Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002)Board NoticesAdvertising, marketing and information disclosure requirements for collective investment schemesPart IV : Performance Disclosures13. Comparative advertising |
| (1) | A manager may only make a comparison between— |
| (a) | its collective investment scheme or portfolio and another collective investment scheme or portfolio if the collective investment schemes or portfolios have sufficiently similar features; |
| (b) | the returns of its collective investment scheme or portfolio and those of another collective investment scheme or portfolio if the information used is current, complete and accurate. |
| (2) | Where a manager advertises comparisons of returns, the manager must use statistics published at quarter-end or month-end against relevant benchmarks for periods of a minimum of one year and in multiples of full years for longer periods. |
| (3) | A manager may not, in comparative advertising,— |
| (a) | use comparisons of returns data older than three months after the end of any calendar quarter; |
| (b) | mention specific competitive portfolios, managers or collective investment schemes; |
| (c) | make comparisons between portfolios that are grouped in a sector in which there is no commonality of investment objectives, nor may any ranking be advertised. |
| (4) | A manager may only compare portfolios within a peer group where the basis of inclusion or exclusion is disclosed and where the selection criteria are consistently applied. |