February 21, 1997
TO: INTERNATIONAL COMMITTEE No. 8-97
RE: INSTITUTE LETTER TO TREASURY ON PERFORMANCE REPORTING IN
JAPAN
______________________________________________________________________________
Attached is a copy of a submission the Institute sent to the Treasury Department
relating to the progress that has been made, under the 1995 US-Japan Financial Services
Agreement, to improve performance measuring and reporting for Japanese investment trusts
(mutual funds.)
The letter expresses reservations about the system that has been implemented to collect
and disseminate mutual fund performance information. This system does not appear to require
that funds report information in a standardized manner. The Institute’s submission includes a
memorandum that discusses the importance of developing standardized performance
measures for mutual funds and outlines the features needed for a reliable, effective regulatory
regime.
The Institute expects that the Treasury Department will use the memorandum in
discussions with Japanese officials about these matters.
We will keep you informed of developments.
Mary S. Podesta
Associate Counsel - International
Attachment (in .pdf format)