Bangkok--13 Feb--SEC
The SEC encouraged the Association of Investment Management Companies (AIMC) to improve the performance calculation practice of asset management companies to be in line with international standards in performing their role of information disclosure to facilitate investors’ investment decisions.
SEC Secretary-General Vorapol Socatiyanurak said, in the first-quarter meeting with AIMC, that “the SEC encourages the association to urge asset management companies
in addition to the current AIMC guidelines, to also comply with the Global Investment Performance Standards (GIPS), which was created by CFA Institute. The GIPS Standards include ethical principles that provide investment firms with guidance on calculation and reporting their investment results to prospective clients. The calculations and reports will be standardized and be in line with the international benchmark and thus will be easily compared with those of mutual funds offered by foreign companies.
Also, it would pave the way for the companies in preparation for cross-border securities offering, which would help support investors’ confidence. The international standards adoption would allow investors to study the information on performance comparison of mutual funds with the same investment policies prior to making their investment decision.”
Somjin Sornpaisal, Chairman of AIMC, said the AIMC would conduct a study regarding complying with the GIPS Standards, which would help facilitate investors in comparing the fund performance. The AIMC standard has, however, been largely in compliance with the GIPS Standards and the performance of mutual funds has been disclosed onthe AIMC’s website.