Institute Chairman Issues Statement on New York Attorney General's Announcement, September 2003

Washington, DC, September 4, 2003 – The following statement is from Investment Company Institute Chairman Paul G. Haaga, Jr.:

“If, as alleged yesterday, certain fund managers have violated legal standards or their own policies in return for payments from hedge funds, we urge strong and prompt remedial action by government officials. Fund shareholders have every right to expect that investment professionals will adhere to the highest standards of legal and ethical conduct. If it is true that some have failed to meet these standards and abused the public’s trust, there are serious wrongs that must be righted.

“Working with government officials and others, we pledge to redouble our efforts in support of the bedrock principle that the interests of mutual fund investors always come first.

“For more than a half century, mutual fund companies have worked hard to earn the trust of tens of millions of individual investors. Shareholder confidence is every mutual fund's most precious asset. As we learn more about the practices described yesterday, the ICI and the mutual fund industry will take whatever steps are necessary to restore and reinforce shareholder confidence.”