ISLAMABAD – The Securities and Exchange Commission of Pakistan (SECP) has enhanced disclosure requirements for Fund Manager Reports (FMRs) by Asset Management Companies (AMCs).
According to a press release issued by the SECP on Friday, the step is aimed at promoting transparency and enabling investors and unit holders of Collective Investment Schemes (CIS) to make more informed decisions.
Key enhancements include disclosure of actual expenses as a percentage of net assets, applicable sales loads, monthly portfolio turnover ratios, risk adjusted return, yield to maturity, modified duration, macaulay duration, and beta and standard deviation.
FMR must also disclose comparative analysis of benchmark and committed returns. In addition, index descriptions and tracking difference history for ETF are also mandated.
The Mutual Funds Association of Pakistan (MUFAP) has been tasked with developing a standardized methodology for calculating the prescribed quantitative measures.
The enhanced disclosures will become effective immediately upon SECP’s approval of the MUFAP methodology.
