Securities Services

Key Investor Information (KII)

Comparison Simplified Prospectus versus KII:

Simplified Prospectus: no format and contents harmonization;

  • not comparable with other prospectus; no added value for final investors

KII Format and Presentation predefined and standardized, to include the Sections / Information:

  • Objectives & Investment Policy
  • Risk and Reward Profile with the SRRI
  • Charges
  • Past Performance presentation
  • Practical Information

Grandfathering clause (if implemented by the Member State)

  • New UCITS funds created after 1 July 2011 :  use of KII
  • UCITS funds created before 1 July 2011: SP still available until 1 July 2012

Benefits of the KII:

  • Standardized format, clear & understandable information
  • Easily comparable to increase investors’ product understanding & trust

3 main challenges in producing the KII…

Production challenges

  • Significant volumes : one KII document to be produced per fund share class
  • Seasonal: annual production with short timeline delivery
  • Permanent monitoring : changes in Risks or Charges lead to a new KII issuing
  • Data capture, including the TER of underlying funds
  • SRRI calculation (Synthetic Risk and Reward Indicator), with potentially VaR calculation

Wording and Translation challenge

  • Literature to be displayed in plain language and remain consistent with the fund prospectus
  • Translations will have to use plain language as well
  • Robust translation platform needed to cope with volumes and deadlines

Distribution challenge

  • Multiple actors must receive the KII : legal authorities, distributors, TAs…
  • e-mail distribution excluded given the volumes
  • Multi-channel distribution needed (on-line access, web services…) as well as archiving capabilities and audit trails
  • Distribution standard yet to emerge (XBRL format ?)

…needing a robust solution:

  • Ad-hoc core systems to fill in each KII section (Literature, Risks, Charges, Performance)
  • IT Infrastructure providing a high level of STP
  • Skilled staff with multiple expertise

The SGSS KII offer for Fund Managers includes the following components:

KII production

  • Objectives & Investment policy wording
  • SRRI calculation
  • Charges calculation, including chasing the underlying funds’ TER
  • Past Performance indicators
  • Practical information, based on Manco information

Type setting, according to client guidelines

Periodic monitoring of Risks

Translation services

KII distribution to the Management Company, Legal authorities and third parties

Additional information available on-line through the Glass FAS web portal