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Proposal for Correspondence Changes

Table of Contents

Objectives Introduction Trends Tone Clarity Variables Combining Paragraphs Good Examples Letters to be Created Renaming Letters Reorganizing Databases

Objectives

Outline goals and identify phrases that can be improved. Identify the trends uncovered in the system generated letters. Describe each trend. Identify specific letters and quote appropriately from them. Give specific

examples of how they can be re-worded and explain that would make them better. This includes combining letters by using variables.

State specifically which criterion (Tone, etc) each change would improve. Give examples of letters that are currently good examples of each criterion. Identify topics for which there are currently no system generated letters available. Provide suggestions about how the system generated letters can be renamed in a

way that will make them easier to find and use.

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Introduction

The letter and paragraph database provides many opportunities for improving our correspondence performance. Some of these opportunities are directly related to criteria used by an outside consulting firm that evaluates performance quality. Many of the letters can be changed to improve their scores in the Clarity category employed by this firm. Others have already been changed to eliminate their typographical errors, which is another important criterion. Many worthwhile changes can be made regarding the criterion “Clarity,” which measures how clearly ideas and facts are communicated. The largest number of changes can be made in the area of “Tone,” which is not a scored criterion used by the quality evaluation firm, but is commented on in their reports. A letter’s tone can affect, decisively, the shareholder’s impression of a company’s correspondence and customer service efforts.

The firm also uses a criterion called “Content,” which involves the accuracy and completeness of the information provided. Although this is vitally important, it is not an issue with most of our system generated letters. With rare exceptions, the content of the letters is accurate. We have revised any paragraphs that contained outdated information. When points are deducted for this criterion, it is the result of mistakes made by correspondents. Therefore, any concerns about quality in this area must be addressed as quality control and training issues. “Typographical” errors, which are also tracked, have already been identified and corrected in some letters.

One of the problems identified in the letters is a lack of personalization. In many cases, the problem is a phrase that is unintentionally blunt or condescending. For example, many of the letters use the phrase “please note.” Although the intention of this phrase is to bring a key point to the shareholder’s attention, it may have the unintended effect of sounding overbearing or condescending. By replacing such phrases with more carefully worded sentences, we can create a vision of a service operation based on concern for each individual shareholder.

Another way to personalize letters is through the use of variables that prompt the correspondent to add account specific information. Many of our letters already include such prompts, but a significant number would benefit substantially by adding this. By including such details as the name of a shareholder’s bank or the check number of a check submitted for investment, we impress upon the letter’s recipient the fact that we are giving his or her account careful attention.

In addition to revising the wording of many letters, we can enhance their clarity by using “distinguishing markers.” This includes bold print, italics and bullet points.

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The use of these markers can draw the reader’s attention to important points without detracting from the letter’s courteous tone. Although some letters currently use these highlighting techniques, there are many more that should use them. Another potential area for improvement is the elimination of redundant letters. There are several letters that closely resemble each other. The addition of a variable to one of them would allow us to remove several others from the database, which would make the database much more efficient and manageable for correspondents by reducing the number of choices that they must make.

Each system generated letter is composed of two or more preformed paragraphs. Any changes made to the individual paragraphs, therefore, will affect the letters. The problems caused by the overabundance of letters, which makes that database extremely challenging to use, can be solved, or at least mitigated, by combining letters with many similarities. At the discretion of a correspondent, the paragraphs can be inserted separately in a letter.

Although this document is divided into a variety of sections, each of which deals with a different topic, we want to emphasize that some examples are used in multiple sections. There are other examples that could reasonably be included in more than one section, but we have chosen to include them in only the section for which they offered the clearest insight into a problem.

The overarching goal of the project is to consider our reaction to a letter if we were shareholders. This is a point that has been strongly emphasized by the outside firm that evaluates our quality and is one of their guiding philosophical points. As the letters stand now, the application of this principle to most of them would result in an unsatisfactory response.

Trends

Our review and analysis has revealed several trends that we must eliminate. The effects of these trends range from dissatisfaction among shareholders to frustration among our staff. In this section we will offer a high level list of the trends, each of which will be explored much more extensively later in the document.

Too many letters use a “Passive” rather than “Active” tone.

Many letters use phrases that could create a feeling of animosity toward our company among shareholders.

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We lack letters about several subjects that our correspondents must write about frequently.

Although some letters highlight key information with bold print and other visual techniques, there are many more letters in which we have not taken advantage of these opportunities.

Many letters are titled in a very confusing way that makes them difficult to identify properly.

Our letter database contains so many letters that it cannot be used effectively and easily.

Tone

A letter’s tone communicates important information in a subtle way. It lets a shareholder know what kind of service the fund company is committed to providing. We have identified the specific problem with the tone in each letter and have offered detailed suggestions. For each paragraph, or group of paragraphs with similar flaws, we will also explain why the proposed change of tone will improve our relationship with our customers.

The following paragraphs employ phrases that are too formal, and formulaic sounding, to be compatible with our goals. Depending on the reaction of the individual shareholder who receives one of these letters, they could be interpreted as harsh, condescending or indifferent to the shareholder’s situation:

R 4 = In this paragraph, we inform a shareholder of an important, and restrictive, measure that we have taken regarding his or her account: “Please be advised that Johnson Investments has placed a stop purchase on a number of your accounts.” The phrase “Please be advised” sounds too formal and impersonal. It also could be construed as condescending. This can be replaced with “We would like to

inform you.” This letter also contains the following phrase: “Per the fund’s prospectus.”

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This sounds very blunt. We could change it to “According to the prospectus of the ~ name of mutual fund ~…”

ST-Trading and ST-Trading2 = These are similar to R-4 and use “Please be advised that, after reviewing activity on your account, Johnson

Investments has placed a stop purchase on your account(s).” Both have the same unintended result as Reject 4.

