ANNEX IV - PERFORMANCE SCENARIOS
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Article III – PRESENTATION OF SRI ⬅️ | ➡️ Article V – METHODOLOGY FOR THE PRESENTATION OF PERFORMANCE SCENARIOS
Number of scenarios
1.
The performance scenarios under this Regulation which shall show a range of possible returns, shall be the following:
(a)
a favourable scenario;
(b)
a moderate scenario;
(c)
an unfavourable scenario;
(d)
a stress scenario.
2.
The stress scenario shall set out significant unfavourable impacts of the PRIIP not covered in the unfavourable scenario referred to in point 1(c) of this Annex. The stress scenario shall show intermediate periods where those periods are shown for the performance scenarios under point 1(a) to (c) of this Annex.
3.
An additional scenario for insurance-based investment products shall be based on the moderate scenario referred to in point 1(b) of this Annex, where the performance is relevant in respect of the return of the investment.
4.
The minimum investment return shall also be shown not taking into account the situation where the PRIIP manufacturer or party bound to make, directly or indirectly, relevant payments to the retail investor, is not able to pay.
Calculation of unfavourable, moderate and favourable scenario values for the recommended holding period for Category 2 PRIIPs
Case 1: PRIIPs referred to in point 1 of Annex VIII with sufficient historical data
5.
The following rules shall apply to PRIIPs referred to in point 1 of Annex VIII, where, at the time the calculation is made, the following criteria are satisfied in relation to the length of yearly consecutive historical values for the PRIIP:
(a)
it is greater than 10;
(b)
it is five years longer than the length of the PRIIP’s recommended holding period.
6.
Where the recommended holding period is five years or less, the unfavourable, moderate and favourable scenarios shall be calculated over the last 10 years from when the calculation is made. Where the recommended holding period is more than five years, the unfavourable, moderate and favourable scenarios shall be calculated over a time period which is equal to the recommended holding period plus five years from when the calculation is made.
7.
The calculation of the unfavourable, moderate, and favourable scenarios shall include the following steps:
(a)
within the time period specified in point 6 of this Annex, identification of all overlapping sub intervals individually equal in length to the duration of the recommended holding period, and which start or end in each of the months, or at each of the valuation dates for PRIIPs with a monthly valuation frequency, which are contained within that period;
(b)
for PRIIPs with a recommended holding period of more than one year, identification of all overlapping sub intervals individually equal or shorter in length to the duration of the recommended holding period, but equal to or longer than one year, and which end at the end of the time period identified in point 6 of this Annex;
(c)
for each sub interval referred to in points (a) and (b), calculation of the performance of the PRIIP in accordance with the following:
(i)
based on the performance of the PRIIP during the exact duration of each sub interval;
(ii)
net of all applicable costs;
(iii)
on the basis that any distributable income of the PRIIP has been reinvested;
(iv)
by using a linear transformation to obtain the performance in sub intervals shorter than the recommended holding period, in order to render all sub- intervals of comparable length;
(d)
rank the sub intervals identified in accordance with point (a) according to the performance calculated in accordance with point (c), to identify from within those sub intervals the median and best sub intervals in terms of performance;
(e)
rank together the sub intervals identified in accordance with points (a) and (b) according to the performance calculated in accordance with point (c), to identify from within those sub intervals the worst sub interval in terms of performance.
8.
The unfavourable scenario shall represent the worst evolution of the PRIIP’s value in accordance with i point 7(e) of this Annex.
9.
The moderate scenario shall represent the median evolution of the PRIIP’s in accordance with point 7(d) of this Annex.
10.
The favourable scenario shall represent the best evolution of the PRIIP’s value in accordance with point 7(d) of this Annex.
11.
The scenarios shall be calculated at least on a monthly basis.
Case 2: PRIIPs referred to in point 1 of Annex VIII without sufficient historical data and with the possibility to use a benchmark
12.
