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  3. General stocktake of fund updates

General stocktake of fund updates

REPORT: General stocktake of fund updates

Quarterly fund updates (fund updates) let investors know important information about their managed fund, such as how it is performing, what it is costing them, and what their fund is investing in. By law, they must follow a standard format designed to make it easy to compare funds, and be understood by non-expert investors.

Fund updates must be produced and made publicly available on a quarterly basis.

The legal requirement to produce (and make publicly available) information such as quarterly fund updates is relatively new for managed investment schemes (MIS), with the first complete year of quarterly fund updates produced in 2017.

We decided to undertake a general stocktake (or review) of these fund updates to discover if there were:

  • Common themes or issues and potential areas where general feedback (or guidance) could be appropriate.
  • Instances of non-compliance.
  • Any emergent areas of interest.
  • Any other matters that will help determine how fund update compliance will be monitored in 2018.

This ‘stocktake’ meets a specific milestone to review quarterly fund updates and engage with the market on our findings. This review forms part of our strategic priorities for 2017-2018 to work with issuers and their professional advisers to improve disclosure documents and offer information.