Singapore legislation
Regulation 29
of Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations 2005
Regulation 29
Future performance of collective investment scheme
Subregulation 1
Subject to paragraph (3), an advertisement or publication in relation to a collective investment scheme must not —
include any prediction, projection or forecast as to the future or likely performance of the scheme; or
use words such as “targeted” or “expected” or any similar words or description in relation to a rate of return.
Subregulation 2
An advertisement or publication in relation to a collective investment scheme may include a prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets which are targeted by the scheme, but such prediction, projection or forecast must be accompanied by a prominent statement to the effect that the prediction, projection or forecast is not necessarily indicative of the future or likely performance of the scheme.
Subregulation 3
An advertisement or publication in relation to a collective investment scheme that is a trust and that invests primarily in real estate and real estate-related assets specified by the Authority in the Code on Collective Investment Schemes may include a forecast or projection prior to or during an offer of units in the scheme for which a prospectus is required, provided that —
if the forecasted or projected yields of the units in the scheme are stated in percentage terms —
such yields are presented on an annualised basis; and
it is prominently stated in the advertisement or publication that such yields are calculated based on a stated reference price or stated reference prices and that such yields will vary accordingly for investors who purchase units in the secondary market at a price higher or lower than the stated reference price or prices; and
the advertisement or publication clearly refers to the assumptions, as set out in the prospectus, underlying such forecast or projection.
Subregulation 4
Where the return on a collective investment scheme is guaranteed, or where the use of a prediction, projection or forecast as to the future performance of the scheme has been allowed by the Authority under paragraph (3), the return, prediction, projection or forecast shall be presented on an average annual compounded basis.