ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investments Schemes) Regulations, 2023
122. Performance Reporting
Edition: 2023-12-15 · In force
122. Performance Reporting
(1)A fund manager shall prepare and submit to the Authority a performance measurement report on a quarterly basis.(2)The performance measurement report shall be submitted within twenty-one (21) days after the end of each quarter and shall be made available to all existing and prospective investors.(3)The performance measurement report shall include updated performance and performance related information on general areas of investment for the selected fund, including correction of material errors if any. At the minimum, the disclosure shall include the specific errors identified, the impact of the errors, the values before and after correction of the error and the measures to prevent recurrence. In this context an error is considered material if it results in an impact equal to or greater than ten per cent of the net asset value of the assets under management.(4)The fund manager shall calculate and present time- weighted returns for each fund.(5)The fund manager shall not link actual performance to historical, theoretical performance or prospective performance.(6)The fund manager shall not present performance or performance-related information that is false or misleading.(7)In addition to the actual return for a given quarter, the fund manager shall also present total returns according to at least one year, three year and five-year annualized returns through the most recent period.(8)The fund manager shall present in each collective investment scheme fund performance report—(a)the collective investment scheme returns for each quarterly period;(b)when the initial period is less than one quarter, the return from the collective investment scheme from the inception date through the end of that quarter;(c)the inception date for each fund;(d)the return from the end of the last quarterly period through the termination date, if the fund is terminated;(e)the total return for the benchmark for each quarterly period where applicable;(f)for all other periods for which fund returns are presented, where applicable;(g)total Assets under Management under the collective investment scheme as at the end of the reporting quarter; and(h)the fund expense ratio appropriate to prospective investors where the fund expense ratio shall be computed as all fund expenses for the period including performance fees divided by the closing assets under management for the period.(9)All information in the collective investment scheme performance report shall be presented in the same currency.(10)The fund manager shall present proprietary assets as a percentage of the collective investment scheme fund assets as at the end of each quarter.(11)For funds which invest predominantly in real estate, the fund manager shall present collective investment scheme fund and benchmark component selected by the fund manager returns for all periods presented.(12)The fund manager shall disclose all material events that would help a prospective investor interpret the collective investment scheme performance report.(13)The disclosure shall be included for a minimum of one year and for as long as it is relevant to interpreting the track record. In this context, a material event is any occurrence or information that has the potential to affect the perceived performance of the funds, whose details should be well elaborated for full disclosure of the potential impact.(14)In presenting the collective investment scheme returns, total assets under management and the fund expense ratio, the fund manager shall include comparable figures from the immediate previous period.