©2006 Investment Company Institute. All rights reserved. Information may be abridged and therefore incomplete.
Communications from the Institute do not constitute, and should not be considered a substitute for, legal advice.
[20739]
December 29, 2006
TO: ACCOUNTING/TREASURERS MEMBERS No. 33-06
BANK, TRUST AND RECORDKEEPER ADVISORY COMMITTEE No. 38-06
BOARD OF GOVERNORS No. 36-06
BROKER/DEALER ADVISORY COMMITTEE No. 50-06
CLOSED-END INVESTMENT COMPANY MEMBERS No. 65-06
OPERATIONS MEMBERS No. 25-06
PRIMARY CONTACTS - MEMBER COMPLEX No. 25-06
SEC RULES MEMBERS No. 114-06
SMALL FUNDS MEMBERS No. 90-06
TRANSFER AGENT ADVISORY COMMITTEE No. 80-06
UNIT INVESTMENT TRUST MEMBERS No. 30-06
RE: ICI, FEDERAL GOVERNMENT AND EXCHANGES CLOSED ON JANUARY 2, 2007
Federal Government and Exchanges
On Tuesday, January 2, 2007, the federal government and the national exchanges, including
Nasdaq, will be closed in observance of the death of former President Gerald R. Ford. 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 Tuesday
for purposes of accepting and pricing fund transaction orders, consistent with relevant prospectus
language. Such funds should take appropriate steps to make clear to investors who submit transaction
orders on Tuesday, for example, through a fund’s website, that those orders will be priced on
Wednesday. Funds that choose to accept and price transactions on Tuesday 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.
2
An institute operations task force recently issued a paper identifying factors for mutual funds
and their business partners to consider in connection with unscheduled market closes.
ICI
In light of the federal government and exchanges being closed and as a mark of respect for
President Ford, the Institute’s offices will be closed as well. Institute employees will be checking voice
mail on a regular basis and will return member calls as quickly as possible.
Donald J. Boteler
Vice President – Operations
Ari Burstein
Senior Counsel
Securities Regulation – Capital Markets