Post by Admin/YBB on Sept 20, 2023 19:06:42 GMT -6
Under the NAMES RULE, the SEC will require that the names of funds reflect 80% of the fund portfolios to avoid drifting and playing games by funds. If a fund doesn't satisfy this requirement, it will have 30 days to correct this.
This rule sort of exists now for very broad things such as "equity", "bonds" in funds' names, but the new rules will also apply to more specific things like "growth", "value", "dividend", "small/mid/large-caps", "foreign", "global", "investment-grade", "high yield", etc in the fund names.
I don't know what will happen to M* Fund Category Definitions (2023) or similar published by others.
Critics say that many funds may move to more generic names or the rule may limit fund managers' flexibility.
SEC
Press Release Names Rule www.sec.gov/news/press-release/2023-188
Fact Sheet www.sec.gov/files/33-11238-fact-sheet.pdf
Final Rule (283 pages) www.sec.gov/files/rules/final/2023/33-11238.pdf
M* Fund Categories pdfhost.io/v/K3mzSxMmx_MStar_Categories_Funds_April2023_091423
This rule sort of exists now for very broad things such as "equity", "bonds" in funds' names, but the new rules will also apply to more specific things like "growth", "value", "dividend", "small/mid/large-caps", "foreign", "global", "investment-grade", "high yield", etc in the fund names.
I don't know what will happen to M* Fund Category Definitions (2023) or similar published by others.
Critics say that many funds may move to more generic names or the rule may limit fund managers' flexibility.
SEC
Press Release Names Rule www.sec.gov/news/press-release/2023-188
Fact Sheet www.sec.gov/files/33-11238-fact-sheet.pdf
Final Rule (283 pages) www.sec.gov/files/rules/final/2023/33-11238.pdf
M* Fund Categories pdfhost.io/v/K3mzSxMmx_MStar_Categories_Funds_April2023_091423