Fund information disclosure refers to the information disclosure made to the public by the relevant parties in the fund market in a series of links such as fund raising, listing and trading, investment operation, etc. Here, I share some principles of fund information disclosure with you, hoping to help you!

The purpose of fund information disclosure

Relying on mandatory information disclosure, cultivating and improving the market operation mechanism and enhancing the understanding and confidence of market participants is a common practice in securities market supervision all over the world, and the fund market as an integral part of the securities market is no exception. Generally speaking, fund investment is "entrusted by people, professional financial management", and fund holders, as clients, have the right to know relevant information about fund operation and asset changes. People often say that "sunlight is the best disinfectant" and "street lamps are the best policemen". Through compulsory information disclosure, fund information can be truly, accurately, completely, fairly and timely disclosed, the transparency of fund operation can be enhanced, and the legitimate rights and interests of fund parties, especially fund holders, can be effectively protected.

Fund information disclosure requirements

The disclosure of fund information shall meet the following requirements:

1. comprehensiveness: this is a requirement for the scope of fund information disclosure. FuUDisclosule requires the parties involved in information disclosure to fully and completely disclose the information of all legal matters in accordance with the law, and there shall be no omissions or deficiencies. Information that may have a significant impact on the rights and interests of fund holders or the transaction price of fund shares must be fully disclosed, and there shall be no concealment or major omissions.

2. Authenticity: The core of information disclosure is the authenticity of information. The publicly disclosed fund information shall be true and accurate, and there shall be no false records or misleading statements.

3. Timeliness: This is the time requirement of information disclosure operation. TlmelyDisclosure requires all parties involved in information disclosure to disclose relevant important information in a timely manner.

Principles of fund information disclosure

The principles of disclosure are divided into: substantive principle and formal principle. The so-called substantive principles include authenticity, accuracy, integrity, timeliness and fair disclosure. The principle of form includes normative principle, easy to understand principle and easy to obtain principle.

Substantive principle

1. principle of authenticity

The principle of authenticity is the most fundamental and important principle of fund information disclosure, and the information required to be disclosed should be based on objective facts and reflect the true state, and should not be distorted or whitewashed.

2. The principle of accuracy

The principle of accuracy requires that information disclosure should use accurate language, and there should be no misunderstanding in content and expression, and vague language should not be used.

3. Integrity principle

All important things should be made public.

4. The principle of timeliness

Disclosure of interim report within 2 days from the date of major events. The fund manager updates the prospectus every six months.

5. The principle of fair disclosure

The principle of fair disclosure requires that information be disclosed equally and openly to all investors in the market, not just individual institutions or investors.

(B) the principle of form

1. Normative principles

The normative principle requires that the fund information must be disclosed in accordance with the statutory content and format to ensure the comparability of the disclosed information.

2. Solvability principle

The principle of comprehensibility requires that the expression of information disclosure should be concise, easy to understand and avoid using lengthy and technical terms.

3. The principle of usability

The principle of accessibility requires that publicly disclosed information can be easily obtained by the general public.

In addition to the newspapers and websites designated by laws and regulations, the information disclosure obligor may also disclose information in other public media, but it should be noted that other media shall not disclose information earlier than the designated newspapers and websites, and the same information disclosed by different media shall be consistent.

The role of fund information disclosure

Relying on mandatory information disclosure, cultivating and improving the market operation mechanism and enhancing the understanding and confidence of market participants is a common practice in securities market supervision all over the world, and the fund market as an integral part of the securities market is no exception. Fund information disclosure plays an important role in the following aspects:

(1) is beneficial to investors' value judgment.

In the process of fund share raising, fund raising information disclosure documents such as fund prospectus explain the crisis income characteristics of fund products and related raising arrangements to public investors, so that investors can choose fund products suitable for their crisis preferences and income expectations. In the process of fund operation, by fully disclosing information such as fund investment portfolio, historical performance and crisis situation, existing fund share holders can evaluate the management level of fund managers, understand whether the fund investment meets the commitments in the fund contract, and thus judge whether the fund products are worth holding. At the same time, potential investors can also rationally analyze the value of the fund according to their own crisis preferences and income expectations, and then make investment choices.

(2) It is beneficial to prevent conflicts of interest and transfer of interests.

The foundation of capital market is information disclosure, and one of the key contents of supervision is the supervision of information disclosure. Compared with the substantive review system, the basic inference of compulsory information disclosure is that investors are "cautious" on the basis of public information. It can change the information weak position of investors, increase the transparency of the capital market, prevent the conflict and transmission of interests, increase the public's supervision over the operation of funds, and limit and prevent improper fund management and fraud.

(3) It is beneficial to improve the efficiency of the securities market.

Due to the information asymmetry in the securities market in reality, investors can't effectively identify funds, and they can't effectively overcome the moral crisis of fund managers. Efficient funds can't attract enough funds for investment and form a reasonable fund distribution mechanism. Through compulsory information disclosure, the hidden information can be made public in time and fully, thus eliminating the inefficient and disorderly situation caused by adverse selection and moral crisis and improving the effectiveness of the securities market.

(4) Effectively prevent information abuse.

