In the PRIIPs KID cost disclosures are required to be made in two tables as follows:
Table 1
Table 2 - Composition of costs
There is no deviation permitted from this format.
It is important to note that the costs are displayed on an annualised reduction in yield basis as opposed to a pure annual figure as per the PRIIPs KIID. Under the annualised reduction in yield method, the difference between the return of the shareclass should there have been no costs is compared to the return of the shareclass after the deduction of all costs. The growth rate assumed for the period is equivalent to the moderate performance scenario for the respective holding period.
Table 1 requires the disclosure at maximum of total costs, over 1, half RHP and RHP periods. This is subject to disclosure rules as outlined in performance scenario section, shareclasses with an RHP of less than 3 years have less disclosures to make. The total costs and the annualised reduction in yield % need to be disclosed here.
Table 2 requires the breakdown of the reduction in yield for the recommended holding period, into six different buckets, entry costs, exit costs, portfolio transaction costs, other ongoing costs, performance fees and carried interests.
See individual calculation sections for further details re the calculation of the portfolio transaction costs (here), other ongoing costs (here) and performance fees (here).
Past Performance Document
Since 3 January 2023, a Past Performance Document is required to accompany the PRIIPs KID. As there is no firm layout provided, providers are largely provided a document with an information section and the past performance graph section of the UCITS KIID. See the UCITS KIID section for contents of the Performance Graph Section
Historic Performance Scenario Disclosures
Since 3 January 2023, product manufacturers are required to disclose historic performance scenario information. This means in practice that monthly performance scenario information needs to be made available.
This can be done by preparing a document and adding a page for each month, or as is more common feeding the information to a client website where an investor and search by product and data for the desired information.
The disclosure content is as per the Performance Scenario Section of the PRIIPs KID.