Report of Independent Accountants
To the Board of Directors and Shareholders
of the Flag Investors Portfolios Trust:
In planning and performing our audit of the financial statements of the Top 50
World Portfolio, Top 50 Europe Portfolio, Top 50 Asia Portfolio, Top 50 US
Portfolio, Provesta Portfolio, Japanese Equity Portfolio, US Money Market
Portfolio (US Dollar) (the "Portfolios") for the year ended 08/31/00,
we considered its internal control, including control activities for
safeguarding securities, in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and to comply
with the requirements of Form N-SAR, not to provide assurance on internal
control.
The management of the Portfolios is responsible for establishing and
maintaining internal control. In fulfilling this responsibility, estimates
and judgments by management are required to assess the expected benefits
and related costs of controls. Generally, controls that are relevant to an
audit pertain to the entity's objective of preparing financial statements for
external purposes that are fairly presented in conformity with generally
accepted accounting principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or fraud may occur
and not be detected. Also, projection of any evaluation of internal control to
future periods is subject to the risk that controls may become inadequate
because of changes in conditions or that the effectiveness of their design and
operation may deteriorate.
Our consideration of internal control would not necessarily disclose all
matters in internal control that might be material weaknesses under
standards established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which the design or
operation of one or more of the internal control components does not reduce
to a relatively low level the risk that misstatements caused by error or fraud
in amounts that would be material in relation to the financial statements
being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions.
However, we noted no matters involving internal control and its operation,
including controls for safeguarding securities, that we consider to be material
weaknesses as defined above as of 08/31/00.
This report is intended solely for the information and use of the Board of
Directors, management and the Securities and Exchange Commission and is
not intended to be and should not be used by anyone other than these
specified parties.
[PricewaterhouseCoopers LLP (signed)]
[Date]
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