Page 70 - Profile's Unit Trusts & Collective Investments - September 2025

Chapter 3 Costs and pricing

Performance tables Performance and reporting
Trailing returns Fund reports
Performance figures measured In terms of notices published under CISCA,
over different periods up to the every collective investment scheme must
same end date, like the ones used in this submit regular reports both to the registrar and to
handbook, are usually called trailing returns. Also investors.
sometimes called trailing twelve month (TTM) In addition to quarterly fact sheets (MDDs),
returns because the periods covered are usually CIS managers must also report to investors at
year-multiples. In the newspaper, performance least once a year (within three months after the
figures are usually in this category: one year up financial year end). The report must contain at
to yesterday, two years up to yesterday, and least the following information:
so on. Newspaper trailing returns therefore
answer the question, “If I’d invested exactly R Disclosure of any material circumstances
three years ago, what would my investment be which affected the portfolio, especially
worth now?” In fund fact sheets trailing returns details of any deviations from the
are usually up to the last month or quarter end. investment policy or objectives of the fund
Discrete returns R Abridged income statement and balance
sheet for the portfolio
Performance figures calculated over set
periods to different end dates are usually R Details of any qualification made by
called discrete returns. Often these are returns for the auditor in its report on the financial
the last few calendar years, each year shown statements of the manager and the portfolio
separately, but discrete returns can also be R Dates and amounts of each distribution by
shown monthly or quarterly. Discrete returns the portfolio
highlight fund performance in a range of R Performance figures for the current and
separate non-overlapping periods. Compared previous years, based on NAV-to-NAV
to trailing returns, they often reveal the ups pricing, compared, where relevant, to a
and down in a fund’s performance. market index
Rolling returns R Details of all charges levied by the manager,
Like discrete returns, rolling returns typically use including any charge levied on the
set periods, but unlike discrete returns the repurchase of participatory interests and
end points overlap. For example, three-year any change in such charges or how they
rolling returns calculated monthly denote are calculated
performance figures for three-year overlapping R The composition of the assets of the portfolio
cycles – three years to the end of last month, classified by appropriate category or
three years to the end of the month before, industry sector
and so on, as far back as desired. A scatter A statement that copies of the audited
plot or an average of rolling returns often R annual financial statements of the manager
gives a better general impression of a fund’s and of the scheme managed by it are
performance over time than discrete or available, free of charge, on request by an
trailing returns. investor
For marketing reasons, many CISs report to investors quarterly or half-yearly.
While on the subject of fund reporting, note that certain mandatory disclosures are also required
on any marketing material prepared by a CIS manager. These form part of the investor protection
policies underlying CISCA, in terms of which the CIS manager must fully inform any prospective
investor about the nature of the investment and the associated risks.
Section 100 (4) of CISCA states that “there must be included in every price list, advertisement,
brochure or similar document published by a manager or by any of its authorised agents in which
participatory interests are commended to the public, a statement in clear and unambiguous terms,
to the effect that the value of participatory interests in a portfolio is subject to fluctuation from time to
time relative to the market value of the assets comprised in the portfolio…”

68 Profile’s Unit Trusts & Collective Investments September 2025