2017R0653_EN.VIII

ANNEX VIII - CONTENT AND PRESENTATION OF PAST PERFORMANCE INFORMATION

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🔗 Back to Summary. 🇫🇷 French Version: 2017R0653_FR.VIII. Back to Summary of LVL1. Link to the PDF.

Article VII – PRESENTATION OF COSTS ⬅️ | ➡️ Retour au sommaire

Definitions

1.

For the purpose of presenting information on past performance the following definitions shall apply:

(a)

‘UCITS’ means a UCITS authorised in accordance with Article 5 of Directive 2009/65/EC which:

(i)

is a Category 2 PRIIP as set out in point 5 of Annex II; and

(ii)

does not provide retail investors, at certain predetermined dates, with algorithm-based payoffs that are linked to the performance, or to the realisation of price changes or other conditions, of financial assets, indices or reference portfolios or have similar features;

(b)

‘AIF’ means an AIF as defined in Article 4(1), point (a) of Directive 2011/61/EU which:

(i)

is a Category 2 PRIIP as set out in point 5 of Annex II;

(ii)

is an open-ended AIF as referred to in Article 1(2) of Commission Delegated Regulation (EU) No 694/2014; and

(iii)

does not provide retail investors, at certain predetermined dates, with algorithm-based payoffs that are linked to the performance, or to the realisation of price changes or other conditions, of financial assets, indices or reference portfolios or have similar features;

(c)

‘unit-linked insurance-based investment product’ means a unit-linked insurance- based investment product which:

(i)

is a Category 2 PRIIP as set out in point 5 of Annex II;

(ii)

has potential early exit or redemption possibilities prior to the recommended holding period, which are not subject to significant limiting conditions;

(iii)

provides benefits that are directly linked to the value of assets which are divided into units; and

(iv)

does not provide retail investors, at certain predetermined dates, with algorithm-based payoffs that are linked to the performance, or to the realisation of price changes or other conditions, of financial assets, indices or reference portfolios or have similar features.

Past performance calculation for UCITS or AIFs

2.

The calculation of past performance figures shall be based on the net asset value of the UCITS or AIFs, and they shall be calculated on the basis that any distributable income of the fund has been reinvested.

Use of ‘simulated’ data for past performance for UCITS or AIFs

3.

A simulated performance record for the period before data was available shall only be permitted in the following cases, provided that its use is fair, clear and not misleading:

(a)

a new share class of an existing UCITS or AIF or investment compartment may simulate its performance by taking the performance of another class, provided the two classes do not differ materially in the extent of their participation in the assets of the UCITS or the AIF;

(b)

a feeder UCITS or AIF may simulate its performance by taking the performance of its master UCITS or AIF, provided that one of the following conditions is met;

(i)

the feeder UCITS or AIF’s strategy and objectives do not allow it to hold assets other than units of the master UCITS or AIF and ancillary liquid assets;

(ii)

the feeder UCITS or AIF’s characteristics do not differ materially from those of the master UCITS or AIF.

Past performance calculation for unit-linked insurance-based investment products

4.

The calculation of past performance as described in point 2 of this Annex shall apply

mutatis mutandis

to unit-linked insurance-based investment products. The calculation shall be consistent either with the explanation of the impact of the biometric risk premium or the cost part of the biometric risk premium on the investment return as referred to in Article 2(4).

Presentation of past performance for UCITS or AIFs

5.

The information about the past performance of the UCITS or the AIF shall be presented in a bar chart covering the performance of the UCITS or the AIF for the last 10 years. The size of the bar chart shall allow for legibility.

6.

UCITS or AIFs with performance of less than five complete calendar years shall use a presentation covering the last five years only.

7.

Any year for which data is not available shall be shown as blank with no annotation other than the date.

8.

For UCITS or AIFs which do not yet have performance data for one complete calendar year, a statement shall be included explaining that there is insufficient data to provide a useful indication of past performance to retail investors.

9.

The bar chart layout shall be supplemented by the following statements, which shall appear prominently:

(a)

a warning about the limited value of past performance as a guide to future performance, using the following statement in bold letters:

‘

Past performance is not a reliable indicator of future performance. Markets could develop very differently in the future.

It can help you to assess how the fund has been managed in the past

’;

(b)

a narrative explaining what is shown which shall be included above the bar chart and shall state in bold letters:

‘

This chart shows the fund’s performance as the percentage loss or gain per year over the last [x] years.

