NU Online News Service, Feb. 12, 2004, 12:47 p.m. EST, Washington – Mutual funds are going to have to give customers more information.[@@]
The U.S. Securities and Exchange Commission has adopted rules that require funds to improve disclosures about expenses, portfolio investments and performance.
Under the new rules, mutual funds will have to express shareholder expenses in terms of dollars of expenses for a $1,000 investment, based on the fund’s actual expenses for a reporting period.
In addition, funds will have to disclose the cost in dollars for a $1,000 investment, based on the fund’s actual expense ratio for the period and an assumed return of 5%.
The SEC says the first figure will help investors estimate the actual costs that they bore over the reporting period.