Registration form for open-end management investment companies (PDF)

The U.S. Securities and Exchange Commission (SEC) has published new Form N-1A related to the registration of open-end management investment companies (mutual funds). The new form must be used for registration beginning October 2, 2023 and will be valid through July 31, 2026 unless otherwise modified before, following the approval of the Office of Management and Budget (OMB).
Form N-1A requires essential information about a mutual fund’s structure, investment objectives, risks, fees, and performance. It is a crucial document for investors because it helps them make informed decisions about whether to invest in a particular mutual fund. Among others, the form requires the publication of
– basic identification information, including the fund’s name, address, and legal structure (e.g., corporation or trust). It also requires information on the type of securities the fund primarily invests in, such as stocks, bonds, or a mix of asset classes.
– a fund’s investment objectives and strategies. Specifically, it requires a description of a fund’s goals, such as long-term capital appreciation or income generation, and an explanation of how a fund plans to achieve those objectives through its investment strategies.
– the risks associated with investing in the fund such as market risk, interest rate risk, and credit risk. It also requires an explanation of how these risks could affect the fund’s performance.
– a fund’s fees and expenses, including a fund’s management fees, distribution fees, and other operating expenses. It also requires the disclosure of any front-end or back-end sales charges (loads) that investors may incur.
– historical performance data, including the fund’s returns over specific time periods.
– any investment restrictions or limitations imposed on the fund by its investment strategy or regulatory requirements. For example, a fund may specify maximum allowable investments in certain asset classes or industries.
– information about how investors can buy and sell shares in the fund, including minimum investment requirements, redemption procedures, and any fees associated with share transactions.
– information about the fund’s investment adviser, portfolio managers, and the ownership structure of the adviser.
– a fund’s financial statements, including the balance sheet and income statement.
Also, various appendices and exhibits are attached to the form, providing additional details and legal disclosures related to the fund’s operations.
The form also includes detailed instructions on how to file the document.