General Rules and Regulations
promulgated
under the
Securities Act of 1933
Rule 498 -- Profiles for Certain Open-End Management Investment Companies
Definitions.
A Fund means an open-end management investment
company, or any series of such a company, that has, or is included in, an effective
registration statement on Form N-1A and that has a current prospectus under section
10(a) of the Act.
A Profile means a summary prospectus that is authorized
under section 10(b) of the Act and section
24(g) of the Investment Company Act for the purpose of section
5(b)(1) of the Act.
General requirements. A Fund may provide a Profile
to investors, which may include, or be accompanied by, and application that investors
may use to purchase the Fund's shares, if the Profile contains the information
required or not precluded by paragraph (c) of this section and does not incorporate
any information by reference to another document.
Instructions to paragraph (b).
The Profile is intended to be a standardized
summary of key information in the Fund's prospectus under section 10(b) of the
Act. Additional information is available in the Fund's prospectus under section
10(a) of the Act, in the Fund's Statement of Additional Information under Form
N-1A, and in the Fund's annual and semi-annual shareholder reports prepared in
accordance with Rule 30d-1. [Editor's note: This section was redesignated as Rule
30e-1. See 66 FR 3734, 3759, Jan. 16, 2001.] Funds may not use cross-references
in the Profile to other Fund disclosure documents unless required or permitted
by this rule. Funds should minimize cross-reference and the use of footnotes within
the Profile; cross- references and footnotes should generally be used only to
promote a better understanding of the information about the Fund contained in
the Profile.
Provide clear and concise information in the
Profile in a format designed to communicate the information effectively. Avoid
excessive detail, technical or legal terms, and long sentences and paragraphs.
Provide the information in the Profile using the plain English writing principles
in Rule 421(d).
A Fund may use document design techniques
intended to promote effective communication of the information in the Profile
unless inconsistent with the requirements of this section.
A Profile may describe more than one Fund
or class of a Fund. A Profile that offers the securities of more than one Fund
or class of a Fund does not need to repeat information that is the same for each
Fund or class of Fund described in the Profile.
File the Profile with the Commission as required
by Rule 497(k).
Specific requirements.
Include on the cover page of the Profile or at
the beginning of the Profile:
The Fund's name and, at the Fund's option, the
Fund's investment objective or the type of fund or class offered, or both;
A statement identifying the document as a "Profile,"
without using the term "prospectus";
The approximate date of the Profile's first
use;
The following legend:
This Profile summarizes key information about the Fund that is included in the
Fund's prospectus. The Fund's prospectus includes additional information about
the Fund, including a more detailed description of the risks associated with investing
in the Fund that you may want to consider before you invest. You may obtain the
prospectus and other information about the Fund at no cost by calling _____.
Provide a toll-free (or collect) telephone number
that investors can use to obtain the prospectus and other information. The Fund
may indicate, as applicable, that the prospectus and other information is available
on the Fund's Internet site or by E-mail request. The Fund also may indicate,
if applicable, that the prospectus and other information is available from a financial
intermediary (such as a broker-dealer or bank) through which shares of the Fund
may be purchased or sold.
Instruction to Paragraph (c)(1)(v).
When the Fund (or financial intermediary through which shares of the Fund may
be purchased or sold) receives a request for the Fund's prospectus, the Fund's
Statement of Additional Information, or the Fund's annual or semi-annual report,
the Fund (or financial intermediary) must send the requested document within three
business days of receipt of the request, by first-class mail or other means designed
to ensure equally prompt delivery. Funds are encouraged to send other information
requested by shareholders within the same period.
Provide the information required by paragraphs
(c)(2) (i) through (ix) of this section in the order indicated:
Fund objectives/goals. Provide the information
about the Fund's investment objectives or goals required by Item 2(a) of Form
N-1A.
Principal investment strategies of the Fund.
Provide the information about the Fund's principal investment strategies required
by Item 2(b) of Form N-1A. In addition, a Fund (other than a Fund that has not
yet been required to deliver a semi-annual or annual report under Rule 30d-1 under
the Investment Company Act of 1940 [Editor's note: This section was redesignated
as Rule 30e-1. See 66 FR 3734, 3759,
Jan. 16, 2001.]) must provide disclosure to the following effect:
Additional information about the Fund's investments is available in the Fund's
annual and semi-annual reports to shareholders. In the Fund's annual report you
will find a discussion of the market conditions and investment strategies that
significantly affected the Fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling _____.
Principal risks of investing in the Fund. Provide
the narrative disclosure, bar chart, and table required by Item 2(c) of Form N-1A.
Provide in the table the Fund's average annual total returns and, if applicable,
yield as of the end of the most recent calendar quarter prior to the Profile's
first use. Update the return information as of the end of each succeeding calendar
quarter as soon as practicable after the completion of the quarter. Disclose the
date of the return information adjacent to the table.
Instruction to Paragraph (c)(2)(iii).
A Fund may reflect the updated performance information in this section of the
profile by affixing a label or sticker, or by other reasonable means.
