September 4, 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?
Reporting Problem/Concern: I have invested substantially in a mutual fund (MF) called NASDX. My investment account is with Chas. Schwab. I am located in California. I do weekly monthly reviews of my portfolio to check for MF performance. Last Friday was August 31st month's end. I complained to Chas. Schwab that NASDX, as of 8 p.m. PST, had not reported their daily NAV.
What time period are MFs required to report that day's closing NAV? NASDX finally reported their NAV at 8:12 p.m. PST. Isn't this a very late time for any MF to report its NAV?
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?
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?
easy to compare funds. Daily NAV Disclosures are a problem (extremely late (8-9 p.m. consistently).
4. Do you use the advice of a financial professional? Does a financial professional's help affect whether and how you use fund disclosures?
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?
mail
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?
n/a
7. How can the SEC better use technology and communication tools to help investors focus on important fund information?
require reporting of NAVs within 2 hours after closing bell
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?
yes
9. Do you prefer to receive shorter 'Summary' disclosures, with additional information available online or upon request?
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?
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?
yes
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?
yes
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, but has limitations what happened in past may not reflect future
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?
see #1