SECP enhances disclosure rules for fund manager reports

March 28, 2025 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has issued a circular introducing enhanced disclosure requirements for Fund Manager Reports (FMRs) by Asset Management Companies (AMCs).

These measures aim to promote transparency and enable investors and unitholders of Collective Investment Schemes (CIS) to make more informed decisions.

Key enhancements include the 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, Beta, and Standard Deviation.

Additionally, FMRs must provide a comparative analysis of benchmark and committed returns, according to the press release issued today.

The disclosure of index descriptions and tracking difference history for Exchange-Traded Funds (ETFs) has also been mandated.

To ensure consistency and accuracy in disclosures, 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.

This initiative reflects SECP’s continued commitment to improving market integrity, transparency, and investor protection in the asset management industry.

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