Customer Information Document (Kid-V)

Original Language Title: Kundeninformationsdokument (KID-V)

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265. Ordinance of the Financial Markets Authority (FMA) on the Customer Information Document (KID-V)

On the basis of § 134 (4) of the Investment Fund Act 2011-InvFG 2011, BGBl. I n ° 77, shall be assigned:

Section 1

Scope

§ 1. For each organism for collective investment in transferable securities (UCITS, § 2 para. 1 InvFG 2011) and for each umbrella construction (§ 47 para. 1 InvFG 2011), which are only approved after the expiry of the 31 August 2011, the management company must Provide the customer information document (KID) in accordance with this Regulation. The rules applicable to UCITS in this Regulation shall apply to other special assets where the provisions of the second part of the Investment Fund Act 2011 are applicable to these other special assets.

Section 2

Synthetic Risk and Earth Indicator

§ 2. (1) The synthetic risk and reward indicator (SRRI) is based on the volatility of the UCITS.

(2) Volatility shall be calculated on the basis of the previous weekly returns of the UCITS or, where this is not possible, on the basis of its monthly returns.

(3) The yields of the last five years shall be decisive for the calculation of volatility. In the case of a payout of proceeds, the relevant allowances and dividend payments shall be taken into account.

§ 3. (1) The volatility of the UCITS is to be calculated and subsequently scaled to an annual assessment basis. The formula for this is:

where:

-

the yields of the UCITS over

-

non-overlapping periods for a term of

-

-years.

This means: and for weekly returns and and for monthly returns, with:

-

the arithmetic average of the yields of the UCITS for

-

Periods represents:

(2) The SRRI shall be equal to a number which may, depending on the volatility of the UCITS, adopt values from 1 to 7 in accordance with the grid laid down in Annex A.

§ 4. The management company shall calculate the SRRI of the UCITS in accordance with its internal rules and procedures for risk measurement and shall continuously ensure the monitoring of a correct and uniform application of this process.

§ 5. The calculation of the SRRI of the UCITS, as well as its ongoing review, must be sufficiently documented. The management company shall keep the documents concerned for a period of at least five years. In the case of a structured fund in accordance with § 17, this period shall be extended by another five years after the end of the recommended holding period.

Volatility intervals

§ 6. The SRRI of the UCITS is determined via the annualized volatility intervals on the basis of the raster according to Appendix A. This grid shows the different volatility intervals that reflect the increasing risk extent and thus the position on the risk scale.

Updates

§ 7. Any substantial change in the risk and earnings profile of the UCITS must result in an immediate update of the KID.

§ 8. (1) The SRRI shall be updated as soon as the corresponding volatility of the UCITS no longer corresponds to the last risk category of the previous four months, based on weekly or monthly reference points. A new classification shall be made, provided that the UCITS has fallen into at least two categories during the said period. In this case, the risk category to which the majority of the reference points shall be deleted shall be classified.

(2) In any event, the SRRI must be updated if the investment objectives or strategy of the UCITS are changed on the basis of a decision of the management company. In this case, the amendment of the SRRI shall be deemed to be a reclassification of the UCITS and shall be carried out in accordance with the rules in force for this purpose.

Thematic funds

§ 9. Thematic funds are UCITS which, in accordance with their investment objectives and strategies, represent a specific risk and earnings profile of pre-defined segments of the capital market.

§ 10. For thematic funds which do not have complete past data on their returns according to § § 2 to 5, the calculation of the SRRI must be corrected in accordance with the following steps:

1.

The corresponding available past data of the UCITS ' yields are to be used.

2.

The model portfolio corresponding to the UCITS, the target portfolio or the benchmark is to be defined.

3.

The yields of the representative model portfolio, the target portfolio or the benchmark of the UCITS shall be calculated from the start of the observation period up to that date on which the actual returns of the UCITS are available.

4.

The two data series of the yields are to be linked to a single sample.

5.

The annualized, historical volatility is to be estimated according to the formula according to § 3 (1).

Absolute Return Funds

§ 11. Absolute Return Funds are UCITS which, in accordance with their investment objectives and strategies, provide for a variable composition of the Fund's assets through a number of asset classes and at the same time risk limitation.

§ 12. (1) The calculation of the SRRI in Absolute Return Funds is as follows:

1.

If complete past data of the returns are available, the higher value is

a)

of actual, historical and annualized volatility, and

b)

the volatility consistent with the risk limitation of the UCITS,

to use.

2.

