SEC Calls For More Data on Funds

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.