From: Tommy L. Feezel [tlfeezel@earthlink.net]
Sent: Friday, May 07, 2004 10:39 PM
To: Jonathan G. Katz
Cc: senfronia.thompson@house.state.tx.us; robert.talton@house.state.tx.us; 
wayne.smith@house.state.tx.us; rick.noriega@house.state.tx.us; 
joe.moreno@house.state.tx.us; al.edwards@house.state.tx.us; 
glenda.dawson@house.state.tx.us; john.davis@house.state.tx.us; 
joe.crabb@house.state.tx.us; dennis.bonnen@house.state.tx.us; 
tommy.williams@senate.state.tx.us; john.whitmire@senate.state.tx.us; 
john.lindsay@senate.state.tx.us; kyle.janek@senate.state.tx.us; 
mike.jackson@senate.state.tx.us; mario.gallegos@senate.state.tx.us; 
rodney.ellis@senate.state.tx.us; nick.lampson@mail.house.gov; 
askgene@mail.house.gov; tom.delay@mail.house.gov; john.carter@mail.house.gov
Subject: File No. S7-11-04 Mandatory 2% Redemption Fee

Jonathan G. Katz
Secretary, Securities and Exchange Commission
450 Fifth Street, NW
Washington, DC 20549-0609

Dear Mr. Katz,

I would like to inform you of my opposing the idea of a mandatory 2% 
redemption fee on the sale of mutual funds held less than 5 days.  I do  not 
think this is in any way warranted.  If an investor should enter the market 
when he feels it is right, only to see it turn bearish, he should not be 
penalized for desiring to exit the market regardless of the time.  The mutual 
funds already have in place policies and practices to ensure they receive 
adequate compensation for trades within the funds.   Perhaps quick short term 
trading is due to stale pricing of the funds.  Fair pricing of the funds would 
be a much more effective method of stopping short term trading of funds than a 
mandatory redemption fee.

I have not heard of any industry wide problem of excessive or abusive trading 
of mutual funds or of any such actions that results in higher costs to "long 
term" investors of mutual funds.  I have not seen or heard of any academic 
study or industry study which concludes that a redemption fee would eliminate 
excessive or abusive mutual fund trading.  Mutual fund companies already have 
built in methods of "getting their commission" even in no load funds.  This 
mandatory redemption fee would just add another cost to the investor for no 
practical or logical reason.

I urge you to not to support or recommend this mandatory redemption fee!

Sincerely,

Tommy L. Feezel