For those UCITS where complete past data on their returns are not available, and for those who have recently changed their investment objectives and strategies, the annualised volatility that is consistent with the risk limit of the UCITS is to be used.

(2) The volatility referred to in paragraph 1 Z 1 lit. b is equivalent to the risk limit of the UCITS where the UCITS

a)

is itself the risk objective of the UCITS or

b)

after previous conversion into a value-at-risk (VaR) measure by means of reverse engineering (reverse engineering) of the VaR in accordance with Annex B, under the assumption of risk-neutrality.

Total Return Fund

§ 13. Total Return Funds are UCITS which, in accordance with their investment objectives and strategies, provide for the achievement of certain returns by the flexible system in several asset classes.

§ 14. The calculation of the SRRI for Total Return Funds is as follows:

1.

If complete past data of the returns are available, the higher value is

a)

of actual, historical and annualized volatility,

b)

the annualised volatility of the yields of that asset composition, which is in accordance with the UCITS ' reference assets at the time of calculation, and

c)

the volatility referred to in Article 12 (2), which is compatible and proportionate to the risk limitation of the UCITS,

to use.

2.

For newly designed UCITS and those where there is no complete historical data on returns in the respective observation period due to a change in investment policy, the maximum value of Z 1 is 1 lit. b and c shall be used.

Lifecycle Funds

§ 15. (1) Life cycle funds shall be UCITS which, in accordance with their investment objectives and strategies, undertake a gradual redeployment of the portfolio against maturity of risk-affected securities to low-risk securities in accordance with pre-defined rules.

(2) In the case of the SRRI in the KID, the Life Cycle Fund shall be accompanied by a warning notice to inform the investor of the typical characteristics of such a fund.

§ 16. The calculation of SRRI for life cycle funds is as follows:

1.

If the past data of the returns are complete and the UCITS has not changed its target portfolio in the period in question, the actual historical volatility should be used.

2.

For newly designed UCITS where complete past data on their returns are not available, the procedure is as follows:

a)

The corresponding past data of the UCITS ' yields are to be used.

b)

The model portfolio, target portfolio or benchmark corresponding to the UCITS and representative of the UCITS is to be determined and their returns to be calculated.

c)

The two data series of the yields are to be combined into a single sample so that the annualised volatility can be calculated.

Structured Funds

§ 17. (1) Structured funds are UCITS which pay to their unit-holders at pre-defined dates based on an algorithm-based disbursements which are linked to a value development, an implementation of a price change or to other parameters of Financial instruments, indices or comparability are bound.

(2) In the case of the SRRI in the KID, a warning should be attached to the structured fund in the case of structured funds, so that early withdrawal may be detrimental to the investor.

§ 18. (1) The SRRI for structured funds shall be calculated taking into account the annualised volatility at a confidence interval of 99 vH.

(2) The volatility on the basis of a confidence interval of 99% VH (99% VaR) at maturity shall be calculated by means of a historical simulation of the yields of the UCITS as follows:

where:

-

the number of weeks of the holding period of the UCITS which, at the same time, corresponds to the remaining distributed maturity according to its algorithm in accordance with its investment policy;

-

the average, weekly, risk-free interest rate over the holding period at the time of the calculation;

-

is the volatility of the weekly logarithmized returns of the UCITS.

§ 19. The VaR at a confidence interval of 99 vH of a structuring fund, the payout profile of which is linked to the performance of a reference value paper or portfolio defined in advance (hereinafter referred to as the reference index), is calculated as follows:

1.

The relevant changes in the reference index for each individual -week during the retention period of the last five years. If the length of the data series of the reference index is not sufficient, a historical simulation according to § 10 may be used.

2.

The logarithmized yields of the UCITS at maturity, which were determined under Z 1 and correspond to the relevant changes in the reference index, are to be simulated. If the formula takes into account a distribution of the yields or if the consideration of expected results-depending on the occurrence of an event defined in the simulation-is acknowledged, then these payment profiles shall be used for the purpose of the simulation. Maturity (at the end of the holding period ) with the corresponding risk-free interest rate at the time of the simulation.

3.

The 1% percentile of the distribution of the simulated logarithmized yields of the UCITS, calculated under Z 2, is to be delineated. This percentile, the sign of which is to be changed according to international standards, is the historical VaR of the UCITS at maturity with a confidence interval of 99 vH.

4.

