[9325]
October 9, 1997
TO: PRIMARY CONTACTS - MEMBER COMPLEX No. 68-97
ACCOUNTING/TREASURERS MEMBERS No. 39-97
OPERATIONS MEMBERS No. 21-97
SMALL FUNDS MEMBERS No. 14-97
TRANSFER AGENT ADVISORY COMMITTEE No. 55-97
RE: 1997 ICI/C&L MUTUAL FUND TRANSFER AGENT TRENDS & BILLING
PRACTICES SURVEY
______________________________________________________________________________
The Investment Company Institute is inviting your organization to participate in
the 1997 Transfer Agent Trends and Billing Practices Survey. This study, which the Institute
will conduct in conjunction with the accounting firm of Coopers & Lybrand LLP, is widely
regarded by ICI 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
1997 activity, will also provide comparative analyses of current data to data collected in 1993
and 1995. As with previous surveys, the primary responsibility for conducting the 1997 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 9/30/97
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 and 15 megabytes of hard drive. If the PC is a networked PC, it should be on
a Microsoft compatible network. 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
We expect to begin supplying participants with the questionnaire in December, 1997.
The deadline for completion and return of all questionnaires will be March 2, 1998. We expect
to deliver the final report by September 30, 1998.
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 February 9, 1998.
During the 1995 survey, ICI and C&L developed a condensed report format of several
high level report exhibits to distribute preliminary survey results to participants prior to
issuance of the final report. The Institute will deliver this "flash report," which will include
basic per-account data by fund type, transfer agent arrangement, and distribution channel, by
June 1, 1998.
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.
Action Requested
Your organization is invited to participate in the 1997 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, October 31 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.
Thank you in advance for your prompt response. We look forward to working with you
on this important project.
Donald J. Boteler
Vice President
Operations & Training
Attachment
1997 ICI/C&L TRANSFER AGENT TRENDS AND BILLING PRACTICES
SURVEY PARTICIPATION FORM
ICI MEMBER FIRM:
YES, my firm will participate [ ]* NO, my firm will not participate [ ]
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If YES, please fill out the information below:
Total open-end mutual fund assets as of 9/30/97: $
Authorizing Contact:
(The Authorizing Contact will be billed for your firms participation and will receive the survey results)
Name:
Address:
Telephone #:
Fax #:
Signature:
Survey Completion Contact:
(The Survey Completion Contact will receive the survey questionnaire and be responsible for its
completion)
Name:
Address:
Telephone #:
Fax #:
*Participation includes a commitment to furnish transfer agent cost information if your complex
is selected for the survey sample and a pledge to pay a share of the survey cost based on the total
open-end assets of your group as detailed in the attached memo.
PLEASE FAX THIS FORM TO JUSTINE PHOENIX, ICI AT 202/326-5853 AS SOON AS
POSSIBLE BUT NOT LATER THAN OCTOBER 31, 1997