UPDATED VERSION OF FREQUENTLY OVERLOOKED FACTS ABOUT MUTUAL FUNDS AND CHART ON 1994 EQUITY AND BOND FUND FLOWS

February 28, 1995 TO: DIRECT MARKETING COMMITTEE No. 12-95 INDUSTRY STATISTICS COMMITTEE No. 6-95 MARKETING POLICY COMMITTEE No. 15-95 MEMBERS - ONE PER COMPLEX No. 24-95 PUBLIC INFORMATION COMMITTEE No. 6-95 RESEARCH COMMITTEE No. 10-95 SALES FORCE MARKETING COMMITTEE No. 12-95 SHAREHOLDER COMMUNICATIONS COMMITTEE No. 9-95 RE: Updated Version of Frequently Overlooked Facts About Mutual Funds and Chart on 1994 Equity and Bond Fund Flows ______________________________________________________________________________ Here is our latest update of "Frequently Overlooked Facts About Mutual Funds," which has been distributed to our national news media lists. The update, prepared with considerable input from the Research Department, includes 1994 year-end numbers where available. We have also included two important new items. One of these indicates that despite recent mergers of fund management companies, fund industry concentration has actually declined over the past ten years. The other new item provides numbers showing that mutual fund assets are NOT greater than bank deposits. In addition, we have attached a copy of our chart illustrating 1994 equity and bond fund cash flows, which has also been provided to the news media. L. Erick Kanter Vice President Public Information and Marketing