The Securities and Exchange Commission approved a new rule requiring mutual fund companies to provide more balanced information in their advertisements when promoting fund performance.
The new rule, which was adopted with a 4-0 vote, will require that firms advertise a phone number or Web site where investors can go to get more timely information on performance. Most advertisements currently contain performance for the previous 10-,five- and one- year periods. Several also include year-to-date numbers, but those figures are often lagging by a few months, dating back to the end of the most recently completed quarter. The new requirement calls for all the numbers available on the site or phone to be as current as the end of the most recent month.