RMD = This provides a substantial amount of information about distribution options, which could be confusing or overwhelming for shareholders. Instead of ensuring that we offset this with a personalized tone, it states “Please be advised that if you have more than one retirement account…” This can also be changed to “We would like to inform you,” “We would like to let you know” or “We wish to inform you.” We could also use “To help you with this” to preface one of these suggested phrases.

TLR = This states “Please be advised that if your payment is not received…your loan will be considered in default.” This is one of many examples that form a trend of using a negative phrase to emphasize a point that is already being emphasized by the use of bold print. We could simply delete “Please be advised that” and start the bolded sentence with “If.” To soften what could be seen as an ultimatum, we could preface that with “We would like to ensure that you are aware…”

D-17 = This informs the shareholder about his or her loan agreement: “Please be advised that the Loan Collateral Control Agreement will remain in effect…” In this sentence, we can simply state that “The Loan Collateral Control Agreement will remain in effect…”

G-4 = This account balance paragraph states “…please be advised that on ~ Enter price date ~, the total number of shares…” We could replace “please be advised” with “we wish to inform you.”

O-16 = This paragraph opens with “Please be aware that currently you have…” The phrase “Please be aware” strikes a tone that could be interpreted as critical. It could be perceived as meaning “you should know this.” This is especially unfortunate because this is the opening sentence of the body of the letter. This could be changed to “You currently have…” because that sentence is simply providing “matter of fact” information about beneficiaries.

S-1 and S-3 = By replacing “Be sure to answer” with “We ask that you answer” we can ensure that the instructions will not sound as though we are giving the

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client an order. The phrase “Be sure to answer” may be interpreted as condescending.

S-2 and S-4 = These vary slightly by saying “Be sure your client answers…”

O-17 = In this paragraph, we state “In order to change your account’s beneficiary designation, please complete the enclosed Beneficiary Designation form. Please

be sure to fill out all appropriate sections and sign the form exactly as the account is registered.” This opens on a positive note because of the phrase “please complete,” but quickly falters with the phrase “Please be sure.” Although “please” can often set a positive tone, its use does not always have that effect. In this example, the phrase “be sure” is still sufficiently negative to offset the positive effect of prefacing it with “please.” This sentence can be shortened and improved by changing it to “Please fill out all appropriate sections and sign the form exactly as the account is registered.”

D-21 = This begins positively by letting the shareholder know that we intend to help him or her by explaining how to avoid delays, but its effect is dampened by the same phrase used in the preceding example: “In order to expedite the processing of the distribution, please be sure to complete each highlighted section and sign the form as indicated.” The deletion of “be sure,” although it appears to be a small change, would offer significant benefits for the tone.

ST-9 and 11 = These open with “Please be advised that, after reviewing activity on your account, Johnson Investments has placed a stop purchase on your account(s).” We could replace “Please be advised” with “We would like to inform you…” This strikes a somewhat more personalized tone by referring directly to ourselves as “We” and directly to the shareholder as “you.”

The phrases singled out in the following paragraphs sound harsher than the ones in the preceding section, because most of them rely on the stock phrase “Please note.” In some cases, the negative impression is amplified by using bold print to highlight the sentence containing this phrase:

O- 4 = This implores the shareholder to “Please note that all account shareholders must sign the card exactly as their names are shown in the account registration.” We can remove “Please note that” and leave the remainder of the sentence as it is. The remainder of the sentence is “all account shareholders must sign the card exactly as their names are shown in the

account registration.” The bold print accomplishes the task of emphasizing this information.

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O-12 and O-13 = These paragraphs point out important information by stating “You will note that the numbers listed below correspond with the spaces provided on the form.” This sounds harsh and overbearing, which contrasts unfavorably with the two preceding sentences. The paragraph begins with “Thank you for your interest in the Johnson Investments checkwriting program.” This is

followed by “Please provide the following information on the enclosed Association Form to add the checkwriting service to your Johnson account.” The positive tone established by the first two sentences is disrupted by the sentence that begins with “You will note.” The sentence could state “The numbers listed below correspond with the spaces provided on the form.”

They also include “Please note that all trustees must sign the card exactly as their names are shown in the account registration.”

Tr-3 and Tr-4 = These paragraphs state “Please note that we are unable to…” We should remove “please note” to ensure that we do not have a condescending tone. The emphasis meant to be conveyed by this can be replaced by highlighting all, or even part of, the sentence.

O-7 = In this paragraph, there are two negative phrases used. The first is “Please note that all account trustees must sign the card exactly as their names are shown in the account registration.” That is followed later by the sentence “You will note that the numbers listed below correspond with the spaces provided on the form.” This is similar to the negative note struck by “Please note.” Unfortunately, the care given to numbering the form will not generate the expected positive impression because of “You will note.” The first sentence can simply begin “All account trustees” and the bold print will ensure that no one will overlook it. The second sentence quoted here can begin with “The numbers listed” and by using bold print for one key word, such as “correspond,” there will be little risk of anyone not comprehending the point we are making.

S-1, S-2, S-3 and S- 4 = These paragraphs all state “Please note that Johnson Investments no longer issues physical certificates.” We could change this to “We would like to inform you that Johnson no longer issues physical certificates.”

R- 6 = In response to a request to investigate what happened to a check, we state “Please note that the check was endorsed and subsequently processed.” The phrase “Please note” may communicate a tone of condescension. In this letter, it

contrasts sharply and unfavorably with the first two sentences. The letter begins “Thank you for your recent inquiry regarding your Johnson Investments account.”

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We have researched your request and have enclosed a photocopy of the check in question.” The favorable foundation created by the tone of those two sentences is damaged by the sentence beginning with the phrase “Please note.”

R-12 = This informs the letter’s recipient, who is not a Johnson Investments

shareholder, “To determine the transfer agent’s name and address, refer to a recent statement of your account. If you cannot locate any recent records, please contact your Broker or Fund directly.” The phrase “refer to a recent statement” connotes an order being given. A completely different tone can be created by using “please” or “we ask that you.” The new tone will be characterized by an implicit understanding that, even though we are not corresponding with one of our shareholders, every letter we write is an opportunity to imprint the image of our skills and values in the mind of its recipient.

