Charles T. McCord, Jr. and Mary S. McCord, Donors - Page 50

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          end the fund.”15  That screening process produced a sample of 14            
          funds.                                                                      
               Dr. Bajaj derives his sample of closed end equity funds from           
          the list of “general equity” funds set forth in the January 12,             
          1996 edition of the Wall Street Journal.  For reasons not                   
          entirely clear, Dr. Bajaj excludes two of those funds from                  
          consideration, leaving a sample of 20 funds.16                              
               Dr. Bajaj’s sample contains nine funds that Mr. Frazier                
          excludes from his sample.  With regard to the first two of Mr.              
          Frazier’s three screening criteria, Dr. Bajaj states in his                 
          rebuttal testimony that none of those nine funds was a special              
          purpose fund and that none had a stated maturity date.  With                
          regard to Mr. Frazier’s third screening criterion, Dr. Bajaj                
          states that the fact that a fund’s shareholders can vote to open-           
          end the fund does not mean that such a conversion is imminent.              
          Dr. Bajaj also states that the summary descriptions (contained in           
          Mr. Frazier’s direct testimony) of five of the funds included by            


               15  As noted earlier, a shareholder of an open-end fund                
          generally can obtain the liquidation value of his investment                
          (i.e., his pro rata share of the fund’s NAV) by tendering his               
          shares to the fund for repurchase.  It stands to reason that, to            
          the extent the conversion of a closed end fund to open-end status           
          is imminent, the share price of such fund will tend to approach             
          the fund’s NAV per share.                                                   
               16  In his direct testimony, Dr. Bajaj states that the two             
          excluded funds “could not be identified in Morningstar Principia            
          dataset as of December 31, 1996".  Since Mr. Frazier excludes               
          those funds from his sample as well, we similarly exclude them              
          from consideration.                                                         




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