Circular on Disclosure / Use of Annualised Returns for Money Market Funds

The SFC has published a circular providing guidance on the disclosure/use of annualised returns for authorised money market funds (MMFs). The SFC has received inquiries about presenting annualised returns for periods of less than one year, such as a seven-day period, due to increased investor demand. The circular outlines general principles, requirements, and existing guidelines for presenting annualised returns. It specifies that the computation basis should be fair, consistently applied, clearly disclosed, and not misleading. Additional requirements include disclosure of the computation basis and period(s) covered, updating figures on a daily basis if published interactively, and including warning statements about the hypothetical nature of the returns.



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