If laws and regulations do not regulate the disclosure of fund information and allow insufficient, untimely and untrue information dissemination, then the market will be full of speculation, and investors may make wrong investment decisions under the influence of this market noise, and even bring fatal blows to the fund operation, which is not conducive to the long-term progress of the whole industry.

Costs and benefits of fund information disclosure

The cost of information disclosure

Production and release of the input situation information will lead to a certain cost, that is, release cost or direct cost. Many funds that don't disclose information voluntarily usually say that the publishing cost hinders the regular information publishing. However, today, with the rapid development of Internet technology, this statement is hard to hold. Many American funds disclose information on their websites every month. Open-end funds disclose the transaction status and complete investment portfolio in real time on their websites. The frequency of information release has paid less attention to the cost of information release itself, but more attention to the arrangement of the overall investment strategy of the fund.

In addition to the direct cost, the information discloser has to bear the potential cost. Investment funds employ many experts to analyze oil wells to build a portfolio of securities. Frequent information disclosure will make these research results available to other investors, that is, the problem of hitchhiking. So that investment funds bear a series of potential costs. Wemers(200 1) points out that when a fund is required to disclose its shareholding structure, investors have two potential costs. First, when the fund discloses its assets, other investors can more conveniently use the information of capital flow to run ahead of the fund, thus raising the price of the securities that the fund manager wants to buy. This kind of cost is considered to increase with the increase of disclosure frequency, which will reduce the explanation of fund investment. Second, information disclosure will shorten the time period for fund investors to get personal returns from fund investment. In open mutual funds, managers of direct investment management will analyze a large number of securities and look for securities with undervalued assets. These securities have low risks and above-average returns. Because information disclosure exposes the fund manager's views on the securities he has bought, it reduces the potential benefits of the fund manager's securities research. When the fund discloses its composition, potential competitors and fund holders will understand the investment strategy of the fund manager. Therefore, the fund manager's income from undervaluing securities will be limited to the period from the completion of the research to the date of the next information disclosure.

It should be pointed out that the potential cost of information disclosure varies with the size and type of funds. Because the investment scope of index funds is limited and the research cost is lower than other types of funds, the potential information disclosure is also low. Investors generally believe that large-scale funds have stronger R&D capabilities than small-scale funds, so they pay more attention to the information released by large-scale funds, thus increasing the potential cost of information disclosure of such funds. In the United States, the frequency and degree of information disclosure of large-scale funds are generally higher than that of large-scale funds, which is a good example.

In order to reduce the above potential costs, the fund is likely to take action to reduce the information content contained in the semi-annual information disclosure. Many fund managers are interested in portfolio information! Whitewash means changing the composition of the portfolio at the end of the reporting period.

Camouflage the real portfolio. There is no consensus on the extent to which the IMF is involved in window dressing activities. The attraction of "whitewashing" depends on the transaction cost of entering and leaving a security, including any execution cost related to the asking price and bid difference. This trading strategy may be meaningful for large enterprises whose stocks are actively traded in the circulation market. For small-scale and illiquid enterprise stocks, the transaction cost will exceed the benefits of cheating competitors.

Information disclosure income

Many scholars believe that these two costs must be covered by the potential benefits of information disclosure. One is that from the perspective of some fund managers, they are considering increasing the frequency of information disclosure; Secondly, it comes from the perspective of heron watcher who tries to formulate the policy of prosperous family.

A potential benefit of information disclosure is that the securities held by Kikwei will increase the demand for some securities. If investors buy securities because they believe that the fund manager has inside information, this may try to raise the price of these securities. Thereby increasing the return of the information disclosure leopard fund, that is, the information disclosure fund has gained the benefit of "running ahead". There is some evidence that the fund's "ahead" securities purchase can indeed bring benefits. But there is no basis to determine the potential benefits of "running ahead".

Another advantage is that some investors think that frequent credit disclosure is really valuable. Therefore, it is prepared to bear a higher burden or lower return to accept frequent information disclosure.

Frequent information disclosure makes it difficult for funds to implement strategies different from those in advertisements. The income of this information disclosure depends on the possibility of changing the strategy of the fund without the knowledge of shareholders, and also depends on the income of the strategy of deviating from the notice. Although the current regulatory authorities require disclosure every six months, some fund managers are willing to disclose the use of funds more frequently than the standard. The fact that many investors pay for the information of Momingst (a company that tracks the performance of funds and provides information to investors) shows that market participants think the information disclosed by funds is useful.

The third potential benefit of information disclosure is that information disclosure can convey the information of successful investment of enterprises in the past to prospective porcelain investors. This will attract them to buy funds.

To sum it up. It is difficult to quantify the benefits and costs of information disclosure, and it is difficult to draw a clear line between costs and benefits, which makes it more difficult to formulate information disclosure policies. Increasing the degree of public disclosure of fund information will undoubtedly increase the transparency of fund information to fund investors and help investors better understand the investment situation of funds; But at the same time, it also increases the difficulty of putting the fund into operation. The increase in cost will ultimately affect the performance of the fund and the interests of fund investors.

The ideal information disclosure policy should be moderate, which should not only help fund investors understand the necessary information about fund investment, but also protect their rights and interests; We should also fully consider the unique cost of fund information disclosure. Only in this way can it be conducive to the smooth implementation of the fund investment strategy and ultimately meet the interests of fund investors.