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July 13, 1996|Times Staff and Wire Reports

SEC Says New Mutual Fund Prospectus to Be Adopted Soon: The Securities and Exchange Commission said it expects within a year to require mutual funds to start using a simplified prospectus that conveys overall portfolio risk both graphically and in writing. Officials said there is an emerging consensus between the fund industry and consumer groups about key elements of an SEC plan to simplify the unwieldy documents. These elements include a 10-year chart or graph of overall fund performance that would be compared against a broader performance benchmark, and a written summary of portfolio risk. The SEC plans to simplify the prospectus either by streamlining the current document; by introducing a shortened, or "profile," prospectus; or both. The Consumer Federation of America, among other groups, applauded the SEC's plans.

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