Research 2 = This paragraph implores the shareholder to “Note that the information is strictly historical in nature.” We could simply state “This information is strictly historical in nature.”

Option 9 = This example directs the recipient’s attention to crucial information: “Please note that all account shareholders must sign the card exactly as their names are shown in the account registration.” This strikes an overbearing tone by combining a negative phrase with bold print. The simplest solution is to remove “Please note that.”

The following paragraphs tell the recipient that something is “not acceptable.” This is unduly harsh and seems likely to foster resentment in some shareholders and brokers. In some of these paragraphs, we are attempting preemptively to ensure that we will not be presented with a guarantee, in the form of notarization, that we cannot accept.

This is a positive effort, as it should save our shareholders and us the time and effort of making a second attempt to enact a transaction. In other paragraphs, we have received documentation that we can’t accept and must now explain what the shareholder, or other recipients, must do. Our goal should be to build on this positive effort by making shareholders understand that we are alerting them to a potential pitfall.

Option 5 = The closing sentence reads “A notary public is not an acceptable guarantor.” By telling the shareholder that something is “not acceptable” we risk sounding as though we are scolding the shareholder. The bold print used to

highlight the sentence is sufficient to make this point clear. We can change this to “We are unable to accept notarization as a guarantee.”

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Open 2 = This opening paragraph states “A notary public is not an acceptable guarantor of your signature.” This can be replaced with “We are unable to accept notarization to guarantee your signature.” This is another example of a “harsh” phrase used in conjunction with bold print. The bold print alone will make the key points stand out to the shareholder.

O-1 and O-6 = These openings have the same effect: “A notary public is not an acceptable guarantor of your signature.”

D-15 = In response to receiving a power of attorney document lacking the certification we require, we state “The power of attorney which you submitted…not properly certified and is unacceptable.” This is too harsh and the sense of coldness generated by it may resonate with the shareholder for the remainder of his association with us. This is also an unfortunate coupling of two harsh phrases in a letter that we are sending in order to tell the recipient something that he or she will not want to hear.

O- 2 through 7 = These opening paragraphs, which represent the first contact that some individuals will have with Johnson Investments, all state “A notary public is not acceptable as a guarantor.” We must balance the need to state our legal requirements clearly with an effort to “speak” to shareholders as equals rather than their superiors. In this example, the negative connotation of “not an acceptable” is compounded by putting it in bold print. We can achieve a striking improvement by changing this to “We are unable to accept notarization as a guarantee of your signature.” If we are unable to accept something, it implies that the legal requirements are, at least to some extent, beyond our control. If something is “not acceptable,” we create an image of ourselves as self appointed arbiters for all such matters. Of course we must have and enforce a clear body of legal requirements, but that is not incompatible with a friendlier, less domineering tone. This is especially important in cases, such as the opening letters, where we are giving what some shareholders will view as bad news. If we are unwilling to

accept notarization, the alternative, a medallion guarantee, may be more difficult to obtain.

R-22 = In this paragraph, we inform a shareholder that we have been forced to suspend his account’s electronic funds transfer and automatic investment plan options, due to invalid bank account information: “A notary public is not an acceptable guarantor.”

T-2 = We inform an IRA shareholder of the following about the instructions we need from the new custodian: “It should include the type of plan established and mailing instructions.” Although this is not especially harsh, we can still enhance

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the tone by stating “We ask that it include the type of plan established and mailing instructions.”

The following are examples of the passive voice, which is widely and ineffectively used in our system generated letters. It is ineffective because it is an obstacle to the achievement of a major goal, which is setting a tone that tells the shareholder that we are doing everything possible to manage their investments well. By opting for the active voice instead, we create the impression that we are speaking directly to the shareholders about the work we are doing on their behalf.

R-20, 21 and 23 = Each of these paragraphs states “Enclosed please find a check representing…” We can replace “Enclosed please find” with “We have enclosed.” This will eliminate the awkwardness of “Enclosed please find.” This phrase makes it clear that this is a form letter, and indicates to the shareholder that we have no personal concern for his or her account.

R-3 = This rejection paragraph, which explains that we cannot accept a check, strikes a similar tone by stating “Enclosed is the check you recently submitted to purchase shares for your Johnson Investments account.”

I-5 = This paragraph uses “Enclosed is” in a slightly different way that has the same negative impact: “Enclosed please find a W-9 form for you to complete.” This can be replaced with "For your convenience, we have enclosed a W-9 form.” The phrase “Enclosed please find” is awkward. Even more importantly, it sounds like the type of impersonal language that many shareholders have become accustomed to encountering in business form letters.

L-4 = In response to a problem caused by a mistake that we have made, we state “Due to an error, the original document is not available. Enclosed please find copies of the client’s original request with…” The phrase “Enclosed please

find” can be replaced with “Therefore, we have enclosed…” This sounds more personalized, as though our correspondent is actively attempting to assist the shareholder. For the sake of accuracy and clarity, we also need to revise “Due to an error.” In most cases, we have not made an error. The original document was enclosed with our letter of acceptance. We are sending this letter as a follow up to our original letter requesting a trustee to trustee transfer.

R-13 = This offers a slight variation in the order of the words by stating “Please find enclosed…”

TSA Final Payment = In this paragraph, we use a variable to supply personalized information, but also use a phrase that may cancel its positive impact: “Enclosed

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is your Promissory Note for loan number…” The phrase “Enclosed is your…” is a clear example of how the passive voice gives an impression of assembly line customer service even though it is followed by a variable to insert the specific loan number. The account specific information cannot overcome the obstacle imposed by the passive nature of the sentence. To create a personalized impression, we only need to change this to “We have enclosed…”

R-6 = This states “To assist you in responding, a current statement of the account is enclosed.” This sentence begins on a very positive note, by emphasizing that we are assisting the letter’s recipient, but then fails to capitalize on this when it uses the passive phrase “is enclosed.”

