[16979]
January 15, 2004
TO: DIRECTORS’ COMMITTEE No. 1-04
RE: THE MUTUAL FUND DIRECTORS FORUM
Most of you are aware that Chairman Donaldson has asked the Mutual Fund Directors
Forum for assistance in developing best practice recommendations in a variety of areas. I have
been speaking with Allan Mostoff, President of the Forum, about ways our committee members
might be of assistance in this project.
Mr. Donaldson has asked specifically for guidance and best practice suggestions in the
five areas listed below. The Forum has assigned a chair and a coordinator to each area, and they
are listed below the area designation. According to Mr. Mostoff, the members of the working
groups include fund independent directors and other members of the Forum’s Advisory Board
(which includes fund counsel and other industry participants), and also the Steering Committee
of Independent Directors.
Mr. Mostoff has indicated that he would welcome assistance from anyone on our
committee who desires to participate and that participation would not require membership in
the Forum. Participation will, however, require your becoming a member of the Forum’s
Advisory Board because the Forum has represented to the SEC that only its members and
members of its Advisory Board would be involved. If you are interested in further information,
including any details of membership on the Advisory Board, please call Allan Mostoff directly.
He can be reached at Dechert LLP. Their number is 202-261-3300. Or, you can email Mr. Mostoff
at mostoff@mfdf.com. If you have any questions that I may be able to assist with, please call me
at 508-428-9496.
1. Board Review of Management Contracts and Management Fees
Chair: Carl Frischling
Coordinator: Diane Ambler
2. Soft Dollars, Directed Brokerage and Revenue Sharing Arrangements
Chair: David Ruder
Coordinator: Jeffrey Puretz
2
3. Rule 12b-1
Chair: Jean Gleason Stromberg
Coordinator: Joel Goldberg
4. Valuation and Pricing
Chair: Wayne Whalen
Coordinator: Lloyd "Chip"Voneiff
5. Conflicts of Interest Between Funds and Their Managers
Chair: Fergus Reid
Coordinator: Barry Barbash
Thank you all for your spectacular help with the recent letter to Chairman Donaldson.
No large group has ever paid greater attention to a subject nor made more significant
contributions under time pressure and at a difficult time of year. I believe we all can be very
proud of the end product. I wish I had a tape recording to play for our critics of all of our
discussions. It would prove beyond a doubt that this group of directors is an extraordinarily
talented one: engaged, focused, literate and fiercely independent.
Last, but not least, I want to publicly thank Marguerite for her terrific assistance, good
humor, excellent drafting and enormous patience.
James H. Bodurtha
Chair, Directors’ Committee