Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002)Board NoticesAdvertising, marketing and information disclosure requirements for collective investment schemesPart V : Information Disclosure16. General requirements for the Minimum Disclosure Document |
| (1) | A manager must produce a MDD for each portfolio administered under its collective investment scheme, including third-party-named portfolios. |
| (2) | A manager must use a MDD for purposes of disclosing information to an investor prior to entering into a transaction with the investor, and for purposes of providing a general investor report to its investors as contemplated in paragraph 15. |
| (3) | A manager must ensure that each MDD— |
| (a) | sets out the essential characteristics of a portfolio or portfolio class which will enable an investor to understand the nature and the risks of the portfolio and to make informed investment decisions; |
| (b) | is updated every quarter following the launch date of a portfolio and discloses the date of issue; |
| (c) | is in the format prescribed in paragraph 17; |
| (d) | contains a statement that it is the MDD; |
| (e) | discloses at least the following information— |
| (i) | the registered portfolio name and, where applicable, the registered number; |
| (ii) | the investment objective and a summary of the investment policy of the portfolio as provided for in terms of the supplemental deed and any other mandate that may be narrower than the investment policy; |
| (iii) | the risk reward profile of the investment, including appropriate guidance on and warnings of the risks associated with investment in the relevant portfolio; |
| (iv) | the portfolio benchmark, where applicable; |
| (v) | fees and charges associated with the most expensive class available directly from the manager for investment by members of the public, other than financial institutions; (total expense ratio, management fees, initial fees, performance fees, advisory fees and any other applicable fees); |
| (vi) | the portfolio launch or inception date; |
| (vii) | the portfolio category or classification; |
| (viii) | the portfolio size; |
| (ix) | distribution dates and the value distributed per participatory interest over the past 12 months; |
| (x) | performance of the portfolio; |
| (xi) | the name of the manager, trustee and/or custodian and their relevant contact details; |
| (xii) | portfolio valuation and transaction cut-off time; |
| (xiii) | asset allocation; |
| (xiv) | mandatory disclosures set out in paragraph 6; |
| (xv) | the frequency of publication of prices and where or how prices are published or made available; and |
| (xvi) | where and how to obtain, free of charge, additional information on the proposed investment including, but not limited to, brochures, application forms and the annual report and any half-yearly report. |
| (4) | A manager must make available on request, to existing and prospective investors, details of the investments of a portfolio as at the most recent calendar quarter-end in order to enable the investors to make informed investment decisions. |
| (5) | Where a manager delegates or outsources the management of the investments in a portfolio to a financial services provider, the full details of that financial services provider must be disclosed to the investor, including whether the financial services provider is authorised under the Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002) to act in such capacity. |