SEC Proposes Stricter Target Date Fund Disclosures

Law360, New York (June 16, 2010, 7:06 PM EDT) -- The U.S. Securities and Exchange Commission proposed new rules Wednesday that would require providers of target date mutual funds to provide more information to investors about how the funds are invested.

The commission voted to propose amendments to its mutual fund advertising rules that would require marketing materials for a target date fund that includes the date in its name to also include information about asset allocation.

The funds, which are marketed to investors looking to retire by a certain date, are promoted as “set it...
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