Mutual fund companies must bolster their disclosures to investors and more clearly explain major changes that affect fund returns, the Ontario Securities Commission said in a notice issued yesterday. The OSC recently completed a review of a sample of disclosure documents from investment funds, and sent comment letters to fund managers who represent a total of 45 per cent of the industry's assets under management. The commission said funds must provide a more thorough analysis of the reasons for changes to performance. The OSC also highlighted the lack of compliance with a requirement for funds to compare their performance with the performance of a major market index. As well, the commission said fund managers must also provide a discussion about why their funds overperformed or underperformed the market index.
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