This guidance note is primarily for managers and supervisors of managed funds. It gives guidance on the disclosure of risks associated with your fund and our expectations of your product disclosure statement (PDS), Disclose register entry, or fund update when you:
a. calculate and present the risk indicator
b. update a PDS when there is a change in the risk category
c. describe your fund’s volatility
d. name your fund.
Our intention is to provide guidance that includes information on the legislative framework that applies to managed funds and how we expect risk indicators to be calculated. Our guidance also covers when the product disclosure statement (PDS) should be updated when a fund’s risk category changes; how the volatility of managed funds should be described; and how to approach naming conventions for funds.