Course 109:
Important Fund Documents, Part 2
In this course
1 Introduction
2 Letter from the President
3 Letter from the Portfolio Manager
4 Recent Fund Performance
5 Portfolio Holdings
6 Footnotes
7 Financial Statements
8 What To Do Next



A mutual fund's shareholder report is part biography, part blueprint, and part ledger book.

A good shareholder report is like a biography in that it sets out what happened to the fund over the past quarter, six months, or year, and why. It's like a blueprint because it sets before you all the investments stocks, bonds, and other securities that the fund has made. And it's like a ledger book because it discloses a fund's costs, profits, and many other financial facts. Mutual funds are required by theSEC to release a shareholder report at least twice a year, though some fund families publish them quarterly.

Not all of the following items are required by law to appear in a mutual fund's shareholder report. TheSEC allows some of the information to be included in other documents, such as a fund's prospectus or Statement of Additional Information. However, a good report will contain all of the elements discussed below.

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