[10482]
November 13, 1998
TO: BOARD OF GOVERNORS No. 77-98
RE: NEW ICI STUDY ON MUTUAL FUND FEES
______________________________________________________________________________
The Institute will release an important research paper Monday morning at our
Economic Development Conference in New York. Because of the unusual importance of this
research, you will receive a copy of it by Federal Express on Monday morning.
The study finds that the total cost of investing in equity mutual funds has decreased by
more than one-third since 1980. The study also identifies significant evidence of economies of
scale that are shared with investors. Finally, the study notes that since 1980, investors have
tended to purchase lower-cost funds.
You may receive media inquiries on Monday about the Institute’s research. To assist
in preparing your response, we will include in Monday’s package a copy of the Institute’s
news release and talking points.
In the event that you do not receive a copy of the paper by late Monday morning, please
contact Brady Edholm at 202/326-5911.
Matthew P. Fink
President