Mutual fund companies dial up disclosures in advance of new regs, survey shows

Year-to-date through Sept. 30, 21 mutual fund operations had filed stand-alone summary prospectuses, up from 15 in August, according to NewRiver's data. The number of related documents made available to mutual fund investors during the period rose to 217, from 90.

That year-to-date total of firms giving investors summary proposals could easily double by the end of the year, said Len Driscoll, chief client officer at NewRiver.

“Fund companies are ramping up their adoption of this,” he said.

In the next 12 to 18 months, the adoption rate is expected to reach about 80% to 90% of firms, Mr. Driscoll said.

Earlier this year, the Securities and Exchange Commission approved a rule requiring funds to have a four-page summary prospectus with every filing, starting in 2010. The summary document includes key information about the fund, such as its investment objective.

In addition, firms will have the option of delivering the summary prospectuses to shareholders in place of the statutory prospectus, a traditional document that can average two funds and 50 pages, according to NewRiver, a technology solutions provider that has been marketing its services to firms drafting summary prospectuses.

At any rate, the firms still have to include a summary prospectus with the traditional filing.