June 5, 2018
OVERALL INVESTOR EXPERIENCE
1. How do you pick funds? What information do you want to know when you make an investment in a fund? What publications or websites do you review? What tools, online or otherwise, do you use? Do you look at the SECs website?:
I review the Fund Fact Sheet. The information I want to know is historical performance against a relevant benchmark, fund style, fund volatility. I only look at regulatory websites with respect to my advisor or his/her firm.
2. Do you read current fund disclosure documents? Do you understand them? Is there information you do not receive from the fund that you would like to get?
Rarely. The factsheet has most of what I'm looking for. Financial Statements are of little value. Seems like there should be a disclosure for the ultimate investor and then additional/other disclosures for Advisor's/Institutions to analyze.
3. How well do current fund disclosures (such as a summary prospectus, prospectus, or shareholder report) help you pick an investment? Is it easy to compare different funds? Are there technology-based tools that could make fund comparisons easier? What helpful features do those tools have?
Not at all. Useless to compare. Absolutely, a tool that compares a range of fund families in different asset classes.
4. Do you use the advice of a financial professional? Does a financial professional's help affect whether and how you use fund disclosures?
Yes. No.
DELIVERY
5. How do you prefer to receive communications about fund investments? For example, do you prefer mail delivery, email, website availability, mobile applications, or a combination?
Disclosure Documents electronically. Mail delivery for statements or confirmations, but electronic is fine too.
6. What types of fund information do you prefer to access electronically? What types of fund information do you prefer to receive in paper? Are there other wayssuch as by video or audio, you would like to receive fund information?
Factsheets. See 5. No, readable format is fine.
7. How can the SEC better use technology and communication tools to help investors focus on important fund information?
Provide a tool that allows investors to compare similar funds by asset class, sector... Including performance and cost.
DESIGN
8. Is there too much technical writing in fund disclosure? Would you prefer more tables, charts, and graphs? Would these graphic displayes be in addition to, or in place of, text-heavy disclosures?
Absolutely and it's not in plain English. Replicate the Factsheets. The Factsheets developed from investor requests, so why not leverage that.
9. Do you prefer to receive shorter 'Summary' disclosures, with additional information available online or upon request?
see 8.
10. Should fund disclosures be more personalized? For example, should disclosures show the amount of fees you paid or your actual investment returns? If so, how?
Yes. Very good idea. Compare with relevant benchmarks. Quarterly would be good.
CONTENT
11. Do fund disclosures make the fund's strategies and the level of risk clear? How can funds improve these disclosures? Would a risk rating, such as a numerical or graphical measure of risk, be helpful?
No. Chart like the Morningstar Style Box. All the fund companies already "colorize" their investment risk ratings at a high level by asset class but this could be refined within the asset classes.
12. Fund fees and expenses can significantly affect a fund's investment returns over time. Do you think funds clearly disclose their fees and expenses? How could funds improve the disclosure of fees and expenses? Would a comparison of your funds fees against other funds fees help?
Clearly disclosed, but very difficult to add them all up and it takes work to compare across fund families.
13. Do you consider the past performance of a fund when making an investment decision? How could we improve the presentation of performance information?
Yes. Performance in more volatile times in comparison with a benchmark.
FINAL THOUGHTS
14. Aside from this questionnaire, are there other ways the SEC can engage with investors, like you, on key topics? Is there anything else you would like to tell us?
Yes, talk directly with the average investor. They place a lot of trust with their advisor, but I think they would appreciate some education beyond news highlights