Investment Management: Performance Reporting:
Disclosures
Quarterly Reporting
Position: Quarterly management reports of fund performance are useful and relevant to current and potential investors and/or their investment advisers.
Rationale: These reports give current and prospective investors and their advisers up-to-date information about fund performance in an understandable manner.
Where stated: Letter to Ontario Securities Commission on Proposed National Instrument 81-106 and Companion Policy 81-106CP and Form 81-106F1 19 December 2002
Financial Statements
Position: Annual and interim financial statements of investment funds should include:
- A statement of net assets for the current and corresponding preceding year
- A statement of operations for the current and corresponding preceding year
- A statement of investment portfolio for the recently completed period
- A summary of portfolio investments at the end of most recently completed period
- A statement of cash flows — or statement of changes in net assets — for the current and corresponding preceding year
- A statement of financial highlights
- Notes to the annual financial statements
- An auditor’s report on the annual financial statements
Rationale: This information is needed to enable investors to make well-informed decisions about whether the fund’s risk/reward relationships are appropriate to their specific needs.
Where stated: Letter to Ontario Securities Commission on Proposed National Instrument 81-106 and Companion Policy 81-106CP and Form 81-106F1 19 December 2002
Material Changes to the Fund
Position: Investment funds must disclose how material or significant changes to the investment fund have affected its overall risk level.
Rationale: This information facilitates the analysis and assessment of whether an investment fund is an appropriate investment for an investor given his or her risk tolerance, time horizon, and other investment needs.
Where stated: Letter to Ontario Securities Commission on Proposed National Instrument 81-106 and Companion Policy 81-106CP and Form 81-106F1 19 December 2002