Charles T. McCord, Jr. and Mary S. McCord, Donors - Page 51

                                       - 33 -                                         
          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             
                                                             (continued...)           




Page:  Previous  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  38  39  40  41  42  Next

Last modified: May 25, 2011