Funds enter the era of the content of disclosures is weak
Disclosures that will not protect them from hunger!Disclosures that will not protect them from hunger!Issa Abdul SalamFunds began investment in the application of regulatory material provided by the law of the Capital Market Authority, where the Fund announced the benefits of the investment Thursday at the official website of the Kuwait Stock Exchange for some important information regarding its performance monthly, pursuant to Article 355 of the executive regulations of Law No. 7 of 2010, regarding the dissemination of information on a monthly investment funds. And welcomed the sources of investment-by-step announcement of investment funds for its performance on a monthly basis, pointing out that the sector lacks the disclosure, especially since the previous declarations of the investment funds were not binding, and was surrounded by some uncertainty, in addition to it was limited to measuring the performance and the Declaration of profits derived only coincide with the interim statements of the Fund, or through the monthly reports prepared by some investment companies operating in the market. The sources pointed out that the ambiguity of details of the funds industry in Kuwait to pay stakeholders, developed the law of the Capital Market Authority, to require the administrators of investment funds to these disclosures do not conflict with the strategy work. While welcoming community investment in this step, there are several criticisms directed to the content of the declaration of disclosure, the method disclosed yesterday, which lacks some of the criteria that must be clarified before the investor to read the performance of the sector and assist it in making his investment decision, including: the need for a figures illustrate the performance of the Fund for varying periods, either on a monthly basis, and since the beginning of the year, compared with periods the same progress from previous years, in addition to the disclosure of the 10 largest shares of the Fund invests, with the announcement of the percentages owned in these shares if possible, in case if it does not contrary to the interests of the Fund, as well as the need for a general indicator to measure the performance of investment funds, away from the market index, as it reflects the performance of listed companies.The sources pointed out that clarification of the Fund's capital at incorporation the number of units, the capital of the current is not considered an indicator of the performance of the Fund, where there are factors that may lead to a decline in the number of units, pointing out that the reason for the decline may be due to recovery operations of the Fund's capital by the Fund's capital, or loss of part of its capital, or low market value of the assets of the Fund, and therefore this is not a criterion for the investor to judge the performance of the Fund. The sources said that the declaration did not transform any items that can be measured by the professional fund manager, and measure their performance, so can be held accountable by the campaign, the units that contribute to the Fund which is managed by, pointing out that the declaration of dividends is not a criterion for measuring performance, especially that the majority of funds declare distributions on an annual basis.The sources believe that despite the disclosure that the process is improving from time to time, few expect that these disclosures are absolute transparency in force in other markets that are committed to the disclosure of performance and size of investments. The sources pointed out that there are concerns by some fund managers of the possibility of switching the terms of disclosure, and force them to disclose the detailed figures, in anticipation of the process of competition between funds and each other, in time, which sources say he has always forced all funds to disclose the same way, why of improving these disclosures, and the numbers vaccinated vital. To the financial community are looking forward to the possibility of advertising for some of the irregularities committed by investment funds, and clarify the penalties are against it or its directors.She sources the possibility of forcing the institutions to the governmental institutions of the state from pursuing that approach, and the possibility of declaring a monthly basis for some information about its funds investment managed by companies, to which these institutions, particularly the funds the General Authority for Investment, which constitute a large proportion of the capital value of the market.
Disclosures that will not protect them from hunger!Disclosures that will not protect them from hunger!Issa Abdul SalamFunds began investment in the application of regulatory material provided by the law of the Capital Market Authority, where the Fund announced the benefits of the investment Thursday at the official website of the Kuwait Stock Exchange for some important information regarding its performance monthly, pursuant to Article 355 of the executive regulations of Law No. 7 of 2010, regarding the dissemination of information on a monthly investment funds. And welcomed the sources of investment-by-step announcement of investment funds for its performance on a monthly basis, pointing out that the sector lacks the disclosure, especially since the previous declarations of the investment funds were not binding, and was surrounded by some uncertainty, in addition to it was limited to measuring the performance and the Declaration of profits derived only coincide with the interim statements of the Fund, or through the monthly reports prepared by some investment companies operating in the market. The sources pointed out that the ambiguity of details of the funds industry in Kuwait to pay stakeholders, developed the law of the Capital Market Authority, to require the administrators of investment funds to these disclosures do not conflict with the strategy work. While welcoming community investment in this step, there are several criticisms directed to the content of the declaration of disclosure, the method disclosed yesterday, which lacks some of the criteria that must be clarified before the investor to read the performance of the sector and assist it in making his investment decision, including: the need for a figures illustrate the performance of the Fund for varying periods, either on a monthly basis, and since the beginning of the year, compared with periods the same progress from previous years, in addition to the disclosure of the 10 largest shares of the Fund invests, with the announcement of the percentages owned in these shares if possible, in case if it does not contrary to the interests of the Fund, as well as the need for a general indicator to measure the performance of investment funds, away from the market index, as it reflects the performance of listed companies.The sources pointed out that clarification of the Fund's capital at incorporation the number of units, the capital of the current is not considered an indicator of the performance of the Fund, where there are factors that may lead to a decline in the number of units, pointing out that the reason for the decline may be due to recovery operations of the Fund's capital by the Fund's capital, or loss of part of its capital, or low market value of the assets of the Fund, and therefore this is not a criterion for the investor to judge the performance of the Fund. The sources said that the declaration did not transform any items that can be measured by the professional fund manager, and measure their performance, so can be held accountable by the campaign, the units that contribute to the Fund which is managed by, pointing out that the declaration of dividends is not a criterion for measuring performance, especially that the majority of funds declare distributions on an annual basis.The sources believe that despite the disclosure that the process is improving from time to time, few expect that these disclosures are absolute transparency in force in other markets that are committed to the disclosure of performance and size of investments. The sources pointed out that there are concerns by some fund managers of the possibility of switching the terms of disclosure, and force them to disclose the detailed figures, in anticipation of the process of competition between funds and each other, in time, which sources say he has always forced all funds to disclose the same way, why of improving these disclosures, and the numbers vaccinated vital. To the financial community are looking forward to the possibility of advertising for some of the irregularities committed by investment funds, and clarify the penalties are against it or its directors.She sources the possibility of forcing the institutions to the governmental institutions of the state from pursuing that approach, and the possibility of declaring a monthly basis for some information about its funds investment managed by companies, to which these institutions, particularly the funds the General Authority for Investment, which constitute a large proportion of the capital value of the market.