’;

(c)

if applicable, a product specific warning about the lack of representativeness of the past in accordance with point 15 of this Annex or if relevant other reasons with a maximum of 150 characters in plain language;

(d)

a brief explanation of which charges and fees have been included or excluded from the calculation of past performance where relevant. This shall not apply to UCITS or AIFs which do not have entry or exit charges. [An example narrative:

‘

Performance is shown after deduction of ongoing charges. Any entry and exit charges are excluded from the calculation.

’];

(e)

an indication of the year in which the fund, compartment or share class came into existence;

(f)

if relevant an indication of the currency in which past performance has been calculated.

10.

The information shall not contain any record of past performance for any part of the current calendar year.

Use of a benchmark alongside the past performance

11.

Where the section entitled ‘What is this product?’ of the key information document makes reference to a benchmark, a bar showing the performance of that benchmark shall be included in the chart alongside each bar showing past performance of the UCITS or the AIFs. This applies for UCITS or AIFs tracking a benchmark as well as for those managed in reference to a benchmark. A UCITS or AIF is deemed to be managed in reference to a benchmark, where the benchmark index plays a role in the management of the UCITS or AIF, such as for portfolio composition and/or performance measures.

12.

For UCITS or AIFs which do not have past performance data over the required five or 10 years, the benchmark shall not be shown for years in which the UCITS or AIF did not exist.

13.

If the UCITS or AIF is managed in reference to a benchmark as referred to in point 11 of this Annex, the narratives in point 9 of this Annex shall be supplemented as follows in bold letters:

‘

This chart shows the fund’s performance as the percentage loss or gain per year over the last [] years against its benchmark.

’

‘

It can help you to assess how the fund has been managed in the past and compare it to its benchmark.

’

Presentation of the bar chart

14.

The bar chart presenting past performance shall comply with the following criteria:

(a)

the scale of the Y-axis of the bar chart shall be linear, not logarithmic;

(b)

the scale shall be adapted to the span of the bars shown and shall not compress the bars so as to make fluctuations in returns harder to distinguish;

(c)

the X-axis shall be set at the level of 0 % performance;

(d)

a label shall be added to each bar indicating the return in percentage that was achieved;

(e)

past performance figures shall be rounded to one decimal place.

Impact and treatment of material changes

15.

Where a material change occurs in the UCITS’ or AIF’s objectives and investment policy during the period displayed in the bar chart referred to in points 5 to 10 of this Annex, the UCITS’ or AIF’s past performance prior to that material change shall continue to be shown.

16.

The period prior to the material change referred to in point 15 of this Annex shall be indicated on the bar chart and labelled with a clear warning that the performance was achieved under circumstances that no longer apply.

Use of ‘simulated’ data for past performance

17.

In all cases where performance has been simulated in accordance with point 3 of this Annex, there shall be prominent disclosure on the bar chart that the performance has been simulated.

18.

A UCITS or AIF changing its legal status but remaining established in the same Member State shall retain its performance record only where the competent authority of that Member State reasonably assesses that the change of status would not impact the UCITS’ or AIF’s performance.

19.

In the case of mergers referred to in Article 2(1), points (p)(i) and (iii),) of Directive 2009/65/EC, only the past performance of the receiving UCITS shall be maintained.

20.

Point 19 of this Annex shall apply

mutatis mutandis

in the case of mergers of AIFs.

Presentation of past performance of feeder UCITS or AIFs

21.

The past performance presentation of feeder UCITS or AIF shall be specific to the feeder UCITS or AIF, and shall not reproduce the performance record of the master UCITS or AIF.

22.

Point 21 of this Annex shall not apply where:

(a)

the feeder UCITS or AIF shows the past performance of its master UCITS or AIF as a benchmark; or

(b)

the feeder was launched as a feeder UCITS or AIF at a later date than the master UCITS or AIF, and where the conditions of point 3 of this Annex are satisfied, and where a simulated performance is shown for the years before the feeder existed, based on the past performance of the master UCITS or AIF; or

(c)

the feeder UCITS has a past performance record from before the date on which it began to operate as a feeder, its own record being retained in the bar chart for the relevant years, with the material change labelled as required by point 16 of this Annex.

Presentation of past performance of unit-linked insurance-based investment products

23.

Points 5 to 16 of this Annex shall apply

mutatis mutandis

to unit-linked insurance-based investment products. The presentation shall be consistent either with the description of the impact of the biometric risk premium or the cost part of the biometric risk premium on the investment return referred to in Article 2(4).# 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]’’