- Generic non-performance advertising
"Collective investments are generally medium to long term investments. The value of units may go down as well as up, and past performance is not necessarily a guide to the future. Collective investments are traded at ruling prices.
A schedule of fees and charges and maximum commissions is available on request from the company/scheme. Commission and incentives may be paid and, if so, would be included in the overall costs."
PLUS - 1 OF THESE 3 OPTIONS
- "Forward pricing is used"
- "Historic pricing is used"
- "Some funds forward price while other funds price historically. Consult the company/scheme for details."
- Specific fund non-performance advertising
"Collective investments are generally medium to long term investments. The value of units may go down as well as up, and past performance is not necessarily a guide to the future. Collective investments are traded at ruling prices.
A schedule of fees and charges and maximum commissions is available on request from the company/scheme. Commission and incentives may be paid and, if so, would be included in the overall costs. "
PLUS - 1 OF THESE 2 OPTIONS
- "Forward pricing is used"
- "Historic pricing is used"
- Specific fund performance/comparative advertising
"Collective investments are generally medium to long term investments. The value of units may go down as well as up, and past performance is not necessarily a guide to the future. Collective investments are traded at ruling prices.
A schedule of fees and charges and maximum commissions is available on request from the company/scheme. Commission and incentives may be paid and, if so, would be included in the overall costs."
PLUS - 1 OF THESE 2 OPTIONS
- "Forward pricing is used"
- "Historic pricing is used"
PLUS
- * "Figures quoted are from (name of recognised source), for the period ending ........................................... for a (lump sum/monthly investment), using (sell-sell prices which exclude initial fees and charges/buy-sell prices which include initial fees and charges), with income distributions (reinvested/excluded)."
- Money Market Fund advertising
"A constant unit price will be maintained. Past performance is not necessarily a guide to future performance. A schedule of fees and charges and maximum commissions is available on request from the company/scheme. Commission and incentives may be paid and, if so, would be included in the overall costs."
- * If performance/comparative advertising, add:"The yield is calculated using an annualised seven-day rolling average as at ............................................. (date)."
- OR
- Source: (name or recognised source)
- OR
- Repeat paragraph above marked with an *.
- Bond and Income fund advertising
"Collective investments are generally medium to long term investments. The value of units may go down as well as up, and past performance is not necessarily a guide to the future. A schedule of fees and charges and maximum commissions is available on request from the company/scheme. Commission and incentives may be paid and, if so, would be included in the overall costs."
- * If performance/comparative advertising, add-"This is an historic/current yield as at (date)."
- OR
- Repeat paragraph above marked with an *.
- Funds which have been rated
- CA Ratings
CA Ratings issues a primary rating which involves a comprehensive study of the relevant management company, and a secondary rating which is merely an expressed opinion. It must be noted that funds may only advertise the primary rating. Thus, all ratings bearing a capital "E", which indicates a second tier opinion, may not be advertised.
Funds may advertise their CA Ratings with the following mandatory disclosure-"Funds are rated in terms of the degree of capital preservation on a scale from 'zaAAAm' to 'zaDm' (za = South Africa, m = Money Market Fund).
A constant unit price will be maintained. Past performance is not necessarily a guide to the future. A schedule of fees and charges and maximum commissions is available on request from the company/scheme.
Commission and incentives may be paid and are included in the overall costs."If specific fund performance/comparative advertising, add paragraph above marked with an *.
- FITCH IBCA
FITCH IBCA is an international rating agency. Ratings consist of two different scales measuring credit quality and volatility. Both scales may be used.
Funds may advertise their ratings with the following mandatory disclosure-"Funds are rated in terms of credit quality on a scale from 'zafAAA' to 'zafB' (zaf = national rating scale) and volatility on a scale from 'V1+' to 'V10+'. A constant unit price will be maintained.
Past performance is not necessarily a guide to the future. A schedule of fees and charges and maximum commissions is available on request from the company/scheme. Commission and incentives may be paid and are included in the overall costs.
- * If performance/comparative advertising, add:"The yield is calculated using an annualised seven-day rolling average as at ........................ (date)."
- OR
- Source: (name or recognised source)
- OR
- Repeat paragraph above marked with an *.
