From: Harriett Magee [harriettmagee@attbi.com]
Sent: Sunday, February 09, 2003 9:03 PM
To: rule-comments@sec.gov
Subject: Comments on S7-51-02

The proposal on shareholder reports and quarterly portfolio disclosure 
should include the requirement that fund reports be written in plain 
English. This is the next logical step to the SEC's 1998 plain English 
requirement for fund prospectuses. 

Too many annual reports are unintelligible because they're filled with 
jargon. Commonly used terms like "overweighted," "underperforming," and 
"sector allocation" are a mystery to most people. Given the financial 
scandals of 2002 and huge losses in stock funds, it's no wonder that 
lots of investors suspect they're not getting a straight story. 

This suspicion hurts both the investing public and mutual fund companies. 
Fund companies would more likely be perceived as open and honest if they 
communicated clearly with their shareholders. And shareholders would more 
likely keep their money with fund managers whom they trust.

The SEC showed with its Plain English Handbook that the risks of investing 
can be explained in prospectuses so people can make informed decisions about 
saving for a child's education or retirement. Having made the decision to 
invest, shareholders deserve to get a reader-friendly explanation of what 
happened to their money. As a financial editor and writer, I know that 
translating these concepts is quite possible.

The SEC believes that "fund shareholder reports could become a more effective 
vehicle for communicating information to investors." This belief has merit 
only if the reports are readable, and they currently are not.

Harriett Magee
15 Cowell St.
Marblehead, Mass. 01945
harriettmagee@attbi.com