Disclosure is the order of the day. The
Specifically, the rule requires funds that launch after Feb. 28 to disclose the information in their registration documents. Existing funds must report the information in their prospectuses, which are updated annually. The SEC rule aims to better align managers' interests with those of long-term shareholders. For instance, potential conflicts of interest by portfolio managers can be identified if they disclose investments they have in their mutual funds and in hedge funds.
But the rule has its share of dissenters within the industry. James Riepe, vice chairman of
A few firms have already started linking managers' pay to performance.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.