February 8, 1993
TO: BOARD OF GOVERNORS NO. 11-93
MARKETING POLICY COMMITTEE NO. 6-93
DIRECT MARKETING COMMITTEE NO. 10-93
INDUSTRY STATISTICS COMMITTEE NO. 2-93
PUBLIC INFORMATION COMMITTEE NO. 9-93
RESEARCH COMMITTEE NO. 4-93
SALES FORCE MARKETING COMMITTEE NO. 11-93
SHAREHOLDER COMMUNICATIONS COMMITTEE NO. 8-93
RE: NEW WALL STREET JOURNAL FUND TABLES
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As you know, the Wall Street Journal began publishing their
expanded new mutual fund tables last week. As we previously
reported to you, the Journal's original new format was modified
to accommodate some of our concerns (such as reducing their
emphasis on short term performance, providing more long term
performance numbers and providing load and expense ratio
information on the same day rather than on separate days) after
these were communicated to the Journal in discussions involving
Institute staff and members.
We are pleased that the changes agreed to following those
discussions have been retained, and we feel that on balance the
increased visibility and attention to funds represented by these
new tables are definitely a positive development for the fund
industry.
Unfortunately, there seems to be a good deal of confusion
being generated by the new A through E rankings which are based
on only ten investment objective categories. This is the one new
component of the tables which was not discussed with us in
advance of publication. A number of you have been in touch with
us to express your concerns about this particular feature, which
appears every day except Monday.
Erick Kanter has discussed these concerns with John
Prestbo, who is the Wall Street Journal editor in charge of this
project. According to Prestbo, he and others at the Journal will
compile the various comments and complaints which they receive
for a week or two, and will then meet with their top people to
decide whether any modifications are needed. If you are among
those who feel that changes are called for, the best approach in
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February 8, 1993
New Wall Street Journal Fund Tables
the near term is to write a letter to Prestbo with clear examples
and explanations of what you think is wrong and why, as well as
providing any evidence you may have that your shareholders are
calling in to express their confusion. The primary component
that might possibly be changed is the letter ranking system
within the current overly broad investment objective categories,
as that is the only major area that Journal editors did not
discuss with us in advance. Therefore comments in this area may
be more productive than in others, although there may also be
other points that are important to make in any communication with
Prestbo. Phone calls may also be useful, but if you call it will
be helpful to also write a letter so that your specific points
will more readily be passed on to people above Prestbo.
The address and phone are as follows: John Prestbo,
Markets Editor, The Wall Street Journal, 200 Liberty Street--
Tower A, New York, NY 10281, (212/416-3162). Please be sure to
send a copy to of any letter you write to Erick Kanter.
If you wish to discuss with Erick, his direct number is
202/955-3530.
C. Richard Pogue
Executive Vice President