Among these is a proposal to force companies that sponsor 401(k) plans to give employees prospectuses and shareholder reports.

Dealing through intermediaries means there can be significant lags in receiving shareholder reports or proxy material.

The more services the company provides, like toll-free telephone help, glossy shareholder reports and frequent statements, the higher a fund's expenses.

But, she added, "there's concern that it's not clear, so we are going to be clarifying the ratings in future shareholder reports."

After all, tax accounting methods differ from those used to compile shareholder reports.

These areas, the institute said, include the cost of preparing and distributing shareholder reports, portfolio accounting charges and legal costs.

Such information can be found in shareholder reports (but not in fund prospectuses).

The shareholder report for the third fund was dated Oct. 31.

The fund data come from shareholder reports covering December 1994 to November 1995.

Brokerage commissions are included in the cost of shares and not broken out as separate fees in shareholder reports.