While the Securities and Exchange Commission's new rule requiring greater transparency in the costs of funds-of-funds is geared at protecting those saving for retirement, it could mean more headaches for managers of smaller, non-proprietary funds.

The rule requires funds-of-funds to include not only their own operational costs, but also those costs associated with their underlying funds in their expense ratios, thereby bringing data that, in the case of proprietary funds, is buried in the prospectus to the forefront.

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