Statement of Additional Information (SAI)
What Is a Statement of Additional Information (SAI)?
A statement of additional information (SAI) is a supplementary document added 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 SEC Form N-1A.
Understanding a Statement of Additional Information (SAI)
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 gives a concise summary to investors. Mutual fund companies are required to give investors a prospectus when they buy shares.
SAI Content
A statement of additional information is required for mutual funds. Funds are not required to circulate it to shareholders however they must give it on the off chance that such information is requested. The statement of additional information offers a mutual fund the chance to expand on insights concerning the fund that are not uncovered or extensively examined in the prospectus. Information required in the statement of additional information is outlined by the SEC. These things include more inside and out information on the company's management and portfolio managers. It likewise includes the fund's financial statements.
A SAI is consistently refreshed and will often include the fund's financial statements. It will normally include information about the officers, directors, and others controlling the investment direction of the fund.
Mutual Fund Reporting Documents
The SAI and prospectus documents are the primary wellsprings of information an investor will find when seeking insights concerning a fund on its website. Many different 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.
A fund's all's filings can be found online through the SEC. Most funds will commonly give each of their SEC filings for investors on the mutual fund's website. Different types of fund marketing reports that can assist an investor with making investment decisions about a fund include fund fact sheets, performance reports, top fund holdings, investment categories, and fund allocation breakdowns. Mutual fund companies normally unveil distributions, fund expenses, and assets under management. Often their marketing websites will include fund credits, like price to earnings and average market capitalization.
Features
- A statement of additional information (SAI) contains information about a mutual fund that may not be found in its original prospectus.
- The SAI is utilized to uncover more definite information and refreshed financials that may not be included in the more extensive prospectus.
- The SAI is a required document to be formalized by a mutual fund company, however it needn't bother with to be sent to prospective investors besides upon request.
