Week InAdvance: September 21, 2015
Swing pricing that would let funds adjust the price investors get when selling shares will be included in a broader proposal to be considered by the SEC on Tuesday. Mutual-fund investors who rush to cash out during periods of market turmoil could find it costlier to do so under the rule. Backers of the measure say it could temper investors' impulse to flee when conditions make it seem likely that asset prices will fall. Regulators' concern about the impact of economic shocks has grown as mutual funds increasingly invest in less-liquid assets that would be tougher to sell in a market rout. The SEC's proposal would allow funds to pass along trading costs to retreating investors, resulting in payouts slightly below the stated price per share, or net asset value.
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