Page 66 - Profile's Unit Trusts & Collective Investments - March 2026

Chapter 3 Costs and pricing

R Performance figures for the current and
Performance tables previous years, based on NAV-to-NAV
Trailing returns pricing, compared, where relevant, to a
Performance figures measured market index
over different periods up to the R Details of all charges levied by the manager,
same end date, like the ones used in this including any charge levied on the
handbook, are usually called trailing returns. Also repurchase of participatory interests and
sometimes called trailing twelve month (TTM) any change in such charges or how they
returns because the periods covered are usually are calculated
year-multiples. When performance data up R The composition of the assets of the portfolio
to a particular date is published, it is usually a classified by appropriate category or
trailing return: One year or three years up to industry sector
the specified date. Published trailing returns R A statement that copies of the audited
therefore answer the question, “If I’d invested annual financial statements of the manager
exactly three years ago on the specified and of the scheme managed by it are
date, what would my investment be worth available, free of charge, on request by an
now?” In fund fact sheets trailing returns investor
are usually up to the last month or quarter end. For marketing reasons, many CISs report to
Discrete returns investors quarterly or half-yearly.
Performance figures calculated over set While on the subject of fund reporting, note
periods to different end dates are usually that CIS managers are required to make certain
called discrete returns. Often these are returns for mandatory disclosures on any marketing material
the last few calendar years, each year shown they prepare. These form part of the investor
separately, but discrete returns can also be protection policies underlying CISCA, in terms
shown monthly or quarterly. Discrete returns of which the CIS manager must fully inform any
highlight fund performance in a range of prospective investor about the nature of the
separate non-overlapping periods. Compared investment and the associated risks.
to trailing returns, they often reveal the ups Section 100 (4) of CISCA states that “there must
and down in a fund’s performance. be included in every price list, advertisement,
Rolling returns brochure or similar document published by a
Like discrete returns, rolling returns typically use manager or by any of its authorised agents in
set periods, but unlike discrete returns the which participatory interests are commended to
end points overlap. For example, three-year the public, a statement in clear and unambiguous
rolling returns calculated monthly denote terms, to the effect that the value of participatory
performance figures for three-year overlapping interests in a portfolio is subject to fluctuation
cycles – three years to the end of last month, from time to time relative to the market value of
three years to the end of the month before, and the assets comprised in the portfolio…”
so on, as far back as desired. A scatter plot or an
average of rolling returns often gives a better Media reports
general impression of a fund’s performance In addition to the (at least) annual report from
over time than discrete or trailing returns. the portfolio manager, investors and advisers
will also find considerable information available
in the media. Various internet services and LISPs make available fact sheets (similar to the ones
in this handbook), and prices and performance statistics are available in many daily and weekly
newspapers and financial magazines.
Tables of performance figures in the press usually follow the classification system used by the
industry (see Chapter 8).
The grouping of funds for comparative purposes is important because of the difficulties of
comparing the performance of different asset classes. Fixed-interest funds, for example, are subject
to very different factors than equity funds. Fixed-interest funds are therefore grouped together in
their own sectors, as are the various equity fund categories.
Another benefit of tables organised in categories is the ability to view a group of comparable funds
in relation to an industry benchmark, such as the JSE All Share index for general equity funds.

64 Profile’s Unit Trusts & Collective Investments March 2026