[14009]
SECOND NOTICE – ACTION REQUESTED
October 3, 2001
TO: PRIMARY CONTACTS - MEMBER COMPLEX No. 73-01
ACCOUNTING/TREASURERS MEMBERS No. 27-01
OPERATIONS MEMBERS No. 21-01
SMALL FUNDS MEMBERS No. 28-01
TRANSFER AGENT ADVISORY COMMITTEE No. 72-01
PAST PARTICIPANTS -- ICI/PWC TRANSFER AGENT FEE SURVEY
RE: 2001 ICI/PWC MUTUAL FUND TRANSFER AGENT FEE SURVEY
As we previously informed you, the Investment Company Institute is inviting your
organization to participate in the 2001 Mutual Fund Transfer Agents Trends and Billing
Practices Survey. This survey 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 2001 final report will present 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 2001 activity, will also provide comparative analyses of current data to data collected in
1997 and 1999. As with previous surveys, the primary responsibility for conducting the 2001
survey will rest with the Institute staff, with PricewaterhouseCoopers retained on a consulting
basis to assist with the study and to maintain continuity with previous methodology.
To date, 39 member complexes referenced on the attached list have agreed to participate
in the 2001 Transfer Agent Fee Survey project. If your firm is listed, please disregard this
memorandum and thank you for your participation and support in this important project.
However, we have not yet heard back from many of you and strongly believe that a number of
additional members will want to participate in the 2001 survey. If your firm would like to
participate in the survey, please review this memorandum, complete the attached Participation
Form and return it to the ICI by October 26, 2001.
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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 7/31/01
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 16 megabytes of 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
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cost of conducting this project by minimizing the necessity for manual data entry and
verification procedures. Email access is also recommended for delivering completed survey
data files to PwC.
Timetable
We plan to notify participants of the funds selected for the 2001 sample in November.
We expect to supply participants with the questionnaire for completion during the first week of
January 2002. The deadline for completion and return of all questionnaires will be March 1,
2002. We expect to deliver the final report by September 30, 2002.
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 18, 2002.
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, in June 2002.
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 2001 Transfer Agents 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 26th 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. Thank you in advance for your prompt response. We
look forward to working with you on this important project.
Donald J. Boteler
Vice President - Operations
Note: Not all recipients receive the attachments. To obtain copies of the attachments, please visit our members
website (http://members.ici.org) and search for memo 14009, or call the ICI Library at (202) 326-8304 and request the
attachments for memo 14009.
Attachment no. 1 (in .pdf format)