SECP Sets Tougher Rules for Fund Manager Reports

The Securities and Exchange Commission of Pakistan (SECP) has brought in new, tougher rules for Fund Manager Reports (FMRs) from Asset Management Companies (AMCs). The aim is to make things clearer for investors in Collective Investment Schemes (CIS) so they can make better financial calls.

Now, AMCs have to include important numbers in their reports, like expenses as a percentage of net assets, sales fees, monthly portfolio turnover rates, risk-adjusted returns, and stats such as yield to maturity, beta, and standard deviation. They also need to show how funds stack up against benchmarks and promised returns for a better picture of performance.

For Exchange-Traded Funds (ETFs), SECP requires details about the index they track and a history of how well they match it, helping investors see if these funds stay on target.

The Mutual Funds Association of Pakistan (MUFAP) is working on a standard way to calculate these figures to keep them consistent and accurate. The rules will start once SECP okays MUFAP’s plan.

This is part of SECP’s push to protect investors, keep markets fair, and make Pakistan’s asset management industry more open.