The Securities and Exchange Commission, long the scourge of fund marketing departments, may have given marketers something to smile about in adopting new regulations on after-tax disclosure of performance information. The new regulations, which require funds to post before and after-tax performance information in prospectuses and advertisements promoting funds' tax management, provide some funds a new approach to marketing their product, said industry executives. The regulations were adopted Jan. 19.

"In a funny way, the SEC could be doing the fund industry a favor by giving them a new way to market funds that they didn't have before," said Dan Ross, president of Wechsler Ross & Partners, a marketing and design firm for the financial services industry, of New York. "People have been trying to sell tax-managed investments for several years, with what I would say is limited success."

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