For PRIIPs referred to in point 1 of Annex VIII, the unfavourable, moderate and favourable scenarios shall be calculated as specified in points 6 to 11 of this Annex, using data of a benchmark to supplement the values for the PRIIP less all applicable costs, where:
(a)
the length of PRIIP values do not meet the criteria set out in point 5 of this Annex;
(b)
the benchmark is appropriate to estimate performance scenarios in accordance with the criteria specified in point 16 of this Annex; and
(c)
there is historical data for the benchmark that meets the criteria set out in point 5 of this Annex.
If the information on the objectives of the PRIIP makes reference to a benchmark, that benchmark shall be used, provided the conditions in the first subparagraph are met.
Case 3: PRIIPs referred to in point 1 of Annex VIII without sufficient historical data and with no benchmark, or with a benchmark without sufficient historical data, or any other Category 2 PRIIP
13.
For PRIIPs referred to in point 1 of Annex VIII that are not covered by case 1 or case 2 above or any other Category 2 PRIIP, the unfavourable, moderate and favourable scenarios shall be calculated as specified in points 6 to 11 of this Annex using benchmarks regulated by Regulation (EU) 2016/1011 of the European Parliament and of the Council. Those benchmarks represent the asset classes in which the PRIIP invests or the underlying investments to which the PRIIP is exposed, to supplement the values for the PRIIP or the benchmark referred to in point 12 of this Annex. All asset classes in which the PRIIP could invest more than 25 % of its assets or underlying investments that represent more than 25 % of the exposure shall be considered. Where such a benchmark does not exist, an appropriate proxy shall be used.
14.
If the PRIIP invests in different asset types or offers exposure to different types of underlying investments and more than one benchmark as referred to in point 13 of this Annex has been identified, the scenarios shall be calculated using a ‘composite benchmark’, considering the weights of the estimated investment in each type of assets or underlying investments.
15.
For Category 2 PRIIPs for which there is not an appropriate benchmark or proxy with sufficient historical data which meets the criteria set out in point 5 of this Annex for the PRIIP, performance scenarios shall be calculated in accordance with points 21 to 27 of this Annex using 15 years of historical returns of the PRIIP or an appropriate benchmark or proxy.
Cases 2 and 3: Use of appropriate benchmarks or proxies
16.
In order to assess whether the use of a particular benchmark or proxy is appropriate to estimate the performance scenarios, PRIIP manufacturers shall use the following criteria, provided that such criteria are consistent with the objectives of the PRIIP and the type of assets in which the PRIIP invests or the underlying investments to which the PRIIP offers exposure and are relevant for the PRIIP:
(a)
risk-return profile where the benchmark or proxy and the PRIIP fall into the same category of SRI or volatility and expected return or both;
(b)
expected return;
(c)
asset allocation composition (where the asset composition of the PRIIP reflects a composite index, the reference benchmark or proxy for the purpose of the calculation of performance scenarios shall consistently reflect the weights of the composite index);
(d)
potential assets in which the PRIIP invests, consistent with the investment policy;
(e)
exposure to underlying asset classes;
(f)
geographical exposures;
(g)
sector exposures;
(h)
income distribution of the PRIIP;
(i)
liquidity measures (e.g.: daily trading volumes, bid-ask spreads etc.);
(j)
duration;
(k)
credit rating category;
(l)
volatility or historical volatility or both.
PRIIP manufacturers may use criteria additional to those listed in the first subparagraph provided they demonstrate that those additional criteria are relevant in terms of the objectives of the PRIIP and the type of assets in which the PRIIP invests or the type of underlying investments to which the PRIIP offers exposure.
17.
PRIIP manufacturers shall be able to demonstrate the consistency of the benchmarks with the objectives of the PRIIP and shall document their decision, including a clear justification of the benchmark used.
Calculation of the stress scenario for Category 2 PRIIPs
18.
For Category 2 PRIIPs, the calculation of the stress scenario shall have the following steps:
(a)
identify a sub interval of length
w
which corresponds to the following intervals: 1 year
1 year
Daily prices
21
63
Weekly prices
8
16
Monthly prices
6
12
(b)
identify for each sub interval of length w the historical lognormal returns
r
t
,
where
t = t
1
, t
2
, …, t
w
;
(c)
measure the volatility based on the following formula starting from t
i
= t
1
rolling until t
i
= t
H
–
w
+1
where H is the number of historical observations in the period:
Where M
w
is the count of number of observations in the sub interval and
is the mean of all the historical lognormal returns in the corresponding sub interval.
