August 29, 1995
TO: ACCOUNTING/TREASURERS MEMBERS No. 38-95
MEMBERS - ONE PER COMPLEX No. 74-95
OPERATIONS MEMBERS No. 37-95
SMALL FUNDS MEMBERS No. 10-95
TRANSFER AGENT ADVISORY COMMITTEE No. 43-95
RE: 1995 ICI/COOPERS & LYBRAND MUTUAL FUNDS TRANSFER AGENT FEE
SURVEY
______________________________________________________________________________
The Investment Company Institute is pleased to invite your organization to participate
in the Institutes sixth biannual study of mutual fund transfer agent fees and billing practices.
This study, which the Institute will conduct in conjunction with the accounting firm of Coopers
& Lybrand, LLP ("C&L"), is widely regarded by Institute members as providing essential
information for reviewing transfer agency arrangements. The survey also provides mutual
fund directors with an independent means of comparing their funds transfer agency fees with
other similar funds.
The final report presents a detailed analysis of transfer agent fee data grouped by fund
type (money market, fixed income, equity), distribution channel, and classification of transfer
agent arrangement (external, hybrid, remote and captive). This years study, which will cover
1995 activity, will also provide comparative analyses of current data to data collected in 1991
and 1993. As with previous surveys, the primary responsibility for conducting the 1995 survey
will rest with the Institute staff with C&L retained on a consulting basis to assist with the study
and to maintain continuity with previous methodology.
Participant Obligations
Consistent with previous surveys, the final results will only be provided to fund
groups that agree to participate. The obligations of participants are to furnish a completed
questionnaire to C&L for funds selected to be included in the survey sample, and to pay a
proportionate cost of the survey through advance payment of a participant fee in accordance
with the following asset based schedule:
Total Assets of Open-end Funds in Complex
As Of 6/30/95
Member Participation Fee
Over $10 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 $ 750
Not all participants will be required to provide transfer agent fee data since the survey
will be based on a representative sample of funds. However, equity requires that only fund
groups which agree in advance to provide their data receive the results of the survey.
Data Collection
Participants selected for the survey will be provided with a questionnaire that solicits
data at the fund complex level as well as the fund level. As with other ICI surveys, the
confidentiality of data submitted by individual fund groups will be strictly maintained.
To make it as convenient as possible for fund groups to participate in the survey, each
participating fund complex will be furnished with an automated version of the questionnaire
on diskette along with a hardcopy version. Completion of the automated questionnaire will
require an IBM compatible PC with four megabytes of RAM installed with "Windows" (version
3.1 or more recent). The Institute strongly encourages the use of the automated version of the
questionnaire to help us control the cost of conducting this project by minimizing the necessity
for manual data entry and verification procedures.
Timetable
A major objective in conducting this years transfer agent survey will be to deliver the
final report as early as possible in 1996. The Survey Advisory Committee met in July of this
year to approve modifications designed to simplify the questionnaire and improve the
timeliness of report delivery. We expect to begin supplying participants with the questionnaire
in early November, 1995. The deadline for completion and return of all questionnaires will be
February 29, 1996. Our target date for delivery of a final report is September 30, 1996.
To enable participants to monitor the progress of data receipt by the survey team, the
Institute will issue a biweekly tracking report to all participants showing each participants
questionnaire submission status beginning the week of January 21, 1996. At the Institutes
March 1995 Operations Committee meeting, the committee unanimously supported this
mechanism as a means to encourage timely reporting by participants.
In response to requests by prior survey participants, the ICI and C&L have developed a
condensed report format of several high level report exhibits on which to distribute preliminary
survey results to participants prior to issuance of the final report. The Institute expects to
deliver this "flash report," which will include basic per-account data by fund type, transfer
agent arrangement, and distribution channel, by May 30, 1996.
As in prior surveys, participants wishing to receive peer group analyses of survey data
may do so pursuant to a separate agreement with C&L.
Questionnaire Workshop
The Institute will sponsor a one-day workshop in Boston during December, 1995 for
firms who have agreed to participate and have been selected for inclusion in the survey sample.
3The purpose of the workshop is to review the automated and hardcopy versions of the
questionnaire in detail with individuals who will be responsible for actually completing the
questionnaire. Experienced survey team members of C&L and the ICI will lead the discussion,
which will include a general overview, presentation of the automated and hardcopy versions of
the questionnaire, and a question and answer period. Based on our experience with the survey,
this workshop will be valuable in ensuring the timely delivery of accurate data. Survey
participants will be notified of the workshop date and location as soon as they are determined.
Action Requested
Your organization is invited to participate in the 1995 Transfer Agent Trends and Billing
Practices Survey. So we may proceed with this project as soon as possible, it is important that
we hear from you promptly as to your interest in participating. Please return the attached form
to the ICI as soon as possible, but no later than Friday, September 22 to indicate whether
your organization will participate. The ICI will mail a participation fee invoice to the attention
of the person in your firm who authorizes your firms participation soon after we receive your
completed form.
Please contact Justine Phoenix at 202/326-5850 or Greg Smith at 202/326-5851 if you
have any questions regarding this project.
Than you in advance for your prompt response. We look forward to working with you
on this important project.
Donald J. Boteler
Vice President - Operations
4* Participation includes a commitment to furnish transfer agent cost information if one
or more funds in your complex are selected for the survey sample and a pledge to pay a
share of the survey cost based on the total open-end fund assets of your group.
MUTUAL FUNDS TRANSFER AGENTS
TREND AND BILLING PRACTICES SURVEY
INVESTMENT COMPANY INSTITUTE/COOPERS & LYBRAND LLP
1995 SURVEY PARTICIPATION FORM
ICI MEMBER FIRM:
NAME OF CONTACT:
YES, my firm will participate [ ]* NO, my firm will not participate [ ]
If YES, please fill out information below:
Address:
Total Assets 6/30/95: $
Authorizing Contact:
Name:
Telephone #:
Fax #:
Signature:
Survey Completion Contact:
Name:
Telephone #:
Fax #:
5PLEASE FAX THIS FORM TO JUSTINE PHOENIX AT FAX# 202/326-5853 AS SOON AS
POSSIBLE BUT NOT LATER THAN SEPTEMBER 22, 1995