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Mr. Frazier in his sample of funds mention open-ending votes or
procedures, which, according to Mr. Frazier’s criteria, should
have required their exclusion.
In his rebuttal testimony, Mr. Frazier does not directly
challenge Dr. Bajaj’s inclusion of any specific fund in his
sample; rather, he simply asserts that “some of these funds could
have announced their intent to convert to an open-end fund” and
that “other funds may be non-diversified”. In the absence of
more specific objections to Dr. Bajaj’s additional sample funds,
we are persuaded to include such funds in our own analysis.
Mr. Frazier’s sample contains three funds that Dr. Bajaj
excludes from his sample: Gemini II, Quest for Value, and
Liberty All Star Growth Fund. Gemini II and Quest for Value were
“dual purpose” funds, which were scheduled for either liquidation
or open-ending in January 1997.17 Given the effect that the
impending liquidation or conversion may have had on share prices
of those funds, we exclude them from our analysis. Since Dr.
Bajaj’s rebuttal testimony raises no specific objection to the
inclusion of Liberty All Star Growth Fund in the sample, we
include that fund in our analysis.18
17 A dual purpose fund has both income shares and capital
shares. At a set expiration date, the fund redeems all income
shares, and the capital shareholders then vote either to
liquidate the fund or convert it to open-end status.
18 Dr. Bajaj may have excluded Liberty All Star Growth Fund
from his sample due to the lack of NAV information with respect
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