(d)
infer the value that corresponds to the 99th percentile for one year and the 95th percentile for the other holding periods; that value shall be the stressed volatility
.
19.
For Category 2 PRIIPs, the expected values at the end of the recommended holding period for the stress scenario shall be:
Where:
(a)
N is the number of trading periods in the recommended holding period, and where the other terms are defined in point 12 of Annex II;
(b)
z
α
is a proper selected value of the PRIIP at the extreme percentile that corresponds to 1 % for one year and to 5 % for the other holding periods.
20.
The stress scenario value shown shall not be better than the value of the unfavourable scenario.
Calculation of scenario values for the recommended holding period for certain Category 1 PRIIPs, Category 3 PRIIPs and Category 4 PRIIPs
21.
The favourable scenario shall be the value of the PRIIP at the 90
th
percentile of an estimated distribution of outcomes over the recommended holding period less all applicable costs.
22.
The moderate scenario shall be the value of the PRIIP at the 50th percentile of an estimated distribution of outcomes over the recommended holding period less all applicable costs.
23.
The unfavourable scenario shall be the value of the PRIIP value at the 10th percentile of an estimated distribution of outcomes over the recommended holding period less all applicable costs.
24.
Where the PRIIP manufacturer considers that there is a material risk that these scenarios may provide retail investors with inappropriate expectations about the possible returns they may receive, they may use lower percentiles than those specified in points 21, 22 and 23 of this Annex.
25.
For Category 3 PRIIPs, the method to derive the estimated distribution of the PRIIP’s outcomes over the recommended holding period shall be identical to the method specified in points 19 to 23 of Annex II. However, the expected return of each asset shall be the return observed over the period calculated without discounting the expected performance using the expected risk-free discount factor.
26.
For Category 3 PRIIPs, the following adjustments shall be made for the calculation of the stress scenario compared to the calculation for Category 2 PRIIPs:
(a)
infer the stress volatility
based on the methodology defined in points 18(a), (b) and (c) of this Annex;
(b)
rescale historical returns r
t
, based on the following formula:
(c)
conduct bootstrapping on
as described in point 22 of Annex II;
(d)
calculate the return for each contract by summing returns from selected periods and correcting those returns to ensure that the expected return measured from the simulated return’s distribution is as follows:
where E*[
r
bootstrapped
] is the new simulated mean.
27.
For Category 3 PRIIPs, the stress scenario shall be the value of the PRIIP at the extreme z
α
percentile as defined in point 19 of this Annex of the simulated distribution as set out in point 26 of this Annex.
28.
For Category 4 PRIIPs, the method set out in point 27 of Annex II shall be used in respect of those factors that are not observed in the market, combined as necessary with the method for Category 3 PRIIPs. The relevant methods for Category 2 PRIIPs set out in points 5 to 20 of this Annex and the relevant methods for Category 3 PRIIPs set out in points 21 to 27 of this Annex shall be used for the relevant components of the PRIIP where the PRIIP combines different components. The performance scenarios shall be a weighted average of the relevant components. Product features and capital guarantees shall be taken into consideration in the performance calculations.
29.
For Category 1 PRIIPs as defined in point 4(a) of Annex II, and Category 1 PRIIPs as defined in point 4(b) of Annex II that are not traded on a regulated market or on a third- country market considered to be equivalent to a regulated market in accordance with 2014, performance scenarios shall be calculated in accordance with points 21 to 27 of this Annex.
Calculation of scenario values for the recommended holding period for other types of Category 1 PRIIPs
30.
For Category 1 PRIIPs that are futures, call options and put options traded on a regulated market or on a third-country market considered to be equivalent to a regulated market in accordance with 2014, performance scenarios shall be shown in the form of pay-off structure graphs. A graph shall be included to show performance for all scenarios for the different levels of the underlying value. The horizontal axis of the graph shall show the various possible prices of the underlying value and the vertical axis shall show the profit or loss at the different prices of the underlying value. For every price of the underlying value, the graph shall show the resulting profit or loss and at which price of the underlying value the profit or loss shall be zero.
