Discussion paper

DP18565 Benefits of Partial vs Full Mandatory Mutual Fund Disclosure

We study implications of partial versus full disclosure requirements on mutual fund trading and performance, by exploiting a unique hybrid disclosure policy in China, requiring full disclosure at a semi-annual frequency, but only disclosure of top-10 holdings at other quarters. Under partial disclosure, funds benefit from strategically concealing private information. Fund holdings outperform those under full disclosure by 3% over the following three months. Partial disclosure reduces window dressing distortions, doesn’t deteriorate market liquidity nor fund portfolios’ risk profiles. Together, the evidence suggests that not only a disclosure requirement, but its extent, is an important dimension of policy to consider.


Kaniel, R, J Li, D Shi and Z Qi (2023), ‘DP18565 Benefits of Partial vs Full Mandatory Mutual Fund Disclosure‘, CEPR Discussion Paper No. 18565. CEPR Press, Paris & London. https://cepr.org/publications/dp18565