Fund Industry Leaders Urge “Sustainable Course” for U.S. Finances

For the good of investors and all Americans, leaders across the fund industry have been outspoken about the necessity of the U.S. government taking a sound and sustainable approach to its finances.

Today, these leaders weighed in on the issue once more in a joint letter sent to President Barack Obama and to every member of Congress. The full text of the letter follows.

Dear Mr. President and Members of Congress:

As members of the Board of Governors of the Investment Company Institute, we urge you to move forward as quickly as possible to resolve the group of tax and spending issues known collectively as the “fiscal cliff” before the end of the 112th Congress. On behalf of 90 million Americans who invest in our funds to provide for their retirement and meet other long-term financial goals, we are deeply concerned that inaction will severely impact financial markets, destroy jobs, and put the U.S. economy back into recession.

Investors, markets, the economy—indeed, all Americans—are best served if the Administration and Congress incorporate in their deliberations a clear path toward reforms of both the tax code and major spending programs. These actions are vital to getting our nation’s fiscal house in order and setting our economy on a course for stronger growth. We recognize that these challenges will necessitate bold, bipartisan decisions about the future of both federal outlays and revenues.

The way that our nation’s leaders approach these issues also matters greatly. As we saw in 2011, prolonged uncertainty creates market volatility that harms the economy and discourages long-term investment. In light of upcoming negotiations on the debt ceiling, government funding, and tax reform, timely action to avoid the fiscal cliff will bolster confidence and set us on a path to address the challenges that lie ahead.

We respectfully urge you to act now and begin to create the framework necessary to put the nation’s finances on a sustainable course.

Sincerely,

Ashok N. Bakhru
Independent Chair
Goldman Sachs Funds Jonathan R. Baum
Chairman and CEO
The Dreyfus Corporation Edward C. Bernard
Vice Chairman
T. Rowe Price Group, Inc. Dorothy A. Berry
Independent Trustee
PNC Funds
Independent Chair
Professionally Managed Portfolios John F. Cogan Jr.
Chairman
Pioneer Investment Management USA Inc. Robert Conti
President and CEO
Neuberger Berman Management LLC Patrick P. Coyne
President
Delaware Investments Bruce L. Crockett
Independent Chair
Invesco Funds Thomas R. Donahue
Chief Financial Officer and TreasurerFederated Investors, Inc. Kenneth C. Eich
Chief Operating Officer
Davis Selected Advisers, L.P. Nora M. Everett
President and CEO
Principal Funds Thomas E. Faust Jr.
Chairman and CEO
Eaton Vance Corporation Mark R. Fetting
Senior Advisor
Legg Mason, Inc. Martin L. Flanagan
President and CEO
Invesco Ltd. George C. W.Gatch
CEO, JPMorgan Funds
JPMorgan Asset Management C. GaryGerst
Independent Chair
Henderson Global Funds William F. Glavin Jr.
Chairman, President, and CEO
OppenheimerFunds, Inc. John T. Hailer
President and CEO, U.S. and Asia
Natixis Global Asset Management, L.P. Peter A. Harbeck
President and CEO
SunAmerica Asset Management Corp. Diana P. Herrmann
President and CEO
Aquila Investment Management LLC Mellody Hobson
President
Ariel Investments, LLC Gregory E. Johnson
Chairman
Investment Company Institute
President and CEO
Franklin Resources, Inc. Robert M. Keith
Executive Managing Director
AllianceBernstein Susan B. Kerley
Chair
Independent Directors Council
Independent Chair
MainStay Funds
Independent Director
Legg Mason Partners Funds John Y. Kim
Chairman and CEO
New York Life Investment Management LLC Arthur J. Lev
Managing Director and Head, Long Only Business
Morgan Stanley Investment Management Inc. Susan C. Livingston
Partner
Brown Brothers Harriman & Co. Susan B. McGee
President and General Counsel
U.S. Global Investors, Inc. F. William McNabb III
Chairman and CEO
Vanguard James A. McNamara
President and CEO
Goldman Sachs Mutual Funds Thomas M. Mistele
Chief Operating Officer
Dodge & Cox Mark D. Nerud
President and CEO
Jackson National Asset Management LLC Donald H. Pratt
Independent Chair
American Century Funds, Kansas City Board Karla M. Rabusch
President
Wells Fargo Funds Management, LLC J. Alan Reid Jr.
Chief Executive Officer
Forward Management LLC Robert L. Reynolds
President and CEO
Putnam Investments James E. Ross
Senior Managing Director and Global Head of ETFs
State Street Global Advisors James F. Rothenberg
Chairman
Capital Research & Management Company Thomas S. Schreier Jr.
Vice Chairman, Wealth Management
Nuveen Investments Michael D. Strohm
Chief Executive Officer
Waddell & Reed, Inc. Jonathan S. Thomas
President and CEO
American Century Investments Garrett Thornburg
Chairman
Thornburg Investment Management, Inc. William F. Truscott
CEO, Global Asset Management
Columbia Management Mary Ann Tynan
Independent Director
Oppenheimer Funds Robert W. Uek
Independent Trustee
MFS Funds Lloyd A. Wennlund
Executive Vice President and Managing Director
Northern Trust Global Investments Paul Schott Stevens
President and Chief Executive Officer
Investment Company Institute