31.
For Category 1 PRIIPs as defined in point 4(c) of Annex II a reasonable and conservative best estimate of the expected values for the performance scenarios set out in points 1(a),(b) and (c) of this Annex at the end of the recommended holding period shall be provided.
The scenarios selected and shown shall be consistent with and complement the other information contained in the key information document, including the overall risk profile for the PRIIP. The PRIIP manufacturer shall ensure the consistency of the scenarios with internal product governance conclusions, including amongst others, any stress-testing undertaken by the PRIIP manufacturer for the PRIIP, and data and analysis used for the purposes of producing the other information contained with the key information document.
The scenarios shall be selected to give a balanced presentation of the possible outcomes of the PRIIP in both favourable and unfavourable conditions, but only scenarios that can be reasonably expected shall be shown. The scenarios shall not be selected so as give undue prominence to favourable outcomes at the expense of unfavourable ones.
Calculation of scenario values for intermediate holding periods
32.
For PRIIPs with a recommended holding period between one and 10 years, performance shall be shown at two different holding periods: at the end of the first year and at the end of the recommended holding period.
33.
For PRIIPs with a recommended holding period of 10 years or more, performance shall be shown at three holding periods: at the end of the first year, after half of the recommended holding period rounded up to the end of the nearest year, and at the end of the recommended holding period.
34.
For PRIIPs with a recommended holding period of one year or less, no performance scenarios for intermediate holding periods shall be shown.
35.
For Category 2 PRIIPs, the values to be shown for the intermediate periods for the unfavourable, moderate and favourable scenarios shall be calculated in accordance with points 5 to 14 of this Annex, using the time period specified in point 6, but based on the outcomes achieved over the intermediate holding period.
36.
For Category 2 PRIIPs, the values to be shown for the intermediate periods for the stress scenario shall be calculated using the formulas in points 18 and 19 of this Annex with the N defined to be the number of trading periods from the start date to the end date of the intermediate period. Point 20 of this Annex shall also apply to the intermediate periods.
37.
For PRIIPs as referred to in points 15 and 29 of this Annex, Category 3 PRIIPs and Category 4 PRIIPs, unless point 38 of this Annex applies, the scenario values to be shown for the intermediate holding period shall be estimated by the PRIIP manufacturer in a manner consistent with the estimation at the end of the recommended holding period.
38.
For Category 1 PRIIPs that are futures, call options and put options traded on a regulated market or on a third-country market considered to be equivalent to a regulated market in accordance with 2014, or for PRIIPs referred to in point 90(d) of Annex VI, performance scenarios may be shown at the end of the recommended holding period only.
General requirements
39.
The performance scenarios of the PRIIP shall be calculated as net of all applicable costs in accordance with Annex VI for the scenario and holding period being presented.
40.
Performance scenarios shall be calculated using amounts consistent with those used for the calculation of costs as specified in points 90 and 91 of Annex VI.
41.
For those PRIIPs that are forward contracts, future contracts, contracts for difference or swaps, performance scenarios shall be calculated assuming that the amount specified in point 40 is the notional amount.
42.
Performance scenarios shall be presented in monetary units. Figures shall by default be rounded to the nearest 10 EUR or relevant currency, unless there are specific payout conditions, such that it could be misleading to round the figures to the nearest 10 EUR in which case the PRIIP manufacturer may present figures to the nearest Euro. Without prejudice to point 7 of this Annex, the monetary figures shall show the sum of the amounts that would be received by the retail investor (net of costs) during the holding period, comprising:
(a)
the payments due at the end of the holding period, including the capital reimbursed;
(b)
the coupons or other amounts received before the end of the holding period, without assuming reinvestment of those amounts.
43.
For PRIIPs that are forward contracts, future contracts, contracts for difference or swaps, performance scenarios in monetary units shall show the profit or loss obtained in the holding period.
