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Communications from the Institute do not constitute, and should not be considered a substitute for, legal advice.
[19639]
January 26, 2006
TO: BOARD OF GOVERNORS No. 4-06
PRIMARY CONTACTS - MEMBER COMPLEX No. 4-06
INVESTMENT COMPANY DIRECTORS No. 3-06
SEC RULES COMMITTEE No. 5-06
RE: WHITE PAPER COMPARING MUTUAL FUNDS WITH INSTITUTIONAL ACCOUNTS
Attached is a copy of a new Institute white paper Mutual Funds and Institutional Accounts: A
Comparison. The paper is intended to assist fund boards when they approve advisory contracts
by providing an economic analysis of the key differences between mutual funds and
institutional accounts.
Because of the significant differences between these two products, the paper concludes that
there are no simple rules by which fund boards can compare the fees of these products and that
there is no substitute for the considered business judgment of fund boards.
Sean Collins
Senior Economist
Attachment (in .pdf format)
Note: Not all recipients receive the attachment. To obtain a copy of the attachment, please visit our members
website (http://members.ici.org) and search for memo 19639, or call the ICI Library at (202) 326-8304 and request the
attachment for memo 19639.