Chuck Jaffe, columnist at the Boston Herald has some thoughts on the perennial request that investment funds issue their disclosures in a more comprehensible fashion. Among his suggestions are:

• Give an assessment of how funds work together.
• Discuss whether a fund belongs in a taxable account.
• Require personalized disclosures in fund statements.
• Bring back the profile prospectus, and make its use mandatory.
• Highlight prospectus changes, don’t hide them.

For an explanation of why Jaffe thinks each of these are key elements to successful decryption of the typical invesmment fund legalese, click on through to the full article.

-- MDT