Use of Fund Manager Prior Performance in Fund Materials

The Investment Company Committee of the Securities Industry Association (SIA)* provides comments to the National Association of Securities Dealers Regulation, Inc. (NASDR) in response to a request for comment by the NASDR on a concept release pertaining to the use in fund sales material, of fund manager prior performance in another fund or managed account vehicle which is believed to be sufficiently similar to be of significance to a prospective purchaser of the instant fund (related performance data), Notice to Members 97-47.  SIA recognizes that there are circumstances in which use of performance information other than the particular fund’s may be irrelevant or misleading. However, SIA believes that the conditions and standards enumerated in the Securities and Exchange Commission’s (SEC’s) line of no-action letters in this area are sensible, flexible and appropriate and that funds with circumstances that are consistent with those conditions and standards should be able to use related performance information in sales materials.

*SIFMA is the product of a merger between the Securities Industry Association (SIA) and The Bond Market Association (TBMA) in 2006.