From: Welburne D. Johnson, II [wdjohnsonii@comcast.net]
Sent: Wednesday, February 18, 2004 4:11 PM
To: rule-comments@sec.gov
Subject: (s7-11-04) Vote NO to Mutual Funds 2% Less than 5 day penalty rule ! - 
FOWARD for consideration for the Feb 25, 2004 meeting

Dear SEC:
 
I participate in a Mutual Fund Company called PROFUNDS.  This fund family along 
with the RYDEX Funds family has a no penalty daily trading policy.  They trade in 
the futures market and have priced in daily traders into their fund expenses 
profile.  These companies have been following these policies for YEARS.
 
It is OUTRAGEOUS that abuses of unlawful "connected" traders at some funds are 
going to penalize the traders who are in funds that base their uniqueness on 
"Daily Trading".

It should be solely up to the individual Mutual Fund company to impose short term 
trading penalties.

Incidently, who will receive these these 2% short term trading "penalties"?  It 
imagine the penalities will be paid to the industry which was UNABLE to police 
itself in the first place !
 
Thank you,
 
Welburne D. Johnson, II, MD
931.260.4466