Knowledge Base

Which MiFID II requirement structures the communication of the investment horizon to distributors?

The definition of the target market including the recommended horizon

The quarterly publication of past performance

The annual certification of managers by an independent body

The limitation of management fees to a maximum of 1%

Which document standardises the communication of the investment horizon under MiFID II?

The simplified prospectus (KIID)

The European MiFID Template (EMT)

The annual report of the managers

The Key Information Document (KID)

What is the recommended investment horizon for a money market fund according to market practice?

A few days to three months

Six months to one year

Two to three years

Five to ten years

What are the main criteria for determining a fund's investment horizon according to regulations?

Asset class, volatility, liquidity, management strategy and tax characteristics

Historical return, fund size, geographic region and fund manager

Number of clients, fund reputation, management fees and past performance

Manager's tenure, dividend policy, Sharpe and Sortino ratios

Tax characteristics should be conflated with the economic horizon when determining the investment horizon.

True

False

SRRI grid and investment horizon

Click to see answer

Categorize items by dragging them to the appropriate zones

Items to categorize:

Dominant asset class

Expected volatility

Liquidity of underlying assets

Management strategy

Tax characteristics of the vehicle

Categories:

Technical characteristics of the fund

Regulatory and tax framework

A fund with an SRRI of 5 requires an investment horizon of less than three years.

True

False