As part of their disclosure requirements, investment funds file annual financial statements and interim financial reports. These must include a:
- statement of financial position
- statement of comprehensive income
- statement of changes in equity or statement of changes in net assets attributable to security holders
- statement of cash flows
- statement1 of investment portfolio
- auditor's report (for annual financial statements)
- a management discussion of fund performance (comparable to the MD&A provided by corporate issuers), which should complement the financial statements
- financial highlights
- performance information
- summary portfolio disclosure
Annual financial statements and management reports of fund performance must be provided within 90 days of an investment fund’s financial year end, while interim financial reports and management reports of fund performance must be provided within 60 days of the end of the investment fund’s interim reporting period. Financial statements and management reports of fund performance must be filed on SEDAR and delivered to security holders.
In addition to the semi-annual financial reporting, investment funds must also provide summary portfolio disclosure for their first and third quarters.
An investment fund must also ensure that its auditor meets the requirements in National Instrument 52-108 Auditor Oversight, and if it changes its auditor it must provide certain disclosure regarding the circumstances of the change.
For more information:
- OSC Staff Notice: 81-724 - Report on Staff's Continuous Disclosure Review of the Fees and Expenses Disclosure by Investment Funds
- National Instrument 81-106 Investment Fund Continuous Disclosure
- OSC Rule 81-801 Implementing National Instrument 81-106 Investment Fund Continuous Disclosure
- Form 81-106F1 Contents of Annual and Interim Management Report of Fund Performance
- National Instrument 51-102 Continuous Disclosure Obligations
- National Instrument 52-108 Auditor Oversight
1 While the term "statement of investment portfolio" is used in securities law, preparers of the financial statements may refer to it as a "schedule of investment portfolio" within a complete set of investment fund financial statements (section 2.5.1 of Companion Policy 81-106CP Investment Fund Continuous Disclosure).