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Upcoming SEC TSR Mandate – Is Your Firm Ready?

Evamarie Augustine 24 June 2024

A significant change is coming to the mutual fund and ETF industry in July 2024—the SEC’s new tailored shareholder reporting rules.

Is your firm ready?

With the SEC mandate for tailored shareholder reporting (TSR) soon to take effect, the time to act is now.

The TSR Regime Begins With the 7/31 Reporting Cycle

Effective July 24, 2024, mutual fund and ETF providers will be required to provide “retail-friendly” reports that communicate concise, streamlined information to shareholders. This information will be specific to each share class.

What Can Fund Companies Do Now?

We recommend the following:

  1. Create a TSR template (or ask us to create one for you!). The mandate requires that the new reports be both concise and visually engaging. A template that incorporates the new requirements can ease communications with internal partners and limit the variability of commentary content. For the management’s discussion of fund performance, the key elements that need to be included are
    • How did the fund perform?
    • What factors influenced performance?
    • What is the fund’s positioning?
    • How has the market environment impacted the fund?

2. Develop a production game plan. Shareholder reports require input from some of the busiest people at an asset management firm—the portfolio managers. Getting their buy-in and putting a game plan in place can help ensure a smooth transition and lead to future success.

3. Write in plain English. The mandate calls for jargon-free, transparent, and easy-to-understand language that provides the information needed at a glance.

4. Establish best practices. Given the increased time required to produce a report for each share class, book appointments and communicate deadlines well in advance so that all teams are on board and there are no last-minute fire drills. And make sure to have backup contacts in place before they are needed.

How Can Copylab Help?

A shareholder report can serve as a key piece of any firm’s marketing mix. While the new SEC guidelines present complexities, they also represent a new opportunity to communicate with clients. Since 2005, Copylab has helped some of the biggest names in asset management refine and clarify their fund commentaries and fact sheets, driving efficiencies and cost savings for our clients. To learn how we can assist you with writing, content strategy and graphic design in all aspects of investment communications, please get in touch.