Report of Independent Accountants
To the Shareholders and Board of Trustees of
Bailard, Biehl & Kaiser Fund Group
In planning and performing our audit of
the financial statements of Bailard, Biehl
& Kaiser Diversa Fund (the "Company")
for the year ended September 30, 2000, 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 Company 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 accounting principles generally
accepted in the United States of America.
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 September 30,
2000.
This report is intended solely for the information
and use of the Board of Trustees, 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
November 22, 2000
