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A practical guide to the KIID

The CESR/10-794 consultation paper provides a template which proposes the contents and layout that UCITS and/or their management companies are expected to follow when drafting a KIID.

A challenging content in a mandatory and harmonised format.

Details of the elements of a KIID - first page

1. Title and identification of UCITS
  • Standardised title with disclaimer on the nature of the KIID
  • Name of the sub-fund (or share class)
  • Scheme name
  • ISIN code
  • Name and group of the portfolio manager(s)
2. Objectives and investment policy
  • Description, in plain language, of key characteristics of the UCITS
  • Cannot be a “copy/paste” of the prospectus
3. Risk & reward profile
  • Synthetic Risk & Reward Indicator (SRRI) between 1 (low) and 7 (high)
  • SRRI calculation method temporarily adopted; binding guidelines to be confirmed
  • Must contain narrative explanation of the composition and limitations of the SRRI
  • Will contain narrative presentation of the UCITS risks not captured by SRRI (e.g. credit, liquidity, counterparty and operational risk)

Details of the elements of a KIID - second page

4. Charges for this fund
  • Charges used to pay UCITS running cost
    • one-off entry and exit charges (max. in %)
    • ongoing charges in %, excl. performance and transaction fees
    • conditional charges in %, incl. performance fee
  • Must contain a reference to the fund prospectus for more information
  • Ongoing charges figures require accurate data capture by fund administration
5. Past performance
  • Graphical representation of the UCITS’ performance over ten years, including
    • warning guide on future performance
    • brief indication of included and excluded charges
    • year of inception of the UCITS
    • currency of past performance
  • Must cover one complete calendar year, with annual update 35 days after 31 December regardless of UCITS’ year-end date
  • CESR has issued consultation paper 10-530 on the selection and presentation of performance scenarios
6. Practical Information
  • Name of the depositary
  • Where to obtain documents and NAV price
  • Tax statement on the UCITS’ home state
  • Stipulate the management company’s liability on the KII’s content
  • Information on umbrella funds’ specificities
  • If not based on a representative share class, include information on class of share
  • Disclosure of the member state of domicile, supervisory authority and date of KII publication

Contacts

  • Lou Kiesch
    Partner - Regulatory Consulting
  • Xavier Zaegel
    Partner - Capital Markets/Financial Risk
  • Francois-Kim Hugé
    Directeur - Fund Registration Services
  • Christopher Stuart-Sinclair
    Directeur - Regulatory Consulting

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