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SIGNATURE EDWARD J. VEILLEUX
TITLE VICE PRESIDENT
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<TABLE> <S> <C>
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<NAME> FLAG INVESTORS EQUITY PARTNERS CLASS INSTITUTIONAL
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<DISTRIBUTIONS-OF-GAINS> 122,074
<DISTRIBUTIONS-OTHER> 0
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</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
Flag Investors Equity Partners Fund, Inc.
In planning and performing our audit of the
financial statements and financial highlights of the Flag
Investors Equity Partners Fund, Inc. for the year ended May
31, 1997, we considered its internal control structure,
including procedures for safeguarding securities, in order
to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and
financial highlights and to comply with the requirements of
Form N-SAR, not to provide assurance on the internal control
structure.
The management of Flag Investors Equity Partners
Fund, Inc. is responsible for establishing and maintaining
an internal control structure. In fulfilling this
responsibility, estimates and judgements by management are
required to assess the expected benefits and related costs
of internal control structure policies and procedures. Two
of the objectives of an internal control structure are to
provide management with reasonable, but not absolute,
assurance that assets are safeguarded against loss from
unauthorized use or disposition and that transactions are
executed in accordance with managements authorization and
recorded properly to permit preparation of financial
statements in conformity with generally accepted accounting
principles.
Because of inherent limitations in any internal
control structure, errors or irregularities may occur and
not be detected. Also, projection of any evaluation of the
structure to future periods is subject to the risk that it
may become inadequate because of changes in conditions or
that the effectiveness of the design and operation may
deteriorate.
Our consideration of the internal control
structure would not necessarily disclose all matters in the
internal control structure 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 the specific
internal control structure elements does not reduce to a
relatively low level the risk that errors or irregularities
in amounts that would be material in relation to the
financial statements and financial highlights 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 the
internal control structure, including procedures for
safeguarding securities, that we consider to be material
weaknesses, as defined above, as of May 31, 1997.
This report is intended solely for the information
and use of management and the Board of Directors of Flag
Investors Equity Partners Fund, Inc. and for the Securities
and Exchange Commission.
COOPERS & LYBRAND L.L.P.
Philadelphia, Pennsylvania
June 20, 1997
