From: Don Beasley [donbeasley79@hotmail.com]
Sent: Saturday, May 08, 2004 4:41 PM
To: rule-comments@sec.gov
Subject: File No. S7-11-04


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

Dear Mr. Katz,

As an asset manager of close to a billion dollars, I strongly believe that the 
proposed 2% redemption fee has many more harmful effects that potentially 
posiitve outcomes.  We have three mtual funds and have NEVER found that some 
trading in our accounts have any material effects on our management of the 
funds.  Secondly, I can see that this is a BENEFIT to the mutual fund 
companies (we/they don't need that type of charity).  

I strongly urge you to consider the many potential bad outcomes for the 
AVERAGE investor (and advantages for the fund companies) that may occur with 
the passage of the 2% redemption fee.

Fair value pricing is much more effective in quashing short term trading of 
funds than a redemption fee ever will be. 

We (mutual fund managers) have all the tools we need to control abusive 
trading of our fund shares. We need only use them to be effective.

Thank you,

Don Beasley

donbeasley79@hotmail.com

800-222-7636