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Investment Company Institute Raises Concerns Over Portfolio Disclosure

 
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ICI warns of potential risks with increased portfolio disclosure frequency.

description: a group of financial professionals engaged in a heated discussion during a conference, with charts and graphs displayed on screens in the background.

Mutual fund assets held by US investment companies remain strong at $25.5 trillion at the end of 2023. Despite market volatility, the industry continues to attract substantial investments from individuals and institutions alike. Across asset classes, 401(k) mutual fund expense ratios have been dropping, leading to billions of dollars in savings for investors. These saved management fees are now compounding in savers' accounts, helping them achieve their financial goals more efficiently.

ICI has raised serious concerns about moving portfolio holdings disclosure on Form N-PORT from quarterly to monthly. This shift could expose fund managers to increased risks and reduce their ability to make informed investment decisions. 401(k) plan participants have experienced significantly lower fees for holding mutual funds over the past two decades, resulting in higher returns on their investments.

Recently, a four-day conference was held to discuss the latest tax and accounting issues affecting the asset management industry. Industry leaders from organizations like SIFMA, ICI, and DTCC came together to address challenges and opportunities in the market. One key topic of discussion was the proposal to accelerate settlement from two days after trade date (T+2) to one day after trade date (T+1), potentially streamlining operations and reducing risks for investors.

Eric J. Pan, a prominent figure at the Investment Company Institute, has cautioned lawmakers about potential tax policy changes that could negatively impact retirement investors. As discussions around tax reforms intensify, it is crucial to consider the implications for long-term savers and their financial security. Additionally, the amount of cash in money-market funds has surged by over $100 billion in August alone, signaling a growing trend of investors seeking higher yields in a volatile market environment.

Labels:
investment company institutemutual funds401(k)portfolio disclosureexpense ratiosasset managementtax policysettlementretirement investorsmoney-market funds
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