An unexpected tax bill has caused one small fund to take the unusual step of asking shareholders to vote twice on the same proposal in a four-month period.

The directors of the $13.6 million Flag Investors International Fund have asked shareholders to vote a second time to reorganize the fund because of an unexpected capital gain which could run as high as roughly 20 percent of the fund's net asset value, the fund said in a preliminary proxy statement filed with the SEC Jan. 21. The fund faces the sizeable tax bill because its net asset value increased by 21.73 percent in 1999, according to the proxy statement.

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