Fees and expenses of the Fund. Include the fee
table required by Item 3 of Form N-1A.
Investment adviser, sub-adviser(s) and portfolio
manager(s) of the Fund.
Identify the Fund's investment adviser.
Identify the Fund's sub-adviser(s) (if any)
except that:
A Fund need not identify a sub-adviser(s)
whose sole responsibility for the Fund is limited to day-to-day management of
the Fund's holdings of cash and cash equivalent instruments, unless the Fund is
a money market fund or other Fund with a principal investment strategy of regularly
holding cash and cash equivalent instruments.
A Fund having three or more sub-advisers,
each of which manages a portion of the Fund's portfolio, need not identify each
such sub-adviser, except that the Fund must identify any sub-adviser that is (or
is reasonably expected to be) responsible for the management of a significant
portion of the Fund's net assets. For purposes of this paragraph (c)(2)(v)(B)(2),
a significant portion of a Fund's net assets generally will be deemed to be 30%
or more of the fund's net assets.
State the name and length of service of the
person or persons employed by or associated with the Fund's investment adviser
(or the Fund) who are primarily responsible for the day-to-day management of the
Fund's portfolio and summarize each person's business experience for the last
five years in accordance with the Instructions to Item 6(a)(2) of Form N-1A. A
Fund with three or more such persons, each of whom is (or is reasonably expected
to be) responsible for the management of a portion of the Fund's portfolio, need
not identify each person, except that a Fund must identify and summarize the business
experience for the last five years of each person who is (or is reasonably expected
to be) responsible for the management of a significant portion of the Fund's net
assets. For purposes of this paragraph (c)(2)(v)(C), a significant portion of
a Fund's net assets generally will be deemed to be 30% or more of the Fund's net
assets.
Purchase of Fund shares. Disclose the Fund's
minimum initial or subsequent investment requirements, the initial sales load
(or other loads) to which the Fund's shares are subject, and, if applicable, the
initial sales load breakpoints or waivers.
Sale of Fund shares. Disclose that the Fund's
shares are redeemable, identify the procedures for redeeming shares (e.g., on
any business day by written request, telephone, or wire transfer), and identify
any charges or sales loads that may be assessed upon redemption (including, if
applicable, the existence of waivers of these charges).
Fund distributions and tax information. Describe
how frequently the Fund intends to make distributions and what options for reinvestment
of distributions (if any) are available to investors. State, as applicable, that
the Fund intends to make distributions that may be taxed as ordinary income or
capital gains (which may be taxable at different rates depending on the length
of time that the Fund holds its assets) or that the Fund intends to distribute
tax-exempt income. If a Fund expects that its distributions, as a result of its
investment objectives or strategies, primarily will consist of ordinary income
or capital gains, provide disclosure to that effect. For a Fund that holds itself
out as investing in securities generating tax-exempt income, provide, as applicable,
a general statement to the effect that a portion of the Fund's distributions may
be subject to federal income tax.
Other services are available from the Fund.
Provide a brief summary of services available to the Fund's shareholders (e.g.,
any exchange privileges or automated information services), unless otherwise disclosed
in response to paragraphs (c)(2)(vi) through (viii) of this section.
Instruction to Paragraph (c)(2)(ix).
A Fund should disclose only those services that generally are available to typical
investors in the Fund.
The Profile may include an application that a prospective
investor can use to purchase the Fund's shares as long as the application explains
with equal prominence that an investor has the option of purchasing shares of
the Fund after reviewing the information in the Profile or after requesting and
reviewing the Fund's prospectus (and other information) before making a decision
about investing in the Fund.
Instruction to Paragraph (c)(3).
A Fund may include the application in a Profile or otherwise provide an application
together with a Profile in any manner reasonably designed to alert investors that
the application is to be considered along with the information about the Fund
disclosed in the Profile.
Modified Profile for certain funds.
A Fund may modify or omit the information required
by paragraphs (c)(2)(vi) through (ix) of this section for a Profile to be used
for a Fund that is offered as an investment option for:
A defined contribution plan that meets the requirements
for qualification under section 401(k) of the Internal Revenue Code;
A tax-deferred arrangement under section 403(b)
or 457 of the Internal Revenue Code; and
Variable contracts as defined in section 817(d)
of the Internal Revenue Code.
A Fund that uses a Profile permitted under paragraph
(d)(1) of this section may:
Alter the legend required by paragraph (c)(1)(iv)
of this section to include a statement to the effect that the Profile is intended
for use in connection with a defined contribution plan, another tax-deferred arrangement,
or a variable contract, as applicable, and is not intended for use by other investors;
and
Modify other disclosure in a Profile consistent
with offering the Fund as a specific investment option for a defined contribution
plan, tax-deferred arrangement, or variable contract.
A Profile used under paragraph (d)(1)(i) or (ii),
but not paragraph (d)(1)(iii), of this section may include, or be accompanied
by, an enrollment form for the plan or arrangement. The enrollment form does not
need to be filed with the Profile under Rule 497.
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