SECP Sets New Performance Benchmarks for Collective Investment Schemes

The Securities and Exchange Commission of Pakistan (SECP) has issued a direction to set standardized performance benchmarks for Asset Management Companies offering Collective Investment Schemes (CIS). This initiative aims to ensure greater transparency, consistency, and comparability in the performance disclosures of CIS across the asset management industry. The new benchmarks, categorized for both Conventional and Shariah-compliant schemes, will enhance the ability of investors to make more informed decisions by aligning performance metrics with specific investment strategies. The Mutual Funds Association of Pakistan (MUFAP) will be responsible for calculating and disseminating these benchmarks and peer group average returns for various categories on a monthly basis. SECP has mandated Asset Management Companies (AMCs) to adopt these benchmarks within one month and update offering documents and Fund Manager Reports accordingly. This move reflects SECP’s commitment to fostering transparency, enhancing investor confidence, and aligning the domestic mutual fund industry with global best practices.