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Purpose and Services
This page was last updated on December 1, 2000. Articles by Fund Democracy: Archives SEC Preparing to Shine a Brighter Light on Fees, The Street.com (Nov. 17, 2000). Abstract: Imagine a store where you pay by handing your wallet to a salesperson who then liberates 1.31% of your cash. That's how 88 million Americans pay their mutual funds, and the funds won't even tell you exactly how much you paid. The Securities and Exchange Commission thinks you should know. It will soon release a study on mutual fund fees that will recommend that funds give shareholders information "to quickly and effectively estimate the actual amount they have paid fund managers during a given period," says SEC Chairman Arthur Levitt. Along with a pending SEC proposal to require disclosure of after-tax fund performance, the required disclosure of actual fund expenses will help shareholders understand the impact of fees. Disclosure of fund brokerage, which currently is not included in a fund's expense ratio, may be the next disclosure target for the SEC. (View the full text of this article.) |