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SEC Calls For More Data on Funds

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Dec. 11, 2002 — The Securities and Exchange Commission today proposed rules requiring mutual fund companies to provide more information about fund expenses and portfolio holdings.

The commission proposed having fund reports disclose fund expenses in dollars and cents, rather than as a percentage of assets. Under the proposal, fund reports would include one figure showing the cost of a $10,000 investment based on a fund’s actual expenses and returns, and a second figure including an assumed annual return of 5%.

The first figure would enable shareholders to estimate actual costs, and the second would let them compare expenses at different funds, an SEC spokesman said.

The commission also voted to give fund companies the option of providing fund shareholders a list of a fund’s top 50 holdings. The companies would have to provide a list of all portfolio holdings if an investor requests one.

The SEC also proposed requiring funds to disclose complete portfolio holdings four times a year. Currently, this information must be released twice a year.

The information would have to be disclosed 60 days after the end of the quarter and would be posted on the commission’s Web site (, where it would be available for free.