Published on Aug 19th, 2024 |

Tailored Shareholder Reports Rule - Liam Clarke Insights

VIGILANT INSIGHTS

Introduction

With the most recent compliance date of July 24th, the Tailored Shareholder Reports Rule is already causing major changes in the way that Firms present information to shareholders.

We have discussed how small Firms may face challenges with the new expectations. However, in a recent Ignites article, Vanguard’s new semi-annual and annual fund shareholder reports caught industry attention with its brevity.

Vigilant Director, Liam Clarke, CPA, MA, commented on why this might be when considering the SEC’s reasoning for adopting the new Rule.

Liam Clarke Insights

Liam Clarke Insights

The Vanguard semi-annual reports have been shortened from over 70 pages to one. Ignites reports on some interested parties that have expressed concern with how small the reports are.

However, Liam reminds us that making information easier and more digestible, especially fund performance and other metrics, for retail investors is exactly why the Rule was put in place.

While more savvy investors may desire longer and detailed reports, Liam mentions that the SEC would argue it is more important that a retail audience can assess and monitor their fund investments on an on-going basis. The required graphs are charts not only meant to provide uniformity to the reports, but are also meant to be visually engaging.  In a similar format to Fund Fact Sheets, these reports are not meant to be more than a few pages.

Liam noted, information that reports had previously disclosed like Schedule of Investments, Financial Statements, Notes to Financial Statements, Audit Opinion, and other such details must still be available to investors online via the fund’s website and/or through forms filed with the SEC.

Vigilant's Conclusion

Vigilant’s Conclusion

If your Firm is finding it difficult to tailor these shareholder reports into this format, reach out to Vigilant today. We are prepared to help Firms with the resources needed to accurately produce concise and compliant Fund Reporting.

Our Directors leverage deep industry insight and centuries of combined experience to help you focus on your business goals, while leaving the compliance complexities to us.

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