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Press Release

For Immediate Release: Wednesday 26 September 2001


Commenting on today's publication of the FSA Task Force report on the use of past performance in advertising, Richard Saunders, Director General of AUTIF said:

"AUTIF has long held the view that the current rules on the use of past performance data are in need of overhaul.  We are keen to start a constructive dialogue with the FSA about how information for investors might be presented in a more meaningful way."

AUTIF believes that advertising should show discrete annual performance over at least five years in order that investors should better understand how past investment returns have been obtained. 

He added:

"We welcome the task force's rejection of the idea that information about past performance should be prohibited.  Clear historic information is an important ingredient in investment decision taking." 

Since the early '90s AUTIF has called for clearer disclosure of unit trust charges.  It believes that the Reduction in Yield (RIY) figure required by current regulations is more in keeping with insurance company requirements, and that a regime based on the TER (total expense ratio) would be more appropriate for mutual funds.

AUTIF has also long sought a consistent method for the calculation of fund yields.  It welcomes recent statements by the FSA indicating that it shares this view, and looks forward to progressing this issue.  


For further information, please contact:
Richard Saunders, Director General, AUTIF, 020 7831 0898
Anne McMeehan, Director of Communications, AUTIF, 020 7831 0898
Clare Arber, PR Manager, AUTIF, 020 7831 0898

Note to Editors:
The use of discrete annual performance demonstrates volatility, ie that investment performance fluctuates from year to year.

Investment management association