November 8, 1989
TO: BOARD OF GOVERNORS NO. 69-89
MEMBERS - ONE PER COMPLEX NO. 35-89
DIRECT MARKETING COMMITTEE NO. 34-89
MARKETING COMMITTEE NO. 27-89
PUBLIC INFORMATION COMMITTEE NO. 31-89
RESEARCH COMMITTEE NO. 31-89
SALES FORCE MARKETING COMMITTEE NO. 34-89
SHAREHOLDER COMMUNICATIONS COMMITTEE NO. 28-89
RE: REDEMPTION/EXCHANGE STUDY
__________________________________________________________
The enclosed report summarizes the results of the
Institute's examination of redemption and redemption exchange
data from 1982-1989. The data have been summarized by three
breakdowns; load vs. no-load, sales force vs. direct-market, and
by investment objective. This report is meant to give background
against which redemption activity in the mutual fund industry has
taken place.
This report is part of a three part effort to study
redemption activity which has been approved by the Research
Committee. The second stage will be a survey of shareholders who
have recently redeemed. This survey is about to be undertaken
and will determine their motivation, their method of decision-
making, and other relevant information such as where their assets
were invested. In the third stage of the project, it is hoped
that a system can be developed for future monitoring of
motivation for redeeming or exchanging.
For further information or questions concerning this
report, please contact Anne Schafer, Director, Statistical
Research at (202) 955-3565.
Jacob S. Dreyer
Vice President &
Chief Economist