A new study by the CFA Institute has concluded that harmonised standards for reporting the performance of investment funds are needed to enhance investor protection and rebuild trust in the retail fund market.
"With increased activity in cross-border selling of unit trusts, there is a need to standardise regulatory disclosures related to periodic fund reporting," Lee Kha Loon, senior policy director at the institute, said.
The report covers six markets - Australia, mainland China, Hong Kong, India, Japan and Singapore - and includes opinions from workers in relevant industries.
With different countries practising different standards of reporting, the report pinpoints quarterly reporting as a key focus as investors feel information is needed on a regular basis.
When asked about the potential burden of time and cost entailed in producing information every quarter, Lee said: "The cost of producing the required information is not great. Information is easily accessed and can be disclosed through websites."
Another key recommendation of the report is clarity in fund holdings and asset allocation as investors lack sufficient information on how their portfolios are being managed.