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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (11694)	7/21/2000 5:29:13 PM
From: sam	Read Replies (2) \| Respond to of 24042

Correct. The purchases do not have to occur on the open market. But don't look for lots of fund family transfers. Managers are judged on performance and may not be so willing to part with THEIR shares so another manager's index fund can be filled out. There is probably not a whole lot of the "take one for the team" mentality amongst the managers of the competitive large fund families. In addition, the accounting required tends to be quite strict...so "borrowing" may not be appropriate. That said, some funds will undoubtedly sell shares to other funds off market.

To: TigerPaw who wrote (11694)	7/22/2000 10:27:50 AM
From: David Graham	Read Replies (2) \| Respond to of 24042

It's important to remember that, strictly speaking, index fund managers don't care what price they pay. They are evaluated on their ability to match the index, not for making bets on prices. In the wacky world of index tracking, managers should actually be buying all their stock at the day's closing price - they do not get brownie points for buying it more cheaply earlier in the day. It's like legalized robbery for the rest of us as we get to trade ahead of all the index buyers - it's the closest thing to a free lunch that I've ever seen.