VALLEY FORGE, Pa. (AP) – The Vanguard Group, the country’s second-largest fund manager, Wednesday said it will disclose details about fund operating expenses in its 2003 shareholder reports.
The nation’s No. 2 fund manager said it will include a table that shows the dollar cost an investor would incur over the fund’s latest fiscal year assuming a $10,000 investment and using the fund’s actual expenses and total return for the period.
The idea is to “help shareholders better understand the actual expenses associated with their investment,” Vanguard Chairman Jack Brennan said.
The format of the disclosure is based on a Securities & Exchange Commission proposal put forth earlier this year.
The move comes as regulators examine several mutual funds managed by other companies to see whether they allowed improper trades by hedge funds at the expense of long-term investors. Critics believe the investigation stems from a broader breach of investor trust that has led to unnecessary and excessive fund costs and fees.
Vanguard, headquartered in Valley Forge, Pa., serves some 17 million shareholder accounts and manages more than $650 billion in U.S. mutual fund assets. It offers 112 funds to U.S. investors.
