From: Neal Nakagiri [nnakagiri@afgweb.com] Sent: Sunday, May 09, 2004 1:07 PM To: 'rule-comments@sec.gov' Subject: File No. S7-11-04 We are in favor of your proposed rule mandating a 2% redemption fee in accordance with the proposed conditions and restrictions. We are also in favor of the use of FIFO to determine whether the redemption fee applies. We have recently noted that at least two major fund families have adopted a 2% redemption fee already, and we anticipate that other funds will follow. Sincerely, Neal Nakagiri President and CEO Associated Securities Corp. 310-670-0800, ext. 235 Fax 310--258-6502 nnakagiri@afgweb.com