R-3 = This contains a hint of personalization, by stating “We will be happy… ,” but the tone is dominated by the passivity of “Enclosed is a history of the account…”

R-5 = In this, we inform a shareholder with a closed account that “Enclosed is an account record.”

LOI 7 = This informs the recipient that “A statement of your account is enclosed for your convenience. ” It also states “Your check has been received and credited as payment towards your LOI escrow fee owed.” We should state that “We have received and credited your check ~variable for check number and dollar amount ~ as payment towards the LOI escrow fee you owe.”

R-2 = In this example, we inform a shareholder that we have been unable to locate his or her account. This information, by itself, may reduce the shareholder’s confidence in us. The negative impact of this may be enhanced by using the passive phrase “Enclosed is a copy…”

D-7 = This paragraph uses the passive voice when informing the letter’s recipient of one of his or her responsibilities: “One may be obtained.” We should recognize this as a promising situation in which to use the active voice because a slight change to “You may obtain…” lets us address the recipient directly.

F-1 = This uses a slight variation on D-7: “...can be obtained.”

D-9 = This states “Proper certification may be obtained from a local court and is denoted…” Although we are referring to something that the shareholder

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will do, the passive tone still strikes an impersonal tone that reflects negatively on the shareholder’s perception of our relationship with him.

G-10 = This informs the shareholder that ”A capital gain may also be realized by you on your personal investment following a sale of shares or as a result of an exchange.” Even though this letter is a general explanation of capital gains, we can still improve it by giving the impression that we are engaging the shareholder in a conversation that began with his letter or telephone call, rather than monotonously listing the key points about this subject.

ITW = The letter states “One may be obtained by…”This is an example of the impersonal and passive language that readily identifies correspondence as a form letter. To personalize this, it can be changed to “You may obtain…”

G-1 = The paragraph opens with “We are in receipt…” This will very likely remind the shareholder of the majority of business form letters he or she has read. It strikes the familiar tone of an organization that deals with a large number of customers on a less than friendly and personalized level.

LOA-IRS = This example informs the shareholder of the information that the requested letter of acceptance needs to contain. The letter states “It should include the type of plan established and mailing instructions.” By stating “It should” we risk alienating the recipient by sounding demanding and curt. We could state ‘Please include…,” which would dramatically improve the tone with a slight change of wording.

MYE = This informs the shareholder that “A business reply envelope is enclosed for your convenience.” It fails to emphasize our effort in providing this service for the shareholder. We can state that “We have enclosed…”

R-11 = This is almost identical to the Maryland escheatment letter. It states “A return envelope is enclosed for you…”

The following are examples of paragraphs that segue awkwardly from one sentence to the next. Some shareholders may view this as more than awkward; they may see it as curtness or even indifference to their problems. This is especially important in letters whose purpose is to deliver negative news, such as the rejection of a request made by a shareholder. These paragraphs would be helped greatly by adding a word or phrase

that ties the sentences together. Transitions are often lacking in the preformed paragraphs and letters. The problem with individual paragraphs needs to be dealt with in the paragraph database. These are changes that need to be made within a

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paragraph in a way that, regardless of whether the paragraph is incorporated in a preformed letter or pulled in by a correspondent, the transition will be appropriate. Any transition problems with the complete letters, involving a transition from one paragraph to the next, must be addressed as training and quality control issues. Because the letters are created by combining two or more system generated paragraphs, the transition phrases from one paragraph to the next must be added by the correspondent.

Address = This begins with “Thank you for your recent request to update your address of record for your Johnson Investments account.” The next sentence states “We are unable to comply with your request, as the request was not signed.” Perhaps we could provide a smoother transition between the sentences, primarily because we deliver bad news in the second sentence. The second sentence could seem blunt and uncaring to some shareholders. One option is to state “We are currently unable to…,” which will make it clear, even before we explain our requirements, that we intend to do this as soon as it is made possible by the shareholder’s cooperation.

R-1 = This states that “We are unable to honor your recent Johnson Investments check…” This offers us the opportunity to reduce the negative impact of bad news. We could state “Unfortunately, we are unable…” The use of “Unfortunately” will convey our disappointment in not being able to comply with the shareholder’s wishes, and the remainder of the sentence will imply clearly that this is beyond our control.

R-16 and R-17 = These vary only slightly from R-1: “We are unable to negotiate the check...”

R-9 = This states “Thank you for your recent request to redeem the above account. The Fund’s prospectus prohibits the processing of any order that is conditional upon a stated price or date.” The second sentence jumps directly into a statement about what is not allowed without either making an effort to flow smoothly from the first sentence or to consider how the shareholder may react. The scolding tone of the second sentence is created by the lack of a transition and the reliance on the reference to the prospectus to deliver the news. We should, instead, make it clear that we want to help the shareholder by explaining why we can’t comply with this particular request. We can refer to the prospectus as a back up to what we have told the shareholder. We could state “We want to take this opportunity to explain why we are unable to comply with your request. You

requested that we ~ variable for specific request made ~ . The ~ Fund Name ~ does not allow the processing of any order that is conditional upon a stated price or date. If you wish to read a detailed explanation of this policy, we ask that you refer to the Fund’s prospectus.”

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R-10 and R-11 = R-10 states “Thank you for your recent request to transfer the referenced account.” R-11 states “Thank you for your recent request to ~ Enter requested transaction ~ the referenced account.” Both follow the initial sentence with “The Fund’s prospectus prohibits the processing of any order that is conditional upon a stated price or date.” This is another example of correspondence that would benefit from a smoother transition, such as the one described in the preceding example, between the opening sentence and the notification of rejection.

