The UCITS KIID framework introduced the concept of “Absolute Return Funds”. For these types of
funds, there is no need to select an appropriate risk benchmark and the UCITS SRRI is determined in
its e

Question

The UCITS KIID framework introduced the concept of “Absolute Return Funds”. For these types of
funds, there is no need to select an appropriate risk benchmark and the UCITS SRRI is determined in
its entirety by the risk limit of the fund as well as the NAV history if sufficient data are available. Is
there any recommendation for how to consider “Absolute Return Funds” under the PRIIPs Regulation
– as regular or flexible funds? Additionally, in case these are flexible funds, is it required to produce
the VEV of the returns of the pro-forma asset mix for former Absolute Return Funds?

ESA Joint Committee (EBA, ESMA, EIOPA) · Accepted Answer

In the context of PRIIPs, specific provisions or guidance has not been developed concerning “absolute
return funds”. It needs to be considered whether or not the provision in Annex II, point 14 of the
Delegated Regulation concerning “flexible investment” approaches is applicable to the specific fund.

The UCITS KIID framework introduced the concept of “Absolute Return Funds”. For these types of funds, there is no need to select an appropriate risk benchmark and the UCITS SRRI is determined in its e

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