The SEC voted to publish for comment rule amendments that would expand the agency's interactive data voluntary program to enable mutual funds to submit data tagged risk/return summary information.
The risk/return summary at the front of every mutual fund prospectus includes information about a fund's investment objectives and strategies, risks, costs, and historical performance.
The submission of tagged risk/return summary information would be supplemental and would not replace the required official versions of the information. Any mutual fund submitting tagged risk/return summary information would be required to include this information as an amendment to a filing on Form N-1A, the registration form for mutual funds.
The proposed rule amendments would permit mutual funds to submit tagged risk/return summary information using a taxonomy being developed by the Investment Company Institute (ICI).
Data tagging uses standard definitions (or data tags) to translate text-based information into data that is interactive; that is, data that can be retrieved, searched, and analyzed through automated means. Tags are standardized through the development of taxonomies, which are essentially data dictionaries that describe individual items of information and mathematical and definitional relationships among the items. Tagged information can help investors, analysts, and other users to mine the wealth of information contained in detailed paper disclosure documents, providing users with the ability to access precisely the information in which they are interested and to analyze that data.