44.
Performance scenarios shall also be presented in percentage terms, as the average annual return of the investment. That figure shall be calculated considering the scenario value as numerator and the initial investment amount or the price paid as denominator in accordance with the following formula:
(scenario value/initial investment)^(1/T) – 1, if T > 1. Where T is the length of the holding period in years
45.
For recommended holding periods shorter than one year, performance scenarios in percentage terms shall reflect the projected return over that period, non-annualised.
46.
For PRIIPs that are forward contracts, future contracts, contracts for difference, or swaps, the percentage return shall be calculated considering the notional amount of the contract and a footnote shall be added to explain that calculation. The formula for the calculation shall be the following: The footnote shall indicate that the potential return is calculated as a percentage over the notional amount.
47.
For insurance based investment products, the following shall apply in addition to the methods referred above including under point 28 of this Annex when calculating the performance scenarios in respect of the investment:
(a)
future profit participation shall be taken into account;
(b)
assumptions on future profit participation shall be consistent with the assumption on the annual rates of return of the underlying assets;
(c)
assumptions on how future profits are shared between the PRIIP manufacturer and the retail investor and other assumptions on future profit sharing shall be realistic and in line with the current business practice and business strategy of the PRIIP manufacturer. Where there is sufficient evidence that the undertaking will change its practices or strategy, the assumptions on future profit sharing shall be consistent with the changed practices or strategy. For life insurers within the scope of Directive 2009/138/EC, those assumptions shall be consistent with the assumptions on future management actions used for the valuation of technical provisions in the Solvency II-balance-sheet;
(d)
where a component of the performance relates to profit participation that is payable on a discretionary basis, that component shall only be assumed in the favourable performance scenarios;
(e)
the performance scenarios shall be calculated on the basis of the investment amounts set out in point 40 of this Annex.# Table 1 in anx_I
| Key Information Document |
|---|
| PurposeThis document provides you with key information about this investment product. It is not marketing material. The information is required by law to help you understand the nature, risks, costs, potential gains and losses of this product and to help you compare it with other products. |
| Product[Name of Product][Name of PRIIP manufacturer](where applicable)[ISIN or UPI][website for PRIIP manufacturer][Call [telephone number] for more information][[Name of Competent Authority] is responsible for supervising [Name of PRIIP Manufacturer] in relation to this Key Information Document](where applicable)[This PRIIP is authorised in [name of Member State]](where applicable)[[Name of UCITS management company] is authorised in [name of Member State] and regulated by [identity of competent authority](where applicable)[Name of AIFM] is authorised in [name of Member State] and regulated by [identity of competent authority][date of production of the KID] |
| [Alert (where applicable)You are about to purchase a product that is not simple and may be difficult to understand] |
| What is this product?TypeTermObjectivesIntended retail investor[Insurance benefits and costs] |
| What are the risks and what could I get in return? |
| Risk |
| Indicator |
| Performance |
| Scenarios |
| What happens if [PRIIP manufacturer] is unable to pay out?Information on whether there is a guarantee scheme, the name of the guarantor or investor compensation scheme operator, including the risks covered and those not covered. |
| What are the costs?Narratives on information to be included on other distribution costs |
| Costs over Time |
| Composition of Costs |
| How long should I hold it and can I take money out early? |
| Recommended [required minimum] holding period: [x] |
| Information on whether one can disinvest before maturity, the conditions for this, and applicable fees and penalties if any. Information on the consequences of cashing-in before the end of the term or before the end of the recommended holding period. |
