SEC Adopts New Disclosure Rules For Mutual Funds
Mutual funds will have to disclose enhanced information on expenses, portfolio investments and performance under rules adopted by the Securities and Exchange Commission.
Under the new rules, mutual funds will have to disclose expenses borne by shareholders in terms of costs in dollars associated with a $1,000 investment, based on the funds actual expenses for a reporting period.
In addition, funds will have to disclose the cost in dollars associated with a $1,000 investment, based on the funds actual expense ratio for the period and an assumed return of 5%.
SEC says the first figure is intended to permit investors to estimate the actual costs that they bore over the reporting period.