Since the launch of the UCITS framework, there has never been any real harmonisation of the application and disclosure of performance-based investment management fee models.
The calculation of a performance fee should be verifiable and designed to ensure proportionality between performance fee and the actual investment performance of the fund.
- A reference indicator;
- Crystallisation frequency;
- Performance reference period;
- Performance fee rate; and
- Performance fee methodology.
- Computation frequency
Effective date and transitional provisions
Applicability
The Guidelines apply to UCITS and AIFs marketed to retail investors, except for closed-ended AIFs and venture capital, private equity and real estate AIFs.