| How can I complain? |
| Other relevant informationWhere applicable a short description of the information published on past performance |
Table 1 in anx_II
| MRM class | VaR-equivalent volatility (VEV) |
|---|---|
| 1 | < 0,5 % |
| 2 | ≥ 0,5 % and < 5,0 % |
| 3 | ≥ 5,0 % and < 12 % |
| 4 | ≥ 12 % and < 20 % |
| 5 | ≥ 20 % and < 30 % |
| 6 | ≥ 30 % and < 80 % |
| 7 | ≥ 80 % |
Table 2 in anx_II
| Credit quality step pursuant to point 38 of this Annex | Adjusted credit quality step, in the case where the maturity of the PRIIP, or its recommended holding period where a PRIIP does not have a maturity, is up to one year | Adjusted credit quality step, in the case where the maturity of the PRIIP, or its recommended holding period where a PRIIP does not have a maturity, ranges from one year up to 12 years | Adjusted credit quality step, in the case where the maturity of the PRIIP, or its recommended holding period where a PRIIP does not have a maturity, exceeds 12 years |
|---|---|---|---|
| 0 | 0 | 0 | 0 |
| 1 | 1 | 1 | 1 |
| 2 | 1 | 2 | 2 |
| 3 | 2 | 3 | 3 |
| 4 | 3 | 4 | 5 |
| 5 | 4 | 5 | 6 |
| 6 | 6 | 6 | 6 |
Table 3 in anx_II
| Adjusted credit quality step | Credit risk measure |
|---|---|
| 0 | 1 |
| 1 | 1 |
| 2 | 2 |
| 3 | 3 |
| 4 | 4 |
| 5 | 5 |
| 6 | 6 |
Table 4 in anx_II
| MRM classCRM class | MR1 | MR2 | MR3 | MR4 | MR5 | MR6 | MR7 |
|---|---|---|---|---|---|---|---|
| CR1 | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| CR2 | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| CR3 | 3 | 3 | 3 | 4 | 5 | 6 | 7 |
| CR4 | 5 | 5 | 5 | 5 | 5 | 6 | 7 |
| CR5 | 5 | 5 | 5 | 5 | 5 | 6 | 7 |
| CR6 | 6 | 6 | 6 | 6 | 6 | 6 | 7 |
Table 1 in anx_IV
| 1 year | > 1 year | |
|---|---|---|
| Daily prices | 21 | 63 |
| Weekly prices | 8 | 16 |
| Monthly prices | 6 | 12 |
Table 1 in anx_V
| Recommended holding period: | [] |
|---|---|
| Example Investment: | [EUR 10 000 ] |
| (Where applicable)Insurance premium: | [monetary amount] |
| If you [exit] after 1 year | |
| (where applicable) | (where applicable) |
| [Survival] Scenarios | |
| Minimum | [Monetary amount]or[There is no minimum guaranteed return [if you [exit] before […years/months/days]](where applicable). You could lose some or all of your investment [or have to make further payments to cover losses](where applicable)] |
| Stress | What you might get back after costs |
| Average return each year | |
| Unfavourable | What you might get back after costs |
| Average return each year | |
| Moderate | What you might get back after costs |
| Average return each year | |
| Favourable | What you might get back after costs |
| Average return each year | |
| (Where applicable)[Death] Scenario | |
| [Insured event] | What your beneficiaries might get back after costs |
Table 2 in anx_V
| Recommended holding period: | [] |
|---|---|
| Example Investment: | [EUR 1 000 ] per year |
| (Where applicable)Insurance premium: | [monetary amount] per year |
| If you [exit] after 1 year | |
| (where applicable) | (where applicable) |
| [Survival] Scenarios | |
| Minimum | [Monetary amount]or[There is no minimum guaranteed return [if you [exit] before […years/months/days]](where applicable). You could lose some or all of your investment [or have to make further payments to cover losses](where applicable)] |
| Stress | What you might get back after costs |
| Average return each year | |
| Unfavourable | What you might get back after costs |
| Average return each year | |
| Moderate | What you might get back after costs |
| Average return each year | |
| Favourable | What you might get back after costs |
| Average return each year | |
| Amount invested over time | [] EUR |
| (Where applicable)[Death] Scenario | |
| [Insured event] | What your beneficiaries might get back after costs |
| Insurance premium taken over time | [] EUR |
Table 3 in anx_V
| Recommended holding period: | Until the product is called or maturesThis may be different in each scenario and is indicated in the table |
|---|---|
| Example Investment: | [EUR 10 000 ] |
| If you [exit] after 1 year | |
| (where applicable) | (where applicable) |
| Scenarios | |
| Minimum | [Monetary amount]or[There is no minimum guaranteed return [if you [exit] before […years/months/days]](where applicable). You could lose some or all of your investment [or have to make further payments to cover losses](where applicable)] |
| Stress | What you might get back after costs |
| (product ends after []) | Average return each year |
