ACTION REQUESTED - Register to Participate in the 2017 ICI Mutual Fund Transfer Agents Trends & Billing Practices Survey
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March 20, 2017 TO: ICI Members SUBJECTS: ComplianceFees and Expenses
Fund Accounting & Financial Reporting
Intermediary Oversight
Operations
Transfer Agency RE: ACTION REQUESTED - Register to Participate in the 2017 ICI Mutual Fund Transfer Agents Trends & Billing Practices Survey
The Investment Company Institute invites your organization to participate in the 2017 Mutual Fund Transfer Agents Trends and Billing Practices Survey. This study, which the Institute will conduct in conjunction with the accounting firm of PwC, is widely regarded by ICI members as providing important information for reviewing transfer agency arrangements. The study provides one means for senior management and mutual fund directors to compare their funds’ transfer agency charges to those of other funds to assess competitiveness and efficiencies of their fund operations.
The 2017 final report, which will cover activity for the twelve months ending September 30, 2017, will present a detailed analysis of transfer agent fee data grouped by account size, complex size, classification of transfer agent type (i.e., external, hybrid, internal), distribution channel, and fund type (i.e., money market, fixed income, equity). Transfer agent billings are expressed in terms of average per-account charges and average basis points.
The study will also provide: comparative analyses of current data to data collected in 2015 and 2013; data collected on billings for alternative shareholder servicing and recordkeeping arrangements with third-party intermediaries; and information on transfer agency billing methodologies and arrangements.
As with other ICI surveys, the confidentiality of data submitted by individual fund groups will be strictly maintained.
Participant Obligations
Consistent with previous surveys, the final results will be provided only to fund groups that (1) agree to participate, (2) provide requested data for a representative sample of funds, and (3) pay a participant fee in accordance with the following asset based schedule:
Total Open-end Fund Assets
(Long- and Short-Term) of Complex
As of 3/30/17
Member Participation Fee
Over $200 billion $9,000 $100 - 200 billion $8,500 $20 -100 billion $8,000 $10 - 20 billion $7,000 $5 - 10 billion $6,000 $2 - 5 billion $5,000 $1 - 2 billion $3,000 $.25 - 1 billion $1,500 Under $.25 billion $ 750Survey participants will be provided with a web-based questionnaire that solicits data at the fund complex level and for a sample of pre-selected funds/share classes. When the questionnaire is issued, ICI and PwC will expect participants to attend a conference call to help prepare participants for the survey completion process. The purpose of the call is to review the survey including any new or revised sections, and to answer any questions about the web survey. ICI and PwC will also be available by email or phone throughout the survey completion process to provide assistance and support.
We expect to give participants access to the survey questionnaire by September 1, 2017, and to deliver the final report by July 31, 2018. In order to meet the final report delivery date of July 31, 2018, participants must complete all data submission by December 15, 2017.
Use of Survey
The survey results are for the participants’ internal use only, therefore participation includes a commitment to keep the contents of the publication confidential. The final report that will be provided to participants is the proprietary, confidential, and copyrighted property of the Investment Company Institute and its contents may only be shared with your firm’s employees, directors, and their agents (if the agent is under a nondisclosure obligation).[1] The report may not be disclosed, published, or otherwise shared with any other person without the prior written authorization of the Investment Company Institute.[2] ICI reserves the right to use aggregated survey data for regulatory, legislative, or other public policy purposes to benefit ICI members.
Participants wishing to receive tailored peer group analyses of survey data may do so through a separate agreement arranged directly with PwC.
Action Requested
To register to participate in the 2017 survey, please complete the registration form available at: https://www.surveymonkey.com/r/2017TransferAgentStudy as soon as possible, but no later than May 26, 2017. ICI will mail a participation fee invoice in September 2017 to the attention of the individual who authorizes your firm’s participation in the study.
Please contact Joanne Kane at 202/326-5850 or joanne.kane@ici.orgif you have any questions regarding the 2017 Mutual Fund Transfer Agents Trends and Billing Practices survey. Thank you in advance for your prompt response. We look forward to working with you on this important project.
Martin A. Burns
Chief Industry Operations Officer
endnotes
[1] No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means – electronic, mechanical, photocopying, recording, or otherwise – without the prior written authorization of ICI.
[2] Should a regulator make a lawful demand for the final report’s production, ICI expects the participating member to request confidential treatment pursuant to the Freedom of Information Act, or comparable state law.