Address = This states “Thank you for your recent request to update your address of record for your Johnson Investments account. We are unable to comply with your request, as the request was not signed.” We could insert “currently” in the second sentence to soften the impact of the negative message it must deliver. The sentence could read “We are currently unable to comply…”

Clarity

A letter’s clarity is determined by its sentence structure and its use of highlighting techniques such as bold print, italics and bullet points. The degree of clarity achieved is also a function of how many specific details about the shareholder’s personal situation are included. Additionally, a letter is an example of professionalism only if it is free from terms that are used exclusively in the investment industry. A clear letter leaves no doubts in the recipient’s mind about the letter’s purpose, what Johnson Investments has done or intends to do, and what the shareholder’s responsibilities are.

D-2 = This paragraph describes our Corporate Resolution requirements. The paragraph provides valid information, but should be revised to ensure that several key points are made or emphasized. The paragraph states: “Please provide a certified (certification must be dated within 60 days of receipt) corporate resolution, which names the officers authorized to sign on behalf of the corporation. A certified resolution will bear a corporate stamp or a STAMP2000 Medallion Signature Guarantee stamp.” To avoid giving anyone the impression that a medallion guaranteed letter of instructions will suffice, we need either to revise the final sentence or add a new sentence stating clearly that we require a

medallion guaranteed letter of instructions and a corporate resolution. We should also highlight the “sixty days” requirement in bold print.

D-14, 15 and 16 = These paragraphs state our power of attorney and trust document requirements. They describe how a court, bank or broker can certify a

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document. Their recipients would be helped greatly by the addition of another certification option, which is a legal opinion provided by an attorney. This is especially important for trust documents, because many banks are reluctant to affix a medallion guarantee to them.

We could add the following to Document 16: “If you are unable to obtain a STAMP2000 Medallion Guarantee for the trust document, your attorney may certify the trust. This certification must include a signed letter from the attorney on his or her letterhead indicating that the trust is in full force and effect and has not been amended. The attorney’s signature should be STAMP2000 Medallion Guaranteed or notarized and the certification letter must accompany a copy of the trust document.”

We can add the following to D-14 and 15: “You may also have an attorney certify the Power of Attorney by sending an accompanying letter, on his or her letterhead, stating that the document is in full force and effect and the maker is alive and competent. The attorney’s signature should be STAMP2000 Medallion Guaranteed or notarized and the certification letter must accompany a copy of the Power of Attorney.”

D-16 = This paragraph could benefit by adding the format for certification that is specified in D-15, in a separate paragraph that is set apart visually by indenting. D-15 states: “…the format must include the following:

It is hereby certified that the foregoing Power of Attorney is a true and accurate copy of the original, is still in full force and effect and unamended as of the present date and that the maker is still alive and competent as of (Date). (Name of bank/broker.) (Signature of officer and title.)”

We would need to amend it slightly for the Trust paragraph by removing “…the maker is still alive and competent…”

D-16 = This provides a basic description of the Trust requirements, and is equivalent to D-14 which does the same for the Power of Attorney document. D- 15 is tailored to a situation in which we have received a Power of Attorney document, but it is not properly certified. We have suggested elsewhere in this document that numbers 14 and 15 can be combined via the use of a variable. For

Trusts, however, we do not have anything that is equivalent to D-15. Therefore, we can create a variable for situations in which an improperly certified Trust has been sent to us.

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D-16 = This paragraph is applicable to one type of situation involving a trust, where a trustee has died and we are informing the recipient of the need for a trust document identifying the successor trustees. However, we also need to send letters to individuals who are attempting to open a new account with a trust registration or transfer to a trust registration. The first sentence of D-16 states “Please provide a certified (within 60 days) copy of the trust agreement, indicating the newly appointed successor trustee(s) with authority in matters regarding the account.” We can insert a variable to use either “newly appointed

successor trustee(s)” or “trustee(s).”

L-5 and L-7 = These state the following:

“Thirteen months ago you requested a Letter of Intent(LOI) to be established on your account.”

“Your LOI, which entitled you to buy shares of Johnson Funds at a reduced sales load, has expired. Thank you for your payment.”

The order in which these sentences appear could be confusing for the letter’s recipient. The third sentence, “Thank you for your payment,” sounds as though it should be the letter’s opening.

G-1 = This begins with “We are in receipt of your transaction request for the above account.” This is extremely vague and could apply to any imaginable request made by a shareholder. The phrase “We are in receipt” is also an example of a passive, overly formal tone.

T-4 = The letter refers to information that “is stated in our plan prototype…” This may cause two potential problems. The use of the term “plan prototype” could reasonably be considered a form of jargon. The letter also seems to be implying that the shareholder should already be aware of this information because it is

included in the plan prototype. We should always show shareholders the courtesy of providing information in a non-judgmental way.

L-1 – This states “If you or other members of your household have additional accounts in Johnson Funds please let us know, these accounts may also be eligible

for a discounted sales load under your LOI.” This sentence does not flow smoothly. A better version is “Please let us know if you or any other members of your household have additional accounts in Johnson Funds, as these accounts may also be eligible for a discounted sales load under your LOI.”

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LE-1 = As part of an explanation of our company’s privacy policy, we state that “We do contract with certain companies to provide services that we do not have in house required to service your account.” This sentence is extremely awkward and also uses the term “in house,” which may be viewed as jargon. An improved version is “We do contract with certain companies to provide some services that we do not provide ourselves.”

R-3 = This states “We will be happy to do further research on the account,

however there is a $50.00 fee to obtain historical account information prior to five years.” The phrase “prior to five years” may provide the information intended,

but it does not state it clearly. A suggested improvement is “from more than five years ago.”

RM = We inform the shareholders that “If the request is in writing, please make sure that all shareholders sign the request.” The letter currently offers the correspondent no variable in the event that there is only one shareholder. It may also be helpful to state the names of the shareholders, or “you and ~ variable for the name of the other shareholder ~.”

The following are examples of letters whose clarity can be improved by using markers such as bold print and italics. To enhance clarity, we must use these highlighting techniques judiciously. By being selective and only highlighting a handful of key points, we draw the reader’s attention to those points. The mistake that we must avoid is using highlighting so often that it loses its impact.

