December 27, 1994
TO: CLOSED-END FUND COMMITTEE No. 37-94
RE: INSTITUTE LETTER TO EXCHANGES CONCERNING SUPPRESSION OF
DRIP MATERIALS
______________________________________________________________________________
At the November 1st Closed-End Fund Committee meeting, we discussed a problem that some
funds were experiencing in connection with the delivery of their semi-annual and annual reports to
beneficial owners of shares held in street name. Specifically, members stated that some brokers holding
shares in street name have instructed the mailing houses not to send the beneficial shareholders
communications that include information about a fund's dividend reinvestment plan. Consequently,
funds' semi-annual and annul reports are not being delivered to those shareholders. In fact, one fund
group reported that it had received back from a mailing house 13,000 undelivered annual reports.
The Institute sent the attached letter to the New York Stock Exchange and the American Stock
Exchange to alert them to this problem and request that they take appropriate action to resolve it.
Amy B.R. Lancellotta
Associate Counsel
Attachment