May 15, 2023
On May 4, 2023, the U.S. Securities and Exchange Commission shared a draft version of the Open-End Fund (OEF) taxonomy and taxonomy guide to provide additional guidance on this aspect of the Tailored Shareholder Reports (TSR) rule.
Here’s our take:
The SEC’s draft OEF taxonomy is a hybrid that combines new TSR-specific XBRL tags with legacy Risk/Return (RR) tags resulting in a shared set to be used for both prospectus and shareholder report filings. The OEF taxonomy also incorporates some tagging and concepts by reference from the current US-GAAP taxonomy (as used for 10Q and 10K corporate filings). Examples include indices (e.g., the S&P 500 Index) and common investment type, geographic and sector breakdowns (e.g. Consumer Discretionary).
For TSR filings, the new taxonomy includes tags for all the major sections required in the TSR. Few extension tags will be required, except those for individual securities and perhaps as part of a non-standard holding’s breakdown. Many sections, such as the MDFP and additional fund statistics, will be block-tagged and will not require detail tagging. Similar to bar charts in RR iXBRL filings, graphical elements (pie charts, line graphs, etc.) will require “hidden” tagging of the various underlying data points that make up the displayed data.
Some updates will also be required of RR iXBRL filings as well, once the new taxonomy is approved. Legacy tagging that included time periods (e.g. 1YearPerformance or 2022AnnualReturn) is being replaced by more general tagging that will be associated with specific date range contexts (e.g. 01/01/2022 through 12/31/22) for each unique data point. In addition, some of the legacy table formatting tags will be phased out now that iXBRL has largely replaced separately rendered XBRL proofs.
Those who would like to submit comments can do so by emailing StructuredData@sec.gov by June 5, 2023. Be sure to include “Draft 2023 OEF Taxonomy” in the subject header.
Of course, if you have any questions or would like to discuss the new taxonomy in greater detail, feel free to reach out to FilePoint’s team of experts for a more in-depth discussion. We love this stuff!