| Unfavourable | What you might get back after costs |
| (product ends after []) | Average return each year |
| Moderate | What you might get back after costs |
| (product ends after []) | Average return each year |
| Favourable | What you might get back after costs |
| (product ends after []) | Average return each year |
Table 1 in anx_VI
| Asset Classes |
|---|
| Government bonds |
| Government bonds and similar instruments developed market different rating below A |
| Government bonds emerging markets (hard and soft currency) |
| Investment grade corporate bonds |
| Other corporate bonds |
Table 2 in anx_VI
| Asset Classes |
|---|
| Liquidity |
| Shares developed markets |
| Mid-cap shares (developed markets) |
| Small-cap shares (developed markets) |
| Shares emerging markets |
| Mid-cap shares (emerging markets) |
| Small-cap shares (emerging markets) |
| Listed derivatives |
Table 3 in anx_VI
| Asset Classes |
|---|
| OTC |
| OTC Plain vanilla options |
| OTC IRS, CDS and similar |
| OTC Swaps and similar instruments (different from IRS, CDS and similar) |
| OTC FX Forwards developed markets |
| OTC FX Forwards emerging markets |
Table 1 in anx_VII
| If you [exit] after 1 year(where applicable) | If you [exit] after [1/2 recommended holding period](where applicable) | If you [exit] after [recommended holding period] | |
|---|---|---|---|
| Total costs | [] EUR | [] EUR | [] EUR |
| Annual cost impact(*1) | [] % | [] % each year | [] % each year |
| (*1)‘This illustrates how costs reduce your return each year over the holding period. For example it shows that if you exit at the recommended holding period your average return per year is projected to be [] % before costs and [] % after costs.’(Where applicable):‘We may share part of the costs with the person selling you the product to cover the services they provide to you.(Where applicable)[They will inform you of the amount].’(Where applicable):‘These figures include the maximum distribution fee that the person selling you the product may charge ([] % of amount invested/[] EUR). This person will inform you of the actual distribution fee.’; |
Table 2 in anx_VII
| If you [exit] after 1 year(where applicable) | If you [exit] after [1/2 recommended holding period](where applicable) | If you [exit] after [recommended holding period] | |
|---|---|---|---|
| Total costs | |||
| — Insurance contract— Investment options | [] EUR[] – [] EUR | [] EUR[] – [] EUR | [] EUR[] – [] EUR |
| Annual cost impact(*1) | |||
| — Insurance contract— investment options | [] %[] – [] % | [] % each year[] – [] % each year | [] % each year[] – [] % each year |
| (*1)‘This illustrates how costs reduce your return each year over the holding period. For example it shows that if you exit at the recommended holding period your average return per year is projected to be [] % before costs and [] % after costs.’(Where applicable):‘We may share part of the costs with the person selling you the product to cover the services they provide to you.(Where applicable)[They will inform you of the amount.]’(Where applicable):‘These figures include the maximum distribution fee that the person selling you the product may charge ([] % of amount invested/[] EUR). This person will inform you of the actual distribution fee.’ |
Table 3 in anx_VII
| If the product is called at the first possible date [] | If the product reaches maturity | |
|---|---|---|
| Total costs | [] EUR | [] EUR |
| Annual cost impact(*1) | [] % | [] % each year |
| (*1)‘This illustrates how costs reduce your return each year over the holding period. For example, it shows that if you exit at maturity your average return per year is projected to be [] % before costs and [] % after costs.’(Where applicable):‘We may share part of the costs with the person selling you the product to cover the services they provide to you.(Where applicable)[They will inform you of the amount.]’(Where applicable):‘These figures include the maximum distribution fee that the person selling you the product may charge ([] % of amount invested/[] EUR). This person will inform you of the actual distribution fee.’ |
Table 4 in anx_VII
| One-off costs upon entry or exit | (PRIPs): If you [exit] after [1 year/recommended holding period(if less than 1 year)](Insurance based investment products): Annual cost impact if you [exit] after [recommended holding period] |
|---|---|
