[11300]
October 8, 1999
TO: PRIMARY CONTACTS - MEMBER COMPLEX No. 92-99
ACCOUNTING/TREASURERS MEMBERS No. 30-99
OPERATIONS MEMBERS No. 22-99
SMALL FUNDS MEMBERS No. 9-99
TRANSFER AGENT ADVISORY COMMITTEE No. 61-99
RE: 1999 ICI/PWC MUTUAL FUND TRANSFER AGENT FEE SURVEY
______________________________________________________________________________
The Investment Company Institute is inviting your organization to participate in the 1999 Mutual Fund
Transfer Agent Trends and Billing Practices Survey. This study, which the Institute will conduct in conjunction
with the accounting firm of PricewaterhouseCoopers, is widely regarded by ICI members as providing essential
information for reviewing transfer agency arrangements. The survey also provides mutual fund directors with an
independent means of comparing their funds’ transfer agency fees with other similar funds.
The final report presents a detailed analysis of transfer agent fee data grouped by fund type (money
market, fixed-income, equity), distribution channel, and classification of transfer agent arrangement (external,
hybrid, remote and captive). This year’s study, which will cover 1999 activity, will also provide comparative
analyses of current data to data collected in 1995 and 1997. As with previous surveys, the primary responsibility
for conducting the 1999 survey will rest with the Institute staff, with PWC retained on a consulting basis to assist
with the study and to maintain continuity with previous methodology.
Participant Obligations
Consistent with previous surveys, the final results will only be provided to fund groups that agree to
participate. The obligations of participants are to furnish a completed questionnaire to PWC for funds selected
to be included in the survey sample, and to pay a proportionate share of the cost of the survey through advance
payment of a participant fee in accordance with the following asset based schedule:
Total Assets of Open-end Funds in Complex
As Of 9/30/99
Member Participation Fee
Over $20 billion $8,000
$10 - $20 billion $7,000
$5 - $10 billion $6,000
$2 - $ 5 billion $5,000
$1 - $ 2 billion $3,000
$.25- $ 1 billion $1,500
Under $.25 billion $ 750
Not all participants will be required to provide transfer agent fee data since the survey will be based on a
representative sample of funds. However, equity requires that only fund groups which agree in advance to
provide their data receive the results of the survey for a period of 18 months from the date of publication.
Data Collection
Participants selected for the survey will be provided with a questionnaire that solicits data at the fund
complex level as well as the fund level. As with other ICI surveys, the confidentiality of data submitted by
individual fund groups will be strictly maintained.
To make it as convenient as possible for fund groups to participate in the survey, each participating fund
complex will be furnished with an automated version of the questionnaire on diskette or CD-ROM, along with a
hardcopy version. Completion of the automated questionnaire will require:
Microsoft Windows 95 or newer,
CD-ROM drive or 3.5" floppy drive,
IBM PC compatible with 486 micro processor (Pentium recommended),
VGA graphics card and monitor,
Minimum 8 megabytes or RAM,
Minimum 18 megabytes of free hard disk space,
HP LaserJet III or newer compatible printer.
If the PC is networked, it should be on a Microsoft compatible network. The Institute strongly encourages the
use of the automated version of the questionnaire to help us control the cost of conducting this project by
minimizing the necessity for manual data entry and verification procedures.
Timetable
We expect to begin supplying participants with the questionnaire during the first week of January, 2000.
The deadline for completion and return of all questionnaires will be March 3, 2000. We expect to deliver the
final report by September 30, 2000.
To enable participants to monitor the progress of data receipt by the survey team, the Institute will issue
a biweekly tracking report to all participants showing each participant’s questionnaire submission status
beginning the week of February 21, 2000.
For the past two surveys, the ICI has distributed several high level report exhibits based on preliminary
survey results prior to issuance of the final report. The Institute will deliver this “flash report,” which will
include basic per-account data by fund type, transfer agent arrangement, and distribution channel, by June 1,
2000.
As in prior surveys, participants wishing to receive peer group analyses of survey data may do so
pursuant to a separate agreement with PWC.
Action Requested
Your organization is invited to participate in the 1999 Transfer Agent Trends and Billing Practices
Survey. So we may proceed with this project as soon as possible, it is important that
we hear from you promptly as to your interest in participating. Please return the attached form
to the ICI as soon as possible, but no later than Friday, October 29 to indicate whether your organization
will participate. The ICI will mail a participation fee invoice to the attention of
the person in your firm who authorizes your firm’s participation soon after we receive your completed form.
Please contact Kathy Joaquin at 202/326-5930 or Greg Smith at 202/326-5851 if you have any questions
regarding this project.
3Thank you in advance for your prompt response. We look forward to working with you on this
important project.
Donald J. Boteler
Vice President
Operations & Training
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