KID (Key Information Document)

What is the Key Information Document (KID)?

The Key Information Document (KID), also called "PRIIPs KID" in English, is a standardized regulatory document at the European level that provides the main information and characteristics of a collective investment (fund, SICAV, SCPI, etc.).

The KID was introduced by the "Packaged Retail Investment and Insurance-based Products" Regulation (PRIIPs Regulation) 2014/1286/EC, supplemented and/or amended by the European Delegated Regulations 2017/653/EU, 2021/2268/EU, and 2022/975/EU.

What are the obligations of the PRIIPs KID?

This document provides investors with essential information regarding investment objectives, management strategy, risks, performance scenarios, and cost composition, so that they are able to understand the nature of the fund and the associated risks when making investment decisions. This 3-page document must be provided to the investor prior to any subscription.

The PRIIPs KID is updated annually on a date to be aligned with the fiscal year-end. In the event of a significant change concerning the funds, such as a modification of the investment objective, benchmark index, or management fees during the year, the PRIIPs KID must be republished to reflect this. The PRIIPs KID must also be updated when certain data are modified. This is, for example, the case when the SRI rating changes, or in the event of a deviation of more than 5% in absolute value from the intermediate scenario at any maturity.

An A4 format over 3 pages comprising 8 standardized and mandatory sections.

1 - General information

• Subject: Text of the prescribed DIC disclaimer, common to all PRIIPs DIC  
• Product
  • Name and ISIN/AMF code of the product  
  • Name and contact details of the PRIIPs initiator, namely the management company for the funds  
  • Name of the supervisory authority  
  • Document publication date  
  • Notice indicating that the product may be difficult to understand

2 - What does this product consist of?

• Type: Legal form of the product (e.g., UCITS, SICAV, FCP, or FCPE)  
• Duration: Lifespan of the fund and details on the fund's closure procedures.  
• AMF Classification: Representative of the fund's actual exposure.  
• Objectives: Objectives of the product and how they are achieved. The text must come from the fund's regulations (management orientation). For structured funds, this section includes the description of the formula.  
• Target retail investor: Description of the targeted client, their investment horizon, and risk level. First mention of the recommended investment duration.  
• Additional information:  
  • Redemption terms of the shares  
  • Information regarding the policy on distribution of income and realized net capital gains  
  • Address of the management company  
  • Name of the custodian and, if applicable, the name of the guarantor (for formula funds)

3 - What are the risks and what could it bring me?

• Risk indicator

This risk indicator, using a scale ranging from 1 (least risky) to 7 (most risky), is produced by combining market risk (the decline in the value of investments) with the issuer's credit risk (the possibility that the issuer may be unable to repay). This risk indicator (SRI) replaces the risk/reward indicator (SRRI) that existed in the previous KID. The risk indicator is supplemented by explanations of additional risks.

• Performance scenarios

Important: past performance is no longer presented in the new PRIIPs KID. It remains available on the website of your account holder on the fund's product sheet.

The potential gains/losses that can be expected from the product are presented according to 4 performance scenarios (a stress scenario, an unfavorable scenario, an intermediate scenario, and a favorable scenario) and 2 time horizons (after one year of holding, and at the end of the recommended holding period).

The stress scenario corresponds to an extreme financial market crisis situation, exceptional cases where the fund's performance can be strongly negative. The unfavorable, intermediate, and favorable scenarios presented are based on the worst, average, and best performance of the fund over the past 5 years. The scenarios must be calculated every month and made available on the management company's website.

4 - What happens if the management company is unable to make the payments?

Explanation of how the product's assets are held. Where applicable, a brief description of the coverage of a potential loss by a compensation or guarantee scheme.

5 - What will this investment cost me?

• Costs over time

This table displays over 1 year and over the recommended investment period of the fund:

• the total costs in amount for an investment of €10,000, that is to say all known applicable costs

• the annual impact of these costs on the return (expressed as a %)

Note that, over the one-year period, costs are calculated assuming that the fund's return over one year is zero. Over the recommended investment period, the assumption of an intermediate performance scenario is used. The total cost consists of all costs listed in the "Cost Composition" table.

• Cost breakdown

This table provides the composition of total costs over one year calculated in the "costs over time" table.

• One-time costs:

- Entry costs are the maximum entry fees mentioned in the prospectus at the discretion of the distributor.

- Exit costs are the maximum exit fees mentioned in the prospectus at the discretion of the distributor.

• Recurring costs:

- Management fees (paid to the management company) and other administrative or operational fees of the product (custodian, valuator, central securities depository, etc.).

- Transaction costs incurred during the acquisition and disposal of investments within the product (transaction commissions, brokerage fees, taxes, etc.).

• Ancillary costs:

Performance fees (when mentioned in the prospectus) charged by the management company under the conditions detailed in the product's prospectus.

6 - How long do I have to keep it, and can I withdraw money early?

• Recommended investment duration  
• Information on redemption terms and the impact on expected performance in case of exit before the end of the recommended investment duration

7 - How can I file a complaint?

Information regarding the complaint procedure

8 - Other relevant information

• Brief indication of any additional documents that may be provided to retail investors  
• Name of the account holder  
• Composition of the Supervisory Board  
• Link to the history of past performance as well as to the calculations of performance scenarios  
• Date of update of the PRIIP KID