| Entry costs | [Describe nature in no more than 300 characters. Examples:— ‘[] % of the amount you pay in when entering this investment’— ‘[] % of the first [] premiums you pay’— ‘These costs are already included in the [price/premiums] you pay’— ‘This includes distribution costs of [[] % of amount invested/[] EUR]. [This is the most you will be charged]. [The person selling you the product will inform you of the actual charge]’— ‘We do not charge an entry fee’] |
| Exit costs | [Describe nature in no more than 300 characters. Examples:— ‘[] % of your investment before it is paid out to you’— ‘We do not charge an exit fee for this product, [but the person selling you the product may do so]’(Where exit costs only apply in specific circumstances)– ‘These costs only apply if(explain circumstances or an example in maximum 200 characters)’For insurance-based investment products where exit costs only apply before exit at the recommended holding period, the column to the right shall state ‘N/A’ and the following statement shall be included in this column in addition to the descriptions above: ‘Exit costs are stated as ‘N/A’ in the next column as they do not apply if you keep the product until the recommended holding period’ |
| Ongoing costs [taken each year] | |
| Management fees and other administrative or operating costs | [Describe basis in no more than 150 characters. Example:‘[] % of the value of your investment per year’].This is an estimate based on actual costs over the last year. |
| Transaction costs | [] % of the value of your investment per year. This is an estimate of the costs incurred when we buy and sell the underlying investments for the product. The actual amount will vary depending on how much we buy and sell. |
| Incidental costs taken under specific conditions | |
| Performance fees [and carried interest] | [[Describe in no more than 300 characters]. The actual amount will vary depending on how well your investment performs. The aggregated cost estimation above includes the average over the last 5 years.] or [There is no performance fee for this product]. |
| (Where applicable):‘Different costs apply depending on the investment amount [explain circumstances or use an example in maximum 150 characters]’ |
Table 5 in anx_VII
| One-off costs upon entry or exit | Annual cost impact if you [exit] after [recommended holding period] |
|---|---|
| Entry costs | [Describe nature in no more than 300 characters. Examples:— ‘[] % of the amount you pay in when entering this investment’— ‘[] % of the first [] premiums you pay’— ‘These costs are already included in the [price/premiums] you pay’— ‘This includes distribution costs of [[] % of amount invested/[] EUR]. [This is the most you will be charged]. [The person sellingyou the product will inform you of the actual charge]’— ‘We do not charge an entry fee’] |
| Exit costs | [Describe nature in no more than 300 characters. Examples:— ‘[] % of your investment before it is paid out to you’.— ‘We do not charge an exit fee for this product, [but the person selling you the product may do so]’.(Where exit costs only apply in specific circumstances)– ‘These costs only apply if(explain circumstances or an example in maximum 200 characters)’For insurance-based investment products where exit costs only apply before exit at the recommended holding period, the column to the right shall state ‘N/A’ and the following statement shall be included in this column in addition to the descriptions above: ‘Exit costs are stated as ‘N/A’ in the next column as they do not apply if you keep the product until the recommended holding period.’ |
| Ongoing costs taken each year | |
| Management fees and other administrative or operating costs | [Describe basis in no more than 150 characters. Example:‘[] % of the value of your investment per year’].This is an estimate based on actual costs over the last year. |
| Transaction costs | [] % of the value of your investment per year. This is an estimate of the costs incurred when we buy and sell the underlying investments for the product. The actual amount will vary depending on how much we buy and sell. |
| Incidental costs taken under specific conditions | |
| Performance fees [and carried interest] | [[Describe in no more than 300 characters]. The actual amount will vary depending on how well your investment performs. The aggregated cost estimation above includes the average over the last 5 years.] or [There is no performance fee for this product]. |
| (Where applicable): ‘Different costs apply depending on the investment amount [explain circumstances or use an example in maximum 150 characters]’’ |