Disclosure of Mutual Fund Performance and Portfolio Managers

The Commission is adopting rule and form amendments under the Securities Act of 1933 and the Investment Company Act of 1940 to improve disclosure of the performance of open-end management investment companies (mutual funds) in their prospectuses and annual reports to shareholders. Under the amendments, a mutual fund is required to include in. its prospectus or, alternatively, in its annual report to shareholders (1) a discussion of those. factors, strategies, and techniques that materially affected its performance during its most recently completed fiscal year, and (2) a line graph comparing its performance to that of an appropriate broad-based securities market index. In addition, the amendments revise the content and format of the condensed financial information contained in the prospectus and require disclosure about portfolio managers. The rule and form amendments will provide investors with additional information concerning mutual fund performance and the individuals responsible for that performance.