- Funds of funds advertising "Collective investments are generally medium to long term investments. The value of units may go down as well as up, and past performance is not necessarily a guide to the future. Collective investments are traded at ruling prices. A schedule of fees and charges and maximum commissions is available on request from the company/scheme. Commission and incentives may be paid and, if so, would be included in the overall costs. A fund of fund collective investment only invests in other collective investments, which levy their own charges."PLUS - 1 OF THESE 2 OPTIONS"Forward pricing is used" "Historic pricing is used"If performance/comparative advertising, add-"Figures quoted are from (name of recognised source), for the period ending .................................... for a (lump sum/monthly investment), using (sell-sell prices which exclude initial fees and charges/buy-sell prices which include initial fees and charges), with income distributions (reinvested/excluded)."
- Advertising of gold, property and index funds which are exempted from section 6(1)(a)(i) of the Collective Investments Schemes Control Act
"Collective investments are generally medium to long term investments. The value of units may go down as well as up, and past performance is not necessarily a guide to the future. Collective investments are traded at ruling prices. A schedule of fees and charges and maximum commissions is available on request from the company/scheme. Commission and incentives may be paid and, if so, are included in the overall costs. The value of securities in these funds can be greater than permitted in the Collective Investment Schemes Control Act. Details are available from the company/scheme."
PLUS - 1 OF THESE 2 OPTIONS
- "Forward pricing is used"
- "Historic pricing is used"
If performance/comparative advertising, add-"Figures quoted are from (name of recognised source), for the period ending .................................... for a (lumpsum/monthly investment), using (sell-sell prices which exclude initial fees and charges/buy-sell prices which include initial fees and charges), with income distributions (reinvested/excluded)."
- Advertising of funds that can be closed or have been closed
"Collective investments are generally medium to long term investments. The value of units may go down as well as up, and past performance is not necessarily a guide to the future. Collective investments are traded at ruling prices. A schedule of fees and charges and maximum commissions is available on request from the company/scheme. Commission and incentives may be paid and, if so, would be included in the overall costs. This fund may be closed."
[Where the fund has been closed, this fact must be stated].
PLUS - 1 OF THESE 2 OPTIONS
- "Forward pricing is used"
- "Historic pricing is used"
- If performance/comparative advertising, add-
- "Figures quoted are from (name of recognised source), for the period ending .................................... for a (lumpsum/monthly investment), using (sell-sell prices which exclude initial fees and charges/buy-sell prices which include initial fees and charges), with income distributions (reinvested/excluded)."
- Advertising of "third party" funds
"Collective investments are generally medium to long term investments. The value of units may go down as well as up, and past performance is not necessarily a guide to the future. Collective investments are traded at ruling prices. A schedule of fees and charges and maximum commissions is available on request from the company/scheme. Commission and incentives may be paid and, if so, would be included in the overall costs."
[Advertising for "third party" funds must carry a line, separated by a space below the mandatory disclosure, that reads: "Company/scheme: XYZ Company".] [The postal address of the Company/scheme must be disclosed.].
PLUS - 1 OF THESE 2 OPTIONS
- "Forward pricing is used"
- "Historic pricing is used"
- If performance/comparative advertising, add-
- "Figures quoted are from (name of recognised source), for the period ending .................................... for a (lumpsum/monthly investment), using (sell-sell prices which exclude initial fees and charges/buy-sell prices which include initial fees and charges), with income distributions (reinvested/excluded)."
- Advertising of funds with different classes
"Collective investments are generally medium to long term investments. The value of units may go down as well as up, and past performance is not necessarily a guide to the future. Collective investments are traded at ruling prices. Different classes of units apply to these funds and are subject to different fees and charges. A schedule of fees and charges and maximum commissions is available on request from the company/scheme. Commission and incentives may be paid and, if so, would be included in the overall costs."
PLUS - 1 OF THESE 3 OPTIONS
- "Forward pricing is used"
- "Historic pricing is used"
- "Some funds forward price while other funds price historically. Consult the company/scheme for details."
- If performance/comparative advertising, add-
- "Figures quoted are from (name of recognised source), for the period ending .................................... for a (lump sum/monthly investment), using (sell-sell prices which exclude initial fees and charges/buy-sell prices which include initial fees and charges), with income distributions (reinvested/excluded)."
- Advertising of awards In addition to the relevant standard mandatory disclosure, the following mandatory disclosure must accompany all award advertising-"Give name of award and date. Full details and basis of award referred to are available from (name of company/scheme)."