Picking a Mutual Fund Just Got Easier, Thanks to N.Y. Regulator
- Firms to show data on how much funds differ from benchmarks
- ‘Information gap’ hinders investors trying to value funds
This article is for subscribers only.
Weeding out closet indexers from true active managers is about to get a little bit easier, thanks to New York State Attorney General Eric Schneiderman.
After finding that some companies charge high fees for equity funds marketed as actively managed that basically hug an index, the state’s chief law enforcement officer wants mutual fund managers to publish data showing how much a fund’s holdings differ from its benchmark. Companies including BlackRock Inc. and AllianceBernstein have agreed to put out information on more than 400 funds, but the attorney general’s investor protection bureau wants others to follow suit.