Commission OKs XBRL for funds

The Securities and Exchange Commission has voted to allow mutual funds to submit data on their risks and returns in its new interactive electronic format. The unanimous vote will add mutual funds to a pilot program in which a group of about 40 publicly traded companies file their financial statements in machine-readable computer language known as extensible business reporting language, or XBRL. SEC Chairman Christopher L. Cox said that it is a priority to transform its database of static electronic filings into an interactive database rich with raw data using XBRL. "Investors today are inundated with information in a form that, being charitable, is difficult to find and understand," Mr. Cox said at the open meeting, according to the report. Mutual fund information is particularly important because about half of all American households today invest in mutual funds, he said. Once XBRL data is widely available for mutual funds, investors would be able to use a simple software tool to analyze key points such as the comparative cost of two funds. Under the mutual fund pilot program, funds will be able to submit as exhibits to their registration statements electronically tagged information from the risk and return section of their prospectuses, according to the report. That section includes investment objectives and strategies, risks and costs.