SEC Releases Sample Format for Proposed Mutual Fund Summary
Prospectus
Commission Seeks Investor Input on Proposal to Improve Mutual Fund
Disclosure
FOR IMMEDIATE RELEASE
2007-249
Washington, D.C., Nov. 29, 2007 - The Securities and Exchange
Commission has published a prototype "summary prospectus" for mutual
funds, and asked for public comment from investors. The proposed
streamlined prospectus would let investors quickly learn key information
about a mutual fund.
The Commission voted unanimously on November 15 to propose rule
amendments that would enable investors to view a concise, plain English
summary of key facts about a mutual fund. The SEC is seeking public
comment on the proposed rule amendments, including the summary prospectus,
which are available online along with additional information to help
investors understand and participate in the comment process: http://www.sec.gov/investor/enhanceddisclosure.htm.
"In three or four pages, an investor could get the important facts
about a mutual fund in a quick and convenient way," said SEC Chairman
Christopher Cox. "Instead of digging through pages of legalese, investors
would be able to spend more time learning how their money is invested and
making informed investment decisions."
The Commission is proposing that the following information be included
in a mutual fund summary prospectus:
- investment objectives
- costs
- principal investment strategies, risks, and performance
- top 10 portfolio holdings
- identity of investment advisers and portfolio managers
- brief purchase, sale, and tax information
- information about broker compensation and conflicts
During the comment period, the Commission is seeking investor input
about what improvements would make the summary prospectus easier to read
and understand, and what key information investors would like to see
included. The Commission also is seeking comment on its proposal for
mutual funds to provide investors the summary information while making the
full prospectus available online or in paper copy upon request. Comments
should be received no later than Feb. 28, 2008.
http://www.sec.gov/news/press/2007/2007-249.htm
