In a statement released by ASIC, the regulator said it issued the infringement notice due to Trident’s promoting “false or misleading” returns for its Global Growth Fund and its Income Plus Fund.
“ASIC’s recent concerns related to Trident’s promotion on its website that the Income Fund had achieved returns of 9.27 per cent for the six-month period ending 30 June 2013,” the ASIC statement said.
“ASIC was concerned that the returns were false or misleading, as Trident failed to include the Income Fund’s negative capital growth. This meant that the actual returns were significantly lower than 9.27 per cent.”
The regulator recently issued two infringement notices to Australian Mutual Holdings, which is the responsible entity for Trident’s Global Growth Fund and Income Plus Fund, for “alleged misleading statements” made in the funds’ product disclosure statements.
ASIC commissioner Greg Tanzer said financial services providers need to be careful when using past performance information in their promotional material.
“It is important that consumers are in a position where they can understand and compare financial products. This also ensures fair competition within the industry,” Mr Tanzer said.
