Notice & Access Pricing Example - 600,000 Positions
The Notice and Access modeling tool shown in this example reveals that an issuer or mutual fund with 600,000 beneficial positions could save $843,000.
There are a number of ways an issuer and mutual fund can increase savings. The example below shows savings through analyzing the issuers' and mutual funds' shareowner base and segmenting shareowners that should and should not receive a full package of materials. This in addition to householding and suppressions increases savings.
Estimated issuer savings due to Notice and Access Model only:
| 1. Printing costs for the Proxy Statement and Annual Report total $2.00: |
328,000 x $2.00 |
= |
$656,200 |
| 2. Postage difference between full package rate and Notice rate of $.60 |
328,000 x $.60 |
= |
196,800 |
| 1. 600,000 beneficial positions |
600,000 x ($.40 + $.05) = $ 270,000 |
Existing NYSE base processing fee of $.40 plus $.05 intermediary fee for issuers or mutual funds with more than 200,000 positions |
| 2. 500 nominees respond with positions |
500 x $20.00 = $ 10,000 |
Existing NYSE Nominee coordination fee of $20 |
| 3. The issuer or mutual fund decides to use the Notice & Access model |
600,000 x N&A fee from table = $ 70,500 |
Notice and Access flat fee of $ 1,500 for the first 6,000 positions and $ .25 for 6,001 – 10,000 and $ .20 for the next 90,000 |
| 4. 54,000 of the positions had previously consented to receive electronic delivery |
54,000 x $.25 = $ 13,500 |
Existing NYSE paper and postage fee for full packages of $.25 for issuers or mutual funds with more than 200,000 positions |
| 5. 36,000 of the positions use ProxyEdge as their voting platform |
36,000 x $.25 = $ 9,000 |
Existing NYSE paper and postage fee for full packages of $.25 for issuers or mutual funds with more than 200,000 positions |
| 6. 12,000 positions have requested to receive full packages for all positions held in their account |
No additional fee, issuer or mutual fund pays postage |
All fulfillment transactions are included in the base Notice & Access fee |
| 7. This leaves 498,000 positions that are eligible to receive a Notice |
No additional fee |
-- |
| 8. 170,000 Notices are suppressed due to Householding, and/or broker special processing, e.g., money manager rollups |
170,000 x $.25= $ 42,500 |
Existing NYSE paper and postage fee for full packages of $.25 for issuers or mutual funds with more than 200,000 positions |
| 9. 328,000 Notices are mailed |
No additional fee, issuer or mutual fund pays postage |
-- |
| 10. 13,100 positions request fulfillment after receiving a Notice |
No additional fee, issuer or mutual fund pays postage |
All fulfillment transactions are included in the base Notice & Access fee |
Savings Comparison:
Incremental fees of $70,500 offset by savings of $843,000 for a net savings of $772,500, or, net savings more than 9 times the incremental fees
Savings will decrease if the issuer or mutual fund chooses to use a hybrid mailing strategy combining full packages with the Notice & Access model, but the total savings will be predictable.
Suppression rates are based on current actual averages.
In all cases, the issuer or mutual fund pays for print, forms, postage and vote returns.
*Reduced suppression fee only applies to consolidation, Householding and exception processing related to suppressing a Notice form.
This is meant to be an example only, but accurately reflects averages across all jobs.
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