are offering quick returns or instant wealth but in reality, have performances that are not sustainable."

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