The CAC is concerned that too many investors focus on short term results, while investing should have a long term time horizon. Therefore if Fund Facts are updated too frequently there may be undue consideration of the short term results. Therefore we are of the view that a quarterly update is sufficient for regulatory purposes. However, if there is a material change in the management, fees, structure or governance of the fund then the Fund Facts should be updated immediately.
Overview of the Council’s Comments:
The CAC believes in timely disclosure and information. Mutual Funds should be purchased as long-term investments and selection is frequently made based on the manager’s past performance. At a minimum, quarterly information should be available on the Fund Company’s website.