Regulation Fair Disclosure has stanched the flow of substantive information to portfolio managers and analysts, according to a survey released today by the Association for Investment Management and Research of Charlottesville, Va.

A majority of portfolio managers and analysts (57 percent) responding to the survey believe Regulation FD has cut down on the amount of information available about the companies in which their funds invest, according to the association. Moreover, 56 percent of the respondents indicated that the quality of information provided by companies has decreased since Regulation FD was adopted, according to the survey.

The survey is based on 423 responses from portfolio managers, analysts, brokerage firm and investment bank employees. The majority of the respondents (316) were from the sell-side, while 107 respondents were from the buy-side.

While sell-side respondents were more likely than buy-side respondents to indicate that they believed the volume of substantive information had decreased (69 percent), a majority of buy-side respondents (53 percent) also agreed with this assessment.

The survey also indicates the majority of respondents (71 percent) believe Regulation FD has contributed to market volatility by reducing the amount of earnings guidance given by issuers, thereby increasing the amount of surprise earnings results.

The association opposed Regulation FD’s proposal and adoption, claiming that the rule would cut down on the amount of relevant information investors and markets would receive about stock issuers.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.