Funds ready to fold on more disclosure: Vanguard, T. Rowe to end resistance.

Investment News, December, 2002 by Gabriel, Frederick P., Jr.

Resistance is beginning to crumble among mutual fund companies that oppose federal efforts to require more disclosure of fund holdings. The Securities and Exchange Commission has given the $6.2 trillion fund industry 30 days to state what it thinks about disclosing portfolio holdings four times a year instead of twice a year, as is now required.

The proposal likely will be accepted. For years, fund companies have resisted any push toward more-frequent disclosure. They argue that it would be too expensive and would open the door for arbitrageurs to trade against funds. But the nation's No. 2 fund company, The Vanguard Group Inc., will likely support the change, says spokesman John Woerth. The Malvern, Pa.-based company has generally opposed...

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