D-10--Q = This contains a variable in which the correspondent must choose either “divorce decree” or “Domestic Relations Order.” We could use bold print to highlight whichever variable the correspondent selects.

D-14 = This specifies that we require “original certification” of the document. Bold print could be used to make this key phrase stand out to the reader.

S-1, S-2, S-3, S-4 = In these examples, we state “Please note that Johnson no longer issues physical certificates.” We can remove “please note” and highlight a key sentence or key words instead: “Johnson Investments no longer issues physical certificates.” It would also be helpful to replace “Be

sure your client” with “Please assist your client by asking him or her to…,” as “Be sure” is one of the negative phrases we should avoid.

R-2 = This exhorts the shareholder to “Be sure you give the exact registration of the account.” We can simply replace “Be sure you” with “Please.” We

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also have the option of underlining, or highlighting in some other way, the words “exact registration.”

RM = This urges the recipient to “Please be aware that your original investment may have been made with another mutual fund company, which subsequently merged with Johnson Investments.” To avoid using the potentially negative phrase “Please be aware,” without sacrificing clarity, we can use highlighting techniques. For example, the sentence could read “We want to emphasize that your original investment may have been made with another fund company, which subsequently merged with Johnson.”

R-2 = This states “Note that the information is strictly historical in nature.” “Note” could be replaced by “We want to emphasize.” Another possibility is to highlight “The information is strictly historical in nature” with bold print, italics or underlining.

IR-1 = We can use bold print to alert the shareholder to the key date range “within 21 days” that is included in this paragraph’s explanation of a Notice of Levy that we have received.

CN-2 = In this explanation of backup withholding, we can direct the shareholder’s attention to the key withholding percentage of “30 %” by using a highlighting technique.

D-2 and D-9 = In these paragraphs, we can highlight the date range requirement, “60 days,” that applies to Corporate Resolutions and documentation of guardians, conservators and custodians.

G-3 = We can use bullet points to segregate the various pieces of information that we request. This includes the name of the new account

owner, his or her address and tax identification number and the number of shares to be transferred.

We will ask the staff to examine letters, as they perform their usual duties, to find additional opportunities for the use of highlighting.

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Variables

Variables are very helpful in creating and sustaining a personalized tone. They also greatly enhance another criterion, clarity, because they leave no doubt about the letter’s subject. Variables can be especially useful if they are used in the first sentence of the letter body to explain exactly what the letter’s purpose is. We can also help to achieve our goal of designing a user friendly letter database, by using variables to combine some paragraphs and letters. This will streamline the database and enhance the confidence of our correspondents in this tool.

O-17 = This states “In order to change your account’s beneficiary designation, please complete the enclosed Beneficiary Designation form.” A variable could be inserted after “designation” to add the name of the proposed beneficiary.

R-6 = This states “We have researched your recent request and have enclosed a photocopy of the check in question.” A variable asking for specific check information could take the place of “the check in question,” because enclosures do not fulfill our responsibility to provide customized responses.

G-1 = This sentence combines a passive tone with a vague reference to the shareholder’s request: “We are in receipt of your transaction request for the above account.” A variable can replace “transaction request” to allow us to state exactly the nature of the request.

T-4 = “Our records indicate that you are beyond the required beginning date for taking your Required Minimum Distribution (RMD).” A variable could specify what that date was, which would indicate that we have examined the shareholder’s account with care and precision.

Qualified Domestic Relations Order = This states “In order to process your request…” A variable can be added to specify the request to which we are responding.

O-10 and O-11 = We respond to a request by stating “Thank you for your “variable for letter or telephone call” concerning the loss of certificated shares outstanding in the above account. For “variable for shareholder’s name” protection a STOP

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has been placed against the missing shares.” This can be improved by adding a third variable, in place of “certificates outstanding,” to state the number of shares. Ideally, we would also provide the certificate number, but this may require too much research.

R-16 = After receiving a check, we thank the shareholder in the following manner: “Thank you for the check you recently submitted for investment into your Johnson account.” We thank the shareholder for investing with us, and yet we do not display gratitude by stating the check details. A variable could let the correspondent supply the check number and its dollar amount.

S-4 = This informs the recipient that “To replace the shares, please have the enclosed Applications for Lost Securities Bond completed.” A variable could be used to insert the number of shares represented by the bond.

L-4 = This informs the shareholder’s resigning custodian that “On ~ variable for date request received ~ we received a request from the above named individual to process a trustee to trustee transfer from your institution to ours.” The phrase “above named individual” can be replaced by a variable to state the shareholder’s name. Even though we are not writing to a shareholder, this does not relieve us of our responsibility to personalize our responses.

L-1 = There is a variable after this sentence that specifies the dollar amount target for which the LOI was established. We make no effort, however, to customize this sentence: “Thank you for your recent investment in Johnson Funds. “ A variable could be used to specify the dollar amount of the purchase.

L-4 = This provides personalized information, but not enough: “Thirteen months ago you requested a Letter of Intent to be established on your account. This Letter of Intent (LOI), which entitled you to buy shares of Johnson Funds at a reduced sales charge, has expired.” This includes variables for specific information such as the number of days by which the LOI has been extended and the dollar amount that still needs to be invested to reach the agreed upon amount.

However, that overall amount is not mentioned. A variable could be used to supply that information in either the first or second sentence.

L-7 = This states “Your check has been received and credited as payment towards your LOI escrow fee owed.” We could add a variable to supply the check number and its dollar amount.

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O-2 = This provides a generic response: “To participate in Johnson’s Direct Deposit program for distributions and/or telephone transactions…” If we know that the shareholder has requested information about one of the two types of programs, either distributions or telephone transactions, we could use a variable to input that program.

R- 3 = This informs the shareholder that “The check was returned to us for the reason stamped on the front of it.” Of course the shareholder can see that reason when he or she looks at the enclosed check, but we can attempt to add a positive note to an otherwise negative situation by using a variable to insert the specific reason for rejection.

