Sebi on Friday came out with guidelines for portfolio managers pertaining to performance benchmarking, asking them to adopt an additional layer of broadly defined investment “strategies” while managing the clients’ funds.
Reviewing the requirements related to performance reporting and benchmarking by portfolio managers, the markets regulator said this is in addition to the investment approach (IA) — the documented investment philosophy — adopted by portfolio managers while managing the client funds in order to achieve investment objectives.
The new framework, aimed at helping investors in assessing the performance of portfolio managers, would be applicable from April 1, 2023.
“In addition to the investment approach IA, an additional layer of broadly defined investment themes called “Strategies” shall be adopted by portfolio managers,” the Securities and Exchange Board of India (Sebi) said in a circular.
These broad strategies would be equity, debt, hybrid and multi-asset.
Each I
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