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Fund Spy

Letter to Regulators: College Savers Need Basic 529 Performance, Portfolio Details

MSRB's proposal to collect more data is welcome but doesn't go far enough.

Wednesday afternoon, Morningstar's Fund Research Group filed a comment letter with the Municipal Securities Rulemaking Board urging the board to require 529 college-savings plans to disclose the same performance and portfolio details required of mutual funds and other similar securities. This includes daily net asset values, quarterly portfolio holdings, and target benchmarks.

College savers need these nuts-and-bolts details on 529 investments to make informed decisions with their hard-earned education dollars, in Morningstar's view. Such disclosure would also make the plans easier to regulate. 529 plans are not subject to these standard investment disclosures today because they are municipal securities and are not subject to SEC oversight.

The text of Morningstar's letter follows.