The Securities and Exchange Commission is considering better disclosures for target-date funds, particularly their glide paths and asset allocations, SEC Chairman Mary Schapiro told the Mutual Fund Directors Forum.

What has concerned the SEC the most is the average 25% in the 31 2010 target-date funds in 2008, Schapiro said, calling those “troubling investment results.”

Noting that many investors incorrectly think target-date funds offer some kind of guarantee, Schapiro said, “Among other issues, we will consider whether the use of a particular target date in a fund’s name may be misleading or confusing to investors, and whether there are additional controls the SEC should impose to govern the use of a target date in a fund’s name.”

In addition, the SEC is not dropping the 12b-1 fee issue, she added, but it is taking the back seat to target-date and money market fund issues.

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