Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002)Board NoticesAdvertising, marketing and information disclosure requirements for collective investment schemesPart IV : Performance Disclosures7. General performance disclosure requirements |
| (1) | A manager must ensure that an advertisement relating to the performance of a portfolio, manager or collective investment scheme— |
| (a) | is objective and reasonable; |
| (b) | is truthful; |
| (c) | is representative of the portfolio history; |
| (d) | is not taken out of context; |
| (e) | conforms with accepted mathematical procedures; and |
| (f) | does not create unreasonable expectations of future performance. |
| (2) | A manager may only publish forecasts or commentary about the expected future performance of asset classes or the market in general if the forecasts are based on disclosed reasonable assumptions and the manager indicates that the forecasts or commentary are not guaranteed to occur. |
| (3) | A manager must ensure that an advertisement which contains performance information, including awards and rankings, also includes references to their sources and date. |
| (4) | A manager may not publish an advertisement which— |
| (a) | implies that portfolio performance achieved in the past will be repeated; |
| (b) | includes returns over terms shorter than three years, other than in the case of money market portfolios; or |
| (c) | includes any future returns based on historic data. |