Calculations

A PRIIPs KID (Key Information Document) is a standardised disclosure document required under EU regulation for packaged retail and insurance-based investment products. Asset managers must produce PRIIPs KIDs for products sold to retail investors across European markets, including investment funds, structured products, life insurance policies with investment elements, and derivatives. 

The document presents essential information about the product in a consistent three-page format covering objectives, risk and reward profile, costs, and performance scenarios. Manufacturers must ensure calculations comply with technical standards specified in Commission Delegated Regulation (EU) 2017/653, which prescribes exact methodologies for deriving performance scenarios, risk indicators, and cost disclosures across four product categories. 

FE fundinfo's Regulatory Calculations service performs all PRIIPs KID calculations in-house through our Centre of Excellence, ensuring accuracy across categories 1-4 products whilst maintaining comprehensive documentation that supports regulatory examinations. 

PRIIPs KIDs replaced KIIDs (Key Investor Information Documents) with more complex calculation methodologies designed to enable comparison across different product types. The critical differences affect three core areas: performance scenarios, risk measurement, and cost presentation. 

Performance scenarios under PRIIPs require probabilistic modelling across four scenarios (stress, unfavourable, moderate, favourable) using prescribed confidence intervals and historical data periods. KIIDs presented simpler past performance data. Risk measurement shifted from the KIID's SRRI (Synthetic Risk and Reward Indicator) to the PRIIPs Summary Risk Indicator, which incorporates credit risk alongside market risk and uses different calculation windows. 

Cost disclosure under PRIIPs demands more granular breakdown including reduction in yield calculations and cumulative cost projections across multiple holding periods. Transaction costs must be calculated using specific methodologies based on portfolio turnover and dealing spreads, creating significantly more complex data requirements than KIIDs required. 

Our Centre of Excellence maintains specialist knowledge of both calculation frameworks, ensuring accurate implementation whilst managing the transition complexity that affects many European asset managers. 

FE fundinfo supports comprehensive template coverage across European markets including Austria, Germany, Italy, Luxembourg, Belgium, France, Netherlands, Spain, Switzerland, and the UK. Each jurisdiction imposes specific requirements for performance presentation, cost disclosure formats, and risk metric calculations that extend beyond PRIIPs requirements. 

Key templates include Austrian fund fact sheets with TER disclosures, German BVI templates for cost transparency, Italian Modulo templates, Luxembourg simplified prospectus formats, Swiss Asset Management Association templates, and UK factsheet requirements. We maintain current knowledge of EMT (European MiFID Template), EET (European ESG Template), and SFDR (Sustainable Finance Disclosure Regulation) reporting requirements. 

The service adapts automatically when national regulators update template specifications or introduce new disclosure obligations. Your operations teams continue using familiar processes whilst we handle jurisdiction-specific complexity, ensuring compliant outputs across evolving regulatory landscapes without requiring you to monitor developments across multiple markets. 

Access to templates includes both calculation engine capabilities and formatted document production, creating end-to-end coverage from data validation through regulatory filing. 

Calculation accuracy depends on three foundational elements: proven methodologies, rigorous data validation, and comprehensive documentation. FE fundinfo's Centre of Excellence performs all calculations in-house using methodologies validated through thousands of implementations across 75+ jurisdictions. 

Every calculation maintains complete data lineage showing inputs used, transformations applied, and methodology selected. You can drill from final outputs back through intermediate calculations to source data with full transparency at every stage. When auditors or regulators question figures, you provide comprehensive documentation without requiring manual reconstruction of calculation steps. 

Data validation occurs before calculations commence, catching issues at source rather than discovering errors after documents have been produced. Validation rules are configured based on product type, calculation methodology, and jurisdiction-specific requirements. The platform applies statistical controls to identify outliers that may indicate data issues or genuinely unusual market conditions requiring attention. 

Independent validation ensures calculation methodologies comply with regulatory requirements before implementation and whenever material changes are made. Your internal audit teams can review validation documentation as part of their oversight of outsourced services, supporting governance obligations whilst reducing audit burden on operations teams. 

Regulatory calculations require four primary data categories: NAV and pricing data, portfolio holdings and transactions, fee and expense information, and product classification details. Data flows from your fund administrators, transfer agents, custodians, and portfolio management systems through flexible integration options including API, SFTP, email, or manual upload. 

NAV data must include daily valuations, share class pricing, and currency information. Portfolio holdings require security identifiers, quantities, valuations, and asset classification. Transaction data captures dealing costs, turnover rates, and subscription/redemption activity. Fee structures include management fees, performance fees, administration costs, custody charges, and other expenses that affect cost disclosures. 

The platform validates data quality at ingestion using rules configured during implementation to match your specific data structures. When data fails validation checks, the system alerts appropriate contacts with clear explanations of what requires correction. Data mapping is configured once during onboarding, then data flows automatically without requiring manual file preparation. 

Historical data requirements vary by calculation type. PRIIPs performance scenarios require five years of returns data where available. Cost calculations need 12 months of expense data. Risk indicators use prescribed look-back periods specified in technical standards. Our implementation team works with your operations to ensure all required historical data is captured during onboarding. 

The service supports complex product structures including umbrella funds with multiple sub-funds, master-feeder arrangements, fund of funds, share class hedging, and multi-currency dealing. Our Centre of Excellence has successfully onboarded asset managers operating hundreds of share classes across numerous jurisdictions with varying fee structures and distribution arrangements. 

Shared cost allocation across share classes follows your specified methodologies, ensuring costs are apportioned accurately based on asset levels, investor types, or other criteria. Performance calculations accommodate share class hedging, treating hedged and unhedged classes appropriately in scenario analysis and return calculations. Multi-currency products receive correct treatment in cost projections and performance scenarios. 

Complex doesn't mean slow. The platform processes regulatory calculations for thousands of funds monthly, demonstrating proven capability to handle enterprise-scale volumes whilst maintaining quality. Calculation logic is configured during implementation based on your product characteristics, then executes automatically on configured schedules. 

When unusual product characteristics require tailored approaches, our specialists apply regulatory knowledge and industry experience to determine appropriate calculation treatments. You maintain visibility into methodology selection through comprehensive documentation, ensuring transparency for compliance oversight and regulatory examinations. 

Regulatory change management operates as a core service component, not an exceptional activity. Our Centre of Excellence monitors regulatory developments across European jurisdictions, tracking consultations, final rules, technical standards updates, and implementation guidance from national competent authorities. 

When regulations change, we analyse implications for calculation methodologies, template formats, and data requirements. Methodology updates undergo validation before implementation to ensure accuracy and regulatory compliance. Template modifications propagate automatically to affected clients based on product types and target markets. 

Your operations teams receive advance notification of material changes with clear explanations of impacts and any actions required on your side. Implementation timelines follow regulatory effective dates, ensuring you remain compliant without requiring internal resources to track and interpret regulatory developments. 

This proactive approach extends beyond mandatory changes to include regulatory guidance, industry best practices, and technical standard clarifications. When regulators issue Q&A documents or supervisory expectations, we incorporate relevant learnings into calculation approaches and documentation standards. 

The service has successfully managed major regulatory transitions including the shift from KIIDs to PRIIPs KIDs, introduction of SFDR disclosure requirements, and ongoing MiFID II cost transparency enhancements. Your operations continue using familiar processes whilst we handle regulatory complexity behind the scenes.