Board of Governors of the Federal Reserve System

Data Dictionary

Item Number A005

Call confidentiality applies to FFIEC 031/041.

Data Description:

Includes the total amount of mutual fund and annuity sales activity during the quarter ending with the report date. These sales may be made by the reporting branch or agency or by an affiliated or unaffiliated entity. For purposes of this item, sales should generally be measured in terms of gross sales dollars, not sales revenue.

Also includes all sales of proprietary, private label, and other (i.e., third party) mutual funds and annuities that takes place on branch or agency premises and all other sales for which the branch or agency receives income at the time of the sale or over the duration of the account (e.g., annual fees, Rule 12b-1 fees or "trailer fees," and redemption fees). Included are sales conducted through the reporting branch or agency's trust department that are not executed in a fiduciary capacity (e.g., trustee, executor, administrator, conservator), but excluded are sales conducted by the trust department that are executed in a fiduciary capacity. When reporting sales by affiliated and unaffiliated entities, branches and agencies may rely on the sales information provided by these entities when completing this item.

The following are some examples of the types of transactions to be reported as sales (when the above conditions are met): initial and subsequent mutual fund and annuity sales, exchanges within a family of funds, reinvestment of income (dividends and capital gains), and sweep account activity. Other examples (when the above conditions are met) includes sales made on branch or agency premises in space that is leased to or otherwise occupied by another entity, sales made by an entity that is not located on branch or agency premises to customers referred to that entity by the branch or agency, sales to retail customers and institutional investors, and sales of load and no-load products. Sales are reported gross and not net of redemptions. However, with respect to sweep accounts, the branch or agency reports the average amount of funds swept into the money market fund each day during the quarter and not the aggregate total amount of funds swept into the money market fund during the quarter. The average may be computed from the amount of funds swept into the money market fund for each day for the calendar quarter or from the amount of funds swept into the money market fund on each Wednesday during the calendar quarter.

For example, the reporting branch or agency has one sweep account and uses the Wednesday reporting option. There are 13 Wednesdays during the quarter. The following amounts were swept into the money market fund each Wednesday during the quarter: Week 1: $1,000; Week 2: $5,000; Week 3: $0; Week 4: $4,000; Week 5: $5,000; Week 6: $4,000; Week 7: $3,000; Week 8: $0; Week 9: $3,000; Week 10: $2,000; Week 11: $3,000; Week 12: $4,000; Week 13: $5,000. The average amount of funds swept into the money market fund on each Wednesday during the quarter was $3,000 (i.e., the sum of the amounts for weeks 1 - 13, $39,000, divided by 13). This average amount (i.e., $3,000) is included in this item.

Mutual fund is the common name for an open-end investment company whose shares are sold to the investing public. An annuity is an investment product, typically underwritten by an insurance company, that pays either a fixed or variable payment stream over a specified period of time. Both proprietary and private label mutual funds and annuities are established in order to be marketed primarily to a branch or agency's customers. A proprietary product is a product for which the reporting branch or agency, or an affiliate of the reporting branch or agency acts as investment adviser and may perform additional support services. In a private label product, an unaffiliated entity acts as the investment adviser. The identity of the investment adviser is normally disclosed in the prospectus for a mutual fund or annuity. Mutual funds and annuities that are not proprietary or private label products are considered third party products. For example, third party mutual funds and annuities includes products that are widely marketed by numerous parties to the investing public and have investment advisers that are not affiliated with the reporting branch or agency.

In a situation where the branch or agency is part of a larger organization and the branch or agency advises a family of mutual funds sold by other groups or entities within the organization and the branch or agency receives an advisory fee for mutual funds sold by these other groups or entities, the branch or agency does not include the amount of mutual funds sold during the quarter (and, if required, reported) by these other groups or entities in the amount of mutual fund sales it reports during the quarter. The branch or agency reports only the mutual funds it has sold during the quarter. In addition, this family of mutual funds would be considered proprietary mutual funds for the branch or agency.

NOTE:

Beginning 9/30/1997, reported on Schedule RC for the FR 2886B report.

Reported in Schedule RAL for the FFIEC 002 report. Also excludes all liabilities to related depository institutions but includes all liabilities to related nondepository institutions.