August 23, 1991
TO: BOARD OF GOVERNORS NO. 64-91
RE: SEPTEMBER 19 MEETING TO DISCUSS YIELD ENHANCEMENT ISSUES
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Recently, questions have been raised regarding methods used
by some funds to enhance their distribution rates through
particular tax or accounting practices. These include, for
example, failing to amortize bond premium and treating 12b-1 fees
as a capital item for tax purposes.
Pursuant to the recommendation of the Executive Committee,
the Institute is forming a new Yield Committee to discuss these
matters and the possibility of developing an industry-wide
position on how they might be addressed. The first meeting of
the Committee will be held on Thursday, September 19 at 10:00
a.m. in the Institute's 6th floor conference room. Please call
Susan Burgess at 202/955-3513 by Friday, September 13 to let her
know: 1) if you would like to designate a person from your firm
to serve on the Yield Committee and 2) whether the designated
person from your firm will attend the September 19 meeting.
Lawrence A. Rogers
Senior Counsel