As soon as the 99% VaR has been calculated, its associated annualized volatility shall be calculated as follows:

a)

The parameter as the average, weekly, risk-free interest rate applicable to the holding period shall be determined. This interest rate is to be estimated if it is not directly derivable from the interest rate swap curve.

b)

By means of reverse engineering of the model described in this provision, the weekly volatility of the returns ( ), which are accompanied by the calculated VaR, in accordance with Z 3. This is achieved by the following equation: resolves:

5.

The volatility is by means of root-time formula ( ) shall be annualized.

§ 20. The use of a historical observation period for the calculation of the SRRI in accordance with § 19 may provide an estimation error due to the displacement of the underlying reference index during the time period of the calculation. In this case, the UCITS has to amend the five-stage procedure in accordance with § 19 in order to ensure that the SRRI adequately reflects the risk extent of the UCITS in order to ensure that a possible shift does not result in a statistically distorted result. .

Section 3

Cost Style

§ 21. The management company of the UCITS

1.

shall be responsible for the calculation of the running costs and for their correct indication in the KID;

2.

Has procedures consistent with the methods set out in this section to use and document them appropriately;

3.

shall keep records relating to each calculation which shall be kept for five years from the date of the last use of each version of the KID.

Definitions of current costs

§ 22. The term "running costs" shall include payments from the assets of the UCITS where such deductions are provided for by law, regulation, fund rules or prospectus. The amount of the current costs to be shown in the KID shall be based on the total amount of all payments in the previous year minus the exceptions listed in § 24.

§ 23. (1) The current cost shall include all types of costs borne by the UCITS, whether or not they are administrative charges or the remuneration of persons providing services to the UCITS. These costs can be represented or calculated in different ways.

(2) The following demonstrative listing of the current costs, taken from the assets of the UCITS, shall be taken into account when announcing the amount of the current costs:

1.

All payments to the persons referred to below, including those carrying out delegated tasks in delegations:

a)

the management company of the UCITS,

b)

depository bank,

c)

any investment adviser;

2.

all payments which may be incurred as a result of outsourcing;

3.

Registration, supervisory or similar charges;

4.

the remuneration of the auditor;

5.

Remuneration for legal and commercial consultants;

6.

any distribution fees.

§ 24. The following costs and payments shall not be taken into account in the announcement of the running costs to be shown in the KID:

1.

unloading and withdrawal charges, mediation commissions and other costs, which are borne either directly or indirectly by the investor;

2.

performance-related administrative fees of the management company or of the investment adviser;

3.

credit rates;

4.

necessary payments to third parties arising in connection with the acquisition or disposal of assets of the UCITS, whether or not they are explicitly or implicitly incurred;

5.

Expenditure on the holding of derivatives;

6.

the value of goods or services which the management company or any other person in connection with the management company receives in return for placing orders (soft commissions or similar agreements).

§ 25. The exclusion in § 24 Z 4 does not include:

1.

transaction payments to any person referred to in § 26 Z 1 or Z 2 where the beneficiary cannot be credited with the UCITS; all those amounts shall be taken into account in the published amount of the current cost;

2.

Acquisition or disposal costs for shares of other UCITS or alternative investment funds (AIF, § 3 para. 2 Z 31 InvFG 2011), which are subsequently taken into consideration under § 27 Z 6.

§ 26. In cases where an agreement on a full or partial cost sharing agreement has been concluded, according to which the management company or another party is responsible for administrative charges, usually in the form of a the current costs shall be shown:

1.

Any remuneration received by the management company or any other person in the course of an agreement on a cost allocation shall be taken into account and shall be included in the total amount of the current cost.

2.

It is not necessary to decode any fees which are regulated in an agreement on a cost allocation and which are already included in the running costs. In those cases where the UCITS invests in target funds and a corresponding agreement on a cost division exists between the management company of the UCITS and the target fund or its management company, such charges shall be under the current cost, provided that they are not already included in Article 27.

§ 27. In so far as the UCITS invests a substantial part of its assets in target funds and accordingly has to publish the necessary information pursuant to § 131 (4) Z 7 InvFG 2011, the current costs of the on the basis of the underlying target funds. The following points shall be included in the calculation:

1.

If the underlying target fund is a UCITS or an AIF which adheres to the publication obligations of the KID, the most recently available running costs shall be used. These may be figures published by the target fund or its management company, or the costs calculated by a reliable third party, provided that they are more up-to-date than the published costs.

2.

If the underlying target fund is managed by the management company of the UCITS in question or by a related company (as defined in Section 131 (4) (1) InvFG 2011) and does not fall under Z 1, the management company shall carry out the best possible estimate of the current costs in accordance with this Regulation.

3.

