ALFI UCITS IV implementation project – KID Q&A Document

company, the revised KID should be published before the change comes into effect (Art 23(2), see also Paragraph 4of Box 7, CESR/09-949 and the Q&A for Art 13(2) in this paper).Art 11(1)(b)Q. The EU Regulation 583/2010 says, "with regard to 'ongoing charges', there shall be a statement that theongoing charges figure is based on the last year's expenses, for the year ending [month/year], and that thisfigure may vary from year to year where this is the case." Is it permitted to omit the explicit statement andinstead imply it by including a clear label on the table, such as "Ongoing charges for 2009"?A. No. The EU Regulation 583/2010 requires that a statement should be made and so it must be made explicitly.Art 13Q. If the ongoing charges are estimated, is a narrative statement that the ongoing charges are estimatedrequired and/or possible?A. Art 24(2) requires practitioners to disclose the fact that figures are estimated by including the statement, "Theongoing charges figure shown here is an estimate of the charges." See Art 24(2) for more detail.Art 13(2)Q. Are the provisions of Art 13(2) applicable only to recently launched UCITS or may they be applied to wellestablishedUCITS.A. The techniques referred to by Art 13(2) are available to all UCITS, no matter what their age. The intention of Art13(2) is to say that a newly launched UCITS which would be required by Art 13(1) to estimate its ongoing chargesshould not do so if it applies a fixed all-inclusive fee or if it sets a cap or maximum ongoing charge which it commits torespect.Q. In cases where the UCITS can comply with Art 10(2)(b) but the management company is willing to give acommitment to cap the charge at a maximum amount, must an ex-post expense figure always be calculatedand published or can a capped figure be published instead?A. If a fund is able to comply with Art 10(2)(b) then it must compute the ongoing charges figure on an ex-post annualbasis in accordance with CESR/10-674 and publish the result in the KID. Note that a portion of the ongoing chargesmay be met by the management company or any other party and be excluded from the ongoing charges figure (thuseffectively capping it) provided that the conditions of CESR 10-674 (for example, paragraph 7) are met. If themanagement company's policy is to cap ongoing charges, whether by explicit commitment to the fund or informally, itmay consider disclosing it in the KID but it is not obliged to do so and it must in any case publish the result of the expostcalculation. Note that Art 13(2), which also discusses capped ongoing charge figures, applies only to funds thatcannot comply with Art 10(2)(b) because, for example, they are new or because the ex-post result would not bereliable (Art 24(2)).Chapter 3, Content of Sections of the Key Investor Information DocumentSection 4, Past PerformanceArt 15Q. Are these sample presentations of past performance acceptable?ALFI KID Q&A, Issue 1314, 11 April25 September 2012 Page 22