Feb. 12, 2003 — Vanguard Group, the second largest mutual fund company, said it supports proposals by the Securities and Exchange Commission requiring funds to provide more information about fund expenses and portfolio holdings.
A rule requiring quarterly disclosure of fund holdings would benefit investors who want more information about what stocks their funds are invested in, without increasing fund expenses, the company said. Funds currently must disclose their holdings twice a year.
Providing more information on fund expenses will help investors better understand expenses and their effect on fund returns, according to Vanguard, a proponent of low-cost fund investing. The SEC proposed the rules in December. Public comments on the changes can be made through Friday.
The holdings rule, Vanguard said, also would protect investors from “predatory” trading practices, such as portfolio managers buying stocks for themselves before adding it to their funds, or investors seeking to copy a fund’s investments.