In so far as the underlying target fund does not fall under Z 1 or 2 and no figures have been published on current costs, the management company shall have either published other published information, provided that it is a reasonable replacement , or to make the best possible estimates of the maximum level based on the current prospectus and on the published reports of the target fund.

4.

For target funds falling under Z 3 and whose share is less than 15 vH of the assets of the UCITS, it is sufficient if the annual, published administrative fees per target fund, instead of own estimates of current costs, shall be used.

5.

The figures relating to current costs should be reduced to the extent to which an agreement exists whereby the investing UCITS receives a refund of the costs of the underlying target fund and does not already exist in the Profit and loss account is taken into account.

6.

In so far as the UCITS has paid expenditure or withdrawal fees for the acquisition or withdrawal of shares of a target fund, the accumulated monetary value of such fees shall be used for the relevant observation period and shall be used in the calculation of the ongoing charges.

§ 28. If the UCITS is a rebrella-construction, the sub-funds shall be considered separately. Fees attributable to the UCITS shall be fairly and cheaply distributed in proportion to the sub-funds.

Calculation for existing UCITS

§ 29. (1) The measure for the running costs is the sum of all the costs to be disclosed divided by the average net assets of the UCITS. The result is to be specified as a percentage with two decimal places.

(2) This measure shall be calculated at least once a year in retrospect. If an ex post view appears to be unsuitable on the basis of a substantial change, an estimate may be used until the substantial change is reflected in reliable ex post figures.

(3) The ex post value shall be shown on the basis of the final cost calculation which the management company justifiably considers appropriate. This figure may be based on the costs indicated in the final annual or semi-annual report of the UCITS, provided that it is sufficiently up-to-date. Otherwise, a comparable calculation shall be carried out on the basis of the calculated costs of the last twelve months. This shall be based on a gross amount of the costs.

(4) All figures calculated and applied for earlier periods for the current costs shall be published in that place, which is referred to in the KID as the reference source for further information for the unit-holders.

§ 30. The calculation shall be carried out for each individual component type. This does not apply to two or more equal (pari passu) shares in which a single calculation procedure is sufficient.

§ 31. The average net assets relate to the same reporting period as the costs and is based on the data of the net assets of the UCITS on the occasion of each calculation of the net asset value.

§ 32. If the pro rata costs of the underlying target fund are taken into account, the following shall be observed:

1.

The running costs-or an equivalent amount-of each individual target fund shall be presented in accordance with their quota on the net asset value at the respective cut-off date.

2.

These proportionally calculated costs are to be combined with the running costs of the UCITS into a single, total number (synthetic measure for current costs).

Calculation for newly designed UCITS

§ 33. In principle, the calculation for a newly designed UCITS shall apply the same procedure as for an ex post calculation in accordance with § § 29 et seq., with the following deviations:

1.

§ § 29 (3) and (31) are not to be applied. Estimates are to be used in accordance with Regulation (EU) No 583/2010.

2.

If, in the opinion of the management company, the representation of numbers with two decimal places conveys an accuracy which is not present, the guidance of one decimal place is sufficient.

3.

If nothing to the contrary is mentioned in the prospectus, it may be assumed that no rebates or fee exemptions will be used for the benefit of the UCITS.

§ 34. The management company shall ensure that the accuracy of the estimated figures is reviewed on an ongoing basis, and shall determine when the use of ex post figures is more appropriate than the estimated values. At the latest twelve months after the date on which shares were first offered for sale in a Member State, the accuracy of the estimated values shall be verified by means of the calculation of ex post figures.

Section 4

Value developments for structured UCITS

Selection criteria

§ 35. (1) In the selection, presentation and explanation of the scenarios that depict the performance of structured UCITS in accordance with § 17 under different market scenarios, the management company shall ensure that the information is appropriate, is clear and not misleading.

(2) The scenarios must illustrate:

1.

The functioning of the formula under market scenarios, which results in an unfavourable, favourable and neutral result, with the explanation of the unfavourable scenario always to be started;

2.

Special features of the formula;

3.

Scenarios in which the functioning of the formula can have a positive or a negative impact on the final value development.

(3) The management company shall select at least three scenarios of the possible evolution of the value of the UCITS in order to indicate how the disburation works under different market scenarios.

(4) It depends on the formula whether-as far as appropriate-more than three scenarios are required to adequately describe the possible range of results.

§ 36. (1) Information used for the favourable and unfavourable scenarios shall be based on reasonable assumptions about the future market situation and price movements.

(2) The selected scenarios shall contain a narrative explanation of the pros and cons of the formula if it is not included in the section on yield and risk.

