law of 20 December 2002 - Alfi

II. Definition of elements of information of schedule Ca) objectives, investment policy and assessment of the UCITS’ risk profileIn the section short definition of the UCITS objectives, the simplified prospectusmust give a description of the objective the UCITS seeks to achieve. As the casemay be, it must mention the guarantees received from any third parties as well as therestrictions to such guarantees.For UCITS, whose objective is to reproduce the composition of a specific equity indexor bond index, the simplified prospectus must comprise, in addition to the aforementionedindications, information which permits the identification of the index or indicesand the degree of tracking sought.The section investment policy of the UCITS comprises, if this information is relevant,indications similar to the following:- the main categories of eligible financial assets,- information on whether the investment policy of the UCITS concentrates on certainmarkets (sectorial, geographical or others) or on certain types of assets (shares,bonds or others).The simplified prospectus of UCITS which make use of financial derivative instrumentsmust indicate if this type of instruments is used for investment policy purposesor for hedging purposes only. The simplified prospectus of UCITS which reproduce anindex must indicate the strategy which is pursued to achieve this objective.The description of the risk profile of the UCITS is qualitative. In addition to all thegeneral risks incurred by investors investing in a UCITS, it must describe the specificrisks which the UCITS incurs by reason of the specific investment policy or strategiesit pursues.In all cases, the simplified prospectus must comprise the following statements:- the investments of the UCITS are subject to market fluctuations and there is a riskfor the investor to eventually recover an amount lower than the one he invested,- a reference to the full prospectus for a detailed description of the risks mentionedin the simplified prospectus.If the UCITS is established as a UCITS with multiple compartments, such informationmust be provided for each compartment.b) historical performance of the UCITSThe historical performance of the UCITS is represented on a histogram 160 showingthe performance for the last three accounting periods. If the UCITS has existed forless than three years, the histogram presents the situation for the full past years. Theperformance must be calculated on the basis of the NAV, taking into account thereinvestment of dividends.If the UCITS is managed by reference to a reference index, a “benchmark” 161 , or ifthe fee structure comprises a performance fee depending on a reference index, thehistorical performance of the UCITS must be compared to the historical performanceof the reference index by reference to which the UCITS is managed or on the basis ofwhich the performance fee is calculated.160 The French version of the circular uses the word histogramme.161 It can be assumed that this provision is only applicable if the relevant benchmark is published in the UCITS’prospectus or periodical reports.202