Guidance on Fund types
A mutual fund that is not an exchange-traded mutual fund (an ETF) is required to identify, in its prospectus, the type of mutual fund that the fund is best characterized as.14 Examples of types of mutual funds may include money market, equity, bond or balanced funds related, if appropriate, to a geographical region, or any other description that accurately identifies the type of mutual fund.15
Similar to fund names and investment objectives, the fund type identified in a fund’s prospectus plays a role in identifying the focus of the fund.
Staff’s view is that a fund that is not an ESG Objective Fund should not characterize itself as a fund that is focused on ESG or otherwise reference ESG in its fund type, as such a characterization may inaccurately suggest that the fund has an ESG-related focus.
14 Item 3(a) of Part B of Form 81-101F1.
15 Instruction (2) to Item 3 of Part B of Form 81-101F1.