The Securities and Exchange Commission is considering allowing fund companies to shorten their bi-annual shareholder reports, according to a spokesperson for the SEC.

Instead of requiring fund companies to send shareholders lengthy documents that include all of the holdings in a fund, the SEC is considering allowing fund companies to disclose only the top holdings, according to the SEC. This could be accompanied by brief explanations of the investment results, along with illustrative graphs and charts, according to the SEC.

In July 1998, the SEC permitted profile prospectuses to be sent to existing shareholders. (MFMN 4/12/99) At that time, the SEC was already considering simplifying the bi-annual shareholder reports as well, said Dorothy John, a consultant on shareholder communications for the mutual fund industry. (MFMN 5/17/99)

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