November 29, 1990
TO: TRANSFER AGENT ADVISORY COMMITTEE NO. 49-90
RE: SURVEY OF BOOK VERSUS PHYSICAL SHARES FOR OPEN-END AND
CLOSED-END FUNDS - 1989
_____________________________________________________________
Enclosed is the Survey of Book Versus Physical Shares for Open-
End and Closed-End Funds, which the committee agreed to complete at
the Transfer Agent Advisory Committee meeting on September 13th,
1990.
The purpose of this survey is to update our general
understanding of the form in which mutual fund shares are presently
being issued and the overall composition of shares (book versus
physical) outstanding. The survey is being circulated to the 20
mutual fund complexes represented on the Transfer Agent Advisory
Committee.
The survey questionnaire and detailed instructions are attached
to this memo. The results of the survey will be presented to the
Transfer Agent Advisory Committee and will be used to assist the
Institute in it's work as a participant on the Group of Thirty U.S.
Working Committee. One objective of the Group of Thirty is to move
generally to book shares for all investors worldwide, not just
investors in mutual funds.
As background information, the primary objectives (target date
of 1992) of the Group of Thirty U.S. Working Committee are to reduce
the standard settlement period from 5 days to 3 days for U.S. equity
and municipal securities and change the payment system from next day
funds to same day funds for like security types. As the Group of
Thirty's recommendations will affect mutual funds in many respects,
it is expected that the SEC will ask the Investment Company
Institute to respond to the Group of Thirty's final recommendations.
A copy of the Group of Thirty U.S. Working Committee's "Status
Report & Request For Comment" dated August 1990, is enclosed with
this survey. Comments on Book-Entry Settlement can be found on
pages 8 and 9 of the report.
Thank you for your assistance in this effort.
Donald E. O'Connor
Vice President - Operations
Enclosure
Attachment