L-3, L-5 and L-9 = These state “The individual named in the attached…” Although this letter is not sent to the shareholder, we should uniformly provide personalized service.

L-4 = This is a slight variation on L-3. It refers to the “above named individual.”

L-2 = The letter states “This agreement enabled you to save on purchase expenses, and now provides the continued opportunity for further investments at the discounted sales charge based on the current value of your investments.” To help the shareholder, we can provide information about the practical application of this opportunity. We could include a variable that would allow the correspondent to include account specific information about the current account balance and the next breakpoint level.

Combining Paragraphs

Many system-generated paragraphs have enough similarity to each other to allow us to combine two or more of them. The use of variables is essential in this process. Unlike the suggestions for variables in the preceding section, the ones in this section will make the databases more user friendly by reducing their size. This is especially true of the letter database, because the only difference between many letters is a slight variation in one of their paragraphs. We will explore the possibility that our systems technology will be able to support the changes that we hope to make. It is especially important for us, in conjunction with our technology staff, to determine the maximum number of characters that can be included in a variable.

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The opening paragraphs provide some opportunities to use variables in a way that allows us to combine cans and reduce the overall number of opening paragraphs.

O-1 and O-6 = Number 1 is intended for a shareholder and Number 6 is intended for a broker or attorney. Both include a request for a medallion guarantee.

O-2 and O-3 = Number 2 thanks the shareholder for informing us that an account is registered incorrectly, while Number 3 thanks the shareholder for a request to combine accounts. Both ask for a medallion guarantee. The only significant difference is what we are thanking them for, which can be addressed through a variable.

O-4 and O-5 = These paragraphs are identical. Both offer sympathy for the death of a shareholder.

O-8 and O-12 = Number 8 states “Thank you for the ~ Enter source document type ~ you recently submitted for the above account.” Number 12

states “Thank you for your telephone call regarding the above account.” We could eliminate Number 12 and change Number 8 to “Thank you for the ~ source document type you submitted or telephone call you made ~ regarding the above account.”

O-10 and O-11 = Number 10 states “Thank you for your ~ Enter request source ~ concerning the loss of certificates outstanding in the above account.” Number 11 states “Thank you for your ~ Enter request source ~ concerning the loss of certificates outstanding in the above account. For ~ Enter Shareowner Name ~ ‘s protection a STOP has been placed against the missing certificates.” It is possible to create a variable for the second sentence in Number 11, as the first sentence in both is identical.

Several other sets of related paragraphs will allow us to improve our database.

Cl-1, Cl-2, Cl-4 and Cl-6 = Number 1 provides our website, customer service toll-free elephone number and a return envelope. Number 4 differs only by not including an envelope. Number 2 provides the correspondent’s telephone extension, which is not something we customarily do. Number 6 provides our telephone number, but not the website. All closings should provide both the telephone number and the website address. We could use a variable to allow a reference to an enclosed return envelope to be added when appropriate.

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R-10 and R-11 = Number 10 states “Thank you for your recent request to transfer the above account.” Number 11 states “Thank you for your recent

request to ~ Enter requested transaction ~ the above account.” We could create a variable to allow the addition of the specific request.

R- 12 and R-13 = Number 12 is used for returning misdirected items to a shareholder, while Number 13 returns them to the transfer agent.

IR-2 and IR-3 = Number 2 states “Also, please sign and return…” and Number 3 states “Also, please have signed and return…” We can create a variable that prompts the correspondent to insert one of the two versions, based on whether the letter is sent to the shareholder or a broker.

R- 20 and R-21 = Number 20 states “Your bank, ~ Enter bank name ~, has informed us that they do not currently participate in Electronic Fund Transfer (EFT) transactions.” Number 21 states “Your bank, ~Enter bank name ~, has informed Johnson Investments that your bank account is currently frozen and is not accepting funds.” A variable could allow the correspondent to input the information that the bank has given us.

D- 12 and D- 13 = Number 12 states “…please sign the back of the certificate and name Johnson Investments…” Number 13 states “…please have your client sign the back of the certificate and name Johnson Investments…” A variable would enable us to insert the appropriate language, which depends on to whom the letter is sent.

D- 14 and D-15 = Number 14 provides a basic description of our power of attorney requirement; Number 15 refers to a power of attorney document that we have received which is not properly certified. It may be possible to create a variable to change the wording slightly depending on the situation.

S-1 and S-2 = The only difference between these is that one is sent to a shareholder and the other is sent to an agent working on the shareholder’s behalf.

S- 3 and S-4 = These paragraphs, which differ from Numbers 1 and 2 because they ask for a surety bond payment, differ from each in the same way that 1 and 2 differ from each other.

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The following are examples of some of the letters that can be combined if we are able to combine the above paragraphs:

1. 85 Sig GG and 85 Sig 22 = “GG” is composed of O- 4, D- 4, D- 5, D-7 pagebreak, D-12, IRS 2 and Cl- 5. “22” is composed of O-5, D- 4, D-5, D- 7, D- 13, IRS 3 and Cl-5.

2. 74 D-B and 74 D-C = “B” is composed of O-8, D- 10, D- 12, G- 7 and Close 1 pagebreak. “C” differs only because is uses D-13 instead of D-12.

3. 85 W-9 A and 85 W-9 B = The only difference between “A” and “B” is that one uses O-8 and the other uses O-12.

4. 62 T- A and 62 T-B = These also differ only between O-8 and O-12.

5. 67 M-A and 67 M-B = “A” is made up of R- 12 and Cl-6. “B” uses R-13 instead of R-12.

6. 75 P- A and 75 P-B = “A” uses D-14, which is a basic Power of Attorney paragraph, and “B” uses D-15, which refers to a Power of Attorney document that has been provided to us without proper certification.

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The following table links the examples of letters that we can combine with the paragraphs that must be combined to make that possible.

