The fund industry wants to maintain that status quo, which includes a 60-day lag to guard against front-running.
Analysts at Morningstar blasted that approach, however, calling for public dissemination of portfolio holdings every month.
“More than half of U.S. mutual funds already voluntarily disclose their portfolios to Morningstar and other third parties on a monthly basis,” Morningstar said in a comment letter.
Funds’ disclosures also show that “many of them provide very frequent portfolios— sometimes even daily—to investment consultants and other interested parties,” Morningstar added.
“If fund managers do not find it overly onerous to provide portfolios frequently to third parties, should not the actual owners of these assets also be entitled to receive timely updates on their fund portfolio holdings?” Morningstar said.
The SEC will take the comments under consideration before proposing a final rule.