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A Report on Extraordinary Market Conditions and ICI’s Response

A Message from Paul Schott Stevens, President and CEO, Investment Company Institute

Washington, DC, September 22, 2008 - These are extraordinary times for financial markets around the world, and the impact on our industry has been significant.

News of the bankruptcy of one major investment bank and the sale of another unleashed an unprecedented series of events that led, by week’s end, to the sweeping plan of action announced by the U.S. Treasury Department and the Federal Reserve.

Well before the Treasury and Fed actions were announced, ICI was working closely with both agencies as well as the SEC to apprise them of market conditions affecting money market mutual funds. Since Friday, we have maintained a round-the-clock dialogue with senior government officials concerning steps to restore liquidity to the money markets as well as the nature and details of the temporary guaranty being extended to certain shareholders in money market mutual funds. We also have been working closely with the media to ensure a clear understanding of these fast-paced developments. The direct involvement of senior executives in our industry and the input provided by so many member firms have been of enormous assistance as the government has sought to stem this crisis.

Secretary Paulson and Chairman Bernanke have done an outstanding job under the most challenging circumstances. We applaud them for the steps they have taken to restore confidence in the markets.

In the coming weeks and months, ICI will continue to do its part as, hopefully, our markets return to normalcy. You can be assured that we will keep you updated on these activities. In the meantime, if you have any questions on these issues, please do not hesitate to contact me.

Sincerely,

Paul Schott Stevens
President and CEO