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.