At the start of the new year, the
And investor advocates think this is much-needed transparency. “In many cases, funds-of-funds have layering of fees taking place,” noted Susan Ferris Wyderko, executive director of the
But the managers of some small funds-of-funds are crying foul, saying the new requirement will make their funds appear overpriced compared to similar offerings at large fund complexes. They usually use proprietary funds as sub-accounts and can absorb many of the expenses because of the shared overhead.