SEC officials last week outlined a rule proposal on how mutual funds should report their after-tax returns.

The proposed rule would require funds to issue a standardized number on one-, five- and 10-year after-tax returns in their prospectuses, in the Management's Discussion of Fund Performance section of a fund's annual report and in advertisements. The rule would also require funds to report both pre- and post-liquidation numbers and after-tax returns would have to be presented alongside before-tax returns in a standardized table that includes a brief explanation of the returns presented.

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