Letter Combinations Paragraph Combinations

75 S-GG and 75 S 22 O-4 and O-5

74 D-B and 74 D-C D-12 and D-13

75 W-9 A and 75 W-9 B O-8 and O-12

62 TOD A and 62 TOD B O-8 and O-12

70 MISD A and 70 MISD B R-12 and R-13

75 POA A and 75 POA B D-14 and D-15

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Good Examples

In this section, we will provide examples of letters that exemplify positive characteristics that should be included in all of our correspondence. Although some of these letters have flaws that are addressed elsewhere in this document, it is important to see the specific ways in which we communicate effectively.

Le-1 = This states “At your request, we have put an indicator on your account…” The phrase “At your request” emphasizes that we examine shareholder requests carefully and act on them. The phrase “we have put an indicator…” is the kind of “active voice” that we should emulate in other letters. If, instead, this had been phrased as “an indicator has been placed…” it would dramatically weaken the letter’s tone.

Op-15 = This states “Thank you for your recent ~ Enter Source of Request ~ regarding Johnson Direct Deposit Service for making payroll contributions to your Johnson account. We hope you enjoy the ease and convenience that this service provides.” This provides a variable to remind the shareholder of his communication with Johnson, and reinforces the image of a personalized service provider. The second sentence is friendly without going beyond the boundaries inherent in a business letter.

Tr-2 = In this, we state “In order to conform with IRS regulations, we will need a signed letter of acceptance from…” This is good because instead of simply requesting something, we explain why we need it.

RMD = We explain that “Johnson offers three options for RMD payments:,” which is followed by three bullet points, each of which separates one substantial body of information from another. For example, the first option states “Your distribution can be transferred to a non-retirement Johnson account. If you choose this option, your distribution will be automatically deposited at net asset

value to the Johnson fund of your choice, within the same class of shares (Class A, B, C, or I) as your current investment without a sales charge.” The use of bullet points in this letter is extremely helpful in avoiding potential confusion.

R-5 = This lets the shareholder know that “We have researched the matter…We will then examine our records further, make any necessary adjustments, and report our findings to you.” This letter makes it clear that we are working actively for our shareholders.

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Op-8 = This addresses the shareholder directly and courteously: “We hope you enjoy the ease and convenience that the service provides.”

Op-11 = This letter tells the shareholder how to complete an enclosed form for the purpose of establishing the checkwriting privilege. This uses the highlighting technique of numbering to distinguish each of the six key pieces of information from each other.

R-14 = This indicates to shareholders that we need their help, and implies that we are in partnership with them: “We appreciate your assistance…”

D-18 = This states “If you wish…” This clearly indicates that, whenever possible, we will defer to the shareholder’s preferences.

R-Mail = This explains what we hope to accomplish for the shareholder by requesting his or her current address: “In order to avoid a delay or non-receipt of mailings about your account…”

Letters to be Created

Through discussions with the staff, we have discovered that there are several frequently used letters for which we currently have no system-generated letters. The following subjects need to have letters created:

Checkwriting privilege is not available for the shareholder’s fund.

We need more information about a new beneficiary on an IRA or TOD account.

We need additional information about a broker, his or her brokerage branch or dealer firm.

We need written authorization from a Plan Administrator to release assets from a 401K or 403B account.

We must be informed, in writing, of a “triggering event” in order to redeem funds from an IRA when the shareholder is under 59 ½ years old.

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Transfer/Redemption requirements from an IRA beneficiary due to the shareholder’s death.

Transfer/Redemption/Rollover requirements for each type of IRA or Qualified Plan.

We need to request that a brokerage firm’s back office create a B50 to accept a transfer.

A paragraph stating that we will indemnify a brokerage firm.

A paragraph explaining W-8 requirements.

A paragraph that explains the Stamp2000 Medallion Guarantee program.

A paragraph explaining that we have completed an unsuccessful attempt to search our third party database to locate a new address for a lost shareholder.

A paragraph explaining that we are unable to provide historical information dating back to before 1984.

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Renaming Letters

Our correspondents often are unable to make full and efficient use of the database because many letters are not titled clearly. Although the size of the letter database appears to be a more challenging problem than the letter titles, this aspect does offer opportunities for achieving greater utility. The confusion and doubts resulting from this increase the time required to complete some letters and, in many cases, result in a letter being formed by putting paragraphs together instead of using the available preformed letter. We have identified several trends in the letter titles that offer us an opportunity to make significant changes. In addition to the trends, the proposed reduction in the number

of letters, made possible by the use of variables, will allow us to rename many letters. We will also query the staff for additional recommendations that may occur to them as they attempt to locate letters.

Some signature guarantee letters have the abbreviation “Instr” or “Instr to,”’ which is short for “instructions,” at the beginning of the title. This is irrelevant because all signature guarantee letters provide instructions.

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The abbreviations “O/S” and “Certs” are used to signify “Outstanding Certificates.” “Certs” is easier to decipher than “O/S,” especially for new associates. The “O/S” can easily be dispensed with, with no loss of clarity.

Many letter titles begin with either “S/H,” for “shareholder,” or “Atty/Brker,” for “Attorney/Broker.” By combining any paragraphs that vary slightly depending on whether they are sent to the shareholder or the broker, we can make these abbreviations obsolete.

The abbreviation “Ind” is used for “individual” account. This can be spelled out as “Individual” or as “Single.” By removing some of the other abbreviations that are either unnecessary now, or will be after changes are made, we will gain space for spelling out entire key words.

Reorganizing Databases

Another way to enhance efficiency is to make changes to the format in which both the paragraph and letter databases are organized. The letter database currently breaks the letter sections down according to their subject. It does this effectively from one subject area to the next, but fails to provide adequate organization within each subject section.

It may be possible to compartmentalize this further by using the following criteria:

Transfer Vs. Redeem

Joint Account Vs. Individual

POA Vs. No POA

We can use these suggestions as a starting point for a survey of the Correspondence staff.