Mutual Fund Annual Reports
Footnotes to the Financial Statements: Mutual fund financial reports include footnotes similar to those found in other annual reports. Footnotes include significant accounting policies, and related party and affiliate transactions.
Significant Accounting Policies: Related party and affiliate transactions typically include three types of transactions. The first occurs when payment of fees is made to portfolio managers and financial advisors. The second occurs when a mutual fund accumulates an ownership stake of a least 5% of the company. The third occurs when one mutual fund sells some of its investments to another mutual fund sponsored by the same mutual fund family.