MAS has just released a revised code on collective investment schemes.
The Code sets out the best practices on management, operation and marketing of schemes that managers and approved trustees are expected to observe. Note that the Code is non-statutory in nature.
A couple of noteworthy changes (from the investors point of view) is that:
- The name of a fund should be appropriate. In determining whether a name is ‘appropriate’, the manager should consider if it reflects the geographical focus, asset type, and sector focus that is inline with the scheme’s investment objective, approach and investment universe. So a name like Pru 3Plus that doesn’t say anything about the underlying investment objectives would probably not be allowed.
- Simulated past performance data will be prohibited. That means no more using of backtested (good) historical returns to fool investors. 🙂