[17649]
June 9, 2004
TO: ACCOUNTING/TREASURERS MEMBERS No. 24-04
BANK AND TRUST ADVISORY COMMITTEE No. 13-04
BOARD OF GOVERNORS No. 42-04
BROKER/DEALER ADVISORY COMMITTEE No. 20-04
CLOSED-END INVESTMENT COMPANY MEMBERS No. 40-04
OPERATIONS MEMBERS No. 24-04
PRIMARY CONTACTS - MEMBER COMPLEX No. 57-04
SEC RULES MEMBERS No. 88-04
SMALL FUNDS MEMBERS No. 67-04
TRANSFER AGENT ADVISORY COMMITTEE No. 53-04
UNIT INVESTMENT TRUST MEMBERS No. 25-04
RE: ICI, FEDERAL GOVERNMENT AND EXCHANGES CLOSED ON JUNE 11TH
Federal Government and Exchanges
On Friday, June 11, 2004, the federal government, the national exchanges and Nasdaq
will be closed in observance of the death of former President Ronald Reagan. We have had
informal discussions with senior staff of the Division of Investment Management regarding
funds’ processing and pricing obligations on that day.
As always, funds are not required to accept any purchase orders or exchange requests.
Under Section 22(e) of the Investment Company Act of 1940, funds will be permitted to suspend
redemptions as a result of the NYSE being closed. Therefore, funds can choose to be closed on
Friday for purposes of accepting and pricing fund transaction orders. Such funds should take
appropriate steps to make clear to investors who submit transaction orders on Friday, for
example, through a fund’s website, that those orders will priced on Monday. Funds that choose
to accept and price transactions on Friday must use a fair valuation methodology for portfolio
securities for which market quotations are not readily available. These positions apply to all
funds, including bond funds and money market funds.
ICI
In light of the federal government and exchanges being closed and the likely disruption
to commuters in the D.C. area on Friday, the Institute’s offices will be closed as well. Institute
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employees will be checking voice mail on a periodic basis and will return member calls as
quickly as practicable.
Donald J. Boteler
Vice President – Operations
Amy B.R. Lancellotta
Acting General Counsel