Sample Letter

President
Fund Group
Address

Dear Sir or Madam:

As an investor (a potential investor) in your fund group, I would appreciate some additional information about your business practices. Please comment on the following:

• Whether the fund group executes trades through any related brokerage houses or market makers. If so, whether the fund allows that related party a preference bid on orders.
• Whether the fund receives payment for order flow from any brokerage, and if so, how those payments are credited to the fund.
• Whether the fund directs trades to any brokerage house in return for distribution by that brokerage house.
• Whether the fund shares in the management fees with any brokerage house in return for distribution of the fund.
• Whether the fund receives any soft dollar compensation from any brokerage operation, and if so, how those payments are credited to the fund.
• Whether the fund requires brokerages to check standing orders prior to execution, and if not, how the fund insures that they receive the very best possible execution.
• Whether the fund's expense ratio has recently decreased to reflect economies of scale and improved technology. If not, why not.

If these areas are fully disclosed in your fund prospectus, feel free to quote from it.

Thank you for your prompt attention. Your answers will assist me to evaluate your firm's services and suitability to represent me. While I recognize that some of these issues may be considered proprietary, a failure to fully respond will adversely affect our business relationship. I am sure you will agree that investors are entitled to full disclosure of your business practices.

The answers to these questions are of broad general interest. If your firm publishes information on the World Wide Web, or maintains its own Web Page, it would be appropriate to publish this information there so that others may benefit from it in making their investment decisions.

Sincerely,

Your Name

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