UCITS Prospectus Disclosures  

General

1. In the event that a stated minimum viable size is not reached within a specified period the prospectus should state that the UCITS will return any subscriptions to the unitholders. 

Remuneration and Costs Arising

2. Regulation 61(1)(b) of the Central Bank UCITS Regulations states: 

“A responsible person shall ensure that the prospectus of the relevant UCITS includes:

(b)  the policy of the UCITS regarding direct and indirect operational costs and fees arising from efficient portfolio management techniques and instruments that may be deducted from the revenue delivered to the UCITS.”

These costs and fees should not include hidden revenue. The UCITS should disclose the identity of the entity(ies) to which the direct and indirect costs and fees are paid and indicate if these are related parties to the UCITS management company or the depositary. 

Index-Tracking Funds

3.      Regulation 57(1)(b) of the Central Bank UCITS Regulations states:
“A responsible person of an index-tracking UCITS shall include the following in the prospectus of the UCITS:

(b) information on how the index will be tracked...”.

This includes, for example, whether it will follow a full or sample based physical replication model or a synthetic replication model. 

Index-Tracking Leveraged Funds 

4. Regulation 57(2)(a) of the Central Bank UCITS Regulations states:
“A responsible person of an index-tracking leveraged UCITS shall include the following information in the prospectus of the UCITS:

(a) description of the leverage policy and how the leverage policy is implemented”.

This means disclosing whether the leverage is at the level of the index or whether it arises from the way in which the UCITS obtains exposure to the index. 
 
5. Regulation 57(2)(d) of the Central Bank UCITS Regulations refers to “reverse leverage”.  This means short exposure. 

Issued:  5 October 2015
Latest revision: 5 October 2015