August 13, 1996
TO: ACCOUNTING/TREASURERS COMMITTEE No. 33-96
INTERNATIONAL COMMITTEE No. 29-96
RE: FOREIGN MARKET DUE DILIGENCE SURVEY -- SECOND REQUEST
______________________________________________________________________________
On July 11, 1996 you were mailed the Foreign Market Due Diligence Survey
developed by the Securities Operations Subcommittee. Responses to the survey were
due by August 2, 1996.
The purpose of the survey is to determine what current mutual fund industry
practices are with respect to minimizing the risks of investing in foreign markets with
local subcustodians and brokers. The survey also seeks to determine how fund
investment advisers deal with operational issues in both established and emerging
foreign markets.
In order for the survey to produce reliable results on industry due diligence
practices, it is critical that we achieve a high level of participation by the organizations
represented on the Accounting/Treasurers Committee. The organizations that have
responded to the survey to date are Alger, Bank of America, Colonial, Fidelity, Janus,
John Hancock, Merrill Lynch, Miller Anderson & Sherrerd, Smith Barney, Strong,
USAA, Van Eck, Vanguard, and Waddell & Reed.
If your organization is not listed above, please have the appropriate person or
persons in your organization complete the survey and return it no later than August 23,
1996 by mail or facsimile to:
Diane Butler
Investment Company Institute
1401 H Street, N.W.
Washington, D.C. 20005
Phone - 202/326-5847
Fax - 202/326-5853
-2-
If sufficient response is received, a report will be produced based on the
aggregate results of the survey and will be distributed to the Accounting/Treasurers
Committee, the International Committee, the Securities Operations Subcommittee and
the Custodians Advisory Group. The ICI will keep individual responses strictly
confidential.
Questions on the survey may be directed to Diane Butler at 202/326-5847. Thank
you for your assistance in making this important industry survey a success.
David Moffat Diane Butler
Chairman - Securities Director - Operations
Operations Subcommittee & Fund Custody