FORMATION OF DRAFTING SUBCOMMITTEE FOR INSTITUTE ISSUES PAPER ON CLOSED-END FUNDS

[11938] June 8, 2000 TO: CLOSED-END INVESTMENT COMPANY COMMITTEE No. 18-00 RE: FORMATION OF DRAFTING SUBCOMMITTEE FOR INSTITUTE ISSUES PAPER ON CLOSED-END FUNDS _____________________________________________________________________________ At the last meeting of the Closed-End Investment Company Committee, we discussed different projects relating to closed-end funds that the Institute might consider undertaking. The Institute has decided to prepare a paper on issues unique to closed-end funds, including the market discount, shareholder meetings, and rights offerings, as well as the role and responsibilities of management and directors. This paper will be similar to other papers issued by the Institute to provide practical guidance to industry members on different topics, such as the paper entitled “Brokerage Allocation Practices” (March 1998) examining issues relating to “soft dollar” practices. We are forming a subcommittee of the Closed-End Investment Company Committee to assist us in drafting the paper. In addition, we have retained outside counsel to assist us. If would like to participate in the drafting subcommittee, please call Brenda Turner at (202) 326-5833 or fax her at (202) 326-5839 by June 23. Please contact me at (202) 371-5408 if you have any questions regarding the project. Ari Burstein Assistant Counsel