Statement of Additional Information - SAI

A statement of additional information (SAI) is a supplementary document to a mutual fund's prospectus that contains additional information about the fund and includes further disclosure regarding its operations. A statement of additional information is required as Part B of the fund's registration statement which is filed with a Form N-1A.

A statement of additional information is one of three documents an investor will commonly find when seeking information about a mutual fund. The other two documents include the prospectus and summary prospectus.

Mutual funds are required to file and maintain numerous forms with the Securities and Exchange Commission (SEC) in conjunction with their registrations. The prospectus is required with registration and can be accompanied by a summary prospectus, which provides a brief summary for investors. Mutual fund companies are required to provide investors with a prospectus when they buy shares.

A statement of additional information is required for mutual funds. Funds are not required to distribute it to shareholders but they must provide it if it is requested. The statement of additional information gives a mutual fund the opportunity to expand on details about the fund that are not disclosed or broadly discussed in the prospectus. An SAI is regularly updated and will often include the fund’s financial statements. It will typically include information about the officers, directors and other people controlling the investment direction of the fund.

The SAI and prospectus documents are the primary sources of information an investor will find when seeking details about a fund on its website. A wide range of other forms and disclosures is required of mutual funds as registered securities under the Securities Act of 1933 and the Investment Company Act of 1940. In addition to the prospectus and SAI, funds must file semi-annual and annual reports with the fund’s financial statements and quarterly reports with the portfolio’s holdings.

All of a fund’s filings can be found online through the SEC. Most funds will typically provide all of their SEC filings for investors on the mutual fund’s website. Other types of fund marketing reports that can help an investor make investment decisions about a fund include fund fact sheets, performance reports, top fund holdings, investment categories and fund allocation breakdowns. Mutual fund companies typically disclose distributions, fund expenses and assets under management. Often their marketing websites will include fund attributes, such as price to earnings and average market capitalization.