(3) The scenarios shall not contain any information that is not in accordance with the content of the other sections of the KID.

§ 37. The scenarios are to be updated from a relevant occasion. A relevant occasion is:

1.

Significant changes in market conditions since the UCITS were set up;

2.

at least the end of a year since the last update;

3.

if necessary, to reflect the time dependence of a withdrawal.

Presentation

§ 38. (1) The scenarios are to be described as "explanatory examples". The narrative explanation is supposed to make it clear that these are not predictions and are not equally likely.

(2) Each scenario shall be presented either with tables or graphs, depending on which presentation is more appropriate in order to explain the characteristics of the structured UCITS.

(3) The presented returns of the different scenarios shall be indicated as an annualised rate of growth with a corresponding declaration, where appropriate the gross growth rate may also be cited.

§ 39. (1) In order to ensure the comprehensibility and comparability of various graphics, it is necessary to avoid:

1.

Double-scales (left and right) as far as possible;

2.

artificial enlargement of the positive aspects of the payment of the UCITS;

3.

non-linear scales;

4.

different scales depending on the scenario.

(2) The management company has to point out in the KID that unit-holders are able to sell their shares before the end of the term, and it is necessary to give a clear warning against the loss of any resulting loss.

Section 5

Transitional provisions

§ 40. (1) For each new sub-fund (Section 47 (1) of the InvFG 2011) of an umbrella construction consisting of 31 August 2011, the management company may choose whether to simplify the transitional period in accordance with Section 198 (1) InvFG 2011. A prospectus or a KID is created.

(2) If a new shareholding of an existing UCITS is approved during the transitional period in accordance with § 198 (1) InvFG 2011, the management company must either provide a simplified prospectus or a KID with respect to all of the shares of the Use UCITS.

(3) A management company which continues to use a simplified prospectus during the transitional period pursuant to § 198 (1) InvFG 2011 may undertake one or more revisions of this simplified prospectus and publish it. The revisions may, at the discretion of the management company, additionally contain elements of a KID.

(4) Where a UCITS, a sub-fund or a shareholding of it is covered by the 4. Main piece 5. Section InvFG notified in 2011 and the management company continues to use the simplified prospectus in the Member State of origin, the requirements of Sections 139 and 142 of the 2011 InvFG shall be made by the provision of the simplified prospectus is fulfilled. A management company shall offer the unit-holders in the UCITS home Member State and in each host Member State the same type of document-simplified prospectus or KID.

(5) During the transitional period in accordance with Section 198 (1) of the InvFG in 2011, a merger will be made after the 3. Main piece 6. Section InvFG 2011 applies and the receiving UCITS continues to use the simplified prospectus, so the requirements of § § 120 and 121 (1) of the InvFG 2011 are fulfilled by the submission of the simplified prospectus.

(6) Where a feeder UCITS and a master UCITS are authorised in a Member State where a transitional period is in accordance with Directive 2010 /42/EU of the European Parliament and of the Council as regards provisions on the merging of the Fund, Master-feeder structures and the notification procedure (OJ C 327, 22.7.2002, p. No. 28), the management companies have the choice whether they use a simplified prospectus or a KID.

6.

Entry into force and external force

§ 41. (1) This Regulation shall enter into force on 1 September 2011.

(2) A management company may:

1.

offer the KID at the same time for all UCITS it manages; or

2.

the introduction of the KID will be staggered by 1 July 2012 at the latest and, until then, will continue to provide a simplified prospectus for existing UCITS instead of the KID in accordance with Annex E scheme E InvFG 1993.

(3) The Regulation of the Financial Market Supervisory Authority (FMA) on the information which must be included in the simplified prospectus (prospectus regulation), BGBl. II No 237/2005, enters into force with the end of 30 June 2012.

Ettl Pribil

Annex A

§ § 3 (2) and (6)


Grid over the annualized Voltalityintervals

Risk Category

Volatility intervals

greater than or equal

less than

1

0%

0.5%

2

0.5%

2%

3

2%

5%

4

5%

10%

5

10%

15%

6

15%

25%

7

25%

Appendix B

on § 12 (2)

Reverse engineering

The volatility is determined by means of reverse engineering as follows:

where:

- the VaR on the basis of a confidence interval of 99% with a holding period equal to the

Number of

- Time intervals at

- -years corresponds to:

where:

- the risk-free interest rate applicable at the time of the calculation for each of the

- -intervals of the

- -years which represents the holding period of the UCITS.