U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Supplementary News Material:
Special Review of Fund Advertising
Fact Sheet

The Commission staff will conduct special reviews of fund marketing, including fund web sites, sales literature, advertisements and representations made in prospectuses. A specialized group within the Division of Investment Management will engage in an integrated review of fundsí portfolio securities and investment strategies as reflected in shareholder reports to determine whether they are consistent with statements made in fund marketing materials. In tandem with those reviews, the Office of Compliance Inspections and Examinations will conduct a series of special examinations of funds that have used aggressive advertising in their marketing to promote sales of fundsí shares.

The goals of this initiative are to evaluate whether:

1. funds are investing in accordance with their stated investment objectives and policies. The staff will compare stated investment objectives and policies (what a fund is permitted to do) with actual investments made (what a fund actually does);

2. funds are engaging in strategies or undertaking risks that go beyond representations in prospectuses; and

3. statements and disclosures on web sites and in marketing materials are misleading or contain material omissions.