ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investments Schemes) Regulations, 2023
123. Performance calculation
Edition: 2023-12-15 · In force
123. Performance calculation
(1)In the determination of total assets under management, the total assets of a collective investment scheme shall—(a)be the aggregate fair value of all assets and the assets shall not be double counted; or(b)be actual assets managed by the fund manager of the collective investment scheme including both fee-paying and non-fee-paying portfolios; and include assets where the fund manager has outsourced the management of the assets to another fund manager.(2)Collective investment scheme performance shall be calculated using only actual assets managed by the fund manager.(3)Returns for periods of less than one year shall not be annualized.(4)The fund manager shall report returns that are net of all fees charged against the fund including transaction costs (cost of buying and selling, investment-brokerage fees, taxes, and exchange fees), and fund management fees and administrative costs (including audit, legal, custodial, trustee, annual general meeting fees, and performance-based fees).(5)If the fund manager of a collective investment scheme chooses to use a benchmark for risk and return analysis, the fund manager shall disclose in the performance report—(a)the benchmark description which shall include the key features of the benchmark or the name of the benchmark for a readily recognized index or other point of reference; and(b)the periodicity of the benchmark if benchmark returns are calculated less frequently than monthly.(6)The benchmark used shall be relevant to the fund strategy of the same return type, in the same currency and for the same periods for which the returns are presented.(7)The fund manager of a collective investment scheme fund shall present the maximum drawdown and the sharpe ratio as risk measure in addition to any other measure that current and prospective investors are likely to understand.(8)When calculating risk measures—(a)the periodicity of the fund returns, and the benchmark returns shall be the same; and(b)the risk measure calculation methodology of the fund and the benchmark shall be the same.