Wednesday, December 29, 2010

Transparency

Transparency refers to the level of disclosure and openness of a fund on its holdings and operations. Generally, most funds will report some of their key holdings, sector weightings, and country weightings in their regular reports to investors (usually at least quarterly if not half-yearly). For an outsider it is generally difficult to ascertain the precise holdings of an actively managed fund, at least relative to a passive index tracking fund, whereby the index constituents are usually freely and publicly available.

Synonyms: Disclosure, Openness

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