UCITS Performance Fees

General

1. Performance or incentive fees may be provided for in the prospectus.

Prospectus disclosure

2. The responsible person should disclose in the prospectus:

1. the calculation period for determining the fee;
2. the first calculation period;
3. how the performance fee is calculated, i.e. whether it’s calculated as per Regulation 40(1)(a) or (b) of the Central Bank UCITS Regulations;
4. the amount of the performance fee payable, i.e. the percentage payable; and
5. accrual basis of performance fee and when it is actually paid.

3. The responsible person should include a risk warning in the prospectus which provides that performance fee is based on net realised and net unrealised gains and losses as at the end of each calculation period and as a result, incentive fees may be paid on unrealised gains which may subsequently never be realised.

Multi-manager/adviser UCITS

4. For multi-manger/adviser UCITS, the responsible person should include a risk warning in the prospectus which provides that it is possible that incentive fees in respect of performance achieved may be payable to one or more of the investment advisers even though the overall net asset value of the fund may not have increased.

Issued: 5 October 2015
Latest revision: 6 June 2019